One of the most critical components of a thriving business is cash flow. However, if a business has one too many past due accounts, then this can be detrimental to a business’s bottom line. When a company suffers a lack of cash flow or has insufficient funds for operations not only is this detrimental to the business’s health but, it can also be a reason why a business is no longer able to operate and has to close its doors.
It seems obvious that any business should get paid for their services or products. However, it is not uncommon for some accounts to go unpaid. While this is true, it is important for businesses not to let things get out of control and allow too many past-due accounts. So, when past due accounts arise, a business would be acting in its best interest to connect with a legal professional to see what strategies will work to get paid.
If you operate a business in California, the Los Angeles commercial debt collection attorney at the Leiva Law Firm can represent you and help you collect on delinquent accounts that are affecting your business.
How Past Due Accounts Adversely Affect Businesses
Nonpaying accounts can cause a wide variety of issues for a business. First, there is the issue of cash flow which can make running daily operations very challenging. Plus, if you are looking to take out a business loan or you are looking for investments, you will need to provide an overview of your business’s finances. Included in this financial rundown will be the number of past-due accounts your business holds. If there are too many this may make investors and banks uneasy about working with you because your business could be deemed too much of a risk.
Multiple past-due accounts can also mean that you will have to use credit more often for transactions. If you accumulate too much debt, then you will have difficulty paying your bills, and your account with other businesses can become delinquent. As a result, you may be subjected to a lawsuit.
Too much credit debt also means that your credit score will be badly damaged. This will also make it much harder to conduct business or secure funding you may need to keep the lights on.
There are several adverse outcomes that you may experience if you allow too many non-paying accounts to add up. Before a small problem becomes a huge catastrophe, you can connect with an attorney to get the accounts you need caught up and paid. This will keep your company current and help you avoid such stressful situations.
Speak to an Attorney at the Leiva Law
You work hard to provide quality services or products that customers rely on and appreciate. You deserve to be paid when you have an agreement with another business or entity. A commercial debt collection attorney at the Leiva Law Firm can help you secure the funds you are owed.
Call the Leiva Law Firm today at (818) 519-4465 to schedule an Initial, free consultation.