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Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

Learn More About YVCM Consulting Case Study: Portfolio Monitoring Pays Off Big-Time 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. request for substantially more credit, change in leadership, merger or acquisitions, etc.).

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Top Accounts Receivable Strategies for 2025

Gaviti

Ensure you have alerts set up so that you are aware when a customer is near their credit limit or to know if a customers credit score has changed. Consistency in credit processes reduces bad debt and fosters healthier customer relationships.

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Demystifying Customer Credit-Worthiness

Your Virtual Credit Manager

Using objective criteria, it is relatively easy to determine which companies are worthy of open credit terms and which are not. There is a challenge, however, with the 20 to 30 percent of credit decisions that fall in between. The question you need to answer is: should credit policy be liberal or conservative?

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Is Your AR Generating All the Cash Flow It Should?

Your Virtual Credit Manager

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. When unobserved risks build up in your AR, the impact will be slower payments and defaults leading to bad debts.

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How to Incorporate Credit Risk Management in Business

Credit Management Group UK

Having credit risk processes in place from the outset is ideal, but credit risk management procedures can be implemented at any stage to reduce your exposure to risk of bad debt write off, improve cash flow and protect your profit Below are a few methods to use for managing credit risk.

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What is Accounts Receivable Process Cycle? A Comprehensive Guide

Emagia

Financial Stability : Reducing outstanding receivables minimizes bad debts and improves financial health. Customer Credit Evaluation Before extending credit, businesses assess the creditworthiness of customers through financial statements, credit scores, and payment history.

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Resolve to Be More Proactive in 2024

Your Virtual Credit Manager

Using credit scores, how is risk distributed among each segment? Are the assigned credit limits appropriate for each segment? In contrast, profit driven enterprises often miss opportunities because they are too restrictive out of a fear of bad debt losses.