Collecting a B2B debt in the United States looks simple from the outside: send a demand letter, escalate if ignored, file suit if necessary. But the reality is messier. You're not collecting in one country—you're navigating fifty separate legal jurisdictions, each with its own statutes of limitations, interest rate rules, licensing requirements, and court procedures. A Delaware LLC operating out of Texas and banking in New York isn't unusual. It's the norm.
This guide walks you through our Federal Protocol™—a structured 5-phase approach that works whether your debtor is a Fortune 500 corporation or a mid-market manufacturer. We'll cover entity verification, state-specific considerations, and what actually moves the needle in US commercial collections.
Why US B2B Collections Are Different
The United States presents unique challenges that no other market quite replicates:
🔴 COMPLEX — Delaware: 66%+ of Fortune 500 companies are incorporated in Delaware but operate elsewhere. Your debtor's registered agent address tells you almost nothing about where to serve process or enforce judgments. Multi-state routing is required from Day 1.
🔴 COMPLEX — California: SB 1286 and consumer-protection crossover regulations create the longest timelines and highest compliance burdens. Debt collection licensing (CFDCL) is mandatory, and violations carry significant penalties.
🟡 MODERATE — New York: The Commercial Division in Manhattan is efficient for larger claims, but the backlog in other boroughs and upstate courts varies dramatically. Financial sector debtors often have sophisticated legal teams ready to contest.
🟢 FAST — Texas: Four-year statute of limitations, business-friendly courts, and streamlined procedures. Energy sector volatility means timing matters—collect before the next downturn.
🟢 FAST — Florida: Service of process rules are straightforward once you understand the nuances. Tourism and real estate cycles create predictable payment patterns—and predictable problems.
The Federal Protocol™: How USA B2B Collections Actually Work
5-phase state-aware collection for US B2B with compliance-first approach
Entity verification via Secretary of State, PACER litigation check, document completeness audit.
- Secretary of State business lookup
- PACER check for existing litigation
- Document completeness audit
State-compliant demand letter with cure deadline and clear payment terms.
- Draft state-compliant demand letter
- Set explicit cure deadline
- Include payment remittance details
Collections agency referral warning with documented escalation path.
- Send escalation warning letter
- Document all contact attempts
- Prepare agency referral package
Decision memo with state-specific legal options and cost-benefit analysis.
- Prepare decision gate memo
- Analyze state-specific options
- Cost-benefit assessment for legal route
Route via State/Federal Court or collections attorney based on claim value.
- Small claims for under $10-25k (varies by state)
- State court for larger claims
- Federal court for diversity jurisdiction
⚖️ Route via State/Federal Court or Collections Attorney
The USA Evidence Pack (Multi-Industry Edition)
Manufacturing
5 documents required
What If You Delay? The Cost of Waiting
🇺🇸United States Collection Delay Simulator
See how delays at each stage of the Federal Protocol™ affect your recovery time
Results
Total Timeline
110 days
Interest Accrued
$1,507
@ 10.00% p.a. (State-specific (avg ~10%))
Cases over 90 days see 35% lower recovery rates
Calculations based on $50,000 invoice value. Actual interest may vary based on contract terms.
State-by-State Collection Speed
Not all states are created equal. Court efficiency, procedural requirements, and debtor-friendly rules vary dramatically:
🟢 FAST — Texas: 4-year statute, streamlined procedures, business-friendly courts. Energy sector claims require quick action due to market volatility.
🟢 FAST — Georgia: Efficient court system, reasonable filing fees. Manufacturing and logistics hub means high volume of B2B claims.
🟢 FAST — Nevada: Business-friendly jurisdiction, efficient courts. Quick enforcement once judgment obtained.
🟡 MODERATE — New York: Manhattan Commercial Division is efficient; other boroughs slower. Financial sector sophistication means prepared opposition.
🟡 MODERATE — Illinois: Chicago courts handle high volume. Manufacturing and commodity claims common.
🟡 MODERATE — Florida: Service of process rules create early friction. Once served, process moves reasonably. Real estate sector timing matters.
🔴 COMPLEX — California: SB 1286 compliance, CFDCL licensing, longest timelines. Consumer-protection crossover creates additional requirements even for B2B. But also the largest market—unavoidable.
What Works vs. What Fails in US Collections
Frequently Asked Questions
Sarah Lindberg
International Operations Lead
Sarah coordinates our global partner network across 160+ countries, ensuring seamless cross-border debt recovery.
