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. Share Read more

Chapter 11 130

Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections 130

Emagia

FEBRUARY 21, 2025

In today’s rapidly evolving financial landscape, businesses are continually seeking ways to enhance efficiency, reduce operational costs, and improve cash flow. Accounts Receivable (AR) automation has emerged as a pivotal solution, transforming traditional AR processes through technological advancements.

Accounts Receivable (AR) 40

Accounts Receivable (AR) AR Automation Days Sales Outstanding DSO 40

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. Your Virtual Credit Manager is a reader-supported publication. it just might help them collect faster and pay you sooner.

Bad Debt 130

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

Your Virtual Credit Manager

APRIL 16, 2024

Despite advances in workflow automation and payment technology, collecting commercial receivables is not getting any easier. Market volatility and rising costs are instead disrupting working capital budgets, causing late payments that inflate accounts receivable (AR). check, ACH, credit card, etc.),

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

SEPTEMBER 3, 2024

As businesses grow and add customers, there comes a point when collections become a burden. This will generally occur before a company reaches 100 customers on open account, but certainly before they acquire 200 customers. This is a simple matter of efficiency aimed at collecting the most possible dollars with a minimum of effort.

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

NOVEMBER 19, 2024

Chances are, there is a lot that needs to be done in terms of accounts receivable (AR) management between now and December 31st, especially if you are short of your Days Sales Outstanding (DSO) goals. Anything less, and you are wasting valuable time. it just might help them collect faster and pay you sooner.

DSO 100

DSO AR Metrics Credit and Collections Accounts Receivable (AR) 100

Your Virtual Credit Manager

AUGUST 15, 2023

Each past due account presents a unique set of circumstances. Consequently, your collection process needs to adapt to each situation if you are going to realize the best outcomes possible. Photo by Berkeley Communications on Unsplash In all probability, your accounts receivable (AR) portfolio conforms to the 80/20 rule.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Credit Management Small Businesses 130

Your Virtual Credit Manager

JANUARY 30, 2024

The evolution of Accounts Receivables (AR) automation has revolutionized our collection strategies. Manual collection processes centered on an aged accounts receivable trial balance (ARTB) lack the regimentation and efficiency brought about by automation. it just might help them pay you sooner!

Credit and Collections 130

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

Your Virtual Credit Manager

JANUARY 16, 2024

If you sell on open credit terms, you need to plan on having to expend time and resources collecting from those customers that don’t pay when due. No matter how much effort you put into evaluating customer credit, some customers will not live up to your expectations. You need to be doing the right things.

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Debt Collections Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

FEBRUARY 27, 2024

For a small business owner or executive, navigating credit decisions can be challenging, especially when they clash with the goals of other stakeholders within the company. It's essential, however, for everybody to recognize that credit decisions also have broader implications across various aspects of company operations.

Accounts Receivable (AR) 130

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

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.

Chapter 11 100

Chapter 11 Bad Debt Bankruptcy Chapter 7 100

Your Virtual Credit Manager

NOVEMBER 1, 2022

Photo by Kenny Eliason on Unsplash Effective collections is the single most important factor for achieving reliable cash inflows. Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The solution to the collections challenge therefore starts with Prioritization.

Credit and Collections 130

Credit and Collections Past Due Invoices Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 29, 2023

Effective collections are crucial to maintaining a healthy cash flow and the financial stability of your company. If your business is struggling with cash flow or AR balances are growing, it could be a sign that your collections policy requires updating. There are a myriad of issues that can affect collections.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

SEPTEMBER 17, 2024

For small business executives, and many mid-sized businesses as well, managing collections effectively can be a significant challenge, particularly when time and resources are limited. With so many competing priorities, it’s easy for receivables to take a backseat to other pressing operational tasks. A Case in Point.

Credit and Collections 100

Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 100

Your Virtual Credit Manager

NOVEMBER 28, 2023

The primary source of cash inflows for most firms are the receipts from payments of open customer invoices - i.e., your Accounts Receivable (AR). Other common inflows may involve rent you charge, royalties, and financing, all of which are easy to forecast. Chances are, they will be similar to the immediate past.

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Cash Forecasting Credit and Collections Accounts Receivable (AR) Invoice Disputes 130

Your Virtual Credit Manager

APRIL 2, 2024

Commercial credit scores predict the likelihood of a business fulfilling its financial obligations, particularly regarding debt repayment and trade credit. Their greatest value, however, may be not what they can tell you about an individual company, but what they can tell you about your entire accounts receivable (AR) portfolio.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. Looking around us, the Amazons, Netflixes, and HubSpots of the world were billing and charging clients automatically, while our business’s billing and collections looked pretty much the same as it had been done before computers.

AR Automation 130

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

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. This post focuses on the aspect of collections that involves Credit Holds.

Bad Debt 130

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

Your Virtual Credit Manager

MARCH 19, 2024

If all your customers paid promptly — by the time the invoice was due — you would not need to do any collection work. Collections is a reactive process. The amount of collection activity with which you are tasked is directly proportional to your customers’ payment habits.

Bulk Transfer 100

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

Emagia

JUNE 7, 2023

Accounts Receivable (AR) Days provides valuable insights into the efficiency of a company’s credit and collection processes and plays a significant role in assessing cash flow management. Conversely, if A/R days are significantly lower than the credit period, it may indicate excessively stringent credit terms.

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Accounts Receivable (AR) Credit and Collections Transactions 52

Your Virtual Credit Manager

SEPTEMBER 24, 2024

Credit and collections management too often involves simultaneously handling multiple urgent tasks that demand immediate attention. This advice should resonate deeply for anybody involved in credit management, particularly in times of economic uncertainty. Do you need help assessing your customers’ credit risks?

Accounts Receivable (AR) 130

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

Emagia

DECEMBER 30, 2024

Understanding the nuances of accounts receivable (AR) in accounting is crucial for maintaining accurate financial records and ensuring effective cash flow management. The Role of Debits and Credits in Accounting In accounting, debits and credits are fundamental concepts used to record transactions.

Accounts Receivable (AR) 40

Accounts Receivable (AR) Days Sales Outstanding Credit and Collections Bad Debt 40

Gaviti

FEBRUARY 4, 2025

The world of Accounts Receivable (AR) is evolving rapidly. With increased interest rates and inflation, businesses are facing increasing pressure to collect cash faster. In 2025, successful businesses will: Analyze payment trends to refine credit terms and collection strategies.

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Average Days Delinquent Credit and Collections AR Metrics Accounts Receivable (AR) 59

Your Virtual Credit Manager

MARCH 5, 2024

Finding the time and resources to accomplish all the collection activities required to do a good job is a constant challenge. Most small companies come up short because when there isn’t a dedicated employee responsible for credit and collections, the owner or CFO have more important things to do.

Past Due Invoices 100

Past Due Invoices Credit and Collections Collector Accounts Receivable (AR) 100

Your Virtual Credit Manager

JUNE 11, 2024

My first exposure to the power of accounts receivable (AR) automation came in 1990 when I was credit manager at ERICO Fasteners, a mid-market, specialty metals manufacturer. The first month after we automated a few basic features to supplement our accounting package, we realized an increase in cash flow of 30 percent.

AR Automation 130

AR Automation DSO Collector Accounts Receivable (AR) 130

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Getting Started . External and Supporting Data .

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AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Your Virtual Credit Manager

JANUARY 23, 2024

Approving a customer for credit terms is merely the first step in an open credit relationship. Economic circumstances may cause you to tighten your credit policies and customer credit limits. Even more likely are changes to a customer’s business. Situations change, both for you and for your customer.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

DECEMBER 27, 2022

For example, there are firms burning through their cash reserves that may still be considered worthy of credit on their next order, but not the order that comes in three months from now. A customer can be paying you with no problems, but then their bank line of credit comes up for review and is drastically cut back by the bank.

Credit Scoring 130

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

Your Virtual Credit Manager

FEBRUARY 20, 2024

(Photo by Carlos Muza on Unsplash ) A Framework for Choosing Suitable AR Metrics Businesses should carefully assess their specific needs, objectives, and operating context when selecting metrics for accounts receivable (AR) performance measurement. Where do you need to improve? Like any metric, DSO has limitations.

DSO 130

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

Your Virtual Credit Manager

MARCH 12, 2024

As a result, trade credit, where businesses extend financing to customers, is undergoing rapid advancements, but it also poses high risks, especially in assessing creditworthiness, dealing with economic fluctuations, and fraud. While these are excellent recommendations, they are a bit laden with consultant-speak.

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AR Transformation Credit and Collections Accounts Receivable (AR) Order to Cash 100

Your Virtual Credit Manager

SEPTEMBER 10, 2024

To optimize the order-to-cash (O2C) process, it's crucial to understand the significant role Credit and Collections plays. This function must collaborate closely with sales, fulfillment, shipping/logistics, and accounting, all of which are integral to converting an order into cash.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 6, 2024

Extending credit is standard practice if you are selling to other businesses. Most commercial enterprises are simply not willing to continue trading without credit terms, making it difficult for any trade credit grantor to generate enough revenue to survive on cash sales.

Bad Debt 100

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 100

Your Virtual Credit Manager

APRIL 9, 2024

There has always been a strong correlation between the cost of funds and accounts receivable (AR) management. Any delays in receiving payments from customers can, therefore, have a more pronounced effect on a company's bottom line profits. Where Are Interest Rates Headed? it just might help them pay you sooner.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Credit Card Payments Default 130

Your Virtual Credit Manager

OCTOBER 2, 2024

Accounts Receivable (AR) reflect a promise of payment at a future date. Though a paper asset, AR competes with Property, Plant and Equipment as well as Inventory for being the largest line item on a company’s balance sheet. Who performs the Credit & Collection activities — you or the finance company?

Past Due Invoices 130

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

JUNE 20, 2023

Special Offer: On June 26, 2023, at 1PM EDT, David Schmidt will be leading a live webinar covering “ Strategic Collections: Process Efficiency and Tactics to Drive Superior AR Performance.” In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

AUGUST 27, 2024

Imagine a world where extending trade credit was completely risk-free, and granting open terms of sale to business customers required no second thought. In such an ideal scenario, every customer would have both the ability and the integrity to pay their bills in full and on time, eliminating any need for a credit management.

Accounts Receivable (AR) 100

Accounts Receivable (AR) Default Credit and Collections Cybersecurity 100

Your Virtual Credit Manager

MARCH 21, 2023

Subscribe now Lessons to Be Learned Looked at from the perspective of somebody responsible for the management of a portfolio of accounts receivable (AR), the events surrounding the SVB collapse present a cautionary tale. Any enterprise extending credit to another business needs to have real treasury expertise.

Accounts Receivable (AR) 130

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