Your Virtual Credit Manager

SEPTEMBER 12, 2023

Processing Delays There are several AR activities that often take longer than they should and therefore cause delays: processing credit applications, approving orders, generating invoices, and posting payments. Poor Credit Management' We’ve already talked about how poor credit decisions can impact sales and collections.

Credit and Collections 130

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

Eastern Credit Management Services

NOVEMBER 13, 2019

You can do this quite effectively by having a detailed credit application, I’m so much of a proponent of this that I wrote a whole blog dedicated to creating one. A detailed credit application does two things, it informs your customer of the terms and conditions of the credit you extend.

Bad Debt 52

Bad Debt Small Businesses Credit Reporting Agencies Credit Application 52

Your Virtual Credit Manager

FEBRUARY 13, 2024

This prediction, although bold, is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening loan standards by banks, and the surge in delinquent debt balances and consumer debt. Obtain Quotes on Credit Insurance. This is a great way to indemnify your company from most bad debt losses.

Bankruptcy 130

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

Gaviti

FEBRUARY 4, 2025

Run a Consistent and Robust Credit Process Credit management is the foundation of effective AR. A standardized and scalable credit process ensures you balance risk with reward. Best practices include: Conducting thorough credit checks and your own internal review before onboarding new customers.

Average Days Delinquent 59

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

Your Virtual Credit Manager

DECEMBER 6, 2022

This software firm did not actively manage its AR. The company ended up writing off millions of dollars in bad debt. In addition, bad debt and concession expenses decreased by several million dollars annually. For this company, and for most companies in B2B markets, managing AR is an important function.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Credit Management Group UK

MARCH 4, 2024

Some may find the thought of managing financial risk daunting, but it should be straight forward. The decision making process for granting a potential customer credit should be made up of a jigsaw of several different types of information, rather than relying on one method only.

Credit Risk 97

Credit Risk Bad Debt Credit and Collections Credit Application 97

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

JANUARY 3, 2023

Email us to learn how the experts at Your Virtual Credit Manager can help you clean up your AR Ledger and increase cash flow by improving your Collection Process. During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half. This included a 100 percent increase in past due collected.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

Credit Management Group UK

JULY 19, 2023

Small businesses need to ensure they have the most effective credit management systems and skills to tackle late payment seriously, to avoid becoming one of those statistics. Credit management should be ‘customer focused’. Manage disputed invoices by setting a time limit to resolve issues.

Credit Management 50

Credit Management Bad Debt Credit and Collections Credit Application 50

Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? Are we offering the right amount of credit to customers based on their creditworthiness? Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect.

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Gaviti

NOVEMBER 24, 2024

Establish proactive credit management policies. Evaluate the credit risk posed by each customer according to their payment histories and credit history and periodically review creditworthiness. Customers can also use it to view invoices, payment history, and credit applications and disputes.

Credit and Collections 52

Credit and Collections DSO Average Days Delinquent Collection Effectiveness Index 52

Your Virtual Credit Manager

JANUARY 16, 2024

The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. Who to contact should be information requested on your credit application. Effective debt collection requires a delicate balance between credit analysis and strategic collection efforts.

Debt Collections 130

Debt Collections Collector Credit and Collections Bad Debt 130

TreviPay

MARCH 20, 2023

Credit management is integral to accounts receivable management. Good credit management supports consistent cash flow, smooth payment collections, customer satisfaction, and much else. It covers multiple different smaller components involved in issuing, monitoring, and collecting credit.

B2B Credit 52

B2B Credit Credit Management Credit and Collections Days Sales Outstanding 52

Your Virtual Credit Manager

FEBRUARY 6, 2024

As a small business owner or executive, managing accounts receivable (AR) and navigating through various credit decisions is an integral part of the job. After all, credit and collections is essential to the performance of your order-to-cash (O2C) process and cash conversion cycle. More About Purchasing Credit Reports 5.

Credit and Collections 130

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

Your Virtual Credit Manager

MARCH 28, 2023

This is because the higher your profit margins the fewer sales it will take to compensate for any bad debt losses. As your production pipeline approaches full capacity, the fussier you can be about who you grant open credit terms. The question you need to answer is: should credit policy be liberal or conservative?

Credit Scoring 130

Credit Scoring Credit Application Bad Debt Credit Risk 130

Your Virtual Credit Manager

JANUARY 9, 2024

Then last week we looked at credit hold best practices. From a credit management perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accounts receivable (AR) management tasks that follow have a reactive component. There is nothing wrong with that.

Credit and Collections 130

Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

SEPTEMBER 17, 2024

Photo by Willian Cittadin on Unsplash ) Neglecting collections can also lead to longer payment cycles, strained client relationships, and an increase in bad debt. To continue reading and learn nine areas of focus for supercharging your collection process, you must be a paid subscriber to Your Virtual Credit Manager.

Credit and Collections 100

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

Your Virtual Credit Manager

AUGUST 8, 2023

The worst case scenario is a bad debt loss. For more on credit agreements and the new customer credit application process, check out this post. Readers of Your Virtual Credit Manager can access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner accredit.

Credit and Collections 100

Credit and Collections Third Party Collections Bad Debt Credit Management 100

Gaviti

OCTOBER 30, 2023

When traditional credit management and cash application is automated, it reduces the need for staff and makes the credit management and customer payment process more efficient. Your financial staff has rates of high turnover. You want to simplify a complex process that involves multiple stakeholders.

Days Sales Outstanding 75

Days Sales Outstanding Invoice Collections Credit and Collections DSO 75

Gaviti

JULY 11, 2024

Simplify workflows and improve A/R processes such as invoice distribution, tracking payments, credit management, bank reconciliation and dispute management. Credit monitoring and management. For example, data from your cash application component can be used for more accurate credit management.

DSO 52

DSO AR Automation Credit and Collections Bad Debt 52

Emagia

FEBRUARY 2, 2024

OTC, the main cash flow driver, has many subsets within it, and credit management is more important than it looks on the surface. This calls for a robust credit management system in place. What is B2B Credit Automation For The Digital Era? Most ERPs can automate only a small portion of credit control operations.

B2B Credit 52

B2B Credit Credit and Collections Credit Application Credit Management 52

Gaviti

APRIL 18, 2024

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Why Automation Is Key to an Effective Accounts Receivable Aging Report Automation is well-established as a functional tool for efficient accounts receivable management. Credit management and monitoring.

AR Aging 52

AR Aging Credit and Collections Allowance for Doubtful Accounts Bad Debt 52

Gaviti

NOVEMBER 16, 2023

Delinquent accounts increase the amount of bad debt your company accumulates and its perceived risk for investors. Manage customer credit risk Maintain a clear credit history for each customer so that you can make informed credit decisions and minimize risk. Company valuation. Reduced liquidity.

Credit and Collections 52

Credit and Collections Bad Debt Invoice to Cash Debt Collections 52

Emagia

JUNE 12, 2023

This enables effective credit risk management by limiting loan options to individuals with a specified income level. What is Credit Risk Management Best Practices? Having comprehensive and accurate customer information enhances the effectiveness of credit risk analysis. When designing your credit risk analysis.

Credit Risk 52

Credit Risk Credit and Collections Bad Debt Default 52

TreviPay

MARCH 17, 2023

Unlike credit or corporate cards, the line of credit offered is for exclusive use at Staples so helps build loyalty and encourage repeat business. And because the trade credit is underwritten by TreviPay, Staples never needs to chase late payments or bad debts.

Bad Debt 52

Bad Debt Credit Application Default Credit Management 52

TreviPay

MARCH 17, 2023

Unlike credit or corporate cards, the line of credit offered is for exclusive use at this retailer so helps build loyalty and encourage repeat business. And because the trade credit is underwritten by TreviPay, the retailer never needs to chase late payments or bad debts.

B2B Credit 52

B2B Credit Bad Debt Credit Application Default 52

TreviPay

MARCH 17, 2023

Unlike credit or corporate cards, the line of credit offered is for exclusive use at this retailer so helps build loyalty and encourage repeat business. And because the trade credit is underwritten by TreviPay, the retailer never needs to chase late payments or bad debts.

B2B Credit 52

B2B Credit Bad Debt Credit Application Default 52

Your Virtual Credit Manager

NOVEMBER 29, 2022

Your credit application should include all this information. A recent credit bureau report is also helpful in this regard. Your Virtual Credit Manager now offers reasonably priced business credit reports through Accredit, a leading reseller of credit bureau reports.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Default Collector 130

Bectran

MARCH 5, 2025

The accumulation of bad debt is a massive hindrance for businesses that rely on consistent cash flow in their accounts receivable. Piling bad debt reduces your companys expected revenue and limits your ability to reinvest liquidity into business operations. The Bad Debt Spiral.

Bad Debt 52

Bad Debt High-Risk Accounts Credit and Collections Default 52

Gaviti

MARCH 11, 2025

Without proper credit assessments and checks, businesses expose themselves to significant financial risks, including cash flow disruptions and potential bad debts. In today’s dynamic financial landscape, effective B2B credit management is paramount for businesses aiming to maintain financial stability and foster growth.

Credit Risk 52

Credit Risk Credit Scoring Credit and Collections Credit Application 52

Your Virtual Credit Manager

MARCH 26, 2024

About 25 years ago, a credit manager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers. About 15 months later, the parent company defaulted on its debt and the chain store subsidiary was indeed pulled into the ensuing bankruptcy proceedings.

Bankruptcy 130

Bankruptcy Bad Debt Credit Scoring Chapter 11 130