Statistics on Business Debt
Some forms of debt are mutually beneficial, such as reasonable mortgages for responsible homeowners. But bad debt is far more common in the United States, plaguing both consumers and businesses who are trying to keep a positive cash flow. The total consumer debt in the United States is more than $2.4 trillion, with 88 million lines of credit having been closed between 2008 and 2011. This debt plight in the United States is affecting businesses everywhere, complicating bad debt recovery and leaving businesses unpaid for quality work.
Why Businesses Matter
Small businesses are often faced with bad debt recovery, seeking do it yourself debt settlement solutions or just abandoning the cash influx altogether. Larger corporations are usually better able to avoid bad customers or absorb any money lost to unpaid bills, but small businesses are more susceptible to the impact of consumer debt.
Bad debt affects the business directly, but also affects the broader economy. More than two-thirds of all new jobs in the country are created by small businesses, contributing more than half of all gross domestic product. Despite this, 89 percent of businesses have less than $1 million in annual sales, making consumer debt and bad customers even more significant.
Where Know Your Customers Fits In
Know Your Customers helps you avoid bad customers with do it yourself debt settlement solutions and an interactive catalog of clients who have a history of unpaid invoices. Bad debt recovery can be difficult, but sometimes a simple alert to your customers can do wonders as a form of do it yourself debt settlement. Report any unrecovered debt using Know Your Customers, and we’ll send an alert message to your customer, possibly prompting them to connect with you or make a payment. At the very least, you’ll help others avoid bad customers and do more with bad debt recovery.
Over time, learning to avoid bad customers and perform do it yourself debt settlement lowers the total amount of unresolved consumer debt and increases cash flow both for your business and for your potential clients. Bad debt recovery and Know Your Customers’s other services are designed to help reduce these negative statistics and bolster our shared economy.