What percentage of invoices is typically collectible?

The typical percentage of invoices that is collectible can vary significantly depending on the industry, the company's credit policies, and the effectiveness of its collection processes. However, in many businesses, particularly those with efficient accounts receivable management, the collectible percentage can be very high, often exceeding 99 percent. This is because these organizations implement strong credit checks, maintain good customer relationships, and follow up effectively on outstanding invoices.

Invoices that are not collectible usually stem from reasons such as customer defaults, bankruptcies, or disputes over the goods or services provided. High collectible percentages indicate that the company has strong controls in place and minimizes the risk of uncollectible accounts. Therefore, the assertion that a significant proportion of invoices—specifically, over 99 percent—are collectible aligns with scenarios often observed in well-managed accounts receivable environments.