Your Virtual Credit Manager

JANUARY 17, 2023

Inevitably they will need to initiate Collection activities to recover some of this money owed; in other words, contacting delinquent customers and requesting them to pay your firm for goods and/or services provided on credit terms that have become past due. it just might help them pay you sooner!

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

Your Virtual Credit Manager

JANUARY 7, 2025

Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Your Virtual Credit Manager is a reader-supported publication. Learn More About Credit Reports Please share this newsletter with your small business customers. Need help improving cash flow?

Days Sales Outstanding 130

Days Sales Outstanding DSO Credit and Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 28, 2025

When a business reaches the point of multiple team members making new sales and taking orders from existing customers, the credit approval process gets more complicated. In practice, this company was slow to recognize serious delinquencies, suspension of service was rarely used, and million-dollar bad debt losses ensued.

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

NOVEMBER 12, 2024

Monitoring and evaluating the credit risk posed by public companies and other large firms differs significantly in comparison to small and mid-sized businesses. Because most of your biggest customers will be larger firms instead of smaller, it is typically the larger firms that will require higher credit limits. Share Read more

Chapter 11 130

Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections 130

Your Virtual Credit Manager

MARCH 14, 2023

Commercial collections is no different. Collection myths can be found at the very root of bad decisions as well as informing counter-productive activities. Adhering to collection myths more often than not leads to bad outcomes. Simply put, collection myths get in the way of doing the best job possible.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

Your Virtual Credit Manager

MAY 23, 2023

Incidentally, the higher your gross margin, the more latitude you have in extending credit to marginally risky accounts. Any subsequent collection expenses and bad debt write-offs are more easily recouped through additional sales than if your gross margins are low. it just might help them pay you sooner!

Bad Debt 49

Bad Debt Credit and Collections Deductions Credit Risk 49

Your Virtual Credit Manager

SEPTEMBER 3, 2024

As businesses grow and add customers, there comes a point when collections become a burden. Photo by Towfiqu barbhuiya on Unsplash The first step toward a dedicated collection effort involves prioritization. This is a simple matter of efficiency aimed at collecting the most possible dollars with a minimum of effort.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Days Sales Outstanding DSO Credit and Collections 130

Your Virtual Credit Manager

NOVEMBER 14, 2023

Credit Policy is an inextricable part of a company’s Sales Policy. If you choose to sell on open credit, the terms you offer are in effect part of the price. If you discuss credit terms with a competitor, you are in violation of anti-trust statutes forbidding price fixing. What’s Right for Your Firm?

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Photo by Kenny Eliason on Unsplash Effective collections is the single most important factor for achieving reliable cash inflows. Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. Procrastination only makes a past due situation worse.

Credit and Collections 130

Credit and Collections Past Due Invoices Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 29, 2023

Effective collections are crucial to maintaining a healthy cash flow and the financial stability of your company. If your business is struggling with cash flow or AR balances are growing, it could be a sign that your collections policy requires updating. There are a myriad of issues that can affect collections.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

OCTOBER 15, 2024

As a consequence, commercial accounts receivable (AR) portfolios are at an increasing risk of suffering bad debt losses. The immediate precursor to bad debts is increasing percentages of delinquent receivables, especially in the over 60 and 90 day aging categories. Commensurate with that, the Federal Reserve Bank of St.

Chapter 11 100

Chapter 11 Bad Debt Bankruptcy Accounts Receivable (AR) 100

Your Virtual Credit Manager

JANUARY 16, 2024

If you sell on open credit terms, you need to plan on having to expend time and resources collecting from those customers that don’t pay when due. No matter how much effort you put into evaluating customer credit, some customers will not live up to your expectations. You need to be doing the right things.

Debt Collections 130

Debt Collections Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

FEBRUARY 27, 2024

For a small business owner or executive, navigating credit decisions can be challenging, especially when they clash with the goals of other stakeholders within the company. It's essential, however, for everybody to recognize that credit decisions also have broader implications across various aspects of company operations.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bad Debt Days Sales Outstanding Credit and Collections 130

Your Virtual Credit Manager

JANUARY 2, 2024

Contacting customers to pay past due amounts (collecting) is an essential element of accounts receivable (AR) management. For most firms, late customer payments are a frequent occurrence and collecting them can be a difficult task. Collections also has to be done effectively with minimal alienation of customers.

Bad Debt 130

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

Credit Management Group UK

JANUARY 7, 2024

Have you ever had to write of a bad debt? Have you ever put off taking action on a debt, due to uncertainty? We also include credit risk reporting of your current and prospective customers, as well as monitoring said customers for changes in their credit risk. Do you find it difficult to get paid on time?

Credit Management 91

Credit Management Bad Debt Credit Risk Credit and Collections 91

Your Virtual Credit Manager

APRIL 2, 2024

Commercial credit scores predict the likelihood of a business fulfilling its financial obligations, particularly regarding debt repayment and trade credit. Commercial credit scores are often not as well understood as consumer credit scores such as FICO.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Gaviti

JANUARY 7, 2025

Sending a late payment reminder encourages prompt payment of unpaid invoices, reducing the number of delinquent accounts and minimizes the risk of write-offs and bad debt. Manage customer risk. ACH, debit or credit cards, electronic wallets) and plans (e.g. Increase transparency and avoid disputes.

Past Due Invoices 105

Past Due Invoices Invoice Amount Payment Portals Credit and Collections 105

Gaviti

NOVEMBER 24, 2024

The sooner your business collects on its invoices, the lower your financial risks and the better your financial position. One of the fastest ways to do this is via collections process automation to streamline the A/R process, eliminate manual tasks, and ensure timely follow-up with customers.

Credit and Collections 52

Credit and Collections DSO Average Days Delinquent Collection Effectiveness Index 52

Credit Management Group UK

APRIL 11, 2023

Using the credit management tools available to you effectively can greatly increase your chances of getting paid more quickly. Making small changes to your collection strategy to incorporate all tools at your disposal can make a big impact on your collection performance.

Credit Management 92

Credit Management Credit and Collections Bad Debt 92

Your Virtual Credit Manager

SEPTEMBER 17, 2024

For small business executives, and many mid-sized businesses as well, managing collections effectively can be a significant challenge, particularly when time and resources are limited. To improve your collection efforts, you need to first see what is under the hood. Do you need help assessing your customers’ credit risks?

Credit and Collections 100

Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 100

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. Here are four prime example of issues that impede third party collections: 1. Doing this involves taking a series of proactive steps.

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

Your Virtual Credit Manager

JANUARY 23, 2024

Approving a customer for credit terms is merely the first step in an open credit relationship. Economic circumstances may cause you to tighten your credit policies and customer credit limits. In this case, ongoing Portfolio Monitoring was critical to turning up the customer intelligence that avoided a huge bad debt loss.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

JUNE 25, 2024

Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A rising DSO indicates that your collections are not matching the rate of new sales, and if that goes on for any length of time, your cash flow will not be able to support the volume of your current business operations.

Bad Debt 130

Bad Debt Credit and Collections Days Sales Outstanding DSO 130

Your Virtual Credit Manager

FEBRUARY 7, 2023

Looking around us, the Amazons, Netflixes, and HubSpots of the world were billing and charging clients automatically, while our business’s billing and collections looked pretty much the same as it had been done before computers. As invoices age further past due, the probability of a bad debt loss increases.

AR Automation 130

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

Your Virtual Credit Manager

AUGUST 6, 2024

Extending credit is standard practice if you are selling to other businesses. Most commercial enterprises are simply not willing to continue trading without credit terms, making it difficult for any trade credit grantor to generate enough revenue to survive on cash sales. In reality, granting credit is much more complicated.

Bad Debt 100

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 100

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. That’s why it is standard to ask on a credit applications the year in which the business was formed. Do you need help managing credit and collections?

Bad Debt 100

Bad Debt Credit and Collections Credit Risk Credit Card Companies 100

Your Virtual Credit Manager

OCTOBER 17, 2023

Extending credit is the financial backbone of Business-to-Business (B2B) commerce. Not being paid in full or in part causes a bad debt loss. Not being paid on time reduces profits commensurate with your cost of capital and cost of collections — the longer the time it takes to be paid, the higher those costs.

Bad Debt 130

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

Credit Management Group UK

JULY 23, 2024

Having an effective credit management function is vital to any business in maintaining and improving cash flow, as well as reducing a business’ risk to bad debt. Sales and credit control in particular should work closely together as these are the two-main customer facing roles.

Credit Management 67

Credit Management Invoice Disputes Bad Debt Credit and Collections 67

Credit Management Group UK

FEBRUARY 25, 2024

I ask these businesses each time, if your current collection procedure isn’t working, why are you still using it? You are at risk of late payment and even bad debt if you take on a customer with a poor credit rating, a risk that can be reduced if you credit check them prior to carrying out any work.

Bad Debt 93

Bad Debt Credit and Collections Order to Cash Credit Management 93

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Getting Started . External and Supporting Data .

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Your Virtual Credit Manager

OCTOBER 31, 2023

Accounts receivable (AR) represent the amounts owed your business by your customers for the purchase of goods or services delivered on credit. Because AR constitutes one of largest assets on your books, proactively managing accounts receivable is crucial for the financial health of your business. What do you need help doing?

Bad Debt 130

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

Your Virtual Credit Manager

JUNE 20, 2023

Special Offer: On June 26, 2023, at 1PM EDT, David Schmidt will be leading a live webinar covering “ Strategic Collections: Process Efficiency and Tactics to Drive Superior AR Performance.” In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Credit Management Group UK

APRIL 21, 2024

The best way of avoiding credit control issues in your business is to ensure that you are paid in full before providing any goods or services. The majority of B2B businesses offer credit terms to their customers. Offering credit to customers does have cost implications to a business and you should be mindful of what those costs are.

Bad Debt 89

Bad Debt Credit and Collections Credit Management 89

Gaviti

FEBRUARY 4, 2025

With increased interest rates and inflation, businesses are facing increasing pressure to collect cash faster. In 2025, successful businesses will: Analyze payment trends to refine credit terms and collection strategies. Many traditional KPIs, like DSO, are not always a good indicator of collection success.

Average Days Delinquent 59

Average Days Delinquent Credit and Collections AR Metrics Accounts Receivable (AR) 59

Your Virtual Credit Manager

APRIL 18, 2023

Just as payroll has been cost effectively handled by external processors for over 70 years, so can a variety of credit, collection and AR tasks and processes. Credit Risk Evaluations : If you purchase Credit Risk Insurance, the insurer will serve as your Credit Department. to minimize the chance of bad debt loss.

Bad Debt 130

Bad Debt Credit and Collections Third Party Collections Accounts Receivable (AR) 130

Emagia

DECEMBER 3, 2024

Autonomous Finance Capabilities: Enables intelligent self-driving end-to-end processes for accounts receivable operations including credit management, billing, invoicing, collections, deductions, cash application, cash flow forecasting and treasury management. Key Features and Benefits for CFOs 1.

DSO 52

DSO Credit and Collections Bad Debt Payment Portals 52

Know-It Global

APRIL 26, 2023

As a business owner, it’s essential to understand and manage credit risk to maintain a healthy cash flow and avoid financial losses. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them. Set credit limits based on the customer’s creditworthiness and payment history.

Credit Risk 98

Credit Risk Bad Debt Credit and Collections Default 98