While many self-employed professionals, small business owners and entrepreneurs are working hard to find ways to survive the economic downturn, one business sector is setting new records due to the recession.
Business owners in the collections industry report the recession is creating record-setting business conditions. The economic downturn is historic because business owners and entrepreneurs that have never had trouble collecting payment from clients are now facing the worst cash crunch the collection industry has ever seen according to industry insiders.
According to the latest numbers from the Commercial Collection Agency Association, the dollar totals placed in collection by one business against another soared to almost $4.7 billion in the second quarter nationwide! That’s up almost 40 percent from $3.35 billion for the same period last year.
Last year was also a historic year for commercial collection agencies. A record $14.3 billion in business accounts nationwide were placed in collection in 2008, a 23.2 percent increase from $11.6 billion in 2007 according to the Commercial Collection Agency Association.
While the amounts continue to rise, collection firms report rising bankruptcy filings are making it very difficult to recoup the money.
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