What is the statute of limitations on business debt?
The statute of limitations on business debt depends on state law and the type of claim. For sales of goods, the Uniform Commercial Code model sets four years from accrual, and parties may shorten it to no less than one year but not extend it. Contract and account claims have state-specific limits; check with an attorney.
How does the statute of limitations on business debt work?
Once it runs, the debtor can raise it as a defense to a lawsuit. Collection outside court may still be possible.
Can it restart?
In some states, a payment or written acknowledgment can affect the period; get legal advice.
Why act early?
Collectability drops sharply with age[source].
General information, not legal advice. Laws vary by state and situation; ask a licensed attorney about yours.
Related answers
Business debt collection laws · UCC and unpaid invoices
Getting ready to place an account? Use the free collection toolkit or browse all placement answers.
Get matched: agency, attorney, AI or certified firm
Tell us about the unpaid invoice and choose a preferred option, or let us recommend one: AI/automated collection, a collection attorney, a collection agency (local or national), or an IACC member, CLLA-certified or ACA International member agency. Matching is free, and nothing is placed until you approve a partner’s written terms.
Prefer email? Write to info@smallbizdebtcollection.com.
Frequently asked questions
Do you list state limits?
No; we don’t list state figures without primary sources.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: UCC § 2-725 (statute of limitations in contracts for sale), via Cornell LII; Cornell LII Wex, “statute of limitations”; Commercial Law League of America, “Probability of Recovering Commercial Debt with Age” (accessed Oct 18, 2026).
Owed money by another business?
Tell us about the unpaid invoice and we’ll match you with an experienced collection partner suited to its size, age and location. Matching is free.
Get matched with a collection partner