As you look at your receivables, you ask yourself, how collectible is this debt? Every business owner understands cash and cash flow, so collecting a debt or dealing with slow payers becomes a part of doing business. Since the dawn of the simplest commerce in human communities, debt collection has been an integral part of business in any society at any time in human history.
A look back to 2010 reveals that US businesses placed $150 billion of debt with collection agencies, and agencies were able to collect just $40 billion of that total. On delinquent debt, the industry averages a 20% collection rate, a decrease from 30% a few decades ago. According to Callminer.com, based on their read of those statistics, it is getting more difficult to collect. Continue reading “How Collectable Is Your Commercial Debt?” →
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