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. Far more damaging is a customer that defaults (never pays). If you haven’t, you almost certainly will…on all three accounts.

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Credit and Collections Bad Debt Default Credit Risk 26

Your Virtual Credit Manager

JANUARY 23, 2024

Furthermore, new businesses and small businesses tend to have high failure rates, and there is good reason to believe a wave of defaults is coming. If the European parent company defaulted, the North American subsidiary would be pulled into bankruptcy even though its operations were profitable.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

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?

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Credit Risk Bad Debt Credit and Collections Default 52

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?

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Credit Risk Bad Debt Credit and Collections Default 52

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! Raise Their Prices: When you have a high credit risk customer, you should be charging them the highest price possible. Offer ends 9/30/23.

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Credit and Collections Default Bad Debt Credit Risk 130

Your Virtual Credit Manager

DECEMBER 26, 2023

In our case, we found our readers had an affinity for articles on identifying collection risks and the best ways of dealing with past due balances. Photo by Kelly Sikkema on Unsplash ) We are therefore providing you with an overview of three very popular articles along with links to the originals.

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Collector Credit and Collections Default Third Party Collections 130

SAP Credit Management

AUGUST 29, 2023

Credit Value Adjustment (CVA) is the amount subtracted from the mark-to-market (MTM) value of positions to account for the expected loss due to counterparty defaults. Since CVA is a positive value, it is deducted from the risk free NPV calculation.

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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.

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Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

NOVEMBER 14, 2023

Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). Most companies, however, need incremental sales volume from higher-credit-risk customers to break even and achieve profitability. it just might help them pay you sooner!

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Credit Sales Bad Debt Credit and Collections Credit Risk 130

Abrigo

DECEMBER 22, 2023

The most-read portfolio risk blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. You might also like this webinar, "Unraveling risk rating: Making sense of your best early warning tool."

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CECL Credit Unions Default Credit Risk 88

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 customer can be paying you with no problems, but then their bank line of credit comes up for review and is drastically cut back by the bank. Email YVCM About Consulting And Credit Scores.

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

Your Virtual Credit Manager

MAY 2, 2023

A critical part of this exercise involves identifying active and new customers posing high, or even just marginal, credit risks. The good news is, if the credit risk presented by a business customer is too high, there are financial tools that can be used to mitigate the risk but still grant the customer credit.

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Your Virtual Credit Manager

OCTOBER 15, 2024

Full Speed Ahead for Collections Effective collections management is key to maintaining healthy cash flow and minimizing overdue accounts, which will reduce your risk of bad debt losses. To achieve this, it's essential to have the right personnel, tools, and processes in place.

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Your Virtual Credit Manager

JULY 2, 2024

The author of this article, David Schmidt, will be leading this webinar, which reviews the fundamental skills required to successfully collect past due B2B invoices. These account provide a serious credit risk, and should not be approved for open credit terms. New to collections?

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Abrigo

MAY 19, 2023

You might also like this webinar, "Return to basics: Asking the right credit risk questions." Introduction A few good men and women In previous articles, we have explored the objectives of a loan review and credit risk review system in general.

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Abrigo

AUGUST 28, 2022

Leveraging the efficiencies gained from lending software Banks and credit unions that leverage an integrated lending and credit platform reap the benefits of a consistent, efficient and defensible lending program. Would you like other articles like this in your inbox? Lending and Credit Software. Ag Lending. Learn More.

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Credit Unions Credit Risk Default 78

Your Virtual Credit Manager

DECEMBER 6, 2022

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. The solution is the implementation of credit and collection best practices geared to ensure customer profitability and sufficient cash flow. it just might help them pay you sooner!

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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!

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Electronic Funds Transfer Credit and Collections Debt Collections Bad Debt 98

Abrigo

FEBRUARY 23, 2022

Would you like other articles like this in your inbox? Takeaway 2 Loan decisioning allows institutions to efficiently allocate credit analysts’ time for profitable small business lending. Lending & Credit Risk. Lending & Credit Risk. Lending & Credit Risk. Portfolio Risk & CECL.

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Abrigo

JANUARY 11, 2022

Financial institution leaders and management should consider ALM as a process for making institutions more profitable and more effective at managing risk simultaneously. This initial ALM 101 article is intended for the ALM rookie who wants to understand ALM basics: the process and its usefulness. Lending & Credit Risk.

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Credit Unions Credit and Collections Credit Risk Default 78

Your Virtual Credit Manager

AUGUST 11, 2024

Your Virtual Credit Manager has already covered this topic from several different perspective. To continue reading and learn six financial markers that suggest a customer’s business is headed in the wrong direction, you must be a paid subscriber to Your Virtual Credit Manager.

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Sub-Chapter V Bankruptcy Credit and Collections Chapter 11 100

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?

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Bad Debt Credit and Collections Credit Risk Default 52

Fundera

MARCH 6, 2019

Lenders often require collateral as a way to make sure they won’t lose money if your business defaults on the loan. Credit Limit. FICO scores comprise a substantial part of the credit report that lenders use to assess credit risk. Articles of Incorporation. Financial Statements. Long-Term Debt.

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Credit Scoring Credit and Collections Bankruptcy Small Businesses 105

Fundera

FEBRUARY 6, 2018

Lenders often require collateral as a way to make sure they won’t lose money if your business defaults on the loan. Credit Limit. FICO scores comprise a substantial part of the credit report that lenders use to assess credit risk. Articles of Incorporation. Financial Statements. Long-Term Debt.

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Small Businesses Credit Scoring Credit and Collections Bankruptcy 105

Abrigo

APRIL 7, 2022

Would you like other articles like this in your inbox? Suppose your institution’s loans are well-secured and strongly underwritten, and you rarely have defaults or loss events. That’s where looking at peer institutions’ risk comes in. Portfolio Risk & CECL. Stress Testing: Managing Capital Levels and Credit Risk.

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CECL Credit Unions Default Credit Risk 78

tillful

JANUARY 9, 2023

You’re probably aware that good business credit comes with perks, but it might be less clear as to why. Well, it all comes down to credit risk. Your business credit score is an indicator that banks and other financial institutions use to gauge the risk associated with lending to your small business.

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Credit Scoring Credit and Collections Credit Risk Default 52

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.

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Credit and Collections Bad Debt Credit Risk Default 52

tillful

MAY 12, 2023

Lending to businesses with bad credit is deemed “high risk” and banks not only have a chance of being unable to make their money back, but also of not having enough reserves to protect its depositors in case of a business’s default on a loan. For example, a loan for a truck may repossess the truck in the event of default.

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Credit Scoring Credit and Collections Small Businesses Default 98

Abrigo

DECEMBER 31, 2019

Concerns over an economic slowdown and the transition to the current expected credit loss model, or CECL, put risk management practices on the minds of many bankers. Measuring Loan-Portfolio Credit Quality What can institutions do to get a better handle on the credit risk within their loan portfolio?

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CECL Credit Unions Default Credit Risk 60

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?

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Bad Debt Credit and Collections Credit Risk Default 40

CreditStrong for Business

AUGUST 30, 2024

Certain NAICS codes carry a level of risk that tells potential lenders a lot about your business. In this article, we’ll go over what constitutes a low-risk and high-risk industry and why it matters to your lender. What Are Some Low-Risk NAICS Codes? Some industries have less risk associated with them than others.

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Credit Scoring Credit and Collections Insurance Companies Credit Risk 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. Thorough due diligence is required to ensure the full extent of borrower credit weaknesses are identified and credit risk is reduced through appropriate loan restructuring.

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Credit and Collections Bankruptcy Credit Risk Default 40

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. A good business credit report will give you: Credit rating.

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Bad Debt Credit and Collections Debt Collections Credit Risk 52

Biz2X

APRIL 13, 2023

Proper portfolio monitoring is important in banking because it reduces portfolio risk, promotes regulatory compliance, and minimizes losses. Credit monitoring works hand in hand with a bank’s underwriting process. Portfolio Optimization Effective portfolio monitoring minimizes financial losses.

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Credit Unions Default Credit Risk Credit Scoring 52

Abrigo

APRIL 19, 2022

Credit and Lending Software Overcome Common Lending Problems Banks and credit unions that leverage an integrated lending and credit platform reap the benefits of a consistent, efficient and defensible lending program. Would you like other articles like this in your inbox? Takeaway 1 Optimize the loan origination process.

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Credit and Collections Credit Unions Default Credit Risk 78

tillful

MARCH 8, 2023

Over the past two decades, the financial services industry has been gravitating towards a more comprehensive approach to credit risk assessment. Credit scoring models alone don’t tell the whole story, so companies are looking to alternative credit data to fill in the gaps.

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Credit Scoring Credit Reporting Agencies Bankruptcy Default 59

Biz2X

JULY 25, 2023

The use of data analytics and AI-powered algorithms enables banks to assess credit risk more accurately, resulting in better credit decisions and reduced default rates. Automation of routine tasks expedites loan approvals and disbursements, reducing the turnaround time for borrowers and enhancing overall efficiency.

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