Collection Managers have long realized that the longer a delinquent account ages, the less likely it will be collected.

The Commercial Collection Agency Association of the Commercial Law League of America recently polled its members--a consortium of America's leading collection agencies. The consensus of the members who represent a cross section of industry, was that the probability of collecting a delinquent account drops dramatically with the length of delinquency.

According to the survey the likelihood of recovering a current balance was over 94%. Conversely, if the balance remains outstanding for 90 days, the likelihood that the debtor will remit payment is just under 74%.

Why are older balances harder to collect? Some of the reasons include:

• Debtor files bankruptcy
• Debtor skips
• Relocation
• Proof of delivery is unavailable
• Misplaced records
• Those familiar with transaction are no longer available
• Department turnover

The message is clear. Don't procrastinate, time is your enemy. Protect your accounts receivable.