They fail to recognize that given a lax creditor, a debtor will take advantage every time. And it all begins with a decision to institute a collection policy and procedure. All credit apps are completely filled out or rejected. Every new client who wants credit is on 90 days probation. No shipping a new order until the last order is paid for.
Every client is called every ten days.
If a debtor breaks a promise, credit is suspended. Do not go more than 60 days and if no payment, either institute reverse intervention or assign for collection. Do not hesitate. This or something similar must be in place in order to collect the receivables. If you do not know how to implement such a program, hire someone who does.