A key Finance metric: When to turn over over past-due debts to a third party
Here’s a question finance chiefs often struggle with: Has come to turn over a dragging customer to a third party collector?
You don’t want to jump too soon and jeopardize the relationship. But wait too long and even the most skilled collector won’t be able to wrangle that cash back.
So where’s the cash-flow maximizing sweet spot?
New benchmarks can help, courtesy of Atradius Collections Global Collections Review: Europe, Americas and Asia Pacific.
Most common: 61-90 days late
The report looks at how your peers are handling delayed payments – a trend they expect to increase in the next 12 months.
Take a look when other finance shops in the Americas decide it’s time to tap the big guns and send accounts to a debt collector:
- 61-90 days late: 29%
- 31-60 days late: 28%
- 90-120 days late: 20%
- 1-30 days late: 12%.
The eye-opener here: Almost no one waits until debts go 121 days late or later any longer.
In fact, just a month past due will get more than a quarter of your peers reaching out for backup.
May be time to start paying more attention to that agings bucket.
Info: To download the complete report, go to fcibglobal.com/pdf/atradius/Atradius_Country-ACGCR-2017.pdf
- Share on
Free Training & Resources
White Papers
Provided by UJET
Further Reading
Among all the important tasks CFOs and collectors juggle every day is trying to reconcile accounts due. There may be more pressure this yea...
Let’s be real: The enthusiasm behind real-time (or instant) payments stems almost entirely from the seller’s side of B2B. After...
It might be time for A/R or your credit and collections arm to roll up their sleeves. Staying ahead of the surge in Chapter 11 Bankrupt...
Collections teams are under added pressure to keep after delinquent accounts and press for payments, even if only partial ones. Waiting too...
Late or slow payments continue to stall progress for today’s finance teams. These delays often stem from large organizations renegotiatin...
The 2022 End-of-Year Sales Tax Rates and Rules report by tax technology solutions provider Vertex Inc. has both good news and bad news for ...
