Business-to-Business Accounts Placed for Collection Continue to Rise.

For the twelve months ending June 2009, members of the Commercial Collection Agency Association of the Commercial Law League of America, (CCAA) received a record volume of commercial or business-to-business accounts placed for collection.  Almost $17 billion in accounts were received.  This represents a percentage increase of about 39.5 percent over the twelve months ending June 2008.

In the second quarter of 2009, approximately $4.6 billion in account placement was received by CCAA members.  This represented a 39.5 percent increase over the second quarter of 2008.

Emil Hartleb, Executive Director of CCAA stated, "The second quarter 2009 figures represent a strong increase in business-to-business account placement and an acceleration of the trend started in the fourth quarter of 2008.  We believe the increased account placement is reflective of the tight availability of credit and a slowdown in sales which has caused a cash-flow crunch for small and medium size businesses.  Most economists believe this situation will prevail into the fourth quarter of this year before improvement is noted."

Hartleb further stated, "While the collectability of the accounts placed for collection has declined, CCAA members reported that profit margins have only been modestly impacted.  There are signs on the horizon that the general economy has either bottomed or is near bottom and it is not expected that account placement will continue to rise to the levels experienced in the first and second quarters of 2009.  However, CCAA members in a recent survey believe that third and fourth quarter 2009 account placement will continue to be strong."

Hartleb added, "These times continue to be problematic for American businesses as bankruptcies rise and a greater number of customer accounts on companies’ aged trial balances move to the sixty and ninety day columns, representing an increase in Day Sales Outstanding (DSO) and a decrease in cash flow.  Companies have become more selective in their credit decisions and are watching and reacting faster to slower paying customers and placing them for collection with CCAA members faster."  

The Commercial Collection Agency Association (CCAA) is an association of commercial collection agencies that have been CERTIFIED by the Commercial Law League of America.  They represent the leaders in the commercial collection or business-to-business collection industry, handling about sixty-five percent of the commercial accounts placed for collection.  The Commercial Law League of America is the nation’s oldest creditors’ rights organization, founded in 1895.

Members of the CCAA subscribe to a strict Code of Ethics and undergo an intensive and continuing certification process.

For more information on CCAA, the certification process and its members, go to the Website: www.ccaacollect.com or call Emil Hartleb at (973) 239-0721.