Shrinking Dollar $

The more you wait the less chance you have to recover.

Our recovery rates are highest in the industry.

Your Shrinking Dollar!

What happens when there is a Delay in Collecting Accounts Cash flow is the engine that drives businesses large and small. Delinquent accounts are the brakes which bring companies to a screeching halt. In recent years, the tenuous nature of the economy has pushed many companies to extend the time they will permit an account receivable to age prior to instituting formal collection efforts.

Based on a recent survey of members of the Commercial Collection Agency Association of the Commercial Law League of America (CLLA), this "loosening" of payment requirements may be severely impacting companies' cash flows and bottom lines.

Probable Recovery

According to the survey results, the probability of collecting a delinquent account drops dramatically with the length of delinquency. For example (see fig. 1a), even after only three months, the probability of collecting a delinquent account drops to 73%. After six months, the probability of collecting drops to 57%. After one year, the chance of ever collecting on a past due account is a dismal 29%. The results of this survey clearly demonstrate the critical importance of taking positive action when an account receivable ages past its due date.

Companies must take a hard line on past due receivables, and turn to professional help when their internal efforts do not prove successful. What can a company do, internally, to minimize and better control problem accounts? Talk to one our account representatives for a detailed account of not only how we can collect but help you in the future prevent these problem accounts.