Have questions about recovering unpaid business invoices? Find answers to common questions about commercial collections, B2B debt recovery, collection costs, past-due accounts, private investigators, attorneys, and international debt recovery.
Do I need to sign a contract to use a commercial collection agency?
No. Lida Business does not require clients to sign a long-term contract to use our commercial collection services. We are confident in our ability to collect your accounts and that will insure us your repeat business in the future. You can place qualifying B2B collection accounts with us as needed.
Are there any upfront charges with Lida Business?
No. Lida Business does not charge upfront fees for our commercial collection services. Our fee is contingent upon successful recovery, meaning we only earn a collection fee when money is recovered on your account.
What information do I need to place a commercial collection account?
To place a commercial collection account with Lida Business, provide as much information as possible about the debtor and outstanding balance, including the business name, contact information, amount owed, invoices, statements, contracts, purchase orders, correspondence, and any other documentation related to the debt. The more information available, the better our team can evaluate the account and develop an appropriate recovery strategy.
Can Lida help recover merchandise or products instead of payment?
Yes. Depending on the circumstances, Lida Business may assist with the recovery or return of merchandise when appropriate. Each account is evaluated individually to determine the most effective resolution, whether that involves recovering payment, merchandise, or another acceptable arrangement. Lida Business charges half of the rate your company is charged for the value of returned product. (Only if client agrees to accept the return).
When should I send an unpaid business invoice to a collection agency?
Businesses should consider placing an unpaid invoice for collection as soon as warning signs appear that payment may be at risk. These can include broken payment promises, unanswered calls or emails, repeated disputes, or a customer suddenly becoming difficult to reach. As a general guideline, accounts that remain unpaid 90–120 days past due should receive serious consideration for professional collection. Acting sooner can give a collection agency more opportunities to locate the debtor, establish contact, and pursue recovery before the situation deteriorates further.
Does Lida Business collect consumer debt?
No. Lida Business specializes exclusively in commercial collections and B2B debt recovery. We focus on recovering debts owed by businesses rather than consumer accounts, allowing our team to concentrate on the unique challenges involved in commercial debt recovery.
Yes. Lida Business handles international commercial collection accounts and works to recover unpaid B2B debt from businesses located outside the United States. Through our international resources and network of collection professionals, investigators, and attorneys, we can develop a recovery strategy based on the debtor’s location and the circumstances of the account.
How much does a commercial collection agency charge?
Commercial collection agency fees can vary depending on factors such as the age of the debt, account balance, debtor location, and complexity of the account. Lida Business works on a contingency basis, so there are no upfront collection fees. Our collection fee is earned when we successfully recover money on your account.
How does a commercial collection agency work?
A commercial collection agency helps businesses recover unpaid debts from other businesses. Lida Business begins by reviewing the account and available documentation, researching the debtor, and developing an appropriate collection strategy. Our recovery efforts may include direct communication with the debtor, investigative resources, and, when necessary, access to our attorney network.
How are private investigators used in commercial debt collection?
Private investigators can provide valuable information and instill a great sense of urgency during the commercial debt recovery process. Lida Business utilizes investigative resources to help locate debtors, research businesses and assets, verify information, and develop a clearer picture of a debtor’s financial circumstances. When appropriate, investigators may also assist with direct field contact, giving our collection team additional resources to pursue recovery.
When does an attorney become involved in commercial debt collection?
Legal action is generally considered when traditional collection efforts have been unsuccessful and the circumstances of the account justify escalation. When appropriate, Lida Business Solutions can utilize its established attorney network to evaluate potential legal remedies. This provides our clients with access to experienced legal resources when an account requires more than standard collection efforts.
Will using a commercial collection agency damage my relationship with my customer?
Not necessarily. Professional commercial debt collection is focused on recovering what is owed while maintaining appropriate business communication. Lida Business evaluates each account individually and develops a collection strategy based on the circumstances, with the goal of resolving the outstanding debt professionally whenever possible.
Can a collection agency recover old commercial debt?
Yes. Older commercial debts can sometimes still be recovered, although collection generally becomes more difficult as an account ages. Factors such as the age of the debt, available documentation, debtor location, financial condition, and applicable legal time limits can affect recovery options. Lida Business evaluates each account individually to determine the most appropriate collection strategy.