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.

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

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

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Credit Application Bad Debt Bankruptcy Credit Scoring 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 Accounts Receivable (AR) 100

Your Virtual Credit Manager

JUNE 13, 2023

Far more damaging is a customer that defaults (never pays). These bad debt losses can put your own business at risk of failure. 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.

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Credit and Collections Bad Debt Default Credit Risk 26

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.

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.

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Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

Your Virtual Credit Manager

APRIL 2, 2024

Still others may be predictive of default, financial distress or financial health, and creditworthiness. For instance, bankruptcy within the next two years is more easily defined than the more nebulous state of financial distress. delinquency or default) than will be found in a random sample.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

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. The company ended up writing off millions of dollars in bad debt. This software firm did not actively manage its AR.

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DSO Credit and Collections Bad Debt AR Aging 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

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.

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Bad Debt Credit and Collections Debt Collections Credit Risk 19

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. At the same time, an Aptic survey of 404 finance professionals indicated that 29% of organisations have seen an increasing number of late payments or payment defaults since 2020. Rick Terra.

Bad Debt 52

Bad Debt Credit and Collections Invoice to Cash Bankruptcy 52

Your Virtual Credit Manager

MAY 16, 2023

By avoiding the following common traps, or myths if you will, businesses can minimize the risk of non-payment or default and make better informed decisions about extending credit to other businesses that will boost sales and profits. Credit evaluations prevent more bad debts than collection efforts.

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

TreviPay

SEPTEMBER 18, 2024

This type of insurance acts as a safety net, covering unpaid invoices when clients default or face financial difficulties. Its primary purpose is to mitigate the financial risks of trade credit by covering outstanding receivables if a customer defaults because of insolvency or other financial difficulties.

Bad Debt 52

Bad Debt Default Credit and Collections Export Credit 52

MNS Credit Management Group

AUGUST 7, 2023

However, there is always the possibility of loan default. A business credit score is a credit rating that indicates how likely a company is to repay its loans on schedule and without default. The use of debt The ratio of credit utilised by a firm to credit available to a business is known as debt utilisation.

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Credit Scoring Credit Risk Credit and Collections Bad Debt 52

CreditStrong for Business

JULY 11, 2024

This conservative method keeps them from losing money on defaulted loans and credit lines. 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.

Credit Scoring 52

Credit Scoring Small Businesses Credit Unions Bad Debt 52

Your Virtual Credit Manager

DECEMBER 20, 2022

The one measure that may fall short if the customer defaults is a Uniform Commercial code (UCC) Security Agreement — you may not be able to recover all your collateral or the proceeds thereof, especially if your UCC filing puts you in a second position behind a lender, which is a common situation.

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Deductions Credit and Collections Bad Debt Credit Risk 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

APRIL 15, 2025

The threat of bad debt loss and diminished cash flow from delayed payments increases significantly when the economy is volatile or during a recession. If the cumulative impact of both these eventualities, slower payments and more defaults, is of sufficient size, your company could face insolvency.

AR Aging 130

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

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.

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Bankruptcy Bad Debt Credit Scoring Chapter 11 130