Accounts Receivable (AR), Small Businesses and Transactions

Up Your Cash Flow!

Your Virtual Credit Manager

NOVEMBER 5, 2024

A client, who rented heavy equipment to manufacturers and construction firms across a multi-state market area, was saddled with an accounts receivable (AR) growing faster than revenue. The rental agreements with these periodic customers involved relatively straightforward transactions and therefore few problems.

Accounts Receivable (AR)

Accounts Receivable (AR) Credit and Collections Credit Management Transactions

Misalignment Between Credit and Sales Spells Trouble

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. Wen that happens accounts receivable (AR) performance also tends to suffer. it just might help them pay you sooner!

Accounts Receivable (AR)

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

Supercharge Your Collections

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.

Credit and Collections

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

Sales Commissions Impact the Collection Process

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 is important to keep in mind that trade credit — selling on terms in a B2B environment — is greatly affected by the transactional process.

Credit and Collections

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

Do You Know Which Customers Are Likely to Pay Late?

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

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

Is Your O2C Process Optimized for Superior AR Performance?

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

Credit and Collections DSO Deductions Accounts Receivable (AR)

Position Your AR to Enhance Working Capital

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. Share What Determines How Much Your AR Will Yield? Clean up the junk.

Past Due Invoices

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

How Much Credit Should You Extend?

Your Virtual Credit Manager

AUGUST 6, 2024

And when the risk does not warrant open credit terms ; How can we structure the transaction to ensure a profitable sale? The experts at Your Virtual Credit Manager are currently offering 33% off our standard small business consulting rates. Invoice financing involves selling your receivables to a third party.

Bad Debt

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

The Imperative for Modernizing Trade Credit

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. More About Purchasing Credit Reports Please feel free to share this newsletter with your small business customers.

AR Transformation

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

There's Nothing Good about Extended Payment Terms

Your Virtual Credit Manager

APRIL 30, 2024

Also, once granted, extended payment terms are very difficult to rescind. If other accounts learn of your granting extended payment terms to one customer, it is likely they will demand the same, further increasing your investment in Accounts Receivable (AR) and straining your cash flow.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Credit Risk Bankruptcy

Four Goals Guaranteed to Improve Cash Flow

Your Virtual Credit Manager

DECEMBER 19, 2023

If you are an executive at a small or mid-sized business, chances are you are in the process of putting together a budget for 2024, or have already done so. Maybe you have factored in an incremental improvement in DSO, but how much thought have you given to how you are going to meet that budgeted goal?

DSO

DSO Third Party Collections Credit and Collections Deductions

Are Early Payment Discounts a Good Idea in Today’s Economy?

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. Please feel free to share this newsletter with your small business customers. Before you do so, however, you need to make sure there are no hiccups in your billing process.

Bad Debt

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy

Manual Billing and Collections Are Draining Your Profits

Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. By securing the payment mechanism that will be used during the customer onboarding process, payments are embedded in the transaction, eliminating most late payments. Why not share this newsletter with your small business customers?

AR Automation

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

Using Collateral to Make the Sale

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. Please feel free to share this newsletter with your small business customers. economy grew at 1.1%

Bankruptcy

Bankruptcy Credit and Collections Accounts Receivable (AR) Default

Your Work Isn't Finished Even Though the Customer Has Paid

Your Virtual Credit Manager

OCTOBER 25, 2022

The result of timely and accurate Remittance Processing is an accurate Accounts Receivable (AR) Ledger, which provides the current status of every customer’s balance owed to you. Prompt and accurate Cash Application is an absolute requirement for running a successful, profitable business.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Cash Applicator Deductions

Are Your Profits Going Up in Smoke?

Your Virtual Credit Manager

SEPTEMBER 13, 2022

They occur because a customer does not receive your product or service as ordered, or feels the invoice is incorrect. Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. it just might help them pay you sooner!

Deductions

Deductions Credit and Collections DSO Accounts Receivable (AR)

Do Your Customers Deserve Credit?

Your Virtual Credit Manager

DECEMBER 27, 2022

There are many other examples, so the question you must ask about every customer and every order they subsequently place has to do with where they stand in relation to the line the separates those who are creditworthy and those who are not. Please share this newsletter with your small business customers.

Credit Scoring

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

It's Time to Give Your AR Ledger a Spring Cleaning

Your Virtual Credit Manager

APRIL 4, 2023

With a growing number of experts predicting a recession to hit later this year, and inflation and interest rates remaining at elevated levels, squeezing every dollar out of your investment in Accounts Receivable (AR) is more important than ever. They instead are non-performing assets that take time and money to recover.

Past Due Invoices

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

Maximizing Liquidity with Effective Net-Terms Management

The Esker Blog

FEBRUARY 21, 2023

The answer to this question is crucial in any business transaction, it can be the source of tension between suppliers and their customers, and can even make or break the health of a supply chain. Shorter DSOs are important to small businesses as they depend on shorter payment windows to maintain cashflow.

Days Sales Outstanding

Days Sales Outstanding Accounts Receivable (AR) DSO Transactions

What Triggers Your Collection Efforts?

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. More About Purchasing Credit Reports Please feel free to share this newsletter with your small business customers.

Bulk Transfer

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections

9 Best Strategies for Invoice and Payment Tracking

NorthOne

JUNE 4, 2023

Xero is an accounting software that allows businesses to reconcile their bank transactions with their invoicing records and payment history. It also has a payment tracking feature that enables businesses to monitor their payment history and send payment reminders to clients.

Accounts Receivable (AR)

Accounts Receivable (AR) Credit and Collections Transactions Small Businesses

Business Finance Terms Definition List

tillful

NOVEMBER 8, 2022

Looking to dust off your business finance terminology? Here's a glossary featuring many of the most common business finance terms you may need or want to know. Accounts receivable (AR). Accounts receivable refers to money owed to a business by third parties like customers or clients.

Credit Reporting Agencies

Credit Reporting Agencies Deductions Credit Scoring Credit and Collections

Working Capital Formula: Calculation, Example, and Tips to Improve Yours

Fundera

OCTOBER 15, 2018

Small businesses and startups tend to have short lifecycles—you can tell pretty quickly if the business is going to succeed or fail. In fact, one-fifth of businesses fail in their first year , and nearly one-third fail by the second year. To increase revenue, many small business owners borrow money.

Accounts Receivable (AR)

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

Business Customer Personas: A Collectors Guide

Your Virtual Credit Manager

JUNE 27, 2023

Photo by Keren Fedida on Unsplash Each business customer presents a unique set of circumstances. 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.

Collector

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

Working Capital Formula: Calculation, Example, and Tips to Improve Yours

Fundera

JUNE 27, 2018

Working capital is the cash and other assets that you need to run your business efficiently on a day-to-day basis. Without sufficient working capital, you can’t pay suppliers and lenders, make payroll, market your business, or do the other things that you need to grow. To increase revenue, many small business owners borrow money.

Accounts Receivable (AR)

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

Credit Management Source

Up Your Cash Flow!

Misalignment Between Credit and Sales Spells Trouble

Trending Sources

Supercharge Your Collections

Sales Commissions Impact the Collection Process

Do You Know Which Customers Are Likely to Pay Late?

Is Your O2C Process Optimized for Superior AR Performance?

Position Your AR to Enhance Working Capital

How Much Credit Should You Extend?

The Imperative for Modernizing Trade Credit

There's Nothing Good about Extended Payment Terms

Four Goals Guaranteed to Improve Cash Flow

Are Early Payment Discounts a Good Idea in Today’s Economy?

Manual Billing and Collections Are Draining Your Profits

Using Collateral to Make the Sale

Your Work Isn't Finished Even Though the Customer Has Paid

Are Your Profits Going Up in Smoke?

Do Your Customers Deserve Credit?

It's Time to Give Your AR Ledger a Spring Cleaning

Maximizing Liquidity with Effective Net-Terms Management

What Triggers Your Collection Efforts?

9 Best Strategies for Invoice and Payment Tracking

Business Finance Terms Definition List

Working Capital Formula: Calculation, Example, and Tips to Improve Yours

Business Customer Personas: A Collectors Guide

Working Capital Formula: Calculation, Example, and Tips to Improve Yours

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