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Sal Banuelos

Past due accounts... a very expensive reality

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Past due receivables in United States and Canada are considerably high in the transportation industry, with an average cost between 2 to 5% of the total sales. In Mexico, it is even more expensive since the average is over 25% of the total sales. In addition to this, carriers need to cover operating costs in the recovery process; for example: legal costs, payroll, and the financial costs of idle capital.

Never overlook the fact that the cost of past due receivables is ultimately extremely high, one which often goes unnoticed. The additional costs of past-due receivables may rise 6 to 10% once all the costs involved in the recovery of your past due accounts are calculated.

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