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How Are Your Customers Doing?

Your Virtual Credit Manager

This company was fortunate to avoid significant bad debt loss until Ames Department Stores, Kmart, and Fleming Foods (a distributor) all filed bankruptcy within the same year. Bad debt losses were understandably huge. Click on this link to read more about AR portfolio monitoring and periodic account reviews.

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Gain Leverage Over Slow Paying and Risky Customers by Holding Up Their Orders

Your Virtual Credit Manager

Meanwhile, customers who previously were approved during your initial credit evaluation may become past due, max out their credit limit, or, worse yet, be in a deteriorating financial situation, all of which become even more likely when the economy is volatile—the result: cash flow problems and more exposure to bad debt losses.

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Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

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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What is the Role of AI in Accounts Receivable (AR)?

Emagia

In todays fast-paced business environment, managing accounts receivable (AR) efficiently is critical for maintaining healthy cash flow and business sustainability. The traditional methods of handling AR, including manual invoicing, collections, and payment tracking, often lead to delays, errors, and increased operational costs.

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Big Company Red Flags You Can't Afford to Miss

Your Virtual Credit Manager

Consequently, a large percentage of your accounts receivable (AR) is likely to derive from large firms. If you are not on the lookout for customer red flags, especially those raised by public firms and other large enterprises, you will be at increased risk for incurring bad debt losses.

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Optimizing Cash Flow Through Strategic Management of Accounts Receivable (AR) and Accounts Payable (AP)

Emagia

Central to this process are Accounts Receivable (AR) and Accounts Payable (AP), which represent the money owed to a company and the money a company owes, respectively. Understanding and strategically managing AR and AP can significantly enhance a company’s liquidity and operational efficiency.

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Are Your Credit & Collection Policies Aligned with Company Goals?

Your Virtual Credit Manager

In most companies, sales are given a strong priority over the risk of slow payments and bad debts regardless of gross margins and the resources the credit and collection function can provide to mitigate risk. Photo by Piret Ilver on Unsplash ) Too often, credit and collections are an afterthought.