It’s easy to quantify the boost to your business from increased sales, but do you know how much your outstanding collection accounts are costing you?
In an article for Inc. Magazine, a receivables expert shows how you can quantify the cost of collections accounts to your business—and what you stand to gain from getting customers to pay fast. After all, if your customers don’t pay, you have to extend your business—or even personal—line of credit to pay your suppliers and other bills. By using a specific formula, you can calculate the dollars spent each day an account goes unpaid so you know exactly what it’s costing.
Click here for all the details, including the formula to calculate what your unpaid accounts are costing you.
Source:
Inc. Magazine: Collection: Days Saved, Thousands Earned
