the consequences of non-payment for a company


The consequences of unpaid debts for a company are more serious than you might think.

They are multiple. However, some are more daunting for entrepreneurs, such as loss of income for example. It can lead to a “cascade effect” because loss of income means lack of liquidity. The company will no longer have enough cash for its daily operations. This lack of liquidity will inevitably cause major problems in its cash flow. The company therefore risks finding itself “in the red” because it will have to spend more than it earns…

Late payments, just as dreadful...

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

Late payments also slow down business development. It’s a “snowball effect” inherent to financial problems… Inability to invest in new, more ergonomic equipment, to install other work tools, etc. All this will have a certain impact on the well-being of workers and therefore on the quality of work. The company also risks no longer having the resources necessary 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 with suppliers, for example. The sale made therefore partly allows us to pay them and, therefore, to maintain good contact with them. An accumulation of unpaid invoices therefore considerably increases the company's costs and debts to suppliers and word of mouth will tarnish your reputation. These costs are, moreover, essential to the proper functioning of your company! This situation can turn into an endless cycle where unpaid customers will cause unpaid debts 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 unpaid debts and thus avoid finding yourself in such situations. Don't wait until it's too late and contact us!

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