THE LONGER YOU KEEP A PAST DUE ACCOUNT ON THE BOOKS THE LESS CHANCE THERE IS OF COLLECTING IT.

Cash flow is the engine that drives business both large and small.

According to survey results the probability of full collection on a delinquent account drops dramatically with the length of the delinquency. For example, even after three months the probability of collecting a delinquent account drops to 70%. After six months collectability drops to 52%. And after one year the probability of ever collecting a delinquent account drops to 25%.

The results of this survey clearly demonstrate the critical importance of taking positive action when an accounts receivable ages past its due date.

This applies to whatever industry or field your firm is involved with. Delinquent accounts, if they are permitted to age, can diminish a company’s liquidity, as well as infringe upon valuable management and staff time that can be put to far better use.