Remove Bad Debt Remove Business Bankruptcy Remove Small Businesses
article thumbnail

Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

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% Customer defaults can be devastating , especially when they cause a substantial bad debt loss. A large volume of bad debts can render your firm insolvent.

Bad Debt 130
article thumbnail

Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

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 130
article thumbnail

Seven Observations from Silicon Valley Bank's Failure

Your Virtual Credit Manager

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.