Opportunity cost is the price your firm pays doing one task (going after past-due receivables) instead of doing another task (running normal business functions and servicing your paying clients)
Opportunity cost to a small business owner is extremely expensive, nowhere is it more apparent than when running down past-due receivables.
First you jump through hoops to provide the debtor with a good product, on time. Then you give fair terms only to have them miss and drag it out forcing you into servicing a loan.
Nothing can increase opportunity cost faster than getting sunk into the morass know as small claims or civil court. (Collection V Litigation)You’ll most likely win a no-show judgment and be right back in collection mode having fired off your big gun. PLACE AN ACCOUNT
