Invoices lose approximately 12% of their value every month they remain outstanding.
Once an invoice is beyond 90 days past due, your chances of collecting it drop by 40–80%.
Just because you can write off the bad debt doesn’t mean you’re recovering the full value of the invoice—you’ll need considerable additional revenue to offset the lost time and cost.
While some larger companies have in-house solutions for bad debt, that doesn’t mean smaller companies have to do without a team working on their behalf.
Even if you’ve already written off a bad debt, that doesn’t erase the obligation to pay—you may still be able to collect on that bad debt.