blue pattern page header

Commercial Collections


Commercial Industry Collections

Commercial collections, also known as B2B (business to business), are much different than consumer collections, often referred to as B2C (business to consumer). Often there are underlying issues and disputes that allow a customer to delay payment or not pay at all. 

Maybe the customer is quietly going out of business or about to file bankruptcy. Maybe there is some element of fraud involved. It’s important that this information is discovered as soon as possible. 

Too often when situations are allowed to go unresolved for an extended period, it’s too late and the damage has been done. Smaller businesses can’t afford not to get paid in a timely manner. It’s even more critical when the amount of money owed is quite large. It can be devastating to a startup or small business if they aren’t being paid on time.

employees talking after meetingtop patternblue pattern

Understanding the Dynamics of Commercial Collections

The process used for different types of collections varies by industry. Here’s a general overview of the details of commercial collections.


Unraveling Commercial Collection

Commercial collections aim to recover invoices that one business owes to another. When B2B companies perform a service or sell a product, both businesses agree to payment terms. The company providing the service sends an invoice from its accounts receivable department to the other company’s accounts payable department. 

The business that sends the invoice expects the receiving company to pay within the contractually stated time frame. “Net 30” is a common contract term, meaning that the company has 30 days from the receipt of the invoice to make the payment and still be in good standing. When a long time passes without payment, the business may turn to in-house collections or send the debt to an outside collections agency. In either case, the goal is to get the company to repay the invoice through collections.


The Crucial Role of Commercial Debt Collection

Businesses need a steady cash flow to keep their operations running. When a business lacks the cash flow to pay its regular operating costs, its expenses may quickly exceed its income. Despite the need for steady cash flow, collecting from businesses takes time and effort. Commercial collections specialists aim to ease the debt collection process to keep funds moving.


Commercial Collections vs. Consumer Collections: Drawing the Differences

While consumer and business collections have some similarities, they also have unique differences. Here are the main ways commercial collections are different:

  • Expected payments are often times larger, which can have significant effects on cash flow.
  • There is no regulation by the Fair Debt Collection Practices Act, though some collection agencies need state licensing.
  • Communication occurs through the accounts payable department or sometimes even the contracts department rather than an individual.

Navigating Challenges in Commercial Debt Collection

Commercial debt collection is complex. Having a professional partner can ease the process. 

Most companies don’t have the resources, infrastructure or time to work through complicated account issues. They need to be focusing on their core business of selling products and providing their services. 

A professional B2B agency will have the staff with the needed education and negotiation experience to work through complicated accounts and large financial problems. Disputes with purchase orders, invoices, returned products, sales tax and freight charges may slow the collection process down. The need for effective negotiation, mediation and sometimes arbitration are often a necessary part of the debt collection process.

white background

Southwest Recovery Services: Offering Tailored Solutions to Commercial Collection Challenges

Partnering with an outside commercial collection agency is highly recommended. An agency staff will have the education and negotiation experience to work through complicated accounts and large financial problems. 

Southwest Recovery Services understands how to effectively assess and manage commercial accounts for companies from almost every industry, whether small or large. Our success rates are well above the industry average due to our highly trained agents who specialize in business-to-business collections and the collection and resolution of large debts. Plus, we know how to work through issues and get accounts resolved without risking the market reputation of our clients. We are professional and ethical and get the results you need.

a group of experts analyzing project datatop patternblue pattern

Mitigating the Risk of Nonpayment With Online Commercial Collection Services

In Southwest Recovery Services, you have a reliable partner that enhances your debt collection process and keeps funds moving through your business. We use technology to provide a better experience for businesses that come to us for collections. An online portal lets you see real-time activity in the debt collection process. It also allows for secure file exchange and other benefits, enabling you to check in on debt collection anywhere. 


Offering Commercial Collection Services in Texas and Beyond

Wherever your commercial business operates, Southwest Recovery Services can assist with collections. We’re known nationwide for our debt collection approach, and we serve customers from 11 locations across the country:

white background with dots
client meeting
i pad discussion

Get in Touch

Southwest Recovery Services provides commercial and consumer debt collections nationwide from our offices across six states. Our expertise allows us to meet the challenges of this industry. We manage collections so you can focus on other core business activities. 

Reach out to our team to learn more about our commercial collections expertise.

Get In Touch