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Studies have shown that the longer a receivable is past due, the lower the likelihood of collecting. The chart below shows the average percent collected on receivables based on the number of months past due. For example, on average only 74% of receivables that are 3 months past due are collected. The implication: the longer you wait before taking more assertive action to collect past due receivables, the lower the likelihood you will collect it.
Source: Commercial Collection Agency Association of the Commercial Law League of America
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