Blog
Jan 06 2014 |
Holding Consumers AccountableBy: ValidateNow.co Everyone is a consumer. We all utilize the services and products that businesses provide on a daily basis. Some products and services in a retail setting are paid for at the time of sale, others are not, and the business effectively extends credit to that consumer expecting the invoice to be paid. When consumers decide not to pay the invoice on time, they have violated the terms of the agreement. This usually does not have a serious impact on the business in the short term, but when multiple consumers begin to default on their obligations to the business, and these debts get older and older, the business can become jeopardized. Businesses that provide goods and services on “good faith” to consumers assume a very high level of risk. Many times businesses front a good deal of the costs for products and labor associated with the work to be preformed. This compounds the issues of late payments because the business now has to pay its suppliers and payroll on time, or risk the probability of bad credit with the suppliers. This situation puts businesses at significant risk. In some cases, when a business experiences losses like these, they need to increase prices to make up for the lost revenue. This unfortunately penalizes the consumers that do pay, instead of rewarding them for fulfilling their obligations. Validate, is a meaningful solution to solving this problem in the business world. Consumers that meet their obligations on a consistent basis should have the privilege of getting better pricing and terms because they are a lower risk to the business. However, consumers who habitually delay payments or default all together need to be held accountable as they are a burden on our economic system. Validate makes it possible to hold those consumers responsible, and to allow businesses to make more informed decisions about the consumers they work for. Add your comment (for display after moderator approval) |
