Bad Debt, Bankruptcy and Small Businesses

Here Are the Distress Signals Private Firms Flash When They Are in Trouble

Your Virtual Credit Manager

APRIL 8, 2025

Courts , commercial bankruptcy filings increased 40.3% “The record-high bankruptcy filings in 2024, despite a relatively stable economic environment, suggest systemic vulnerabilities in the business landscape. Customer defaults can be devastating , especially if they cause a substantial bad debt loss.

Bad Debt

Bad Debt Bankruptcy Accounts Receivable (AR) Credit and Collections

Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

JANUARY 14, 2025

The United States has witnessed a significant surge in corporate bankruptcies, reaching a 14-year high in 2024. Business bankruptcy filings increased by 33.5% In contrast, customer bankruptcies or other defaults typically cause the loss of most, if not all, the AR owed. Even more concerning, the U.S.

Bad Debt

Bad Debt Bankruptcy Credit and Collections Accounts Receivable (AR)

Big Company Red Flags You Can't Afford to Miss

Your Virtual Credit Manager

NOVEMBER 12, 2024

While the principals of credit are the same for businesses of every size, there is a lot more information on the big guys making it easier to see any red flags that suggest they are in trouble. Beware—Commercial Bankruptcies Are Accelerating In our current economic climate, watching out for customer red flags is essential.

Chapter 11

Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections

How Are Your Customers Doing?

Your Virtual Credit Manager

MARCH 4, 2025

This company was fortunate to avoid significant bad debt loss until Ames Department Stores, Kmart, and Fleming Foods (a distributor) all filed bankruptcy within the same year. Bad debt losses were understandably huge. Learn More About Credit Reports Please share this newsletter with your small business customers.

Bad Debt

Bad Debt Credit and Collections Accounts Receivable (AR) Collector

Gain Leverage Over Slow Paying and Risky Customers by Holding Up Their Orders

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)

Accounts Receivable (AR) Bad Debt Credit and Collections Bankruptcy

Are Your Credit & Collection Policies Aligned with Company Goals?

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. Learn More About Credit Reports Please share this newsletter with your small business customers. Share Read more

Credit and Collections

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

Top 10 Strategies for Reducing Days Sales Outstanding (DSO)

Your Virtual Credit Manager

JANUARY 7, 2025

While multiple factors can contribute to an organization's financial downfall, insufficient cash flow is typically the primary trigger for bankruptcy proceedings. Learn More About Credit Reports Please share this newsletter with your small business customers. it just might help them collect faster and pay you sooner.

Days Sales Outstanding

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

Your Customer Filed for Bankruptcy: Now What?

Your Virtual Credit Manager

AUGUST 1, 2023

Commercial bankruptcies began rising earlier this year after an unprecedented lull during the Covid crisis. Historically, bankruptcies have tended to peak after an economic crisis has passed and that appears to be what is happening now. During Covid, we also saw an unprecedented number of new business formations.

Bankruptcy

Bankruptcy Chapter 11 Chapter 7 Bad Debt

Get Ready for a Wave of Commercial Bankruptcies

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

Bankruptcy Credit and Collections Bad Debt Accounts Receivable (AR)

Due Diligence Doesn't End with the Credit Application

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. What do you need help doing?

Credit Application

Credit Application Bad Debt Bankruptcy Credit Scoring

The Imperative for Prioritizing Collections

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. Share Read more

Chapter 11

Chapter 11 Bad Debt Bankruptcy Accounts Receivable (AR)

Seven Observations from Silicon Valley Bank's Failure

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)

Accounts Receivable (AR) Bankruptcy Bad Debt Credit and Collections

Are Early Payment Discounts a Good Idea in Today’s Economy?

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

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy

Are You Hindering Your Collection Agency's Efforts?

Your Virtual Credit Manager

OCTOBER 8, 2024

Companies selling other businesses on open terms need to ensure any collection agency partners can effectively collect non-performing receivables. 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.

Third Party Collections

Third Party Collections Credit and Collections Bankruptcy Bad Debt

Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

DECEMBER 6, 2022

Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order. Cash Flow is the number one cause of small business bankruptcies. Please feel free to share this newsletter with your small business customers. it just might help them pay you sooner!

DSO

DSO Credit and Collections Bad Debt AR Aging

Is Your AR Generating All the Cash Flow It Should?

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Please feel free to share this newsletter with your small business customers. You also should be checking for derogatory information — liens, judgements, prior bankruptcies, etc — found on their credit report or in public records. it just might help them pay you sooner! Here’s more on credit evaluations.

Credit and Collections

Credit and Collections Bad Debt Accounts Receivable (AR) Deductions

Red Flags that Demand Your Attention

Your Virtual Credit Manager

JUNE 13, 2023

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. Far more damaging is a customer that defaults (never pays). it just might help them pay you sooner!

Credit and Collections

Credit and Collections Bad Debt Default Credit Risk

Gleaning Actionable Insights from Credit Scores

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. Despite these shortcomings, commercial credit scores can be valuable tools for a company offering trade credit to other businesses. it just might help them pay you sooner.

Credit Scoring

Credit Scoring Credit and Collections Bad Debt Credit Risk

9 Trade Credit Traps to Avoid

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

Bad Debt Credit and Collections Default Small Businesses

Customer Stops Paying; Now What?

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

Credit and Collections Default Bad Debt Credit Risk

What’s The Credit Score Needed For Small Business Loans?

CreditStrong for Business

JULY 11, 2024

It’d be helpful if you get it, but you’re probably wondering what credit score you need to get a small business loan. In this article, we’ll cover the different types of business loans and the credit expectations for each. SBA Loans The SBA offers some of the most diverse small business loans.

Credit Scoring

Credit Scoring Small Businesses Credit Unions Bad Debt

Understanding Business Credit Assessment And How Does it Work?

MNS Credit Management Group

AUGUST 7, 2023

Business credit scores are calculated on a different scale than personal credit scores, ranging from 1 to 100. According to the US Small Business Administration, your company will require a credit score of around 75 to qualify for a small business loan.

Credit Scoring

Credit Scoring Credit Risk Credit and Collections Bad Debt

The Scenario Of Malaysia’s Debt Collection

MNS Credit Management Group

SEPTEMBER 24, 2023

The collecting agencies’ knowledge of Malaysian laws, rules, and business customs helps with this. 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.

Debt Collections

Debt Collections Credit and Collections Collector Credit Management

Around 1.8 Million Startup Companies Will Fail This Year.Are You Prepared?

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. Small businesses are particularly vulnerable to the impact of these cost increases. Moreover, the average lifespan of a small business is only 8.5

Credit and Collections

Credit and Collections Bad Debt Credit Risk Small Businesses

Are Your Customers as Profitable as You Think?

Your Virtual Credit Manager

DECEMBER 20, 2022

Why not share this newsletter with your small business customers. The good news is that in a bankruptcy, you will be ahead of all the general unsecured creditors. Readers of Your Virtual Credit Manager can now access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit.

Deductions

Deductions Credit and Collections Bad Debt Credit Risk

How Are Your Accounts Receivable Performing?

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. The simple truth of the matter is that cash flow problems are the primary cause of bankruptcies. The result is their own profitability and cash flow shortages. Share Read more

AR Aging

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

Are There Hidden Risks in Your AR Portfolio?

Your Virtual Credit Manager

MARCH 26, 2024

New and small businesses, moreover, have high failure rates. Historically, only half of all new businesses make it to their fifth anniversary. Meanwhile, the number of commercial bankruptcies is accelerating. Learn More About Credit Reports Please feel free to share this newsletter with your small business customers.

Bankruptcy

Bankruptcy Bad Debt Credit Scoring Chapter 11

Credit Management Source

Here Are the Distress Signals Private Firms Flash When They Are in Trouble

Storm Warning: Private Company Red Flags

Trending Sources

Big Company Red Flags You Can't Afford to Miss

How Are Your Customers Doing?

Gain Leverage Over Slow Paying and Risky Customers by Holding Up Their Orders

Are Your Credit & Collection Policies Aligned with Company Goals?

Top 10 Strategies for Reducing Days Sales Outstanding (DSO)

Your Customer Filed for Bankruptcy: Now What?

Get Ready for a Wave of Commercial Bankruptcies

Due Diligence Doesn't End with the Credit Application

The Imperative for Prioritizing Collections

Seven Observations from Silicon Valley Bank's Failure

Are Early Payment Discounts a Good Idea in Today’s Economy?

Are You Hindering Your Collection Agency's Efforts?

Don't Leave Converting Sales into Cash to Chance

Is Your AR Generating All the Cash Flow It Should?

Red Flags that Demand Your Attention

Gleaning Actionable Insights from Credit Scores

9 Trade Credit Traps to Avoid

Customer Stops Paying; Now What?

What’s The Credit Score Needed For Small Business Loans?

Understanding Business Credit Assessment And How Does it Work?

The Scenario Of Malaysia’s Debt Collection

Around 1.8 Million Startup Companies Will Fail This Year.Are You Prepared?

Are Your Customers as Profitable as You Think?

How Are Your Accounts Receivable Performing?

Are There Hidden Risks in Your AR Portfolio?

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