Giving credit to customers is a necessary part of almost every business, and with credit comes
the business of collections. Being a creditor is no problem if customers pay on time – but what
happens when a customer stops paying on time or altogether?
Your first step in granting a new customer credit is to have them fill out a credit application and
credit agreement. These documents protect you, and make it easier for you to collect if legal
action ever becomes necessary.
Writing off a certain amount of bad debt is fairly standard practice in every business, and you
should balance the amount of bad debt with the total accounts receivable to determine if a
certain debt is worth pursuing. If it is, and you have already taken the routine measures of
sending follow-up notices with no response, then you should consider engaging a business debt
collection attorney to write demand letters to your bad accounts, demanding that they fulfill
their contractual obligations to pay what is owed. A business debt collection attorney can often
resolve bad debt issues for you without litigation, or at least help you determine if pursuing a
deadbeat customer in court will be worth it in the long run.
The Jayaram Law Group is a Chicago business law firm providing a range of legal services
to middle-market businesses, with an emphasis on business litigation, business to business
collections, local counsel representation, preparation and review of business transactions, and
copyright and trademark licensing.
The Jayaram Law Group routinely and successfully assists its clients in their business-to-
business (B2B) collection needs. We take pride in obtaining payment on accounts receivables without
fracturing critical business relationships or engaging in time-consuming and costly litigation
efforts. If you need business debt collection services conducted in a professional manner,
contact our B2B debt collection law firm.