You Owed Them Too Much Money

Category: Finance, Credit.

Those trying to repair their bad debts and get back their financial footing face an uphill battle if it is a small business to which they owe money.

Small businesses do not have the luxury of long money and leverage. Big businesses can suffer your shortcomings a bit longer because of the money and leverage they have behind them. So they adopt a more aggressive approach when attempting to recoup their money. Small businesses do not play if you owe them a fairly substantial amount. In addition, they have much more to lose than the big guns. They will send the bloodhounds to track you down very early in the game. They get progressively terse if you fail to respond.

Their initial letters are polite but firm. The best advice is always for you to respond. Go in and work something out with them. Say something to them. You have to remember that when you originally applied to them for credit they made you jump through every hoop. They had your permission to conduct a formal credit check and to perform a business check of your name.

You gave in your six or so references. When they found that you in fact did have previous bad credit, they insisted that you find a stable financial guarantor. They even had a system in place that identified you as owing money much sooner than you were comfortable with. Do you remember all that you went through to get this line of credit? They called you and sent you a series of letters, all to no avail. How about the written agreement that you signed to pay on time? They even sent a letter outlining a course of legal action which they did not desire to take.

Remember, it is the agreement that stated that you do not own what you purchased until it was fully paid. Then came your excuses for non payment, your pitiful excuses. The small business had a good hunch that you were going to be a problem when you suddenly became difficult to contact. You even had the audacity to offer partial payment as a deal! When that happened they took swift action. The cruncher came when your rubber checks started to bounce all over the place.

You owed them too much money. As the longer things drag out, the more the scales tip in your favor. They did not want this to drag out too long. They are vigorously trying to resolve this issue as early as possible. There is no need for a big time lawyer as you are allowed to represent yourself and this situation will be resolved in a flash. You finally take them to small claims court since they handle amounts under ten thousand dollars.

Its best not to deal with your debt this way. After all, it is your credit that you are playing games with. Talk to them, discuss matters with them, communicate with them.

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