This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
How was your accountsreceivable (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.
We don’t, however, want to minimize the importance of the credit side of the equation. As discussed in a recent post , gathering customer information doesn’t stop with the creditapplication. You put your firm at risk by limiting credit assessments to only new customers, which is too often the case.
The experts at Your Virtual CreditManagerare ready to help you improve cash flow and reduce AR risks during these challenging times. We are currently offering 33 percent off our standard small business consulting rates. request for substantially more credit, change in leadership, merger or acquisitions, etc.).
Market volatility and rising costs are instead disrupting working capital budgets, causing late payments that inflate accountsreceivable (AR). Subscribe now Do you need help with Portfolio Monitoring and Analysis or are there Past-Due Accounts you are trying to collect?
The world of AccountsReceivable (AR) is evolving rapidly. With increased interest rates and inflation, businesses are facing increasing pressure to collect cash faster. Run a Consistent and Robust Credit Process Creditmanagement is the foundation of effective AR.
As a small business owner or executive, managingaccountsreceivable (AR) and navigating through various credit decisions is an integral part of the job. After all, credit and collections is essential to the performance of your order-to-cash (O2C) process and cash conversion cycle.
Effectively managingaccountsreceivable (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. In small companies, this may occur due to a lack of credit analysis skills.
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, managingAccountsReceivable (AR) will not be big issue for you. Cash is king.
Then last week we looked at credit hold best practices. From a creditmanagement perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accountsreceivable (AR) management tasks that follow have a reactive component.
Clearly, the level of Business Credit Risk is going to remain elevated as we move through 2024, bringing with it the potential for corresponding increases in bad debt and delinquency. The good news is that there are a number of actions you can take to reduce your loss exposure and shore up your accountsreceivable (AR).
Collateral: Collateral can be used to secure any type of credit offering. Collateral can be a physical asset, such as real estate, equipment, and inventory, or it can be a financial asset, such as stocks, bonds, and accountsreceivable (AR). Click here for more information about creditapplications.
In every accountsreceivable (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. please take advantage of our July Sale to lock in a subscription to Your Virtual CreditManager for just $34.99
Time is as much an enemy as anything else when you are charged with collecting past due accountsreceivable (AR), so it is crucial you don’t waste time by making mistakes, which will also serve to elongate the collection process. We are currently offering 33 percent off our standard small business consulting rates.
To continue reading and learn nine areas of focus for supercharging your collection process, you must be a paid subscriber to Your Virtual CreditManager. Do you need help assessing your customers’ credit risks? a 2% discount for payment within 10 days) to motivate faster payments.
Whether you have automated the collection process or not, mapping out collection strategies for the different types of customers in your accountsreceivable (AR) portfolio is an accepted best practice. Are there past-due accounts you are trying to collect?
Benefits of AccountsReceivable Automation Software Whether your goal is to automate the collections process with accountsreceivable automation software or scale it as your company grows,you’ll want to look for a solution that offers the most benefits for your business. Credit monitoring and management.
As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accountsreceivable (AR) collections aging report. What Is an AR Aging Report? Creditmanagement and monitoring. Send online creditapplications to both existing customers and potential prospects.
In fact, most SMBs should look into using Collection Agencies to not only maximize the recovery of AccountsReceivable (AR) at high risk of never being collected, but to collect all old receivables. Your creditapplication should include all this information.
In other words, Portfolio Monitoring involves looking out for external factors that affect your customers and the distribution of risk in your accountsreceivable (AR) portfolio. About 25 years ago, a creditmanager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content