If you’re like most people chasing unpaid accounts is a time wasting pain in the neck you’d rather not deal with. It ranks up their with filing tax returns and firing staff.

Being so demoralizing, it’s tempting to delay recovery of your overdue accounts. But the hassle of chasing bad debt is a mere scratch when compared to the seven hidden ways your overdue accounts are cripple your business.

7 Crippling Costs Of Unpaid Accounts

Crippling Cost #1: Communication Costs

While individually small, the hard costs of communicating with your debtors (e.g. printing, postage, phone bills) can collectively slash thousands of dollars off your bottom line.

Crippling Cost #2: Employee Expenses

Every week your business will spend around 9.5 hours dealing with overdue accounts. And even if you pay someone a modest $12 hourly wage , that ads up to $5,928 ever year! Granted, that may not sound so much but wouldn’t you rather have an extra six grand in your pocket than waste it chasing debtors?

Crippling Cost #3: Lost Opportunity

While it’s fairly easy to calculate the money lost paying employees to chase your debtors, what’s not so easily calculated is the opportunity cost. If that employee instead invested nine and a half hours a week following up customers on the phone; cross-selling them other products or services; stimulating referrals, imagine the impact that would have on your profits! By tying up your employees time chasing bad debts you’re flushing tens if not hundreds of thousands of dollars down the drain.

Crippling Cost #4: Lost Productivity

Similarly, every minute you spend personally dealing with overdue accounts is a minute you’re not producing. Now as the head-honcho your time should be] worth orders of magnitude more than a measly $12 per hour. So if you waste hours of your invaluable time chasing debts, not only is your hourly rate significantly higher than that of your employees, you’re also taking time away from your highest money-generating activities.

Bottom Line: Even though this cost is virtually incalculable… understand that it’s massive!

Crippling Cost #5: Emotional Toll

With rare exception, pretty much everyone hates chasing debtors with a passion. All the b.s and abuse debtors through at you takes it’s toll. It might sound a bit airy fairy but all that negative energy, all that anger and frustration… it actually gets passed on to your accounts manger, darkening their mood and in turn infecting your entire business.

Now before you scoff, I’d like you to imagine some one’s verbally abusing you right now. If you’re like most people you’ll feel angry and violated. And you’ll carry those emotions for days. No matter how strong you are, your performance, your decision making and your relationships (both at work and at home) can’t help but suffer if you’re festering with these emotions.

So if that’s how one abusive incident can impact your life, imagine what it’s doing to the person who deals with abuse day-in, day-out as a routine part of their job? Once again, this is a cost that’s practically impossible to quantify but don’t kid yourself that it doesn’t eat away at your profits at multiple levels each and every day.

Crippling Cost #6: Stifled Growth

Irrespective of what business you’re in, cash-flow is king. Without money surging through your business you’ll struggle to survive let alone thrive. But with your revenues tied-up in unpaid accounts, your debtors are effectively strangling your cash-flows and in turn stifling the growth of your business.

Again, this is a cost that’s practically impossible to gauge but understand… having your money frozen in unpaid accounts is ravaging your wealth and ultimately your financial security!

Crippling Cost #7: Lost Revenue

The final hidden cost of overdue accounts is the actual loss of income that results from uncollected debts. You see, most business owners hold-on to their debts way too long. And if there’s one debt recovery law that’s set in stone it’s the longer an account remains unpaid, the more money you’ll flush away.

So by ineffectively chasing debts for months and sometimes even years you’re needlessly kissing away money you’ve worked so hard to generate. And while it might sound crazy, it’s a mathematical fact that failing to recover a $2,000 debt is the same as losing $25,000 of new business! That’s the true hidden cost of an un-recovered account.

The Quick And Easy Answer

Now before you get in your car and look for a bridge to jump off there’s actually a silver lining here. The good news in all of this is there’s one and only one root cause to all this loss taking place in your business. And that one cause can be quickly and easily eliminated in a single step.

So what is the sole source of all this loss?

Your lack of a proven, powerful~ process to recover accounts. Now if you lack such a system… there’s no shame in it. You’re in the same boat as 99% of businesses and frankly it’s not your fault. After all, who’s ever shown you how recover your accounts properly? Certainly not any Debt Collection Agency!

However, by having an affordable, simple Debt Recovery System working for you in your business you’ll automatically eliminate the nightmares and hidden costs keeping you down for good.

To help you recover more of your debts faster and cheaper The Debt Doctor’s Debt Collection website has twelve powerful free tools and resources. For instance, to download free debt recovery letterssimply click either link above.

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