Your Virtual Credit Manager

FEBRUARY 13, 2024

After, the Great Recession of 2008, commercial bankruptcies peaked in 2009 and did not drop below pre-recession levels until 2012. Department of Justice projects a substantial increase in bankruptcy filings. Trustee Program has estimated that bankruptcy filings will double over the next three years.

Bankruptcy 130

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

Your Virtual Credit Manager

OCTOBER 15, 2024

Photo by Melinda Gimpel on Unsplash ) The American Bankruptcy Institute recently reported that, “The 6,067 total commercial chapter 11 bankruptcies filed during the first nine months of 2024 represented a 36 percent increase over the 4,561 filed during the same period in 2023.” Trustee Program.

Chapter 11 100

Chapter 11 Bad Debt Bankruptcy Chapter 7 100

Your Virtual Credit Manager

JANUARY 23, 2024

Among other things, commercial bankruptcies have been steadily climbing over the past year. 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.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

MARCH 21, 2023

In addition to the effect of inflation, AR loses value as a result of profit dilution (when customers do not pay you the full invoice value due to payment deductions or disputes) and bad debt losses. The role of credit should not be focused on preventing bad debt losses, but rather maximizing profits.

Accounts Receivable (AR) 130

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

CreditStrong for Business

SEPTEMBER 4, 2024

Making the decision to file for bankruptcy is far from easy. The trade-off for having your debt eliminated is a long-lasting derogatory mark on your credit report identifying you as a huge credit risk. Your credit report sees the effects of a bankruptcy filing for ten years for a chapter 7 bankruptcy.

Bankruptcy 52

Bankruptcy Chapter 7 Credit Scoring Credit Reporting Agencies 52

Your Virtual Credit Manager

FEBRUARY 28, 2023

While bankruptcy filings have not increased substantially in the past year, they have begun to tick up and it is widely anticipated that filing will continue to increase as pandemic relief is finally spent, revenues decrease due to a faltering economy, and costs increase due to inflation and rising interest rates. What do you need help doing?

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

OCTOBER 8, 2024

Older debts are often more difficult to recover because the debtor’s financial situation may worsen over time, or the business may close, become insolvent, or declare bankruptcy. In cases of bankruptcy or liquidation, the likelihood of repayment drops dramatically, as creditors may only receive partial payments or nothing at all.

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

aptic

OCTOBER 12, 2021

In the case of a bad loan, there’s a real possibility of bankruptcy and there’s a chance that the bank will not recover its money. The post From unlikely-to-pay debt to bad debt: how to detect underperforming debtors appeared first on Aptic. And an almost identical pattern has been observed in the past year.

Bad Debt 52

Bad Debt Credit and Collections Invoice to Cash Bankruptcy 52

Your Virtual Credit Manager

DECEMBER 20, 2022

The good news is that in a bankruptcy, you will be ahead of all the general unsecured creditors. Buy Credit Reports Managing Credit In-house Your other option is to assess, monitor and control the bad debt exposure yourself.

Deductions 130

Deductions Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

APRIL 2, 2024

For instance, bankruptcy within the next two years is more easily defined than the more nebulous state of financial distress. Still others may be predictive of default, financial distress or financial health, and creditworthiness. As a rule of thumb, however, the more specific the outcome being predicted, the more accurate will be the score.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

SEPTEMBER 12, 2023

You also should be checking for derogatory information — liens, judgements, prior bankruptcies, etc — found on their credit report or in public records. When unobserved risks build up in your AR, the impact will be slower payments and defaults leading to bad debts. Here’s more on credit evaluations.

Credit and Collections 130

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

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. However, when the new customer(s) are startups, extending credit can be very risky and potentially damaging should substantial bad debt losses result.

Credit and Collections 130

Credit and Collections Bad Debt Credit Risk Small Businesses 130

Your Virtual Credit Manager

DECEMBER 6, 2022

Cash Flow is the number one cause of small business bankruptcies. 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.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Know-It Global

JUNE 20, 2023

It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. A well-designed policy minimises the risk of bad debts and cash flow issues and also serves as a reference for employees involved in credit decisions and collections.

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

Your Virtual Credit Manager

JUNE 13, 2023

These bad debt losses can put your own business at risk of failure. Subscribe now The Increasing Risk of a Growing Number of Defaults Commercial bankruptcies began rising late last year after the historic lows of 2020 and 2021. Far more damaging is a customer that defaults (never pays).

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

Your Virtual Credit Manager

MAY 16, 2023

Credit evaluations prevent more bad debts than collection efforts. While the credit limit you assign a customer is important, especially with your largest customers, the most common cause of bad debt losses are items that get missed in your collection process. There are over 30 million businesses in the US.

Bad Debt 100

Bad Debt Credit and Collections Default Small Businesses 100

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. 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 130

Credit and Collections Default Bad Debt Credit Risk 130

Emagia

OCTOBER 31, 2022

Studies show that over half of all bankruptcies come from poor credit management, signifying its importance. Automation of the credit management process delivers benefits, ranging from faster customer acquisition and processing of credit approvals to avoid bad debts. Credit Management Processes That Could be Automated.

Credit and Collections 59

Credit and Collections Bad Debt Credit Management DSO 59

TreviPay

SEPTEMBER 18, 2024

Indemnity Percentage: The indemnity percentage refers to the portion of the debt covered by the insurer. Exclusions: Common exclusions include pre-existing bad debts, disputes between buyer and seller and non-payment arising from unresolved contractual disagreements.

Bad Debt 52

Bad Debt Default Credit and Collections Export Credit 52

CreditStrong for Business

MARCH 10, 2023

Most negative information such as late credit card payments, collection agency activity, and other missed payments toward debts remain on your credit report for seven years. Bankruptcy is an exception that may remain on your credit bureau report for up to 10 years.

Credit Scoring 52

Credit Scoring Credit Card Payments Bankruptcy Chapter 7 52

CreditStrong for Business

SEPTEMBER 12, 2024

There is one exception—bankruptcy may remain on your credit bureau report for up to ten years. More precisely, a Chapter 7 bankruptcy will remain for up to ten years, while a Chapter 13 bankruptcy generally remains for seven years. This won’t change regardless of whether you pay the past due amount or not.

Credit Scoring 52

Credit Scoring Credit Card Payments Credit and Collections Bankruptcy 52

MNS Credit Management Group

AUGUST 7, 2023

The use of debt The ratio of credit utilised by a firm to credit available to a business is known as debt utilisation. Creating a healthy business cash flow and incurring as little debt as possible can help you enhance your credit score.

Credit Scoring 52

Credit Scoring Credit Risk Credit and Collections Bad Debt 52

Due

MARCH 3, 2023

These funds could be used to pay off a credit card debt or pad your savings. When a few dollars separate you from foreclosure or bankruptcy, every dollar counts. If you aren’t in that bad of financial shape, consider dining out or getting takeout less often. Is there a limit to how much debt one should have?

Credit Scoring 105

Credit Scoring Bankruptcy Medical Billing Brokerages 105

Due

MAY 20, 2023

Debt-to-Equity Ratio: Companies with lower debt-to-equity ratios are generally in a better financial position to weather a recession. High levels of debt can increase the risk of bankruptcy and limit a company’s ability to invest and grow.

Retail Companies 64

Retail Companies Bad Debt Bankruptcy 64

CreditStrong for Business

JULY 11, 2024

To get approved, you’ll still need to support your loan application with strong gross sales, bank statements, and a credit history clear of bankruptcies or judgments. Otherwise, they’d be stuck with a bunch of bad debts. Online lenders like Fora Financial and Credibly have a minimum credit score of 500.

Credit Scoring 52

Credit Scoring Small Businesses Credit Unions Bad Debt 52

Due

MARCH 3, 2023

These funds could be used to pay off a credit card debt or pad your savings. When a few dollars separate you from foreclosure or bankruptcy, every dollar counts. If you aren’t in that bad of financial shape, consider dining out or getting takeout less often. Is there a limit to how much debt one should have?

Credit Scoring 64

Credit Scoring Bankruptcy Medical Billing Brokerages 64

MNS Credit Management Group

SEPTEMBER 24, 2023

Among the carried out actions are: Credit evaluation Contact Negotiation Pressure on the debtor house calls appropriate legal avenues and petitions bankruptcy procedures Claim enforcement. Consumer Relations Collection agencies typically follow the correct debt collection procedures to protect their clients’ relationships with them.

Debt Collections 52

Debt Collections Credit and Collections Collector Credit Management 52

Your Virtual Credit Manager

MARCH 26, 2024

Meanwhile, the number of commercial bankruptcies is accelerating. In February, Epiq Bankruptcy reported that commercial Chapter 11 bankruptcy filings climbed 118 percent year-over-year. Ongoing Portfolio Monitoring was critical to turning up the customer intelligence that avoided a huge bad debt loss.

Bankruptcy 130

Bankruptcy Bad Debt Credit Scoring Chapter 11 130