Receivables Do Not Age Like Fine Wine

Outstanding accounts receivables are much more than just a nuisance, and you’ve most likely had to deal with late payers and deadbeats more often than you’d like (or ever imagined!). What you might not be aware of is that the longer you wait to collect, the more money you’re throwing out the window. Forbes.com recently published a great article on dealing with deadbeats and they’ve used a great graphic chart to show you exactly how much the money you’re due depreciates as time passes. But collecting this debt can sometimes be akin to walking on thin ice. These debtors might have been (or has the potential to be in the future) very big clients. You may have even developed a personal relationship with them.  So how can small businesses collect from potential deadbeats? If it’s been more than 90 days and the debt is reaching a “critical” period (after 90 days, your receivables have depreciated to about 69%), it may be time to call on the help of debt collection agencies or lawyers. You’ll end up giving them a good chunk of the receivable, but it beats getting nothing at all.