Bad debt poses a significant challenge for small businesses, directly impacting cash flow and increasing the risk of failure. To mitigate this risk, businesses should take proactive steps like requesting advance payments, performing credit checks on clients, and drafting strong, clear contracts. Should a client default, understanding your legal options is critical, including court proceedings tailored to the amount owed. Proper preparation and knowledge can greatly enhance a business's ability to manage debt effectively and sustainably.
Taking proactive steps can reduce the likelihood of non-payment. Requesting advance payments, performing credit checks, and drafting strong contracts are crucial measures.
Despite prevention strategies, small businesses sometimes risk non-payment when securing contracts. Knowing your legal options for debt recovery is essential.
Collection
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