Remove 2020 Remove Credit Risk Remove Default
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How Are Your Customers Doing?

Your Virtual Credit Manager

The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable credit & collection insights. Learn More About Credit Reports Please share this newsletter with your small business customers.

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Best Practices for Managing Credit Risk in Recession

Abrigo

Key Takeaways This recession is significantly different than the 2008 financial crisis, creating a unique credit environment for financial institutions. Economic downturns alter the credit memo's content and process to capture credit risk. Mitigate credit risk and drive growth – even in a recession.

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Turning Pressure Into Performance

Your Virtual Credit Manager

During a May 28, 2020 podcast on Garmin.com entitled “The Shark on the Green”, Norman shared insights into how he maintained focus and clarity during high-stakes golf tournaments. Do you need help assessing your customers’ credit risks? In addition to his sports achievements, he is a successful businessman.

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Red Flags that Demand Your Attention

Your Virtual Credit Manager

Photo by Jamie Street on Unsplash There are two types of credit risk that arise from selling on open credit terms: Customers paying beyond terms (past due) reduce your cash flow. Far more damaging is a customer that defaults (never pays). If you haven’t, you almost certainly will…on all three accounts.

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The Majority of CFOs Expect a 2020 Recession – Is Your Financial Institution Ready?

Abrigo

expect a recession by the end of 2019 – and 82% believe a recession will have begun by the end of 2020, according to the Duke University/CFO Global Business Outlook survey. There are four key financial variables industry experts utilize to represent a company’s credit risk profile and to predict their likelihood of default.

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Capital Assessment, Capital Planning Are Critical as Coronavirus Creates Chaos

Abrigo

Regulators will have elevated interest in credit risk and the resulting impact in the months ahead. Consider utilizing the same advisor for any stress testing or credit-focused capital planning as for estimating the allowance for loan and lease losses. Hammond said.

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Putting excess liquidity to work in today’s low-rate environment

Abrigo

A storm of events that have defined 2020 leaves many community financial institutions today in the position where balance sheets are awash with liquidity and competitive markets are squeezing rates on good quality loans to lower-than- comfortable levels. There is the potential credit risk that the borrower may not pay us back.

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