Your Virtual Credit Manager

APRIL 2, 2024

Still others may be predictive of default, financial distress or financial health, and creditworthiness. While credit scores will not always predict the expected result, they are statistically correlated to predict a much higher occurrence of a given outcome (e.g., delinquency or default) than will be found in a random sample.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

AUGUST 29, 2023

The point is, if DSO is rising, you need to check to determine if collections are the problem. Receivables Are Getting Older: Your AR aging report categorizes outstanding invoices by their age. If a significant portion of your receivables are in the "overdue" categories (e.g.,

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

DECEMBER 6, 2022

Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order. Without effective AR management, your cash flow is subject to entropy as the AR ages, as well as to the shocks caused by customer defaults. This software firm did not actively manage its AR.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

JUNE 20, 2023

In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. Tighten monitoring and control over your larger high risk customers — This will help eliminate or greatly reduce large bad debt losses that can seriously harm your cash flow.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20