Many business owners believe collecting a commercial debt is a free-for-all. It’s a dangerous assumption. While federal rules often don’t apply to B2B debts, that doesn’t mean there are no regulations. Crucial state-level commercial debt collection laws, especially Missouri’s business debt collection laws, absolutely set the standard. Ignoring them can lead to serious legal trouble. This guide cuts through the confusion. We’ll outline the essential b2b collections best practices you must follow to recover what you’re owed without crossing legal lines, and when it might be time to call a professional missouri collection agency.

Key Takeaways

Focus on Missouri Law for Business Debts: The federal FDCPA doesn’t typically cover B2B collections, so your actions are governed by state rules. Be mindful of Missouri’s statutes of limitations—10 years for written contracts and 5 for oral—and the strict anti-fraud rules of the Merchandising Practices Act.
Create a Compliant Collection System: Your best protection is a solid process. Keep detailed records of all communications, train your team on legal collection methods, and have a clear procedure for handling disputes to prevent simple issues from becoming legal problems.
Prioritize Professionalism and Know When to Call an Attorney: While you have more flexibility in B2B collections, maintaining a professional and ethical approach protects your reputation. For unresponsive debtors or complex legal questions, working with an experienced attorney is the surest way to recover funds while staying compliant.

Missouri’s Business Debt Collection Laws: What You Need to Know

When you need to collect a business debt in Missouri, you’re working with a mix of federal standards and state-specific rules. Understanding this legal landscape is the first step toward recovering what you’re owed without creating new legal problems for your business. The process isn’t always straightforward, as Missouri law has some unique characteristics that set it apart from other states.

Knowing the difference between federal guidelines that apply broadly and the specific statutes that govern contracts in our state will help you form a clear and effective collection strategy. It’s all about knowing which rules apply to your situation so you can act confidently and ethically.

Federal vs. State Rules: What’s the Difference?

Missouri doesn’t have a single, comprehensive state law that covers all debt collection activities. Because of this, the main guidelines often come from the federal Fair Debt Collection Practices Act (FDCPA). This law was created to protect consumers from abusive, deceptive, and unfair collection tactics. While its rules are aimed at third-party collectors pursuing personal debts, its principles of fair dealing are a great benchmark for any collection activity.

Where Missouri law gets very specific is with deadlines. The statute of limitations—the legal window you have to file a lawsuit to collect a debt—is crucial. For most written contracts, you have 10 years to take legal action. For oral or unwritten agreements, that timeframe is shorter, at just 5 years.

What Makes Missouri’s Regulations Unique?

A critical distinction in Missouri law is the difference between collecting from a consumer and collecting from another business. The federal FDCPA generally does not apply to commercial, or business-to-business, debts. This means that when you are trying to collect from another company, you are not held to the exact same communication rules as a collection agency pursuing a personal credit card debt.

Furthermore, Missouri does not require commercial debt collectors to be licensed by the state. This lack of direct government oversight puts the responsibility squarely on your shoulders to operate legally and ethically. Since there isn’t a specific rulebook for B2B collections, your rights and responsibilities are primarily defined by contract law and the terms of your agreement. This makes having an experienced attorney for creditor representation essential to guide your actions.

Collecting Debts in Missouri: Your Rights and Responsibilities

When you’re trying to recover money owed to your business, it’s easy to feel frustrated. But operating within the legal framework isn’t just about avoiding penalties—it’s about collecting effectively. Understanding your rights as a creditor and your responsibilities to the debtor is the foundation of a successful and ethical collection strategy.

Staying Within Your Legal Limits

First things first: you need to know the rules of the road. In Missouri, debt collection is governed by both state and federal laws designed to protect everyone involved. The most important federal law to know is the Fair Debt Collection Practices Act (FDCPA), which sets clear guidelines to prevent abusive, deceptive, and unfair collection tactics. While this law primarily targets third-party debt collectors, its principles are the gold standard for ethical collections. Following these rules helps you maintain a professional reputation and ensures your collection efforts are legally sound from the start.

What Collection Methods Are Allowed in Missouri?

While the law places restrictions on how you can communicate, it also provides powerful tools for recovery. If initial attempts to collect a debt are unsuccessful, you aren’t out of options. Missouri law allows creditors to pursue debts through formal legal action. This can include filing a lawsuit to obtain a judgment, which may then allow you to garnish wages or place a lien on the debtor’s property. These are serious steps that require careful handling of legal procedures. Working with an experienced attorney can help you use these methods correctly and effectively to recover what you are owed. Our firm handles various creditor representation matters and can guide you through this process.

Don’t Miss These Key Collection Deadlines

Time is of the essence when it comes to collecting debt. Missouri has a statute of limitations, which is a legal deadline for filing a lawsuit to collect a debt. If you miss this window, you lose your right to use the courts to recover the money. For debts based on a written contract, the statute of limitations is generally 10 years. For other agreements, like oral contracts or credit card debt, the deadline is shorter—just five years. This makes meticulous record-keeping essential. Always document your agreements in writing and keep track of payment histories so you know exactly where you stand with each account.

Does the FDCPA Apply to Your Business Debts?

When you’re trying to collect an unpaid invoice, it’s easy to get tangled in the web of rules and regulations. One of the most common questions we hear is whether the Fair Debt Collection Practices Act (FDCPA) governs business-to-business debts. The straightforward answer is no, but understanding why is key to protecting your business and collecting what you’re owed effectively.

The FDCPA is a federal law designed to shield consumers from abusive, unfair, or deceptive debt collection practices. Its protections are specifically for personal, family, and household debts—think credit card bills, medical expenses, or car loans. It generally applies to third-party collectors, not the original creditor. Since your business is collecting a commercial debt from another business, the FDCPA’s rules don’t directly apply to your actions. However, that doesn’t mean you have a free-for-all. The principles behind the FDCPA offer a valuable framework for ethical collections, and other Missouri laws can still come into play.

When the FDCPA Applies to B2B Collections

Let’s be crystal clear: The Fair Debt Collection Practices Act does not cover the collection of commercial or business-to-business debts. The law was written with individual consumers in mind, aiming to protect them from harassment by collection agencies. When one business owes another for goods or services, the law presumes both parties are more sophisticated and don’t require the same level of protection as an individual consumer. So, if you are trying to collect on an unpaid invoice from a corporate client, you are not bound by the specific restrictions laid out in the FDCPA. This distinction is the foundation of commercial debt collection law.

FDCPA Communication Rules You Can’t Ignore

Even though the FDCPA isn’t your rulebook, its communication guidelines are the gold standard for professionalism. Adopting them as a best practice can prevent disputes and preserve business relationships. This means communicating with debtors at reasonable times, being truthful about the amount owed, and maintaining a professional tone. Avoid aggressive language or tactics that could be perceived as harassment. Establishing a clear, respectful, and well-documented communication process not only increases your chances of getting paid but also protects your company’s reputation. Our firm can help you develop collection strategies that are both effective and aligned with legal best practices for creditor representation.

Collection Practices That Are Off-Limits

The FDCPA prohibits third-party collectors from using threats, profane language, or deceptive tactics to collect consumer debts. While you aren’t legally bound by these same rules in a B2B context, engaging in this type of behavior is a terrible idea. It can escalate a simple payment issue into a contentious legal battle, damage your professional standing, and potentially violate other state-level statutes, like the Missouri Merchandising Practices Act. Always operate with integrity. Never misrepresent yourself, the debt, or the consequences of non-payment. If a situation becomes complex or the debtor is unresponsive, it’s wise to seek legal counsel before taking further action. You can contact our office for guidance tailored to your specific situation.

Missouri’s Specific Commercial Debt Collection Laws

While federal laws like the FDCPA set a national standard, they don’t tell the whole story—especially when it comes to business debts. Missouri has its own distinct regulations that every business owner should know. These rules govern everything from who can collect a debt to how long you have to take legal action. Understanding these state-specific details is key to creating a collection process that is both effective and fully compliant. Getting familiar with these three core areas will help you protect your business and handle debt collection with confidence.

Do You Need a License to Collect Debts in Missouri?

One of the first things businesses ask is whether debt collectors need a special license to operate in Missouri. The short answer is no; the state does not have licensing requirements for commercial debt collectors. This is an important distinction because it differs from many other states. Furthermore, the federal Fair Debt Collection Practices Act (FDCPA) generally applies only to personal, family, or household debts, not commercial or business-to-business debts. This lack of a specific licensing framework means you must rely on other state statutes to guide your actions and ensure you are collecting debts properly. Knowing these legal nuances is a critical part of managing your practice areas of business.

How the Missouri Merchandising Practices Act Affects Collections

Just because Missouri doesn’t license debt collectors doesn’t mean there are no rules. The Missouri Merchandising Practices Act (MMPA) is a powerful piece of legislation that steps in to protect fairness in commerce. This act prohibits anyone, including debt collectors, from using fraudulent, deceptive, or unfair practices when attempting to recover a debt. This includes actions like misrepresenting the amount owed, using false threats of legal action, or engaging in harassment. For your business, this means all communication and collection efforts must be honest and transparent. The MMPA serves as the primary guardrail for ethical collections in our state, and you can find more information on similar topics in my articles.

How Long Do You Have to Collect a Business Debt in Missouri?

A statute of limitations is a legal deadline for filing a lawsuit to recover a debt. If you miss this window, you may lose your right to use the courts to collect what you’re owed. In Missouri, the timeline varies depending on the type of agreement you had. For written contracts, you have 10 years to file a claim. For unwritten or oral agreements, the deadline is shorter, at five years. For debts related to contracts for the sale of goods, the statute of limitations is four years. It’s essential to document everything and know which category your debt falls into. If you’re approaching these deadlines, it’s time to act. If you have questions about your specific situation, please contact us for guidance.

Proactive Strategies to Prevent Late Payments

The best collection strategy is one you never have to use. While knowing the legal framework for collecting debts is essential, preventing late payments in the first place saves you time, stress, and resources. By implementing a few proactive measures, you can significantly reduce the number of overdue accounts and maintain healthier cash flow for your business. These strategies are all about setting clear expectations, making it easy for clients to pay you, and creating a system that encourages timely payments from the very beginning of your business relationship.

Establish a Strong Credit Policy

Before you extend credit to a new client, it’s smart to understand the level of risk involved. A formal credit policy helps you do this consistently. This doesn’t have to be overly complicated; it can be as simple as running a credit check or asking for trade references. For existing customers, review their payment history with you. As noted by industry experts, you can use data to assess how risky a customer might be. This isn’t about being distrustful; it’s about making informed business decisions. By evaluating risk upfront, you can decide whether to offer credit, what the terms should be, or if you should ask for a deposit. This single step can prevent many future collection headaches.

Streamline Your Invoicing and Payment Process

Once you’ve decided to work with a client, your invoicing and payment process becomes the most critical factor in getting paid on time. A confusing or inefficient system creates unnecessary friction and gives clients an excuse for delays. The goal is to make paying you as simple and straightforward as possible. By optimizing how you bill and accept payments, you remove common roadblocks and make it easier for clients to settle their accounts promptly. This approach not only improves your cash flow but also reinforces your professionalism and respect for your clients’ time.

Send Clear Invoices Promptly

Don’t wait to send an invoice. As the U.S. Chamber of Commerce advises, you should send your bill as soon as you deliver your product or service. The longer you wait, the longer you’ll wait to get paid. Your invoice should be crystal clear, itemizing all charges and including the payment due date, your accepted payment methods, and the late fees you outlined in your initial contract. Ambiguity is your enemy here. A professional, detailed, and prompt invoice communicates that you take your business seriously and expect to be paid on time. It sets a professional tone and leaves no room for confusion about what is owed and when.

Offer Flexible Payment Options

Making it easy for clients to pay you is one of the most effective ways to avoid late payments. In a world of digital transactions, relying solely on paper checks can create unnecessary delays. Offer a variety of payment methods to accommodate your clients’ preferences, such as credit cards, ACH bank transfers, or digital wallets. The easier you make the payment process, the faster you’re likely to receive your money. For clients facing genuine financial difficulties, consider offering a structured payment plan. Getting some payment is always better than getting none, and this flexibility can help you recover a debt while preserving a good business relationship.

Use Incentives and Penalties

A well-rounded payment strategy often includes both a carrot and a stick. Consider offering a small discount—say, 1% or 2%—for clients who pay their invoices well before the due date. This can be a powerful motivator that improves your cash flow and rewards your best customers. On the other hand, your contract should clearly state the penalties for late payments. A modest late fee can be enough to encourage clients to pay on time. The key is to communicate these terms clearly from the outset so there are no surprises. When these proactive measures aren’t enough, and a debt becomes seriously delinquent, it may be time to explore your legal options for creditor representation.

Ethical and Effective B2B Collections Best Practices

Collecting what you’re owed is essential for your business’s health, but how you go about it matters just as much. An aggressive or disorganized approach can land you in legal trouble and damage your reputation. The most successful collection strategies are both ethical and effective, focusing on clear communication and strict adherence to the law. By putting a few key systems in place, you can protect your business, maintain professionalism, and improve your chances of recovering the debt.

Prioritize the Business Relationship

When you’re collecting from another business, you’re often dealing with a client you may want to work with again. The goal isn’t just to recover the funds, but to do so without burning a bridge. Maintaining a professional and ethical approach is crucial for protecting your reputation and preserving the business relationship. Even though you have more flexibility in B2B collections, treating the debtor with respect can make the process smoother for everyone. Adopting the communication standards from the FDCPA as a best practice is a smart move. A clear, respectful, and well-documented process not only helps you get paid but also demonstrates your commitment to fair and ethical practices, which is always good for business.

The Golden Rule: Document Everything

Think of your records as your business’s legal shield. In Missouri, debt collectors must follow the Missouri Merchandising Practices Act (MMPA), which prohibits using deceptive or unfair tactics. Should a debtor dispute your actions, detailed documentation is your best defense. Keep a comprehensive log of every interaction, including dates and times of calls, summaries of conversations, copies of all letters or emails sent, and any payment agreements made. This meticulous paper trail not only demonstrates your compliance but also provides a clear history of the debt, which is invaluable if you need to take further legal action.

Follow a Structured Collection Process

A consistent, documented process is your greatest asset in debt collection. Instead of making random calls or sending sporadic emails, a phased approach shows you are organized, professional, and serious about recovering what you are owed. It creates a clear trail of communication that protects your business and demonstrates your good-faith efforts to resolve the issue. By starting with gentle reminders and gradually increasing the intensity of your efforts, you give the debtor every opportunity to pay while building a solid case for legal action if it becomes necessary. This systematic approach removes emotion from the equation and keeps your actions grounded in fair, ethical business practices.

Phase 1: Gentle Reminders and Inquiries

The collection process should always begin with professionalism and courtesy. Your first step is to send a polite reminder, often an automated email, shortly after an invoice becomes past-due. Assume the missed payment was an oversight, not a deliberate refusal to pay. If you don’t receive a response, a friendly follow-up call or email is appropriate. The goal here is simply to make contact and inquire about the status of the payment. Keep the tone helpful and non-confrontational. While these initial attempts are gentle, they are a critical part of your documented process. If these early efforts are unsuccessful, remember that Missouri law allows you to pursue debts through more formal means later on.

Phase 2: Direct Calls and Negotiation

If gentle reminders go unanswered, it’s time to become more direct. A personal phone call is often more effective than another email because it’s harder to ignore. Your objective is to speak with the person responsible for payments, understand why the invoice hasn’t been paid, and work toward a solution. This is your opportunity to negotiate. If the debtor is facing legitimate financial hardship, being open to a structured payment plan can get the cash flowing and preserve the business relationship. Be prepared to offer flexible terms, but make sure any agreement is documented in writing with clear deadlines and amounts. This phase is about finding a middle ground that gets you paid.

Phase 3: Formal Demand Letter

When calls and negotiations fail, the next step is to send a formal demand letter. This isn’t just another invoice; it’s a serious, official communication that signals your intent to escalate the matter. The letter should be sent via certified mail to create a record of receipt. It must clearly state the total amount owed, reference the original invoice, summarize your previous attempts to collect, and provide a firm deadline for payment. This is also where you state the consequences of non-payment, such as turning the account over to a collection agency or pursuing legal action. This letter is often the final step before you seek outside help and serves as crucial evidence in any future legal proceedings.

Phase 4: Know When to Escalate

Sometimes, despite your best efforts, a debtor remains unresponsive or refuses to pay. Continuing to spend your own time and resources on a dead-end account is counterproductive. This is the point where you must know when to escalate. If the debt is significant, the legal issues are complex, or the debtor is simply ignoring you, it’s time to bring in a professional. For these challenging situations, working with an experienced attorney is the most effective way to recover what you’re owed while ensuring you remain compliant with all state laws. Our firm provides skilled creditor representation to help businesses resolve these difficult collection matters.

Leverage Technology and Automation

Managing collections manually is time-consuming and prone to human error. Modern accounting and invoicing software can streamline the entire process, saving you valuable time and improving your cash flow. You can use technology to automatically generate and send invoices, as well as schedule follow-up reminders for upcoming and overdue payments. As the U.S. Chamber of Commerce notes, this software can also provide clients with easy, online payment portals, removing friction and making it simpler for them to pay you. By automating the routine parts of your collection process, you can focus your personal attention on the more complex accounts that require negotiation and direct communication.

Set Your Team Up for Success with Compliance Training

Every member of your team who communicates with debtors needs to understand the rules of engagement. Ignorance of the law is not a valid defense, and a single misstep by an untrained employee can expose your business to significant liability. Your training program should cover both federal and state laws, including what can and cannot be said during a collection call. Role-playing different scenarios can be incredibly helpful. By investing in proper training, you empower your staff to collect debts legally and confidently, protecting your rights as a creditor while treating every individual with respect.

Segment Accounts for a Focused Approach

A one-size-fits-all approach to collections rarely works and can waste valuable time. A more effective strategy is to segment your overdue accounts to focus your energy where it matters most. Group outstanding debts based on clear criteria like how late the payment is, the amount owed, and the customer’s payment history. This allows you to prioritize the accounts that pose the biggest risk to your cash flow. Instead of treating a small, 30-day-late invoice the same as a large, 90-day-late one, you can direct your attention to the most critical debts first. This focused method makes your collection efforts more efficient and improves your chances of recovering the funds your business depends on.

Train Your Team on Communication and Negotiation

Knowing the legal rules is only half the battle; your team also needs the skills to handle difficult conversations with professionalism. Effective collection is less about making demands and more about negotiation. Train your staff to remain calm, listen carefully, and work toward a mutually agreeable solution, like a structured payment plan. Every employee communicating with debtors is representing your business, and their tone can either resolve the issue or escalate it. When your team’s best negotiation efforts hit a wall, it’s often a sign that you need a different approach. If you’ve reached a standstill, it may be time to get professional guidance to explore your legal options.

What’s Your Plan for Handling Disputes?

Sometimes, debtors will dispute the amount owed or the debt itself. Having a clear, established process for handling these situations is crucial. It shows you operate in good faith and can prevent a simple misunderstanding from escalating into a formal complaint or lawsuit. Your process should outline who a debtor should contact with a dispute, the steps your team will take to investigate their claim, and a reasonable timeline for a response. A transparent system for resolving issues not only helps you address problems quickly but also helps maintain a professional relationship with your clients. If a dispute becomes complex, it’s wise to seek legal counsel to find a resolution.

Common B2B Collection Challenges and Their Solutions

Even with the best intentions, collecting on a past-due account can feel like walking through a minefield. You want to recover what you’re owed, but you also need to operate within strict legal lines and handle potential disputes professionally. The key is to anticipate common challenges and have a clear plan in place before you ever need it. By understanding the landscape, you can protect your business, treat debtors fairly, and effectively manage your accounts receivable. Knowing the rules isn’t just about avoiding penalties; it’s about empowering your business to act confidently and correctly.

Common Collection Mistakes (And How to Avoid Them)

One of the biggest hurdles in debt collection is simply not knowing the rules. In Missouri, both state and federal laws create a framework for how debts can be collected. The federal Fair Debt Collection Practices Act (FDCPA) is a cornerstone of these regulations, preventing abusive and deceptive collection tactics. While its rules primarily target third-party collection agencies, following its principles is a wise strategy for any business. Understanding these boundaries helps you avoid actions that could land you in legal trouble. At the same time, knowing the law also clarifies what you can do, such as pursuing legal action or placing liens on property when necessary.

Your Game Plan for Legal Collection Hurdles

So, what happens when a debtor disputes the debt or refuses to pay? It’s important to have a strategy for these legal escalations. Debtors who feel their rights have been violated can file complaints with agencies like the Consumer Financial Protection Bureau (CFPB), which can trigger investigations. To avoid this, your first step should always be to follow the proper steps to legally collect a debt in Missouri. If standard communication fails, your strategy may need to include more formal legal action. This is where having experienced legal counsel becomes invaluable. An attorney can help you understand your options for filing a lawsuit and guide you through the process of securing a judgment for what you are owed.

Non-Compliance Risks and How to Protect Your Business

Ignoring debt collection laws isn’t just bad practice—it can expose your business to serious legal and financial trouble. Both federal and state regulations are in place to keep the collection process fair, and stepping outside these lines can lead to penalties, lawsuits, and damage to your reputation. Protecting your business means understanding the potential consequences and knowing where to turn for help. By taking a proactive approach to compliance, you can manage your accounts receivable effectively while operating with integrity and confidence. This involves knowing the specific rules that apply to you, what happens if those rules are broken, and how to find the right legal support when you need it.

What Are the Penalties for Non-Compliance?

In Missouri, debt collection is governed by a mix of federal and state laws. The federal Fair Debt Collection Practices Act (FDCPA) sets the standard for preventing abusive and deceptive practices, primarily applying to third-party collectors of consumer debts. It’s also crucial to be aware of Missouri’s statute of limitations, which dictates the time frame for legal action. For instance, you generally have ten years to collect on written contracts but only five years for unwritten or oral agreements. Failing to follow these rules can result in legal action against your business, leading to fines and damages that could have easily been avoided with proper compliance.

What to Do If You’re Accused of a Violation

If a debtor believes their rights have been violated, they have clear avenues for recourse. They can file a formal complaint with government bodies like the Consumer Financial Protection Bureau (CFPB) or the Missouri Division of Finance. Beyond complaints, a debtor can sue a collector for breaking the law. If the court rules in their favor, your business could be ordered to pay for any damages they suffered, plus additional penalties. Understanding this process is important for two reasons: it highlights the seriousness of compliance and gives you a framework for what to expect if your business is ever accused of a violation. It reinforces the need for meticulous record-keeping and ethical practices at every step.

When to Call a Commercial Debt Collection Attorney

When you’re managing business debts, you don’t have to go it alone. Navigating the complexities of creditor rights and responsibilities requires a clear understanding of the law. While some free legal aid organizations exist, their services are often limited. For businesses needing to collect debts legally or defend against claims of non-compliance, working with an experienced attorney is the most effective way to protect your interests. A legal professional can offer guidance on creditor representation, help you create a compliant collections process, and represent you in any disputes. If you have questions about your rights and obligations, it’s always best to contact a legal expert for advice tailored to your situation.

How to Stay Current with Changing Collection Laws

Debt collection laws aren’t set in stone. They evolve with new court rulings and legislation, and what was compliant last year might not be today. Staying on top of these changes is crucial for protecting your business. It’s not just about avoiding penalties; it’s about operating with integrity and confidence. By committing to stay informed, you can handle debt collection ethically and effectively, safeguarding your company’s future. Here are a few practical ways to keep up.

How to Track Changes to State and Federal Laws

Your collection activities are guided by rules at both the federal and state levels, so you’ll need to keep an eye on both. The main federal law to know is the Fair Debt Collection Practices Act (FDCPA), which sets clear boundaries for what collectors can and cannot do. While it primarily applies to third-party collectors, its principles are the foundation for fair collection practices across the board. In Missouri, you also have state-specific regulations to follow. A great way to stay informed is by subscribing to legal blogs that cover business law in our state.

Adopting Proven B2B Collections Best Practices

Beyond the letter of the law, it’s smart to follow established industry best practices. In Missouri, the Merchandising Practices Act (MMPA) prohibits using any fraudulent, unfair, or deceptive tactics to recover a debt. Adhering to these standards does more than just keep you compliant—it protects your business’s reputation. When you treat people fairly and transparently, you build trust, which can make the entire collection process less adversarial. Look to professional organizations and follow their ethical guidelines. This proactive approach shows your business is committed to operating with integrity.

Commit to Continuous Compliance Education

Treating legal education as a continuous process is one of the best investments you can make in your business. Staying informed about changes in debt collection laws is crucial. This means regularly training your staff, especially anyone who communicates with debtors. You can find valuable information through online webinars, industry seminars, and by checking in with trusted legal resources. Making education a priority ensures your team understands their responsibilities and can perform their duties confidently and correctly. For more insights, you can always explore our firm’s articles on related legal topics.

Frequently Asked Questions

How long do I have to take legal action for an unpaid business debt in Missouri? The clock is always ticking, so this is a critical question. In Missouri, your deadline depends on your contract. If you have a written agreement, you generally have ten years to file a lawsuit. For unwritten or oral agreements, that window shrinks to five years. This is why having every agreement documented in writing is one of the most protective measures you can take for your business.

Since the FDCPA doesn’t apply to business debts, can I be more aggressive in my collection efforts? While it’s true that the federal FDCPA was designed to protect individual consumers, not businesses, that doesn’t give you a green light for aggressive tactics. Acting with hostility or using deceptive language can backfire and potentially violate other state laws, like the Missouri Merchandising Practices Act. The best approach is to remain professional and firm, as this preserves your reputation and keeps the focus on resolving the debt, not creating a new conflict.

What is the most important Missouri law I should be aware of when collecting from another business? If you remember one thing, it should be the Missouri Merchandising Practices Act (MMPA). Because Missouri doesn’t have a specific licensing system for commercial debt collectors, the MMPA serves as the primary guardrail. It broadly prohibits the use of any deceptive, fraudulent, or unfair practices in commerce. This means all your collection activities, from phone calls to letters, must be honest and transparent to stay on the right side of the law.

Do I need a special license to collect my own business’s debts in Missouri? No, Missouri does not require you or your business to obtain a special license to collect your own commercial debts. This lack of a formal licensing process places the responsibility squarely on your shoulders to understand and follow the state’s rules for fair dealing. It reinforces the need to have clear, ethical procedures in place for your entire team to follow.

What’s the most critical first step to take when a client isn’t paying? Before you pick up the phone or write an email, your first step should be to gather your documentation. Pull up the original signed contract, review the payment terms, and check your records for the complete payment history. Having all the facts straight from the beginning allows you to communicate clearly and confidently. It also ensures you have the necessary proof on hand if the situation escalates and you need to take formal legal action.

B2B Collection Best Practices for Missouri Businesses