Remove Accounts Receivable (AR) Remove Credit Risk Remove Credit Sales
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Moving Beyond DSO

Your Virtual Credit Manager

(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. Calculate the total credit sales made during the same period.

DSO 130
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Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

Consequently, the credit manager was able to purchase credit insurance on his customer, and was therefore able to continue approving credit sales, within limits, to the chain store customer. The benefits are well worth the time spent implementing a monitoring process ( let us know if you need help in this regard ).

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How Much Credit Should You Extend?

Your Virtual Credit Manager

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. Photo by Headway on Unsplash ) While credit sales allow you to increase revenue, they also come with a downside.

Bad Debt 100
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Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

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
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Are There Hidden Risks in Your AR Portfolio?

Your Virtual Credit Manager

Economic circumstances may prompt a vendor to either tighten or loosen its credit policies and customer credit limits. Going beyond the impact of macroeconomic trends, a company’s customers operate in dynamic business environments, and for a majority of them, the credit risk they pose is either increasing or decreasing.