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The above results clearly demonstrate the critical importance of taking positive action when an account receivable ages past its due date. Thus, companies must seek professional assistance from collection companies when their internal efforts to collect fail. The debt recovery industry has developed dramatically in the recent years. Presently, there are 10,000 collection agencies throughout the world. These agencies perform commercial (business to business) and retail (business to consumer) collection services. In addition, many collection agencies offer specialized collection services in areas such as consumer loans, collateralized bank debts, credit insurance claims, and various government collection programs. CRC has used these experiences to create the building block to develop this fairly new industry in the Gulf region. Thus, CRC attracted local manpower from the fields of banking and investment. It also made use of the latest developments in the areas of credit risk and debt recovery through its association with major international collection and risk management associations. CRC has thus actively contributed in creating financial stability on the level of companies; and, in turn, on the level of the national economy.
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Cash
flow is the engine that drives all businesses, whether large or small.
Delinquent accounts are the constraint to the survival of businesses.
According to a study conducted by the American Collection Association
(ACA), it became clear that the probability of collecting a delinquent
account after 90 days drops to 72%. Subsequently, after six months, the
probability drops to 56%, and after one year down to 28%.