What is aged debt?
Aged debt, also known as accounts receivable aging or accounts receivable aging schedule, is a financial tool used by Sonovate to track and manage their outstanding accounts receivable. Accounts receivable refers to the money that a business is owed by its customers for goods or services that have been delivered but not yet paid for.
What is an aged debt report?
An aged debt report categorises outstanding invoices or accounts receivable balances into different age groups based on the number of days they have been outstanding. The purpose of creating an aged debt report is to provide a snapshot of the company's outstanding receivables and to help the business assess the risk associated with overdue payments.
What happens to debts that exceed 60 days?
If an account becomes a concern due to significantly aged debt, we proactively notify you to address potential funding issues. Additionally, we provide you with regular reports, highlighting unpaid invoices and cases where payment terms have been extensively exceeded.
Debt >60 Days Old: For debts exceeding 60 days, our actions include:
- Funding Review: We conduct a comprehensive review of funding and may consider withholding further payments.
- Final Calls and Emails: We engage in final communication attempts to resolve outstanding payments.
- Debt Recovery: Depending on the circumstances, we explore options for debt recovery, which may involve future funding requests or direct collection from your agency.
- Bad Debt Protection: As part of our Bad Debt Protection, you have the option to choose whether the debt is recovered from your agency or accepted by Sonovate, with a minimum retention required. It's important to be aware that we will not consider additional funding requests for this client under these conditions.