Inflation translates to higher accounts receivable and unpaid bills. Wage growth does not keep up with rising prices for most people.
Whenever there is a spike in inflation, interest rates rise. This translates to higher delinquencies for credit card bills and more people unable to pay their mortgage. People divert their finances towards more necessary expenses like food and rent over other bills obligated to pay, but feel they can be deferred.
Doctors suddenly see more patients defaulting on their payment plan. More people are unable to pay their car installments. A higher number of people are file for bankruptcy. The list goes on.
Nearly 50% more people face problems whenever there is a significant rise in inflation. They are now paying more for food, fuel, and almost all essential things people need in day-to-day life.
To improve your chances of getting paid during inflation, it is important to recover your share before your debtor’s financial condition deteriorates further. So whenever your AR is over 60-90 days past due, hire experts – Hire a collection agency.