Delinquency Verses Collectability

A company must establish a specific policy for management of their accounts receivable from day one through the time that the account becomes delinquent. It is imperative to have an action plan.


Today's economy has become sluggish and has fallen into a recession.
Time is of the essence in placing an account for collections. The older an account becomes, the lower your chances of recovery. It is critical to take proactive actions once an account receivable ages sixty to ninety days
past its due date.

The chart below shows the United States Department Of Commerce statistics on the effect of aging of debt. The age of each account
determines their value.  

*As the age of the debt increases the success of the collection decreases.