How Large Businesses Can Take Legal Action for Unpaid Debt

While small businesses must often navigate a delicate balance regarding their budget to stay afloat, that doesn’t mean that large companies can afford to take losses. When a large company loses out on earned income, the amount of money that goes missing could be enormous, especially considering the accumulation over a year.

In either case, whenever you’re facing a loss due to unpaid debts owed to your company, your best friend is a collection agency for large businesses because only an experienced debt resolution professional can recover your money fast.

Kinds of Debt You Could Face

The most common type of lost income for large businesses occurs in B2B partnerships. Debt in itself is not a bad thing for a business to encounter. Large businesses often take advantage of the opportunities provided by offering other companies goods or services while allowing them to pay later. This business relationship benefits both parties since it prevents delays that might otherwise be involved in waiting for payments to clear.

The problem with working with large businesses arrives when debts go unpaid past their agreed deadlines. While large companies often include a dedicated accounts receivable department for the purpose of limiting overdue payments, it is all easy for unpaid invoices to go unnoticed, even when their agreed-upon deadlines come and go.

Collecting Commercial Debts without Alienating Clients or Business Partners

At Summit A•R, our team holds fast to the policy that the key to successful debt resolution lies in ethical and respectful conduct with all parties involved in a dispute. Abiding by a policy for ethical debt collection helps to facilitate negotiations because it demonstrates to the delinquent who owes a debt that we are interested in helping them to resolve the issue rather than working against their best interests.

An ethical policy facilitates better communication between parties so that debts can be resolved faster. It also helps to maintain business relationships even when working with large businesses since the person involved does not feel alienated.

In recent years, unforeseen circumstances caused countless businesses to struggle with debts. Now, more than ever, it is easy to see that those unable to pay the commercial debts they owe often end up in that position due to no malicious intent on their part.

Unfortunate circumstances are no reason to damage your relationship with a valued business partner. When you work with a company with a strong focus on friendly debt collection, you’ll be in a situation to have your cake and eat it, too, since you’ll regain the money you are owed without burning bridges with your valued business partners.

When Legal Action is Required

There’s rarely a need to pursue legal action against a client when you work with a team with the success record you’ll find at Summit A•R. That said, avoiding legal action is not possible in every case. In a situation where your case requires legal action, you’ll get the benefit of full-service litigation with the help of our team.

Once all of the other efforts of our highly successful collection strategy have been exhausted, your case will gain the benefit of our litigation program for large businesses. This process will involve the following:

• Private Investigation into the Financial Situation of the Individual or Entity
• Assessment of Their Potential for Bankruptcy or Insolvency, Including Likely Next Steps
• Possible Referral to an Attorney

In rare cases where bankruptcy or another issue means that collection is impossible, our clients are not required to pay for these services. In such situations, the account will be reassessed for a new strategy. While this outcome may not appear highly positive at first glance, it will inevitably yield additional information regarding the delinquent that will benefit the case. Alternatively, in the case we recommend full litigation efforts, you’ll have the power to authorize this further action and get your say on how to move forward.

Free Your Time

Should your case move to full litigation, this step will not occur right away. As mentioned, our team will first utilize every effort to settle out of court by resolving the debt with the individual or entity in question and returning your money as quickly as possible.

One of the most significant benefits of working with a commercial collection agency is that turning the case over to professionals will allow you to get back to your regular work without the need to constantly worry about overdue accounts. 

Acting Fast

The longer you wait to pursue uncollected income, the more likely it will become that legal action will be required. Our commercial debt collection strategies are honed and practiced through many years of success in returning millions of dollars to large businesses.

However, at the end of the day, there is no perfect solution to unresolved debt between business partners. If you want to gain the best chance you can have at avoiding litigation and getting your money back fast, you must allow our team to get to work on your case as soon as possible.

Outsource Your Accounts Receivable

Even when you already have an accounts receivable team working on overdue income, you can contact us at Summit A•R to provide extra support to your in-house collection efforts. Allowing your employees to work with our team of experts can improve your company’s collection strategies to help prevent overdue invoices in the future.

Additionally, you might also want to consider hiring our team to continually work for you on preventative strategies to ensure you don’t have to face a delinquent account in the future, let alone the possibility of requiring legal action against your valued business partners.

Nobody running a large business wants to face a situation where legal action is a must. In an ideal situation, our team will be able to put our ethical commercial collection strategies to work to return money to your company quickly and amicably. The best way to give yourself a better chance to make this situation happen is by not delaying contacting us when you have a problem with an overdue account.

If you’re considering legal action against a business partner or client due to lost income, get in touch with us. You may be able to avoid it.