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.
Sal Banuelos, CEO
Salvador Banuelos is internationally known for the debt collection results he has provided to the freight transportation and import/export industries worldwide for the last 13 years.Author of "Credit and Collections in the Freight Industry Handbook"You can also follow him at twitter, facebook and Linkedin.