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When payments a business was expecting to receive are delayed

When it comes to the sales contracts they form with consumers or other businesses, businesses hope the other party will live up to their end of the contract by making the agreed-to payments for the provided goods/services in a timely fashion. However, this sometimes doesn’t happen. When income a business was expecting, such as payments from a sales contract, comes in later than expected or in a lesser amount than expected, it can be a major hindrance to the business’ operations.

Unfortunately, it appears that it is becoming increasingly common for small businesses to experience delays in receiving payments from individual or corporate customers. A recent news article went over multiple stories of businesses that have run into situations in which once reliable customers had been trending towards making payments later and later. Also, research noted in the article pointed to both the receipt and making of payments taking longer for companies in recent times.

Why the slowdown in payments? The article pointed to multiple possible contributors, including economic conditions and payment tactics/habits developed by customers during the Great Recession.

There are various tactics companies worried about delays in payments from customers could take to try to keep payments coming in at a relatively quick pace, including: moving towards credit card payments or putting larger down payment requirements in their sales contracts.

Also, there are a variety of ways a business could try to address payment delays or missed payments that have occurred from a customer it formed a sales contract with. In some cases, legal action may even be appropriate. Now, what type of approach would be the best fit can be affected by many things. including the specific circumstances of the missed or delayed payments and the ultimate goals the business has for the resolution of the problem. Thus, when deciding how to respond to a customer’s payment problems, a skilled business law attorney’s guidance is among the things a business may want access to.

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