top of page
  • 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.

1 view0 comments
bottom of page