Your Virtual Credit Manager

JANUARY 28, 2025

Meanwhile, customers who previously were approved during your initial credit evaluation may become past due, max out their credit limit, or, worse yet, be in a deteriorating financial situation, all of which become even more likely when the economy is volatile—the result: cash flow problems and more exposure to bad debt losses.

Accounts Receivable (AR) 130

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

Chaser

SEPTEMBER 2, 2024

Research from 2023 shows that around 82% of businesses have outstanding debts, with one in five writing off significant sums of bad debt rather than attempting to recover it. Even more worryingly, 40% of businesses say they do not even know the full value of monies owed them.

Bad Debt 91

Bad Debt Debt Collections 91

Chaser

JUNE 22, 2023

Did you know that the average amount of bad debt amongst UK SMEs has risen by a staggering 61% in the last year? Businesses are now writing off an average of £16,641 as unrecoverable yearly.

Bad Debt 78

Bad Debt 78

Gaviti

NOVEMBER 18, 2024

Although there are tax benefits of writing off bad debt, it still negatively impacts the company’s bottom line. The longer an invoice goes unpaid, the lower the chances of recovering that debt. This, in turn, contributes to higher bad debt to sales ratios. chance of recovering payment.

Bad Debt 98

Bad Debt Bad Debt to Sales Invoice to Cash Credit and Collections 98

Your Virtual Credit Manager

NOVEMBER 12, 2024

If you are not on the lookout for customer red flags, especially those raised by public firms and other large enterprises, you will be at increased risk for incurring bad debt losses. Trustee Program estimates that bankruptcy filings will double over the next three years.

Chapter 11 130

Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections 130

Your Virtual Credit Manager

FEBRUARY 4, 2025

In most companies, sales are given a strong priority over the risk of slow payments and bad debts regardless of gross margins and the resources the credit and collection function can provide to mitigate risk. Photo by Piret Ilver on Unsplash ) Too often, credit and collections are an afterthought.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Invoice Disputes Bad Debt 130

Your Virtual Credit Manager

MAY 23, 2023

Any subsequent collection expenses and bad debt write-offs are more easily recouped through additional sales than if your gross margins are low. Problematic customers, or debtors if you will, are much less profitable and more likely to cause a bad debt loss. The issue with problematic customers is profit dilution.

Bad Debt 49

Bad Debt Credit and Collections Deductions Invoice Amount 49

Chaser

MARCH 30, 2025

The concepts of allowance for doubtful accounts and bad debt expenses play a pivotal role in portraying an accurate picture of a company's financial health.

Allowance for Doubtful Accounts 52

Allowance for Doubtful Accounts Bad Debt 52

Your Virtual Credit Manager

APRIL 1, 2025

If you have a significant financial exposure to financially weak customers, your risk of never collecting and incurring bad debt losses is elevated, and therefore, efforts should be made to reduce the amount of at-risk receivables owed. The credit exposure you have with every customer.

Credit and Collections 130

Credit and Collections Sales Tax Exemptions Accounts Receivable (AR) Collector 130

Hilton Baird

APRIL 8, 2024

A look at the pros and cons of writing off aged debts, the options businesses have at this stage, as well as how bad debt relief can impact businesses. The post Navigating aged debts: The pros and cons of writing off bad debt appeared first on Hilton-Baird Collection Services.

Bad Debt 52

Bad Debt Small Businesses 52

Your Virtual Credit Manager

JANUARY 7, 2025

A diminished cash flow creates liquidity shortages which impact an organization’s ability to meet financial obligations, increases the cost of capital if you rely in any way on borrowing to cover cash flow gaps, hinders your ability to invest in your company if you don’t borrow, and in general adds inefficiencies to day-to-day operations. (..)

Days Sales Outstanding 130

Days Sales Outstanding DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

DECEMBER 31, 2024

Bust-Out Schemes : Criminals establish fake businesses, submit fraudulent credit applications, make small payments to build trust, then divert large orders and dissappear, turning receivables into bad debts. Due diligence on new customers and any unexpected orders that seem too good to be true is required to beat these schemes.

Collector 130

Collector Credit and Collections Bad Debt High-Risk Accounts 130

Hilton Baird

SEPTEMBER 23, 2024

A look at the pros and cons of writing off aged debts, the options businesses have at this stage, as well as how bad debt relief can impact businesses. The post Copy of Navigating aged debts: The pros and cons of writing off bad debt appeared first on Hilton-Baird Collection Services.

Bad Debt 52

Bad Debt Small Businesses 52

Chaser

JULY 1, 2024

Is your business struggling with bad debt? Among these challenges, dealing with bad debt is a persistent obstacle that can significantly impact your business’s financial health. Managing finances and ensuring consistent cash flow are critical challenges that every business must navigate effectively to remain profitable.

Bad Debt 52

Bad Debt Debt Collections 52

Your Virtual Credit Manager

FEBRUARY 18, 2025

(Photo by Markus Spiske on Unsplash ) When there are time constraints that forestall additional research, denying credit or requiring collateral or some other security is the best way to avoid a decision that results in delinquency and a potential bad debt loss.

Credit Application 130

Credit Application Credit and Collections Bad Debt High-Risk Accounts 130

Chaser

DECEMBER 8, 2023

Bad debt is the amount of money that a business has not been able to collect from its customers. The direct financial implications of bad debt include reduced cash flow , decreased profit, and increased risk for the company. Bad debt also has an emotional toll on business owners and employees.

Bad Debt 52

Bad Debt 52

Credit Research Foundation

SEPTEMBER 27, 2024

According to CRF’s data, companies that invest in credit risk management training and resources experience lower bad debt write-offs and improvements in Days Sales Outstanding (DSO) during economic downturns. Failure to prepare could leave your company vulnerable to significant financial losses and cash flow disruptions.

Days Sales Outstanding 195

Days Sales Outstanding Bad Debt DSO Default 195

Your Virtual Credit Manager

OCTOBER 17, 2023

Not being paid in full or in part causes a bad debt loss. The first step is to estimate how much bad debt loss you can absorb as a percentage of sales in a year. Conversely, if the profit margin is low, bad debt losses will have a much greater impact, and credit controls will have to be tighter.

Bad Debt 130

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

Gaviti

NOVEMBER 21, 2024

Get real-time credit risk alerts about customers with increased credit risk to minimize the impact on your cash flow and reduce the likelihood of bad debt. Credit management and monitoring. Want to learn more about how Gaviti can streamline and automate your A/R management and collections process? Get a demo today!

Automated Cash Application 98

Automated Cash Application Credit and Collections Cash Applicator Deductions 98

Your Virtual Credit Manager

MARCH 14, 2023

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). For more on collection efficiency, check out this article.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

RevCycle

JUNE 27, 2024

The Future of Healthcare Bad Debt As mentioned earlier in this post, no one can be sure what the future holds for the possibility of further credit reporting restrictions. Now more than ever, bad debt collection is something maximized not by brute force, but rather the use of soft skills and a human-centric approach.

Bad Debt 134

Bad Debt Debt Collections Credit and Collections Credit Scoring 134

MNS Credit Management Group

JULY 12, 2023

Bad debt recovery: What is it? The money that your company receives after writing off bad debt as uncollectible is known as bad debt recovery. When the borrower is unable to repay the lender within the allotted time, the bad debt recovery process is initiated. How can bad debts be recouped?

Bad Debt 52

Bad Debt Collector Debt Collections Credit and Collections 52

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. The customer may purchase smaller quantities, which might marginally reduce your annual revenue, but in return your cash flow benefits and your risk of bad debts is reduced.

Bad Debt 130

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

Credit Research Foundation

JANUARY 11, 2024

This investment enhances customer service, increases productivity, and utilizes data to analyze new customer accounts while monitoring existing customers nearing default and taking proactive, timely actions to reduce bad debt expense.

Credit Application 195

Credit Application Bad Debt Dashboards Default 195

Your Virtual Credit Manager

NOVEMBER 14, 2023

It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). The increased risk of a significant bad debt loss that your firm bears.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Your Virtual Credit Manager

OCTOBER 31, 2023

Simply put, if customers have weak financials or a history of late payments or defaults, there is an elevated risk of bad debt. That does not mean you will be able to avoid all bad debt losses due to business failures, but rather be able to minimize them. it just might help them pay you sooner!

Bad Debt 130

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

Your Virtual Credit Manager

SEPTEMBER 5, 2023

Subscribe now Impact of Offering Discounts From the seller’s perspective, the effect on revenue from offering an early pay discount needs to be weighed against the potential reduction in Accounts Receivable (AR) carrying costs, bad debt and collection expenses. it just might help them pay you sooner!

Bad Debt 130

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

Your Virtual Credit Manager

JANUARY 17, 2023

it just might help them pay you sooner!

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

Your Virtual Credit Manager

NOVEMBER 22, 2022

Photo by Erik Mclean on Unsplash As discussed in several prior newsletters, the threat of bad debt loss and diminished cash flow from delayed payments increases significantly during a recession. This inevitably result… Read more.

Bad Debt 130

Bad Debt 130

Your Virtual Credit Manager

JUNE 25, 2024

A growing volume of receivables overdue by more than 90 days indicates you are having severe challenges collecting payments before then, posing a significant risk of write-offs or bad debts. Commensurate with a rising expectation of defaults, is a worsening of the quality of your AR portfolio along with profit shrinkage.

Bad Debt 130

Bad Debt Credit and Collections Days Sales Outstanding DSO 130

Your Virtual Credit Manager

OCTOBER 4, 2022

Photo by Ben Cliff on Unsplash A key objective of Accounts Receivable (AR) management is minimizing past due AR to ensure cash in-flows and minimize bad debt losses.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bad Debt 130

Your Virtual Credit Manager

SEPTEMBER 20, 2022

This creates cash flow shortages, increased risk of bad debt, and a significant work requirement to mitigate the impact of late payments. Photo by Muyuan Ma on Unsplash For most companies, a quarter to a third (and maybe more), of their customers will pay significantly beyond the terms of sale.

Bad Debt 130

Bad Debt 130

Your Virtual Credit Manager

APRIL 18, 2023

to minimize the chance of bad debt loss. Quality Pro — In terms of collections, more complete AR portfolio coverage ensuring all past due accounts are contacted to accelerate their payments and to identify emerging bad debt risks, greater expertise across all AR functions. Then you have a cost/benefit comparison.

Bad Debt 130

Bad Debt Credit and Collections Third Party Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

FEBRUARY 27, 2024

Increased Bad Debt : Inadequate credit checks can result in over extending credit to high-risk customers, leading to slow payments and ultimately bad debt write-offs. Employ Shared Metrics and KPIs : Establishing common key performance indicators (KPIs) and metrics across departments fosters aligned objectives.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Days Sales Outstanding Bad Debt Credit and Collections 130

Know-It Global

APRIL 26, 2023

Failure to manage credit risk can lead to bad debts, cashflow problems, and eventually, business failure. Use trade credit insurance Trade credit insurance is a type of insurance that protects businesses from bad debts. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them.

Credit Risk 98

Credit Risk Bad Debt Credit and Collections Default 98

aptic

OCTOBER 12, 2021

The post From unlikely-to-pay debt to bad debt: how to detect underperforming debtors appeared first on Aptic. Contact me to learn about Aptic’s innovative solutions for credit processing, factoring, e-commerce and retail payments, invoice to cash and leasing! Rick Terra.

Bad Debt 52

Bad Debt Credit and Collections Bankruptcy Invoice to Cash 52

Your Virtual Credit Manager

APRIL 11, 2023

Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. Failure to monitor your receivables, and identify the emerging risks in your AR portfolio, leads to missed payments, increased bad debt write-offs, and reduced cash flow. Business failures are the norm.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 130