Your Virtual Credit Manager

SEPTEMBER 19, 2023

Commercial bankruptcies have been trending upward for most of this year, so it is likely some of your customers are in a downward spiral, if it has not yet shown up in their payment pattern. Starting in October, free subscribers will only receive the introductory section of our weekly articles. Offer ends 9/30/23.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

CreditStrong for Business

OCTOBER 30, 2024

Regarding the resulting bad credit, settlements could reduce your credit score by over 100 points, which likely remains higher than if you had multiple accounts in debt collection that ended in bankruptcy. Generally speaking, anything less than 30% is considered a good credit utilization rate while 10% or less is the most ideal.

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Credit Scoring Credit and Collections Bankruptcy Chapter 7 52

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. As this article has tried to explain, creditworthiness is situational.

Credit Scoring 130

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

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. Getting customers to pay now rather than later reduces the risk of a default down the road. For more on this subject, check out this previous article on the importance of accurate and timely invoices.

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Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Abrigo

MARCH 13, 2024

Would you like other articles like this in your inbox? Beyond a hard money default due to a payment or maturity event, early warning signs for CRE loans typically manifest as a : Failure to pay real estate taxes. In this environment, any indication of early warning signs of distress from a CRE loan should be addressed immediately.

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Credit Unions CECL Default Credit Risk 88

Your Virtual Credit Manager

DECEMBER 6, 2022

Cash Flow is the number one cause of small business bankruptcies. 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. Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order.

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DSO Credit and Collections Bad Debt AR Aging 130

Abrigo

DECEMBER 29, 2023

Abrigo’s team of former bankers and other experts produced dozens of webinars , whitepapers, and blog articles in 2023 to help lending and credit staff. It provides some dos and don’ts for helping avoid construction loan defaults. It also covers challenges ag lenders face in agricultural credit analysis and how to mitigate them.

Credit Risk 88

Credit Risk Credit Unions Credit and Collections Small Businesses 88

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Starting in October, free subscribers will only receive the introductory section of our weekly articles. Plus, you get full access to our growing archive of over 100 articles! When unobserved risks build up in your AR, the impact will be slower payments and defaults leading to bad debts. Offer ends 9/30/23. Subscribe now 2.

Credit and Collections 130

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

Your Virtual Credit Manager

AUGUST 22, 2023

Selling to new businesses on credit terms has always meant taking on more risk than is involved with established businesses, but recent substantial increases in inflation, interest rates, and labor costs raises the specter of a large number of business defaults for the foreseeable future.

Credit and Collections 130

Credit and Collections Bad Debt Credit Risk Small Businesses 130

CreditStrong for Business

SEPTEMBER 27, 2024

However, while LLCs are closer to corporations from a legal perspective, their default tax treatment is that of a sole proprietorship or partnership. A sole proprietorship is the default business structure in the United States. If the risk of a lawsuit or debt default is high, doing business as a sole proprietorship isn’t a good idea.

Default 52

Default Credit and Collections Small Businesses Bankruptcy 52

MNS Credit Management Group

OCTOBER 31, 2022

However, the article is concerned with the actions a debtor can take before going to court, which may include making an early investment even if it may end up losing good money behind bad. “Article (8) of the Insolvency Law Dubai” governs the regulations controlling those with financial difficulties. Establish credibility.

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Debt Collections Credit and Collections Bankruptcy Default 52

MNS Credit Management Group

MAY 25, 2023

Under Article 1234 of the Civil law Debt is described as a type of agreement where a party is required to provide something or perform an act. If a debtor does not pay his lawful debt, then he is construed as defaulting or being negligent in fulfilling his lawful obligations.

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Debt Collections Credit and Collections Collector Law Firms 52

Pactola

DECEMBER 7, 2020

This article is thus intended to provide advice and guidance to lenders who may not have faced these challenges to date. As the result of the corona virus and resulting economic fall-out, a number of commercial/agricultural borrowers may struggle to perform on their obligations and thus require loan restructuring to continue in business.

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Credit and Collections Bankruptcy Credit Risk Default 40

tillful

MAY 31, 2023

In this article: What is a credit crunch? If too many borrowers default on loans around the same time, lenders not only lose a sizable amount of their forecasted profits, but can also lose a portion of the money they loaned out. So, what causes a group of borrowers to default around the same time? What causes credit crunches?

Small Businesses 52

Small Businesses Credit Scoring Default Credit Unions 52

Due

FEBRUARY 6, 2023

As a result, this prevents harming your credit score or even bankruptcy. This Due article explains the different types of budgets and ho to choose the right type. In other words, there’s a difference between defaulting on a credit card and falling behind on your mortgage,” he says. “As Get to know your banking options.

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Credit Scoring Default Bankruptcy 115

tillful

JANUARY 9, 2023

In other words, it's the probability of default. The “riskier” a borrower, the more likely that they will default on a loan, line of credit, or other financial product. For the purposes of this article, we’ll be referring to “loans” as a catch-all word for financing. How Lenders Make Money. Public Records.

Credit Scoring 52

Credit Scoring Credit and Collections Credit Risk Default 52

Fundera

OCTOBER 23, 2019

File articles of organization with the state, obtain business permits, and register trade name (if using). Pass-through taxation is the default, but LLC can elect corporate tax status. An individual who operates a business on their own is by default a sole proprietor. LLC vs. Sole Proprietorship Overview. Sole Proprietorship.

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Bankruptcy Business Bankruptcy Default Credit and Collections 40

tillful

MARCH 22, 2023

Continuing with the above bankruptcy example, if the veil is pierced, then an owner’s personal assets could be seized to cover the business’s outstanding debts. Beyond bankruptcy, liability can come into play when corporations are sued or when they default on debts. Don’t intermingle personal and business funds.

Bankruptcy 52

Bankruptcy Law Firms Default Small Businesses 52

Fundera

NOVEMBER 23, 2018

But the aspect of the UCC we’ll be discussing—and what your business really needs to know about—is Article 1: General Provisions, which dictates UCC-1 Filings, more commonly referred to as UCC filings. Essentially, the UCC is really just a huge list of laws. What Is a UCC Filing Then? An Example of a UCC Lien Filing.

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Bankruptcy Default Small Businesses Transactions 75

tillful

MARCH 8, 2023

bankruptcy and lien filings) Residence history Employment history Income amount (monthly or annual) With that in mind, alternative credit data is everything else. Lenders only know about key risk outcomes, such as defaults, when it’s too late.

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Credit Scoring Credit Reporting Agencies Bankruptcy Default 59

Fundera

JUNE 26, 2017

But the aspect of the UCC we’ll be discussing—and what your business really needs to know about—is Article 1: General Provisions, or a UCC-1 Filing. It’s a really huge list of laws! What is a “UCC-1 filing?”. How is it filed?

Bankruptcy 85

Bankruptcy Default Small Businesses Transactions 85

CreditStrong for Business

JULY 11, 2024

In this article, we’ll cover the different types of business loans and the credit expectations for each. This conservative method keeps them from losing money on defaulted loans and credit lines. Your credit score is used as one of many indicators for your risk of defaulting on credit obligations.

Credit Scoring 52

Credit Scoring Small Businesses Credit Unions Bad Debt 52

Team Financial Group

JULY 11, 2023

This mitigates the financial risks associated with defaults, bankruptcies, or unforeseen circumstances, offering businesses greater peace of mind and protection against potential losses. Partnering with a private lending company transfers the risk of non-payment from the business to the lending institution.

Credit Unions 40

Credit Unions Bankruptcy Transactions Default 40

Fundera

MARCH 6, 2019

Bankruptcy. Turning to bankruptcy should be given careful thought because it will have a negative effect on the business credit score. bankruptcy) are all questions addressed by the business credit report. Lenders often require collateral as a way to make sure they won’t lose money if your business defaults on the loan.

Credit Scoring 105

Credit Scoring Credit and Collections Bankruptcy Small Businesses 105

Your Virtual Credit Manager

JUNE 13, 2023

Far more damaging is a customer that defaults (never pays). The inability to recover the loss with new business puts a serious crimp in a firm’s cash flow, especially when the default involves a large amount. These bad debt losses can put your own business at risk of failure. it just might help them pay you sooner!

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

Fundera

FEBRUARY 6, 2018

Bankruptcy. Turning to bankruptcy should be given careful thought because it will have a negative effect on the business credit score. bankruptcy) are all questions addressed by the business credit report. Lenders often require collateral as a way to make sure they won’t lose money if your business defaults on the loan.

Small Businesses 105

Small Businesses Credit Scoring Credit and Collections Bankruptcy 105

Due

FEBRUARY 22, 2023

This article will provide some tax strategies to get the retirement income you want. The skyrocketing cost of goods and interest rates might push them to bankruptcy. Some 401 (k) plans use this tax mechanism as their default. You can ease the tax burden on tax-deferred investments, retirement savings, and pensions.

Bankruptcy 111

Bankruptcy Insurance Companies Default 111

Fundera

MAY 22, 2018

If you’re reading this article you may have found out why: The never-ending merchant cash advance cycle. Collateralized loans are less risky to lenders, since they have a built-in safety net in case a borrower defaults. File for bankruptcy. There are three options when filing for business bankruptcy: chapter 11, 7, or 13.

Bankruptcy 40

Bankruptcy Business Bankruptcy Chapter 11 Credit Scoring 40

Fundera

AUGUST 4, 2018

Expect to answer questions concerning your history with bankruptcy, legal action, government financing, criminal activity, and more. When your landlord signs this document, they’re agreeing to give the lender first dibs on your collateral if you default. Articles of Organization. Articles of Incorporation.

Bankruptcy 71

Bankruptcy Medical Billing Credit and Collections Small Businesses 71

Fundera

AUGUST 4, 2018

Expect to answer questions concerning your history with bankruptcy, legal action, government financing, criminal activity, and more. When your landlord signs this document, they’re agreeing to give the lender first dibs on your collateral if you default. Articles of Organization. Articles of Incorporation.

Bankruptcy 71

Bankruptcy Medical Billing Credit and Collections Small Businesses 71

Fundera

MARCH 8, 2016

This document lowers the lender’s risk—by letting them chase after your personal assets if your business fails or you default on the loan. It also gives the lender a specific legal process to recover the money they loaned if your business defaults. Personal Guarantees and Personal Credit. Bringing in the Professionals.

Credit Scoring 74

Credit Scoring Default Credit and Collections Small Businesses 74

Due

MAY 5, 2023

Close to a third of BNPL users had difficulty making payments, resulting in them skipping a bill to avoid defaulting on their plans, according to the Consumer Financial Protection Bureau (CFPB). One study showed that medical reasons may account for two-thirds of bankruptcies in the U.S. For some people, this can lead to excessive debt.

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Insurance Companies Credit Scoring Medical Billing Deductions 119

Due

FEBRUARY 22, 2023

This article will provide some tax strategies to get the retirement income you want. The skyrocketing cost of goods and interest rates might push them to bankruptcy. Some 401 (k) plans use this tax mechanism as their default. You can ease the tax burden on tax-deferred investments, retirement savings, and pensions.

Bankruptcy 52

Bankruptcy Insurance Companies Default 52

Fundera

JUNE 13, 2016

Your business entity makes a difference in the way you file and pay your taxes, and it also makes a difference when you apply for a loan—to say nothing of when legal issues, like copyright violations or bankruptcy, might crop up. And for a corporation , you’ll create your business name and file “articles of incorporation.”.

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Small Businesses Bankruptcy Accounting Firms Default 75