Your NYC debt collection lawyer can tell you, your accounts receivable make up a large portion of your business assets. When receivables are not collected timely the result is tight or no cash flow in your business. You are forced to look for the money elsewhere. You need to borrow money to cover or compensate for the customers who are not paying. The loan is intended to carry you over until the customers pay what they owe.
You are pledging assets/capital to borrow money which your customers should have paid you. The net effect is that your non-paying customer has stiffed you and used you as a lender, causing you to outlay monies to compensate for their lack of payment. You need to repay the principal, interest and costs of the loan and have lost the use of the capital to reinvest in your business. Your role has shifted from vendor to lender. Your customer need not apply to a bank or alternative lender because they have you willing to finance their business.
If you are not paid within the terms of your agreement, it is imperative you take the next step. Turn the claim over to a debt collection lawyer to help get you paid. If not, the end result might be financing your client’s business rather than growing your own business.