Do your Research

Before filing a lawsuit against a commercial account account, there should be a chance for recovery, otherwise it would be a waste of time and money to try to collect on that old accounts receivable. A creditor should obtain as much information as possible, not just from its credit application, but it should also conduct a search for tax liens, review a company’s corporate annual reports, etc. before agreeing to file suit against the debtor for an old balance. Using Internet search engines and services to obtain the latest information on a firm as well as reviewing the above information, just may save you, the commercial collection agency and the attorney handling the potential lawsuit time and money.