Collection Analysis

Col­lec­tion Analysis

Col­lec­tion Analysis

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