Sales, Losses & Bankruptcies
" American Bankruptcy Institute (ABI) reported on Monday that total U.S. bankruptcy filings increased in April by 2% year-over-year. Officials tabulated that bankruptcy filings totaled 71,260 in April, up from the total of 69,781 record in the same month last year."
Couple this data with sales going strong and losses on the upswing earlier this year, it's even more important to put accounts receivable on the "right way". The temptation to outsell losses is there, but it NEVER works out. Sticking to your underwriting guidelines reduces the risk of heavy losses in the future. It's a perpetual cycle that never corrects itself without drastic (money losing) intervention. Anyone that has ever been through it can tell you, "It's just not worth it!"