Ageing Debt
Debt grouped by how long it has been outstanding, used to track and prioritise overdue accounts for recovery.
What it is
Ageing debt refers to amounts owed grouped by how long they have been outstanding — for example current, 30, 60 and 90-plus days overdue. An ageing report (sometimes called an aged receivables report) shows this breakdown so a business can see how much money is tied up and how old each debt is.
The older the bracket, the more attention the debt usually needs, because recovery becomes harder over time.
Why it matters
Tracking ageing debt helps a business prioritise which overdue accounts to chase first and spot problem debts before they become uncollectable. It also informs when to escalate an account to a recovery agent rather than continuing to send reminders that are being ignored.
Merion can take on aged debt that internal teams have struggled to collect, via refer a debt.
Good to know
This is general information and not legal advice. As debts age they can also approach time limits for taking legal action, which vary by state, so very old debts may need prompt attention. Reviewing your ageing report regularly — and acting on the oldest brackets — is one of the simplest ways to protect cash flow and lift your recovery rate.
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