Financial

Accounts Receivable Aging

AR aging is the classification of outstanding receivables by how long they have been unpaid — typically 0–30, 31–60, 61–90, and 90+ days. The older a receivable, the lower the probability it will be collected, which is why aging drives placement and write-off decisions.

What Accounts Receivable Aging means for creditors

Collectability decays with age, so timing is everything. MSB encourages earlier placement of aging accounts because recovery rates fall sharply once balances pass 90 days.

Midwest Service Bureau has recovered commercial, medical, utility, and government debt for creditors nationwide since 1970 — on a no-recovery, no-fee basis. Questions about accounts receivable aging or a portfolio you'd like reviewed? Call (800) 362-0272.

Related terms

• Bad Debt
• Charge-Off
• Recovery Rate

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