Cash flow issues can really hold a business back. You may have a great idea to reach a new market or create a new product, but you simply don’t have the cash coming in. It can be very difficult for business owners to balance their debts and assets properly, even when it’s a very good business idea.
One reason that these issues may arise is when the business has a lot of unpaid debts. You took on that debt, assuming that it would be paid on time, and the other party failed to uphold their obligation. Maybe they already received products or services that you can’t sell again. Maybe you simply built your budget around the idea that these debts would be paid off and you’d have a certain amount of income, but now the budget doesn’t quite work. That unpaid debt can put you in a difficult position where your business can’t grow.
What can you do?
There are a lot of steps you can take to try to collect on these debts, starting with just checking all of your information to make sure it’s accurate. There are situations in which a business owner doesn’t have the right contact information or something of this nature. Persistence can also be helpful, as following up with those who owe the money may influence them to eventually pay it.
But persistence alone isn’t always going to be successful. There are definitely situations in which someone will refuse to pay until you take more drastic action. Since this can financially harm your business the entire time, you can see how important it is to know exactly what steps to take.