Age is a major factor in reconciling an account. According to data in the collection industry, accounts that are 90 days past due only have just under a 70% chance of being reconciled.
The process of reconciling a past due account can be influenced by many factors:
- Age of the debt
- Product or service being provided
- Competitive nature of the industry
- Due diligence performed on the account before being placed
- The financial position of the business owing payment
Each day’s delay in referring accounts to R.R. Beach is negatively impacting your company’s profitability. Bad debt is not like a fine wine – It does not get better with age! Understanding that and taking action in a timely manner will secure that profitability and reduce your losses to bad debt.