Cash flow problems can cut to the heart of any business. Case-in-point, a U.S. Bank study recently found that 82 percent of small businesses in the United States fail because of issues related to cash flow. And one of the biggest drivers of this is a client not paying on time (or at all). If you’re in any of the following sectors, then it’s likely you could experience this problem.
Businesses Prone to Cash Flow Problems
Virtually any type of commerce can be affected by this issue. To cut the suspense, we’ll go through each of the eight promised right now:
- Service providers: plumbers, lawn care providers, construction companies, designers, writers — pretty much anyone who provides a non-tangible in exchange for payment runs the risk of running into cash flow problems.
- Landlords and property owners: this goes for both the residential and commercial sides.
- Healthcare practitioners: one of the most likely areas to get dinged with non-repayment. At Southwest Recovery Services, we specialize in helping practitioners get paid so they can continue to provide a high quality of healthcare to each patient.
- City and county governments: most cities and counties provide some type of service to their citizens, but municipalities are especially at risk due to their closer interaction with the public through water service and other utilities.
- Utility providers: energy companies especially. And yes, you can always just shut off the service, but that doesn’t make up for the resources already expended in providing service to the non-paying customer.
- Retail stores: because it’s an industry where there is heavy use of credit cards, retail stores run the risk of not getting paid whenever credit card fraud occurs. There is approximately $5.5 billion of credit card fraud worldwide. That’s quite a chunk of change to be missing out on.
- Wholesalers: large quantity orders often require lengthier repayment terms. The longer you go from the purchase point, the less likely you are to realize payment.
- Product manufacturers: same boat as wholesalers.
The Cash Flow Solution You Cannot Ignore
If your business fits into one of these areas, then you run the risk of facing cash flow problems, but luckily, there are solutions. Southwest Recovery Services has advanced negotiation skills, legal knowledge, and an aggressive tack for getting our clients the money they deserve. If you need a proven service to collect on outstanding payments without it interfering with the day-to-day operations of your business, we’re here to help. Contact us today to get started.