Accounts Receivable (AR) Bad Debt Credit Risk 
Your Virtual Credit Manager
MARCH 4, 2025
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. Learn More About Credit Reports Please share this newsletter with your small business customers.
Your Virtual Credit Manager
JANUARY 28, 2025
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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Your Virtual Credit Manager
NOVEMBER 12, 2024
Monitoring and evaluating the credit risk posed by public companies and other large firms differs significantly in comparison to small and mid-sized businesses. Because most of your biggest customers will be larger firms instead of smaller, it is typically the larger firms that will require higher credit limits.
Your Virtual Credit Manager
FEBRUARY 4, 2025
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.
Your Virtual Credit Manager
OCTOBER 3, 2023
The typical course of action on managing bad debt loss is to identify, then focus credit and collection activities on individual customers who are financially weak. These customers pose the highest risk of bad debt loss. This is often the case when there are economic upheavals or natural disasters.
Your Virtual Credit Manager
JANUARY 7, 2025
How was your accounts receivable (AR) performance last year? This is a very important question because AR is typically one of the top two or three largest assets for a B2B vendor. The primary way most companies measure AR performance involves looking at the Days Sales Outstanding (DSO) metric.
Your Virtual Credit Manager
JUNE 20, 2023
As economic headwinds build, business leaders tend to batten down the hatches by cutting cost and minimizing risk. In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. Here’s more insights on customer profitability.
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