collect debts quickly or …

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collect debts quickly or …

 

 

 

 

 

 

collect overdue accounts as soon as they fall due
Collect all overdue accounts now … while you can!

The prospects of collecting an account diminish greatly as each day passes. When an account is 14 days old, the client may be solvent, easy to find and be prepared to pay their account when asked to do so. However, when your account reaches 90 days, there have been 76 extra days during which the clients may have moved or closed his or her business.

In business, if you are paid at 60 days, the sales dollar has lost 10% of its value. If your profit margins are 10%, you have lost all profit from the sale. At 180 days, you have made a 23% loss on that sale. That is, you are paying your clients to use your services.

The graph at the top of this post (prepared by MAUS Business Systems) shows how the chance of collecting a debt diminishes over time.

The Moral …. Start Early.

By | 2017-07-17T08:29:02+00:00 March 5th, 2009|miscellaneous|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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