Dear Representative [Last Name]:
On behalf of [name of your Business] and our [# of employees], I am writing to express concern about Section 601 of the HEROES Act which would significantly curtail business-to-business debt collection during the COVID-19 pandemic. While I understand the need to help protect consumers from debt collection efforts during these unprecedented times, it is important not to extend those provisions to include business-to-business debt in order to protect the U.S. product supply chain and our ability to provide small businesses with the products they need to serve their customers.
Our business is one of thousands that, collectively, are represented by the National Association of Credit Management (NACM). The vast majority of NACM members are small manufacturing or product-based businesses that provide products—from lumber to toilet paper—to retailers and contractors across the country. These products are commonly sold using open, unsecured credit to businesses. However, we are not debt collectors; we are the backbone of the U.S. economy and our respective businesses.
During this unprecedented pandemic, we have continued to provide unsecured credit in the form of products to support the businesses across the country selling products to the American people. While we take these risks for the benefit of these small businesses, we do so with the expectation that we can recover at least a portion of our assets through the collections process. Eliminating this process would force our business to only sell product to low risk businesses, which will dramatically cut off supply lines to thousands of small retailers across the country.
I realize these are extraordinary times, and do not wish to bring about any additional hardship to businesses impacted by COVID-19. Despite this, I urge the utmost caution as Congress tackles this complex issue. Eliminating business-to-business collections would only serve to shift the burden from one business onto another. Rather than create a system of winners and losers in the collections industry, we request that you support proposals that keep small businesses afloat so that the collections process can be avoided altogether.
Thank you for your time and consideration.