As a business owner, it may be tempting to act as your own debt collector for commercial (business) loans or outstanding debts. For example, suppose you advance funds to a certain vendor and the vendor delays paying you back for several months. You will likely send gentle reminders and then make more aggressive pleas as time goes on and you seek repayment. Eventually you will want to take matters into your own hands.
Some business owners quickly realize that informal methods to collect on outstanding accounts are generally not effective. At some point, especially with a sizeable debt, it makes sense to hire an experienced collections lawyer to represent the business owner in commercial collection efforts.
For many business owners, taking on debt is part of the cost of doing business, especially in the beginning. For example, businesses may find themselves putting business expenses on credit cards, borrowing money to purchase equipment and other assets, and / or using lines of credit to make improvements or renovate the business' physical space.
One of the challenges for many business owners is ensuring accounts receivable are current. If your clients or suppliers' accounts are past due, you may consider calling a firm to assist with commercial collections. Indeed, timing is often critical in debt collection matters. Some business creditors worry that by the time they collect, the borrower will have liquidated any assets that can be used to repay the loan. While legal procedures can slow down or stop a borrower from destroying assets, the most important part of reacting to a borrower's refusal to pay a loan is to seek immediate and experienced legal counsel.