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

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. it just might help them pay you sooner!

DSO 130

DSO Credit and Collections Bad Debt AR Aging 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

JUNE 20, 2023

Focus your sales effort on larger customers that are currently low credit risks — Because there is little to no chance of these accounts defaulting in the next year or two, sell them as much as you can. You also need to be watching your AR aging buckets.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Fundera

AUGUST 29, 2017

In asset-based lending, that collateral you offer against your loan provides security that the lender will end up getting their money back in the end—even if things go south and you default on the loan. In other words, the asset-based lender wants to be in first position to repossess those assets in the event of a default.

Past Due Invoices 75

Past Due Invoices Credit Scoring Default AR Aging 75

Fundera

DECEMBER 2, 2015

Many traditional lenders would require you to sign a personal guarantee or put up collateral—like a family home—to guarantee repayment in the event of a default. Most basic accounting software will let you easily generate an AR aging statement, or you can create your own manually using a simple spreadsheet.

Past Due Invoices 61

Past Due Invoices Credit Scoring Default AR Aging 61