Business Debt Collections (Commercial Debt Collections)
If you are owed money out of a business transaction, then our collection services may be what you need. We only get paid if we collect what is owed.*
Filing a lawsuit does not get you paid. But a good strategy can get you paid.
Any lawyer can file a lawsuit to either pressure a party to pay or get a judgment. What I do is use my business and legal background across various industries and gained through hundreds of commercial situations to strategize a way for your company to get paid.
A “business debt”, or a “commericial debt”, or “trade debt” is any debt from a transaction for goods or services that are “not” for consumer use; consumer use would be a debt related primarily to personal, family, or household purposes; for example, credit card debt, car loans, lawn care, home contractor, and medical bills.
A business debt arises from a breach. Where one party provides a product or service that the other party has agreed to pay for but fails to pay for, that is a breach. This includes one party agreeing to pay back a loan, but fails to make payments.
A “business debt” (or “commercial debt” or “trade debt”) collection action can result from:
1. A written contract or agreement between two parties, where a payment term is not met following delivery of a good or service, with no defense for such; or
2. a verbal agreement (or oral contract) for a service to a business or for a business purpose that is performed, but for which payment is not made; or
3. a sale of goods for use in a business, without a formal, written agreement, for which payment is not made and a quid pro quo promise or formed contract can be proven, including by showing acceptance of goods; or
4. a purchase order – which is a legal contract- for a good or service for a business use, where there is no payment made, with no defense thereto; or
5. a loan made to a person or company for the borrower’s business purpose where there is a payment default, with no defense; or
6. a factored and sold receivable, with a past due payment.
We collect business debts from breaches of business agreements on a contingency-fee basis, meaning that we only get paid if we collect what is owed, *if litigation is avoided, or only on the portion of the debt that we are able to secure.
Call us if you’d like to discuss a situation where you are owed money that was loaned by you, or that was agreed to be paid under a contract for services or for the sale of products to another company, or arising out of a partnership dispute to see how we can help obtain the monies owed from your business transaction.
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Hiring a Debt Collection Agency vs. Retaining a Debt Collection Attorney:
-A collection agency seeks to get money, above all. An attorney seeks to reach a resolution without being offensive or causing ill-will.
-An attorney makes money in many ways- a collection agency has to aggressively pursue debts, as this is the only way it makes a living. So, the agency can offend your customer or client- if this is something that matters to you.
-A collection letter just demands payment. An attorney’s letter, from a qualified attorney, sets forth the law(s), terms, facts, and basis for the debt, which is a much stronger message to send when demanding payment.
-An attorney’s letter sends the message, without even needing to actually say it in the letter, that a lawsuit may be coming next. A collection agency has no such power. In fact, it sends the message that you, the owner of the debt, do not want to pay a lawyer, or that a lawyer would not take the case, and that you may not proceed further if the collection agency fails.