Accounts Receivable (AR) Article Bad Debt 
Your Virtual Credit Manager
APRIL 8, 2025
If you are extending credit to other businesses, it’s high time you began watching your customers closely for late payments and other signs of distress. The Imperative to Keep Past Due Balances in Check A key objective of Accounts Receivable (AR) management is minimizing past due AR to ensure cash in-flows and minimize bad debt losses.
Your Virtual Credit Manager
JANUARY 14, 2025
The Customer Delinquency Challenge Successful accounts receivable (AR) management involves minimizing past due balances to ensure steady cash in-flows and limit bad debt losses. Customer defaults can be devastating , especially when they cause a substantial bad debt loss.
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Your Virtual Credit Manager
JANUARY 2, 2024
Contacting customers to pay past due amounts (collecting) is an essential element of accounts receivable (AR) management. For most firms, late customer payments are a frequent occurrence and collecting them can be a difficult task. Collections also has to be done effectively with minimal alienation of customers.
Your Virtual Credit Manager
SEPTEMBER 5, 2023
Starting in October, free subscribers will only receive the introductory section of our weekly articles. Plus, you get full access to our growing archive of over 100 articles! Lower AR Carrying Costs: These are simply the cost of financing your AR. These costs are usually small, but not always trivial.
Your Virtual Credit Manager
OCTOBER 15, 2024
Over the next couple of years, many more companies are expected to file bankruptcy chapter 7 liquidations, or simply close their doors for good. As a consequence, commercial accounts receivable (AR) portfolios are at an increasing risk of suffering bad debt losses.
Your Virtual Credit Manager
FEBRUARY 28, 2023
Your Virtual Credit Manager (YVCM) previously published an article discussing the pros and cons of Prompt Payment Discounts. However, at this point in time there are other factors in play that favor the use of discounts to encourage earlier payment by your customers. If not paid by the discount date, the full amount is due in 30 days.
Your Virtual Credit Manager
DECEMBER 6, 2022
If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you.
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