In Collecting Accounts. Cash flow is the engine that drives businesses large and small.
Delinquent accounts are the brakes that bring companies to a screeching halt.
The economic exigencies of recent years has pushed many companies to extend the time they will permit an accounts receivable to age prior to instituting formal collection efforts. According to the survey results, the probability of full collection on a delinquent account drops dramatically with the length of delinquency. The results of the surveys clearly demonstrate the critical importance of taking positive action when an accounts receivable ages past its due date. This is true whether you are in the printing industry or a company in the silicon valley. Delinquent accounts, if they are permitted to age, can wreak havoc on a company's liquidity, as well as tie up management and staff time that could be put to far better use.