Most businesses buy on credit and sell on credit. Every dollar not collected is a dollar out of net profit. In fact, there are usually additional costs incurred when a receivable is written off.
The solution is to vet your customers for creditworhiness and monitor them. Have systems in place to deal with credit risks and be prepared to take swift action.
The rule that the older a debt, the less likely it will be collected is constantly proven.
Many companies don’t properly document sales, have poorly drafted contracts, make unenforceable arrangements with debtors and fail to act when necessary.
When debt in uncollectable in the normal course, call us for a legal resolution. We write a demand letter, and 10 days later, sue. Upon obtaining judgment we enforce the court order through seizure and sale, garnishments, etc.
Contact us us for a review of your receivable systems and documents.