Article, Bad Debt and Credit Risk - Credit Management Source

Effective Strategies For Managing Credit Risk In Your Business

Know-It Global

APRIL 26, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. The good news is you can avoid these issues. Did you know?

Credit Risk

Credit Risk Bad Debt Credit and Collections Default

5 Accounts Receivable Collection Mistakes You Should Avoid

Gaviti

NOVEMBER 21, 2024

Eliminate the Errors from Accounts Receivable Many of the mistakes talked about in this article can be better managed and even eliminated with Gaviti, accounts receivable automation solution. Credit management and monitoring. Want to learn more? Schedule a product demo.

Automated Cash Application

Automated Cash Application Credit and Collections Cash Applicator Deductions

Avoid these Six Collection Myths

Your Virtual Credit Manager

MARCH 14, 2023

Here’s an article on overcoming collection excuses. Focus on the over 60 day past due AR balances to get the most bang for your collection buck This approach foregoes a huge cash flow opportunity (collecting AR that is under 60 days past due), and is not very effective at preventing bad debt (too little, too late).

Collector

Collector Past Due Invoices Bad Debt Credit and Collections

Balancing Credit Sales with Profits

Your Virtual Credit Manager

NOVEMBER 14, 2023

(Photo by Aziz Acharki on Unsplash ) Because Credit Policy is a part of Sales Policy, how you manage credit impacts company profits. How then does your Credit Policy affect your overall profitability? It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. The policy cost is acceptable.

Credit Sales

Credit Sales Bad Debt Credit and Collections Credit Risk

Use Credit Holds to Better Manage Your Accounts Receivable

Your Virtual Credit Manager

JANUARY 2, 2024

If collections are not done properly and in an adequate frequency , your AR will age, cash flow will decrease, and the risk of bad debt loss will increase. Photo by Kai Pilger on Unsplash ) We have written several articles on collections, which you can find in our archive.

Bad Debt

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

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

Your Virtual Credit Manager

FEBRUARY 28, 2023

Your Virtual Credit Manager (YVCM) previously published an article discussing the pros and cons of Prompt Payment Discounts. It will reduce your Accounts Receivable (AR) balance and the associated elevated credit risk inherent in a larger AR. If not paid by the discount date, the full amount is due in 30 days.

Bad Debt

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy

The Imperative for Prioritizing Collections

Your Virtual Credit Manager

OCTOBER 15, 2024

As a consequence, commercial accounts receivable (AR) portfolios are at an increasing risk of suffering bad debt losses. The immediate precursor to bad debts is increasing percentages of delinquent receivables, especially in the over 60 and 90 day aging categories.

Chapter 11

Chapter 11 Bad Debt Bankruptcy Accounts Receivable (AR)

Product-NEWS – Effective Strategies For Managing Credit Risk In Your Business

Know-It Global

MAY 8, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. The good news is you can avoid these issues. Did you know?

Credit Risk

Credit Risk Bad Debt Credit and Collections Default

Product-NEWS-2 – Effective Strategies For Managing Credit Risk In Your Business

Know-It Global

MAY 8, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. The good news is you can avoid these issues. Did you know?

Credit Risk

Credit Risk Bad Debt Credit and Collections Default

AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

JANUARY 3, 2023

Photo by DESIGNECOLOGIST on Unsplash Editor’s Note: To start off the New Year, we’re bringing back three of the most popular YVCM articles from 2023. We’ve condensed the articles to save you time, but have also provided links to the originals should you want to take a deeper dive. Update your customer master file.

AR Automation

AR Automation Collector Credit and Collections Bad Debt

Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

JANUARY 23, 2024

Learn More About YVCM Consulting Case Study: Portfolio Monitoring Pays Off Big-Time About 25 years ago, a credit manager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers. There is a sequel to the case study referenced at the beginning of this article.

Credit Application

Credit Application Bad Debt Bankruptcy Credit Scoring

Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

DECEMBER 6, 2022

The company ended up writing off millions of dollars in bad debt. In addition, bad debt and concession expenses decreased by several million dollars annually. So far so good, but this company had an Achilles heal. This software firm did not actively manage its AR. Cash flow from AR was well below reported revenue.

DSO

DSO Credit and Collections Bad Debt AR Aging

Red Flags that Demand Your Attention

Your Virtual Credit Manager

JUNE 13, 2023

Photo by Jamie Street on Unsplash There are two types of credit risk that arise from selling on open credit terms: Customers paying beyond terms (past due) reduce your cash flow. These bad debt losses can put your own business at risk of failure. Far more damaging is a customer that defaults (never pays).

Credit and Collections

Credit and Collections Bad Debt Default Credit Risk

The Alarming Trend of Rising Company Insolvencies

Know-It Global

APRIL 19, 2023

Supply chains threatened by soaring insolvencies Recent data has revealed the average bad debt for UK SMEs is £16,641, a spike of 61% in a year! Bad debts If the insolvent company owes you money, you may not be able to recover the debt, or you may only receive a fraction of what you are owed.

Bad Debt

Bad Debt Credit and Collections Credit Risk Credit Management

Customer Stops Paying; Now What?

Your Virtual Credit Manager

SEPTEMBER 19, 2023

Starting in October, free subscribers will only receive the introductory section of our weekly articles. Plus, you will get full access to our growing archive of over 100 articles! From this conversation, you will learn how perilous the bad debt risk is with this customer, and how urgent your reaction must be.

Credit and Collections

Credit and Collections Default Bad Debt Credit Risk

Effective Strategies to Reduce Debtor Days

Know-It Global

JULY 26, 2023

In this article, we’ll outline 15 actionable steps that can help you significantly reduce debtor days and optimise your cashflow! Evaluate and improve your credit terms Begin by assessing your current credit terms and ensure they are reasonable and aligned with industry standards. Best of all, it’s free to get started!

Electronic Funds Transfer

Electronic Funds Transfer Credit and Collections Debt Collections Bad Debt

product-news-post-1

Know-It Global

MAY 8, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. The good news is you can avoid these issues. Did you know?

Bad Debt

Bad Debt Credit and Collections Credit Risk Default

Demystifying Customer Credit-Worthiness

Your Virtual Credit Manager

MARCH 28, 2023

As a rule of thumb, firms with higher gross margins can afford to be more risk tolerant than enterprises with tight margins. This is because the higher your profit margins the fewer sales it will take to compensate for any bad debt losses. The rule of thumb is the longer in business the lesser the credit risk.

Credit Scoring

Credit Scoring Credit Application Bad Debt Credit Risk

Leveraging Credit Control

Know-It Global

JULY 5, 2023

One effective strategy for achieving this goal is to implement a robust credit control system. By effectively managing your business’s credit and collection processes, you can optimise cashflow, minimise bad debt, and enhance overall financial health.

Bad Debt

Bad Debt Credit and Collections Debt Collections Credit Risk

product-news-post-2

Know-It Global

MAY 8, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. The good news is you can avoid these issues. Did you know?

Bad Debt

Bad Debt Credit and Collections Credit Risk Default

The Benefits of Offering Trade Credit & How To Mitigate Risk

Know-It Global

JUNE 14, 2023

This is an arrangement where businesses extend credit to their customers, allowing them to purchase goods or services and pay at a later date. While offering credit presents certain risks, when managed effectively, it can offer numerous benefits for businesses.

Credit and Collections

Credit and Collections Bad Debt Credit Risk Default

Can A Robot Be A Better Debt Collector Than Us?

JSP Credit Management

OCTOBER 10, 2021

A recent article suggested that the ‘gig economy’, consisting of apps such as Uber and Airbnb employs no fewer than 1 in 10 working adults in the UK. Whilst there can be found some criticisms, the above article notes that the amount of people earning an income from these apps has doubled in recent years. That is approximately 4.7

Collector

Collector Debt Collections Credit and Collections Bad Debt

The Role of Technology in Credit Control

Know-It Global

JUNE 28, 2023

Traditionally, credit management involved manual processes and relied heavily on human intervention, which often proved time-consuming and prone to errors. However, with the advent of advanced technologies, the landscape of credit control has undergone a remarkable transformation.

Credit Scoring

Credit Scoring Credit and Collections Bad Debt Credit Management

The Number 1 Reason Your Commercial Invoices Are Not Getting Paid

JSP Credit Management

SEPTEMBER 28, 2021

Don’t worry this is not going to turn into an academic article but we think it is worth noting the depth of the numbers underpinning what at first appeared a bit of clickbait at the top of the blog. So, time for the big reveal. The single biggest reason that commercial invoices do not get paid on time is that they are not billed correctly.

Credit and Collections

Credit and Collections Collector Bad Debt Debt Collections

Around 1.8 Million Startup Companies Will Fail This Year.Are You Prepared?

Your Virtual Credit Manager

AUGUST 22, 2023

The bad news is that nearly 21 percent of last year’s startups will fail this year leaving you with a bad debt on your books if you sold to them on credit terms. After September, free subscribers will only have access to a portion of the weekly article. Here’s more on setting credit limits.

Credit and Collections

Credit and Collections Bad Debt Credit Risk Small Businesses

Working With The V-word In Debt Collection

JSP Credit Management

APRIL 28, 2022

That same benefit led us to , an article in the FT the other day from 2010 where former Chancellor of the Exchequer George Osborne was talking about the Financial Services Authority (FSA). That, we thought, was a genuinely nice benefit, to having been a product of university life. and contact us to discuss your needs.

Debt Collections

Debt Collections Bad Debt Credit Management Credit Risk

The Case for Outsourcing Collections

Your Virtual Credit Manager

DECEMBER 24, 2024

The only time AR comes to the forefront is when there is economic turmoil and an increased risk of bad debt losses. Hiring an experienced full-time person to perform the Credit & Collection tasks is not financially possible. Access to the agency’s credit and collections expertise.

Credit and Collections

Credit and Collections Collector Bad Debt Accounts Receivable (AR)

Top 7 Credit Risk Management Tools in 2025

Gaviti

MARCH 11, 2025

Without proper credit assessments and checks, businesses expose themselves to significant financial risks, including cash flow disruptions and potential bad debts. The evolution of technology has introduced advanced tools that enhance risk assessment, streamline credit processes, and mitigate potential financial losses.

Credit Risk

Credit Risk Credit Scoring Credit and Collections Credit Application

Comprehensive Guide to Accounts Receivable Duties and Job Descriptions

Emagia

DECEMBER 30, 2024

Efficient management of accounts receivable ensures steady cash flow and minimizes the risk of bad debts. Artificial intelligence (AI) and machine learning algorithms can predict payment behaviors, assess credit risks, and optimize collection strategies. What is the role of an Accounts Receivable Manager?

Days Sales Outstanding

Days Sales Outstanding DSO Credit and Collections Bad Debt

Credit Management Source

Effective Strategies For Managing Credit Risk In Your Business

5 Accounts Receivable Collection Mistakes You Should Avoid

Trending Sources

Avoid these Six Collection Myths

Balancing Credit Sales with Profits

Use Credit Holds to Better Manage Your Accounts Receivable

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

The Imperative for Prioritizing Collections

Product-NEWS – Effective Strategies For Managing Credit Risk In Your Business

Product-NEWS-2 – Effective Strategies For Managing Credit Risk In Your Business

AR Data Management, AR Automation, & Accelerating Cash Flow

Due Diligence Doesn't End with the Credit Application

Don't Leave Converting Sales into Cash to Chance

Red Flags that Demand Your Attention

The Alarming Trend of Rising Company Insolvencies

Customer Stops Paying; Now What?

Effective Strategies to Reduce Debtor Days

product-news-post-1

Demystifying Customer Credit-Worthiness

Leveraging Credit Control

product-news-post-2

The Benefits of Offering Trade Credit & How To Mitigate Risk

Can A Robot Be A Better Debt Collector Than Us?

The Role of Technology in Credit Control

The Number 1 Reason Your Commercial Invoices Are Not Getting Paid

Around 1.8 Million Startup Companies Will Fail This Year.Are You Prepared?

Working With The V-word In Debt Collection

The Case for Outsourcing Collections

Top 7 Credit Risk Management Tools in 2025

Comprehensive Guide to Accounts Receivable Duties and Job Descriptions

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