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Tip of the Month

Business to Business Accounts Placed for Collection Continue to Rise and Set a Record

(Press release issued by the Commercial Collection Agency, Commercial Law League of America on April 22, 2009).

For the twelve months ending March 2009, members of the Commercial Collection Agency Association of the Commercial Law League of America, (CCAA) received a record volume of commercial or business-to-business accounts placed for collection. Over $15.4 billion in accounts were received. This represents a percentage increase of 27.2 percent over the twelve months ending March 2008.

In the first quarter of 2009, approximately $4.2 billion in account placement was received. This represented 34.6 percent increase over the first quarter of 2008.

"These times continue to be problematic for American business as bankruptcies rise and a greater number of customer accounts on companies aged trial balances move to the sixty and ninety day columns representing an increase in Day Sales Outstanding (DSO) and a decrease in cash flow," said Emil Hartleb, CCAA executive director. "Companies are becoming more selective in their credit decisions and watching and reacting faster to slow paying customers."







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