What to Know About Collecting Commercial Debt

 Posted on March 27, 2025 in Debt Collection

If debt is a part of life, it is most definitely a part of doing business. Whether to finance startup costs or the growth of your company, or simply as a byproduct of day-to-day transactions, businesses generally will incur debt.  The problem for creditors arises when the commercial debtor stops paying invoices and defaults on the debt. Whether the creditor is a financing company specializing in lending to businesses or a small business that is owed money for goods or services it rendered, when another business does not pay back its debt, the creditor will want to collect on that debt as quickly and seamlessly as possible.

Business-to-business collection practices have unique considerations that make collecting on commercial debt different from collecting on consumer debt. There are unique challenges and considerations when collecting commercial debt. By speaking to an experienced Chicago, IL commercial debt collection attorney you can ensure that you maximize your chances of collecting on commercial debt and minimize losses.

How Is Commercial Debt Collection Different Than Consumer Debt Collection?

Ongoing Business Relationship 

Some of the more aggressive collection tactics available in business-to-business debt collection must be balanced against the need to preserve this relationship. At times you may face the prospect of collecting on a debt from a client with whom you wish to do business in the future or have an ongoing business relationship. This requires a more subtle approach, so that you can collect on the debt while maintaining the business relationship. 

Debt Amounts

Commercial debt amounts can be much larger than consumer debt, which means that not only is there probably more at stake but you may have to employ different strategies than are used in traditional debt collection. 

Complex Documentation 

There may also be a more complex story behind the nonpayment of debt, involving significant documentation including business contracts and email correspondence back and forth between you and the debtor. 

Applicability of Regulations

Some consumer protection laws do not apply to commercial debtors in the same way as they do to consumer debtors. The greater flexibility of regulations opens the door to additional tools that you can not use in consumer debt collection. For example, the Fair Debt Collection Practices Act (FDCPA) does not apply to commercial collections, opening the door to tactics such as skip tracing or calling more often that are not available when attempting to collect on a consumer debt. 

Credit Reporting

Credit reporting is key in consumer debt collection, but credit reporting in commercial debt collection is different, and commercial credit reporting is just one tool of many used by creditors to collect on commercial debt. 

Call a Chicago, IL Debt Collection Attorney

When businesses default on debt, you need skilled representation to ensure you successfully collect on that debt. This is when it can help to speak to an experienced Chicago, IL debt collection attorney. At Dimand Walinski Law Offices, P.C., we represent creditors in business-to-business debt collection. Call our offices for a consultation at 312-704-0771.