The Small Business Administration (SBA) statistics show that approximately 45,000 businesses close every month. And the top five reasons why small businesses fail include:
Revenue loss – a declining customer base, bad economy and slow or non-paying customers all contribute to revenue loss.
Lack of working capital – businesses with balance sheets that cannot support more than three months of operational expenses are often positioned for failure.
Poor management – when a company has ownership or management that lack the necessary business skills to operate the company well.
No credit – businesses that cannot qualify for a line of credit because of more restrictive lending policies often fail.
Economic climate – a poor economic climate is often to blame for business failure.
Ensuring that accounts are collected promptly helps keep small businesses healthy. If you are having problems collecting on your business debts, contact our business debt collection law firm.
The Jayaram Law is a Chicago business law firm providing a range of legal services to middle-market businesses, with an emphasis on business litigation, business to business collections, local counsel representation, preparation and review of business transactions, and copyright and trademark licensing.
The Jayaram Law routinely and successfully assists its clients in their business-to-business collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts. If you need business debt collection services conducted in a professional manner, contact our B2B debt collection law firm.