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Feb
09

Yet Another Discipline of A Business Litigator

As a commercial collection attorney, I am often asked what the difference is between a commercial collection attorney and a retail collection attorney. Commercial refers to business to business, as opposed to retail, which is business to person.

The next inquiry is what is the difference between a commercial collection situation and a breach of contract situation? To answer that question, I must first answer the question, what is a breach of contract? A business contract creates certain obligations that are to be fulfilled by the parties who entered into the agreement. Legally, one party’s failure to fulfill any of its contractual obligations is known as a “breach” of the contract. Depending on the specifics, a breach can occur when a party fails to perform on time, does not perform in accordance with the terms of the agreement, or does not perform at all. So, how does this differ from a commercial collection situation? Generally, money is at the crux of the situation. Commonly, the right and/or remedies in a commercial collection situation are already well established. The only major issues are how much is owed by one business to the other business and what is the likelihood of success for collection of that debt. In other words, the contract has already been breached.

Commercial debts are not like fine wine; they do not become better with age! Small/medium businesses tend to hold on to their commercial accounts far too long. The chief advantage of turning over an account to a commercial collection attorney is an increased likelihood of a successful outcome. The old expression, the squeaky wheel gets the grease, rings true.

What makes a good commercial collection attorney? The immediate reaction is the one who gets the money back. That may seem to be the correct answer, but the better answer is one who can accurately review the quality of the potential claim, which actually means its ultimate collectability. If the claim is eventually uncollectible, a business is better off to cut its losses and move on. Why spend good money and resources when, at the end of the day, the business will get nothing? Sometimes this is an emotional decision. But it should not be; it is a simple cost analysis. Should one spend more time, money and energy, only to get little, if anything, in return? Additionally, pursuing a claim also means that the business may be spending time and effort away from its main goal, namely growing and developing the business.

A seasoned commercial collection attorney is your best defense against being taken advantage of either as a creditor or as a debtor. Such an attorney can help come up with strategies either to get you the money that you are owed or to protect you from overeager creditors. If you are a creditor, a commercial collection attorney can help you develop a strategy to put you in the best possible position to be able to recover any money due the company. If you are a debtor, a commercial collection attorney can help provide advice to try to protect your assets and offer alternatives to resolve the situation.

At the end of the day, I, as a seasoned commercial collection attorney, thoroughly investigate my business clients’ commercial/corporate goals and apply my many years of experience to provide advice based on principled thinking that not only has their backs, but their futures, too. If you are caught in the crosshairs and need someone to talk with, call me at (781) 237-0033 x236 or email me at ssk@kongreen.com.