High Risk Accounts

Often these accounts/companies are late with 30-60-90 day payments… or they don’t pay at all.

Valuable business resources are wasted chasing these accounts for payment. In these tough economic times it is extremely important for Small & Medium sized Business Owners to network and identify high risk accounts, and to prevent a bad debt rather than chase it.

There are many reasons why payment is not made on accounts receivable:

  • Some unscrupulous business owners use other business owners as a revolving line of credit, they never pay, and quite simply… they are fraudsters. They have intent to rip you off when they apply for credit or obtain your products/services on 30-60-90 day line of credit. Plain & simple.
  • In these tough economic times many business owners default on accounts receivable simply because they can’t keep up with all of their bill payments, they over extend themselves.
  • They aren’t paid by their accounts receivable, and as is the case with many micro business owners they lack the resources or business acumen to run their business in a legitimate, ethical and organized manner.
  • Most Business Consultants will tell you that the biggest problem with High Risk Accounts is the fact that they are unorganized, there is no structure of any kind to monitor what goes on in the business, and they have cash flow problems as a result. Without cash you can’t pay bills that includes lines of credit…yours!

When business owners report the delinquent payments of these Individuals/Companies, it prevents them from using other business owners as a revolving line of credit. Products/services become difficult for them to obtain and sooner or later they will no longer be able to fraudulently make a living off the backs of other business owners.

Where a potential high risk credit applicant is advised prior to the extension of credit, that account payment is reported to a Credit Reporting Agency, there is a greater chance that they will adhere to their obligation of making payments on time.