Consumer Debt v Commercial Debt, What’s the Difference?

Full Transcript

Hi, my name is Parris Trimble and I’m an attorney here at Greenbaum Law Group. Greenbaum Law Group is a commercial collection and judgment enforcement firm. Here at Greenbaum Law Group, we only take cases that involve commercial debt and do not take cases that involve consumer debt. You may be wondering what is the difference between commercial and consumer debt. In today’s video, I will give you a brief very general overview of the two types of debt.

Let’s start with consumer debt, this is something we are all too familiar with. Consumer debt is sometimes called retail debt, and it is debt that is incurred by an individual in the course of their daily living. Consumer Debt is the money you owe as a result of purchases that you made for you or your family members. Let’s look at a couple of examples. You go to Macy’s to buy new clothes for your infant and charge it to your Macy’s card, that’s consumer debt. Or perhaps you have termites and you tent your house, money owed to the Exterminator- that’s consumer debt.

Now, let’s look at commercial debt. Commercial debt is typically debt that’s incurred between businesses. Now, it’s even the case if the business is a sole proprietorship or partnership. An example of a commercial debt could be unpaid invoices for a bulk supply of sweatshirts to a retail shop or say I want to start a new pizza parlor and I go out and get a small business loan to start the pizza parlor, the business loan is commercial debt.

Now, let’s look at an item and see how the item could be a commercial debt or a consumer debt. The example I’m going to use is a dining table. If I go out tonight and buy a new dining table for my kitchen at home and put it on my Visa card, that’s consumer debt. However, let’s say I want 20 new dining tables for my pizza parlor, the 20 dining tables for my business is business debt and that is considered a commercial debt.

If you have commercial debt in California over $10,000 that you need recovered, give us a call at 1-800-519-0562 or check us out online at