Creditors/Employers

It goes without saying that businesses today face a multitude of challenges that didn’t exist even a short time ago; social media, Covid, inflation, supply restraints, labor shortages, the list goes on and on. 

Then we consider delinquent receivables- bad debt. Yea, those people you did work for a while ago that still haven’t paid. You put off other pressing matters ‘to help them out’, or gave them the benefit of the doubt on their short work tenure and let them have the apartment anyway. You trust people, trust their word and commitment to follow through on their obligations. They have failed you, and now you are pissed off and wondering how to proceed. You keep wondering and wondering; now they’re several months delinquent and your bank account balance is going nowhere, maybe even down. 

Maybe you have a large, successful business where you’re told that the amount/age of your delinquent receivables meets or beats industry benchmarks. So delinquencies are justified? A normal cost of doing business? 

Whether you have a small contracting company, rental homes, operate a REIT or manufacturing company, if you have delinquent receivables you experience LOST OPPORTUNITY COST.  

Theories regarding cashflow management are well outside the scope of this writing, but at the most simplest form of Opportunity Cost is the ability or inability to use cash for immediate operational or growth needs. At a micro-level this could mean replacing a leaky roof on a rental home. If you have delinquent receivables, you don’t have that cash for the repair- which means you have to borrow it at an additional cost or postpone the repair at a greater cost later on. On a macro level- Opportunity Cost can rear it’s ugly head in a number of different areas such as pay inequality and resulting labor shortages from competitive sources, limitations in outdated or equipment availability and even bonding limitations.

No matter the industry or size of your business, if cashflow and delinquent receivables aren’t effectively managed you will experience Lost Opportunity Cost at some point. As with any business, cashflow management begins with the owner and/or manager of an organization. But, it doesn’t have to end there! Green, Richard and Trent has been a critical extension of many companies over the years, helping recover delinquent and lost receivables for many clients. Our vast experience and pay-for-performance model (contingency) insures that we always have your best interests at heart while collecting your aged receivables.