When it comes to collecting payments from customers, your A/R department may want to concentrate on these two groups.
The amounts delinquent for both small and large businesses have skyrocketed recently, according to new research from Experian.
So you may want to pay closer attention to any of your smallest (firms with one to four employees) and largest (more than 1,000 workers) customers.
One way: segmenting your customers by size, instead of by risk.
Also, if you notice any unsettling month-to-month trends in a specific customer, it’s probably a good idea to review its credit line and possibly take some precautionary measures, such as pre-pay, Cash on Delivery, etc.
The Experian research did reveal some good news, however. Mid-sized customers’ debt has decreased greatly in the last year.