The Preferred Group of Tampa
Small Business Debt Dilemmas

1 in 4 companies have trouble collection payment from customers
of those companies who have trouble payment...
49% wrote off bad debt this year
To protect their business
53% use legal contracts
30% use a paper trail
10% use non-written methods
7% use 'other'
43% have customers who are more than 90 days late on payments.
To resolve late payment issues
34% call customers
30% send formal demand letter
28% write an email or letter
10% other
Commercial Collection Agency
Debt collection should be moved to litigation using a third party when:
The debtor has assets to protect but does not believe the creditor will pull the trigger on litigation
The amount in controversy exceeds $10,000. The $10,000 threshold is a general rule based on the economics of litigation.
The debtor does not appear to want to file for bankruptcy or close it's doors.
The creditor is able to designate someone in the organization who has time to work with counsel during the pleading process, the discovery process and the pre/post trial process.
Someone at the creditor with information about the matter will be able to, if necessary, appear at the trial as a witness to present the creditor's case.
It is clear that the debtor is liable for the amount due.