We all know the impact of overdue debt on business cash flow and liquidity. It’s the no. 1 business killer. But do you really know the true cost of managing your accounts receivable?- Harvard Business Review, August 2009 edition
Cost elements of overdue debtors | ||||
---|---|---|---|---|
Percentage carrying cost | ||||
Cost of elements | 30 days | 60 days | 90 days | 120 days |
Time | 0.82 | 1.63 | 2.44 | 3.22 |
Administrative | 0.00 | 0.50 | 1.50 | 2.00 |
Opportunity | 0.00 | 2.50 | 7.50 | 12.50 |
Predictability | 0.00 | 1.00 | 1.00 | 1.00 |
Predictability | 0.00 | 1.00 | 1.00 | 1.00 |
Financing | 0.00 | 0.66 | 1.30 | 1.99 |
Bad Debt | 1.00 | 4.00 | 6.00 | 10.00 |
Total Cost | 1.82% | 10.29% | 19.74% | 30.71% |
*as per HBR |
Take a look at the various resources we have at our disposal, thanks to our extensive business and debt collection experience throughout the decades.
GGA brings in the focus, momentum, and expertise necessary to guide the company's existing team towards the application of improved collection processes. With us, you gain many advantages, such as: