It often takes multiple paying jobs or orders just to recover the expense from one nonpaying customer.
ORLANDO, Fla. (PRWEB) May 14, 2019
A business operates on cash flow. If customers pay on time, then everything is as it should be. But what about those occasional customers who pay late, or worse, not at all? A non-paying customer can cost you more than just the amount of the unpaid invoice. It often takes multiple paying jobs or orders just to recover the expense from one nonpaying customer.
How This Affects Your Business
To stay in business you have to pay your vendors. If vendors don’t get paid, you don’t get your products or supplies. You end up having to pay them from your own pocket. This can quickly deplete your profits and cash holdings putting your business on the brink of insolvency.
Experience Where it Matters
When you are faced with a customer that will not pay you, it is best to leave this situation up to a professional experienced in collections. By removing yourself from the situation you are signaling that you have had enough and that it is time to get paid. Hiring a reputable debt collection agency like AccountsReceivable.com is how you delegate this task to the professionals.
The Cost of Inaction
Over the years, AccountsReceivable.com has seen numerous collectible debts become uncollectible due to inaction and procrastination. If you are contemplating using a collection agency then you have more than likely already come to the conclusion that it is needed. Do not hesitate and allow your nonpaying customer to:
- File Bankruptcy: Once bankruptcy is filed the debt cannot be collected through traditional means.
- Go out of business: If a debt is owed by a corporation or LLC and they stop operating the debt would be uncollectible.
- Lose Priority: When a debt is owed it is still fresh in the mind of your customer. The longer the debt is outstanding however the less of a priority it becomes. As the priority lowers so does the willingness to pay.
- Cut in Line: Certain debts have priority over others. Many commercial transactions are unsecured debts, if not collected quickly these debts can fall behind tax liabilities, employment claims and secured lenders leaving vendors at the back of the line.
Don’t be a Statistic
Dont let the above situations happen to your business. AccountsReceivable.com can be reached online at - AccountsReceivable.com or by phone at (321) 233-4211.