A recent credit report revealed that one of our customers has several tax liens. How concerned should we be about this?

Answer: Depending on the dollar amount of the lien[s], the number of liens, and the age of the liens this can be serious. In theory, if a tax lien is not satisfied, the taxing authority may have the right to seize the assets of the business to pay the lien. Liens are red warning flags to creditors, and should not be taken lightly. By the same token, liens should not result in automatic disqualification of any customer or applicant for credit, especially if the amount of the lien is small in comparison to the size of the company.