When the economy is good, as it has been for the past number of years, getting paid for your goods and services is relatively easy. Sure, there are always some deadbeats out there that would rather not pay or will pay long after day the due date has elapsed. But in good times most accounts will pay promptly.
But now the economy is rotten and threatening to get worse. Some clients are slow to pay their invoices. Others clients are in danger of going belly up. So enter the collection agencies. Not just the collection agencies that dun everyday people for everyday failures to pay their credit cards, medical bills, or credit account at Victoria’s Secret. This is about the corporate collection agencies who wring money out of businesses for a profession.
Television stations are finding it tough to get their money. These are mainly local stations, owned in groups maybe and servicing a region or a series of regions. While the networks get the national advertising revenue, the local television stations pick up the local and regional advertising. Their accounts can vary from the local pizza parlor to the Fortune Corporations who buy spot or local advertising to supplement their network campaigns.
The big guys are still paying on time, or relatively. But the mid-sized groups, like Linens N’Things, Circuit City, that group, has filed for Chapter 11 or have gone out of business. They are not paying, nor will they in the future. Others are on the verge of going out of business. So the fight begins with each station group fighting to drag out the few bucks they can before the other station group claims it for itself.
According a a recent article in Media Post, media collection agencies, like Szabo Associates, represent some 900 televison and radio stations. Business is good for Szabo and for its competitors. Szabo sees its business getting better and money more difficult to collect. Bankruptices are expect to double to some 60,000 to 70, 000 businesses calling it a day.
The point is, not only will the television stations be affected by an increased amount of clients failing to pay their media tab, most businesses will encounter the same problem. Times are tight, money is short, and when they happens, you and your bill are often the client’s last concern. Sometimes you have to sit and wait, or get your money in dribs and drabs.
What you have out on the street is one thing. But more companies in need of a new source will be coming to you. They may have to come to you because they ruined their credit or still owe a hefty bill at their last source and can no longer buy from their goods and services. Before you get too excited about your new business opportunity, conduct corporate research to see if they are whole enough to pay you. Conduct corporate business credit reports. The few bucks you spend for the business credit report and other background checks can go a long way to save you grief and money.
Check them out before you get yourself into trouble.
