According to findings of the Commercial Collection Agency Association, commercial business-to-business accounts that are going into collection have apparently declined during the 2nd quarter of 2013. However, the average size of the accounts seems to have risen significantly.
Not surprisingly, a large number of accounts have been placed into collection due to economic turmoil. We will still have to wait and see how the numbers pan out during future quarters now that the economy has somewhat settled down.
Collections have declined slightly between June of 2012 and June of 2013. Though the overall size of accounts did not rise as dramatically as had occurred in the 2nd quarter, the average size accounts did nevertheless increase slightly during this past year.
Commercial collection is by no means an easy task. Attorneys have to use both a series of techniques traditionally used in the collection industry along with a number of novel approaches. These attorneys also need to have the resources to perform investigations into the assets of a business to determine how to collect upon debts. Commercial collection attorneys can use a variety of tools including audits, wage garnishments, writ of attachments, levies and repossessions.
With larger size accounts there is always to possibility that payment on these accounts becomes overdue. Past due accounts, in any case, can in almost all circumstances cause businesses to suffer because of lost profits. However, attorneys experienced in business to business collection matters can hurry along collections both before and after a judgment when a particular debt is received.
Source: InsideARM.com, “Commercial Accounts Placed in Collection Declines, But Average Size Rises,” Sep. 9, 2013