Your Virtual Credit Manager

OCTOBER 15, 2024

With consumer discretionary spending bottled up by past inflation, it is no surprise many SMBs are struggling to make ends meet. In other words, commercial chapter 11 bankruptcies have doubled over the past 2 years, and the trend continues upward. ” That comes after a 61 percent increase over the same period from 2022 to 2023.

Chapter 11 100

Chapter 11 Bad Debt Accounts Receivable (AR) Bankruptcy 100

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. There is no good reason to sell to risky accounts on open terms when you can replace those sales by selling low-risk accounts.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Collector 130

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.

Days Sales Outstanding 130

Days Sales Outstanding DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 23, 2024

Among other things, commercial bankruptcies have been steadily climbing over the past year. Consequently, where the risks are concentrated in your AR portfolio can change significantly from year-to-year, which is why you need to have a program that involves both periodic account reviews and portfolio monitoring.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

AUGUST 11, 2024

Commercial bankruptcies have been surging since mid-2022. Chapter 7 commercial liquidation filings are up 28 percent and sub-chapter V small business elections are up a staggering 61 percent despite the filing threshold recently being cut in half. Department of Justice expects a sharp increase in bankruptcies with the U.S.

Sub-Chapter V 100

Sub-Chapter V Bankruptcy Credit and Collections Chapter 11 100

Your Virtual Credit Manager

MARCH 19, 2024

Whether you have automated the collection process or not, mapping out collection strategies for the different types of customers in your accounts receivable (AR) portfolio is an accepted best practice. Collection Activity: Consult with legal counsel to understand the implications of the bankruptcy filing on debt recovery.

Bulk Transfer 100

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

Your Virtual Credit Manager

FEBRUARY 28, 2023

While bankruptcy filings have not increased substantially in the past year, they have begun to tick up and it is widely anticipated that filing will continue to increase as pandemic relief is finally spent, revenues decrease due to a faltering economy, and costs increase due to inflation and rising interest rates.

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

APRIL 2, 2024

As such, they are just one of the many tools, such as credit reports, supplier and bank references, and financial statement analysis, that can help assess a business's creditworthiness. Commercial credit scores are often not as well understood as consumer credit scores such as FICO.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

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.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

MAY 2, 2023

Growth is down, interest rates continue rising, small businesses are facing a credit crunch, commercial bankruptcies are skyrocketing and experts see an emerging threat: Washington Post: U.S. There are several ways to mitigate the risk of extending credit on open terms. The headlines paint a grim picture.

Bankruptcy 100

Bankruptcy Credit and Collections Accounts Receivable (AR) Default 100

Your Virtual Credit Manager

DECEMBER 27, 2022

A business's credit history also includes any past bankruptcies or defaults, as well as collection agency placements. In addition, it is a plus when the owners and top managers have no history of bankruptcy. A business with a strong credit history is more likely to be considered creditworthy than one with a weaker credit history.

Credit Scoring 130

Credit Scoring Credit and Collections Accounts Receivable (AR) Credit Application 130

Your Virtual Credit Manager

JULY 23, 2024

In every accounts receivable (AR) portfolio there are customers that almost always pay on time, other customers that pay within a reasonable proximity of the due date, and those that pay consistently slow. It usually only takes about six months to figure out the segment into which a new business customer will fall.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Shared Service Center Small Businesses 130

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Effectively managing accounts receivable (AR) is essential for a company's financial well-being. Poor receivables performance affects cash flow, and it is no secret that cash flow problems are the leading cause of business failures. Here’s more on credit evaluations.

Credit and Collections 130

Credit and Collections Bad Debt Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

APRIL 30, 2024

In addition, extended terms increase your exposure to customer bankruptcies and the resulting non-payment. Also, once granted, extended payment terms are very difficult to rescind. To compensate, you may have to borrow funds, pay interest and submit to the lender’s conditions and covenants.

Credit and Collections 100

Credit and Collections Accounts Receivable (AR) Credit Risk Bankruptcy 100

lsq

AUGUST 15, 2023

Earlier, we discussed the importance of accounts receivable (AR) finance as a valuable lever for companies in survival mode during an economic downturn. Fortunately, not all businesses are in that position. But that doesn’t mean that AR finance isn’t a valuable tool for them.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bankruptcy 52

lsq

JULY 31, 2023

For many companies, the answer is accounts receivable (AR) finance. AR finance provides a valuable way for businesses to access working capital quickly by leveraging their outstanding invoices for on-demand payments. AR finance has been a hallmark of LSQ’s business for our nearly 30-year history.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bankruptcy Credit and Collections Default 52

lsq

JULY 31, 2023

For many companies, the answer is accounts receivable (AR) finance. AR finance provides a valuable way for businesses to access working capital quickly by leveraging their outstanding invoices for on-demand payments. AR finance has been a hallmark of LSQ’s business for our nearly 30-year history.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bankruptcy Credit and Collections Default 52

Fundera

MARCH 26, 2018

The number of credit accounts you have. Tax liens, judgments, bankruptcies, collections. On the other hand, if your personal financial history is mostly free of faults (like tax liens , bankruptcies, and judgments), then there’s a good chance you’ll stay on top of your business’s financials, too. . ?TL;DR: Payment history.

Credit Scoring 71

Credit Scoring Credit and Collections Accounts Receivable (AR) Small Businesses 71

Your Virtual Credit Manager

AUGUST 20, 2024

Here are some factors AR managers should anticipate: Interest rates may ease somewhat, but the days of easy money are over for the foreseeable future — working capital management is extremely important now Commercial bankruptcy filings are expected to continue rising (the U.S.

Credit Management 130

Credit Management Credit and Collections Accounts Receivable (AR) Bankruptcy 130

Your Virtual Credit Manager

FEBRUARY 11, 2025

small businesses are financially distressed, and better than 6 of 10 of those businesses are carrying revolving debt on their credit cards—not a good sign. Not surprisingly, business failures are on the upswing. The political and international environments are also contributing to economic uncertainty.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Credit and Collections Bankruptcy Credit Management 130

Your Virtual Credit Manager

MARCH 26, 2024

Meanwhile, the number of commercial bankruptcies is accelerating. In February, Epiq Bankruptcy reported that commercial Chapter 11 bankruptcy filings climbed 118 percent year-over-year. The point is, where the risks are concentrated in your AR portfolio can change significantly from year-to-year. A Case in Point.

Bankruptcy 130

Bankruptcy Bad Debt Credit Scoring Chapter 11 130