Known as “Saint Didacus” in Spanish, the beautiful city of San Diego is one of the most populated cities in the United States. With a 2018 population of almost 1.5 million, San Diego is the birthplace of California and is known for being one of the largest sectors for defense/military, tourism, international trade, and research/manufacturing (Wikipedia.org). In 2014 San Diego was designated by Forbes as the best city in the US to launch a small business. But just 2 years later, the city was ranked the lowest for being able to provide loans to entrepreneurs. How does second largest city in California bode with commercial debt collection and business finances?

Financing Small Businesses

One of the most important factors when you start a business is having consistent money. Most businesses in San Diego depend on financing for business success, at least at first. In 2016, San Diego was ranked worst in access to credit and financing. What caused the low access to credit? What are the requirements for getting financed in San Diego? What happens when businesses can’t make payments on their debt?

Business Debt Laws

When small businesses can’t make credit payments for financing loans, the state of California has a variety of collection and community property laws set in place for creditors. Both legal and judgment interest rates on debt is 10 percent. For California, the statute of limitations on open accounts with writing is 4 years and 2 years for open accounts without writing. Written contracts have 4 years and domestic judgments have 10 years for statute of limitations. If a small business is caught trying to pay off a loan with a bad check, San Diego laws state that penalty laws require full amount due with treble damages from $100–1,500 per bad check. For a summary of California’s commercial collection laws, see here: https://psicollect.com/california/.

Does a small or large business have outstanding debt with you? Contact Prestige Services, Inc., today to work with to professionals in the commercial debt collection industry and get the money that you deserve. Call us at (800) 523-2797 or email us at mail@psicollect.com!

Sources

https://en.wikipedia.org/wiki/San_Diego#Economy
https://www.cnbc.com/2016/08/18/these-25-cities-are-best-for-small-business-loan-approvals.html