Commercial Debt Recovery & Accounts Receivables

 According to Charter Capitol, the leading invoice funding company, late payments are on the rise from business to business. Approximately 25% of small businesses are receiving payments anywhere from 20-30 days after the due date. This is putting a tremendous strain on businesses not only risking closure, but juggling between making payroll and paying their own outstanding invoices.

Business owners are seeing their profit margins shrinking not only from the effects of inflation, but also having to pay additional fees on their own outstanding invoices. Even though businesses continue to offer Net 30 payment terms, they must consider not only the flexibility for their customers but it also benefits their own business. 

There also has been an alarming amount of business closures not only from late payers, but also non payers. Instead of focusing on growth, optimization and client retention , they are spending an astounding amount of resources attempting to reach their non-payers.  

Debt Collection Agencies recovered approximately $78.5 billion in one year from small to large businesses. This consists of 29% of accounts receivable from 90 days or less and 71% of accounts receivables 91 days or more.  

There is an upward trend of businesses using Debt Collection Agencies for their 31 days late to their severely delinquent account receivables. This is freeing up valuable resources and allowing for business owners to focus on their growth and success.