The Importance of Collecting Delinquent and Unpaid Accounts for Medium and Small Businesses
Everyone knows that one of the primary goals of any business is to generate profits. The typical business cannot afford to operate “in the red” for long periods, if at all. Though statistics vary, in general, roughly fifty percent (50%) of small businesses fail in their first five years of operation. At the end of ten years, that number increases to between 80% and 96%. Regardless of the exact statistics, it is clear that to stay profitable, business owners cannot afford to overlook potential sources of income.
One area that can have a large effect on a business’s bottom line is the collection of delinquent or unpaid accounts. On average, a business can expect roughly five percent (5%) of its total invoices to go unpaid. In 2010 alone, hospitals in the United States had over $39 billion in unpaid bills. Delinquent accounts constitute an even larger problem, as 33% of consumers – more than 77 million people – fail to pay their bills on time.
For a business operating on small margins, or those looking to increase their current profits, effective debt collection strategies are vital. Klenda Austerman attorney Aaron Good can assist you with establishing and pursuing a strategy for collecting delinquent and unpaid accounts. You may contact Aaron at firstname.lastname@example.org.
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See “The 2012 Consumer Financial Literacy Survey,” compiled by Harris Interactive, Inc., available at http://www.nfcc.org/newsroom/FinancialLiteracy/files2012/FLS2012FINALREPORT0402late.pdf.