Bad Debt Credit Management Credit Sales 
Your Virtual Credit Manager
NOVEMBER 14, 2023
(Photo by Aziz Acharki on Unsplash ) Because Credit Policy is a part of Sales Policy, how you manage credit impacts company profits. How then does your Credit Policy affect your overall profitability? It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer.
Your Virtual Credit Manager
FEBRUARY 20, 2024
The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. Doesn't Account for Bad Debts : DSO doesn't differentiate between collectible and noncollectable receivables. In fact, writing off bad debts will lower your DSO.
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Your Virtual Credit Manager
JANUARY 23, 2024
The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times. Consequently, the credit manager was able to purchase credit insurance on his customer, and was therefore able to continue approving credit sales, within limits, to the chain store customer.
Your Virtual Credit Manager
AUGUST 29, 2023
Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage. Is there a streamlined process for resolving disputes?
Your Virtual Credit Manager
AUGUST 6, 2024
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. Photo by Headway on Unsplash ) While credit sales allow you to increase revenue, they also come with a downside.
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. Even worse, the company’s stock price was depressed because of the company’s high Days Sales Outstanding (DSO) , a common measure of AR management effectiveness. Cash is king.
Your Virtual Credit Manager
MAY 14, 2024
To continue reading and learn the daily, weekly and monthly AR metrics you should be tracking, you’ll need a paid subscriber to Your Virtual Credit Manager …our standard subscription is only $5 per month or $49 annually. Learn More About Credit Reports Please share this newsletter with your small business customers.
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