With the U.S. unemployment rate stuck at 9.6%, and the economy growing at an anemic 2% annual rate in the third quarter ended Sept. 30, Caine & Weiner, an international provider of accounts receivable management solutions, surveyed businesses in every major industry to determine the impact on cash flow.
Days sales outstanding (DSO) remained about the same as last year for 43.8% of those responding to the survey and 63.5% reported no changes in department staffing levels. Most of the respondents are engaged in business to business (B2B) commerce.
When asked about their expectations for the next six months, for placing accounts for collection, 57.5% reported placements will remain about the same. In response to the number of customer bankruptcy filings compared to last year, the majority (41.7%) reported filings were about the same.
The majority (59.5%) of respondents expect an increase in company sales in 2011.
The survey results indicate that credit and collection managers have implemented cautionary measures to protect their accounts receivables in the uncertain economy, including reducing credit lines and initiating collection activity sooner.
Caine & Weiner is a founding member of the Commercial Collection Agency Association, certified by the Commercial Law League of America. The company provides commercial and consumer accounts receivable management services, including first-party outsourcing and third-party debt resolution services. The company has a national network of collection centers, and through their active partnership with Global Credit Solutions (GCS), maintains a presence in 80 countries.
