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.[1]  At the end of ten years, that number increases to between 80% and 96%.[2]  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.[3]  In 2010 alone, hospitals in the United States had over $39 billion in unpaid bills.[4]  Delinquent accounts constitute an even larger problem, as 33% of consumers – more than 77 million people – fail to pay their bills on time.[5]

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 agood@klendalaw.com.

Legal Disclaimer

The material contained in this article is for your general information only and is not legal advice. We always welcome inquiries from prospective clients, but please do not send us any information you consider to be confidential until you make specific arrangements with us to become our client. Neither your sending us information electronically nor our receipt of information creates an attorney-client relationship between you and Klenda Austerman LLC.

Our attorneys are licensed to practice law in Kansas. A few are licensed to practice in Missouri. Our posting to this website and including information about Klenda Austerman LLC and its lawyers is not intended to be, and should not be, construed as, any form of advertising or solicitation to perform legal services in any jurisdiction, where we are not authorized to practice law.


[1]http://smallbiztrends.com/2008/04/startup-failure-rates.html;http://voices.yahoo.com/a-look-why-most-businesses-fail-104227.html;http://voices.yahoo.com/why-most-small-businesses-fail-do-4142485.html?cat=35

[2]Id.

[3]Seehttp://www.huffingtonpost.com/2012/04/27/north-carolina-hospitals-debt-collection_n_1459324.html; http://www.lowcards.com/credit-card-delinquencies-increase-major-issuers-6118

[4]http://www.huffingtonpost.com/2012/04/27/north-carolina-hospitals-debt-collection_n_1459324.html

[5]See “The 2012 Consumer Financial Literacy Survey,” compiled by Harris Interactive, Inc., available at http://www.nfcc.org/newsroom/FinancialLiteracy/files2012/FLS2012FINALREPORT0402late.pdf.

Leave a Reply