In other words, overdue receivables are payments that are past due and should have been paid by now. Overdue receivables can negatively impact a company's cash flow and profitability, as well as increase the risk of bad debts. Companies typically have a set of procedures in place to collect overdue receivables, which may include sending reminder invoices or making phone calls to customers, or even involving debt collection agencies. To prevent overdue receivables, companies often implement strict credit policies and payment terms, and monitor their customers' payment history.