the consequences of non-payment for a company


The consequences of non-payments for a company, more serious than we think..

They are multiple. However, some are more formidable for entrepreneurs, such as loss of income for example. It can lead to a "cascade effect" because, who says loss of income, says lack of liquidity. The company will no longer have enough cash for its daily operations. This lack of liquidity will inevitably lead to major problems in its cash flow. The company is therefore at high risk of finding itself "in the red" because it will have to spend more than it earns...

Late payments, just as formidable…

Paying is fine. Paying on time is better. Yes, late payments also have their share of responsibility in the financial difficulties that companies may encounter.

Late payments also hamper business development. It's a “snowball effect” inherent in financial problems… Impossibility of investing in new, more ergonomic equipment, of setting up other work tools, and so on. All this will have a definite impact on the well-being of workers and therefore on the quality of work. The company may also no longer have the necessary resources to hire new people and, on a larger scale, will no longer participate in the growth of the economy in general. Worse still: in the event that late payments accumulate and ultimately turn into unpaid invoices, layoffs may be necessary to maintain activity.

Unpaid invoices, a real scourge for businesses..

When a company provides a good or service to a customer, it also spends money on suppliers, for example. The sale made therefore makes it possible in part to pay them and, therefore, to maintain good contacts with them. An accumulation of unpaid invoices therefore considerably increases the company's costs and receivables from suppliers, and word of mouth will take care of blackening your reputation. These costs are, in addition, essential to the proper functioning of your company! This situation can turn into an endless cycle where non-payments from customers will cause non-payments on the part of the company... Unfortunately, in this context, it is sometimes difficult to get out of it and the company must resolve to bankruptcy.

INTERNATIONAL RECOVER COMPANY® can help you protect yourself against these non-payments and thus avoid finding yourself in such situations. Don't wait until it's too late and contact us!

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