If collecting debts owed to your business is draining your time, patience, and resources, it’s time to consider hiring a professional. The internet is awash with ads for collection agencies that promise to obtain money for you, but their harsh and aggressive collection techniques could reflect badly on your business. That’s why it’s important to hire a reputable collection attorney that knows how to collect B2B debt properly.
Hire A Law Firm That Specializes In Collecting B2B Debt
Collection agencies aren’t lawyers. All agencies can do is send letters and call debtors. This method is rarely successful for collecting B2B debt because someone usually screens the mail and phone lines to keep debt collectors from bothering the responsible parties.
They make their money on high volume. If they don’t have an easy time with your debt, they’ll just call the next debtor on their list. Whereas law firms that specialize in collecting B2B debts know how to effectively investigate, negotiate, and litigate debt collection matters.
The First Step Is Investigation
Understanding the financial health of the debtor is crucial when developing a debt collection strategy. New York B2B collection attorneys use public records and legal subscription databases to determine the assets and liabilities of the company that owes the debt. If the business is on the rocks, it’s important to try to collect the debt quickly, even if it means settling for a substantial discount. Once a company files for bankruptcy, you’re likely to collect pennies on the dollar or nothing at all. Even if the company doesn’t file for bankruptcy, there’s no point in going to the expense of taking a lawsuit through judgment if there is nothing to collect. If the company has substantial assets and is in good financial standing, a more aggressive approach can be initiated with strong letters, phone calls, emails, and even office visits. Experienced collection attorneys settle many cases before filing lawsuits by using sophisticated negotiation techniques.
Filing A Lawsuit for B2B Debt
If a commercial debtor won’t pay their bill, you may need to file a lawsuit to collect the past due receivable. For large debts, the best B2B attorneys obtain pre-judgment remedies that attach assets or preserve the status quo. This prevents the fraudulent transfer of assets so money is available to pay your judgment once it’s obtained. When the evidence clearly shows the business owed money on a valid contract and failed to pay, it’s sometimes possible to get the court to order summary judgment prior to trial, which gets you the money you’re owed faster.
If you’ve sold products or services to a business and they’re not keeping their end of the bargain, it’s likely time to reach out and get professional help. Hiring a B2B collection attorney is the smart way to get what you’re owed.
For more information about collecting commercial debts, contact Frank, Frank, Goldstein & Nager for a free consultation.