Bad Debt Books Default 
Your Virtual Credit Manager
APRIL 8, 2025
The Imperative to Keep Past Due Balances in Check A key objective of Accounts Receivable (AR) management is minimizing past due AR to ensure cash in-flows and minimize bad debt losses. On the other hand, a customer bankruptcy or other default typically causes the loss of most if not all the AR owed by the customer.
Your Virtual Credit Manager
JANUARY 14, 2025
The Customer Delinquency Challenge Successful accounts receivable (AR) management involves minimizing past due balances to ensure steady cash in-flows and limit bad debt losses. In contrast, customer bankruptcies or other defaults typically cause the loss of most, if not all, the AR owed. Do you need help improving cash flow?
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Your Virtual Credit Manager
JANUARY 17, 2023
Here are the disadvantages and risks of migrating your sales commissions from the booking of the sale to payments received against the sale: Impact on the amount of time devoted to selling, which could reduce revenue Risk of degrading a Sales Rep’s relationship with the customer. it just might help them pay you sooner!
Your Virtual Credit Manager
OCTOBER 31, 2023
Because AR constitutes one of largest assets on your books, proactively managing accounts receivable is crucial for the financial health of your business. Economic downturns can impact a customer's ability to pay, leading to delayed or defaulted payments. Especially in these times of high interest rates and economic uncertainty.
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.
Your Virtual Credit Manager
JUNE 18, 2024
Photo by Muhammad Daudy on Unsplash ) The problem with startup companies: there is a high probability they will fail , leaving you with a bad debt on your books. To better understand your risk parameters, start by estimating how much bad debt loss you can afford to absorb in a year.
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.
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