Your Virtual Credit Manager

JANUARY 23, 2024

Furthermore, new businesses and small businesses tend to have high failure rates, and there is good reason to believe a wave of defaults is coming. If the European parent company defaulted, the North American subsidiary would be pulled into bankruptcy even though its operations were profitable.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Specifically, Credit and Collections is responsible for approving new customers for credit terms and managing orders at the beginning of the O2C cycle, while also monitoring risks within the Accounts Receivable (AR) portfolio and collecting overdue payments, both of which are post-sale activities.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

SEPTEMBER 17, 2024

The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights. In addition, it is likely 40% to 50% of your customers purchase in small volumes that cumulatively only account for about 5% of your sales.

Credit and Collections 100

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

Your Virtual Credit Manager

JANUARY 17, 2023

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. it just might help them pay you sooner! Share A Case in Point A parts distributor was having difficulty with collections and high dispute volumes.

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

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. Conduct thorough credit checks and analysis to minimize the risk of default.

Credit and Collections 130

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

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. Do you need help assessing your customers’ credit risks?

Past Due Invoices 130

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

Your Virtual Credit Manager

NOVEMBER 19, 2024

Now that we are past the mid-point of November, the end of the year is zooming into focus. 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.

DSO 100

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

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. Irregular payments are a clear warning sign that default may be around the corner.

Credit and Collections 130

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

Your Virtual Credit Manager

SEPTEMBER 5, 2023

Subscribe now Impact of Offering Discounts From the seller’s perspective, the effect on revenue from offering an early pay discount needs to be weighed against the potential reduction in Accounts Receivable (AR) carrying costs, bad debt and collection expenses. it just might help them pay you sooner!

Bad Debt 130

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

Your Virtual Credit Manager

OCTOBER 31, 2023

Accounts receivable (AR) represent the amounts owed your business by your customers for the purchase of goods or services delivered on credit. Because AR constitutes one of largest assets on your books, proactively managing accounts receivable is crucial for the financial health of your business.

Bad Debt 130

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

Your Virtual Credit Manager

OCTOBER 17, 2023

If you have poor credit controls, you won’t be able to afford as much risk in your accounts receivable (AR) portfolio. However, all the commercial credit bureaus (D&B as well as Experian, Equifax, and CreditSafe) provide commercial credit scores on virtually every US business that predict default or financial distress.

Bad Debt 130

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

Your Virtual Credit Manager

FEBRUARY 13, 2024

The good news is that there are a number of actions you can take to reduce your loss exposure and shore up your accounts receivable (AR). 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.

Bankruptcy 130

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

Your Virtual Credit Manager

MAY 2, 2023

Epiq Bankruptcy: Bankruptcy Filings Increase Across All Chapters in March; Commercial Filings Up 79 Percent Year-over-year If you are extending credit to other businesses on open terms, reassessing your company credit policies as well as the latent risks that may affect accounts receivable (AR) performance and cash flow should be a top priority.

Bankruptcy 100

Bankruptcy Credit and Collections Accounts Receivable (AR) Default 100

Your Virtual Credit Manager

AUGUST 6, 2024

Arrange for Third-Party Financing of this customer’s Accounts Receivables (AR). Invoice financing involves selling your receivables to a third party. Providing Credit Limits, especially for financially weak customers, involves bearing the risk of loss from delinquent payments and possible default.

Bad Debt 100

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

Your Virtual Credit Manager

FEBRUARY 28, 2023

It will reduce your Accounts Receivable (AR) balance and the associated elevated credit risk inherent in a larger AR. Getting customers to pay now rather than later reduces the risk of a default down the road. Most distressed companies continue paying, until they can’t.

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

AUGUST 11, 2024

(Photo by Kind and Curious on Unsplash ) With bankruptcy filings skyrocketing and this trend expected to continue, trade creditors should prepare for delinquencies to rise within their accounts receivable (AR) portfolios. Subscribe now Do you need help assessing customer credit risks?

Sub-Chapter V 100

Sub-Chapter V Bankruptcy Credit and Collections Chapter 11 100

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

DECEMBER 27, 2022

Cash flow is the biggest cause of customers defaults, but often cash flow is a result of other financial problems or miscues. A business's credit history also includes any past bankruptcies or defaults, as well as collection agency placements. Lower risk accounts (those with higher scores) may be given access to extended terms (e.g.,

Credit Scoring 130

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

billtrust

NOVEMBER 1, 2022

The primary goals of accounts receivable The best KPI for accounts receivable Ten AR optimization goals you should accomplish How to get paid faster with key collection strategies How accounts receivable automation can eliminate manual tasks. What is the best KPI for accounts receivable?

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

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. You will need to determine if a default is imminent or down the road.

Bulk Transfer 100

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

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. it just might help them pay you sooner!

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

APRIL 18, 2023

So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset? One way is to outsource the function.

Bad Debt 130

Bad Debt Credit and Collections Third Party Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

MARCH 5, 2024

Also, e-mails can provide more complete account information and can often be generated automatically in high volumes, especially if you have collection software with an email component. Dunning emails are a proven way to increase efficiency and ensure full coverage of your accounts receivable (AR) portfolio coverage.

Past Due Invoices 100

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

Your Virtual Credit Manager

APRIL 11, 2023

Accounts Receivables (AR) require active management. Any O2C friction that results will ultimately have a negative affect on AR performance. Photo by Elisa Ventur on Unsplash When a company’s AR under-performs, the consequences are substantial. Laissez-faire doesn’t cut it.

Bad Debt 130

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

Credit and Collections 130

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

Your Virtual Credit Manager

NOVEMBER 1, 2022

The key factors informing your prioritization scheme are: The amount of the past due accounts receivable (AR) The age of the past due AR (e.g, 15 days or 120 days?)

Credit and Collections 130

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

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

Gaviti

FEBRUARY 6, 2023

As accounting processes continue to evolve, it’s becoming increasingly clear that harnessing the power of technology can help businesses streamline their operations and make more informed decisions. Below, we’re reviewing some of the top accounts receivable challenges in 2023 and offering quick ways to shore up your collections process.

AR Automation 52

AR Automation Accounts Receivable (AR) DSO Days Sales Outstanding 52

Serrala

AUGUST 29, 2022

Bild Centralized in-house banking Build a centralized in-house banking system for Accounts Payable (AP) and Accounts Receivable (AR) to help reduce the number of external banks and accounts which helps save costs. sites/default/files/styles/webp/public/202303/Treasury-SAP-HERO-BG.png.png.webp?itok=d1q_lRkJ

Accounts Receivable (AR) 52

Accounts Receivable (AR) Transactions Dashboards Cash Applicator 52

tillful

NOVEMBER 8, 2022

Accounts receivable (AR). Accounts receivable refers to money owed to a business by third parties like customers or clients. For example, if you provide a service and allow your client 60 days to pay, the amount they owe you will be recorded under your accounts receivables until it’s paid.

Credit Reporting Agencies 52

Credit Reporting Agencies Deductions Credit Scoring Credit and Collections 52

Your Virtual Credit Manager

JUNE 27, 2023

No two are alike, but they do tend to fall into some common groupings. Identifying the groupings within your customer accounts receivable (AR) portfolio enables you to deal with them all more effectively and efficiently. Share The High-Risk Account: Ideally you do not want to extend credit to high risk accounts.

Collector 26

Collector Credit and Collections High-Risk Accounts Accounts Receivable (AR) 26

Your Virtual Credit Manager

JUNE 20, 2023

In our experience, sales and credit risk are never evenly distributed across a company’s accounts receivable (AR) portfolio, which raises opportunities. Every company we have worked with as consultants has had customer segments that could have realized additional sales with only a minimal increase in credit risk.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

NOVEMBER 29, 2022

In fact, most SMBs should look into using Collection Agencies to not only maximize the recovery of Accounts Receivable (AR) at high risk of never being collected, but to collect all old receivables. Historically, the probability of default for a pool of receivables tends to increase as the receivables age.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Default Collector 130

Your Virtual Credit Manager

AUGUST 20, 2024

In the face of an economy being buffeted by opposing trends, what should those with credit and collection responsibilities do to protect their organizations’ accounts receivable (AR)? Over an extended time frame, the problem shifts to default risk. Difficult times call for forward thinking.

Credit Management 130

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

Your Virtual Credit Manager

MARCH 26, 2024

Portfolio Monitoring , therefore, encompasses the Account Review Process by also incorporating the identification of red-flags (such as changing payment patterns) and other circumstances that trigger an Account Review. Reviewing the remainder of accounts every 2 to 3 years should suffice. A Case in Point.

Bankruptcy 130

Bankruptcy Bad Debt Credit Scoring Chapter 11 130