The Right Steps
As an account ages past 30 days delinquent, the likelihood of the company’s financial situation improving are rare. According to the SBA, small business makes up over 99% of U.S. employer firms. According to the Census Bureau, roughly 600,000 businesses are closed each year. That makes up almost 10% of all businesses. So, in many cases, nonpayment is due to a business closing or filing bankruptcy. Debt Recovery Resources sees roughly 5-10% of businesses turned over for collection services fall under this category. Well, what about the other 90-95%?
So, if a business is still operational, why non-payment? That is the million-dollar question. The main culprit? Cash flow problems. In some instances, the invoices are being disputed, but MOST disputes are a cover-up for cash flow problems. The company in question feels that if they pass the blame to the vendor, maybe they can get themselves out of the debt at a lesser amount, or not pay altogether. Debt Recovery Resources uses proven techniques to help build financial profiles, circumvent reasons for nonpayment, resulting in higher rates over recovery, and liquidation turnaround times. It is necessary for a commercial agency to gain a full understanding of the debtor’s financial picture before starting their collection efforts, then use seasoned collection professionals to apply this information in such a way that the distressed business is not forced to close their doors, or into bankruptcy protection. Ultimately leaving the vendor with nothing.
If your business provides unsecured net terms for services and/or products, it is necessary to protect yourself at all costs. As an unsecured creditor, you have no collateral and your options are limited. Please contact the offices of Debt Recovery Resources as soon as possible for your free consultation. We look forward to hearing from you!