News
Collections increase 39.5% to $4.6 Billion
Date: July 27, 2009
Woodland Hills, CA--Accounts placed for collection by one business against another soared to $4.7 billion in the second quarter, according to the Commercial Collection Agency Association.
The record $17 billion in placements represent an increase of 39.5 percent over the same period in 2008.
Bankruptcy filings are also on the upswing. Figures released by the American Bankruptcy Institute reported 14,319 commercial bankruptcies were filed in the first quarter, a 64% increase over the same period one year ago.
"That the number of accounts placed for collection and bankruptcy filings are at a record high underscores today's uncertain global economy and the unprecedented challenges that all businesses face", said Greg A. Cohen, President and CEO of Caine & Weiner--a Woodland Hills, California-based international provider of accounts receivable management services since 1930.
"While there appears to be light at the end of the tunnel," said Cohen, "many economists predict the present situation, which has been dragging on for the past several months, may continue through the first quarter of next year. In the meantime, we encourage the businesses that rely on us to help them increase their cash flow to take prompt action to protect their receivables. Time favors the delinquent customer, so the chances of debt recovery are significantly improved when remedial action is undertaken early in the recovery cycle."
