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ACCOUNT
RECEIVABLE COLLECTABILITY
EVERYDAY YOUR ACCOUNTS RECEIVABLE DOLLARS SIT IN YOUR CLIENTS BANK, YOUR
PROFIT SLOWLY GOES OUT OF EXISTENCE. THE LONGER YOUR MONEY SITS OUT THERE,
THE LESS PROFIT YOU MAKE ON YOUR PRODUCT OR SERVICE.
OFFSETTING SALES DOLLARS
FOR EVERY $1,000 LOST, THE EQUIVALENT IN SALES IS $20,000. IF CREDIT HAS
BEEN EXTENDED TO A COMPANY AND THEY BEGIN TO HAVE FINANCIAL DIFFICULTY, THE
TIME YOU HAVE TO RECOVER YOUR INVESTMENT, LET ALONE YOUR PROFIT, BECOMES
LESS AND LESS EACH DAY. IT IS A FACT THAT THE LONGER AN ACCOUNT IS
DELINQUENT THE MORE UNCOLLECTABLE IT BECOMES. THE SAD REALITY IS THAT THE
OFFSETTING OF NEW SALES DOLLARS TO LOST ACCOUNTS RECEIVABLE DOLLARS IS
STAGGERING.
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