If your business has sent bad debt accounts off to a collections agency, you likely have questions about recovering that debt. Typically, commercial collections agencies only charge a fee if they're able to collect. The agency should also be transparent about the collections process and the documentation along the way. But you may also be wondering how long they'll work on your behalf before you take the case to court.
How Long Can a Collection Agency Attempt to Collect Business Debts?
When is the Best Time to Collect Business Debt?
As a best practice, the earlier your client knows their debt is past due, the more likely they will pay. There's no need for alarm earlier in the first party collections process, however, if your client is pushing back or your business is unable to collect or settle the debt within 90 days, a professional collections agency can help.
Is there a Statute of Limitations on Business Debt Collection?
There actually is a statute of limitations on business debt but it varies by state. Depending on the type of contract or agreement, the statute of limitations can differ by years. Credit.com offers a helpful state-by-state list for businesses to refer to. Remember, however, that the collections agency may not actually be running down your debt for years without suggesting legal action at some point.
When is the Appropriate Time to Sue?
As part of the commercial collections services offered by Enterprise Recovery, we will work with your company to determine when is the best time to litigate against your client. Our legal review will also help to identify:
- the documentation required to prove your case
- legal jurisdictions and the court to file
- if attorney and other legal fees can be collected as well
- any bankruptcy filings or other defenses of your debtor
- placement with a law firm or attorney
Our professional team will also assist with filing the necessary forms necessary and assist with the transition of the account to counsel. Your business debts don't have to wither away, uncollectable. Enterprise Recovery will guide you through the process so you're not left to fend for yourself.
When you use a professional collections agency to collect business debts, consider one who understands your hard-earned business relationships and one that will protect your brand. Let us know how Enterprise Recovery can work for you.