Bad Debt Credit Management Default 
Your Virtual Credit Manager
JANUARY 14, 2025
The Customer Delinquency Challenge Successful accounts receivable (AR) management involves minimizing past due balances to ensure steady cash in-flows and limit bad debt losses. In contrast, customer bankruptcies or other defaults typically cause the loss of most, if not all, the AR owed.
Your Virtual Credit Manager
MARCH 4, 2025
This company was fortunate to avoid significant bad debt loss until Ames Department Stores, Kmart, and Fleming Foods (a distributor) all filed bankruptcy within the same year. Bad debt losses were understandably huge. Your Virtual Credit Manager is a reader-supported publication.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Your Virtual Credit Manager
FEBRUARY 25, 2025
This creates cash flow shortages, an increased risk of bad debt, and a significant work requirement to mitigate the impact of late payments. As an alternative to credit cards, you might also work with a lender who will provide invoice financing to your low-volume accounts. That requires a balancing act.
Your Virtual Credit Manager
FEBRUARY 4, 2025
When sales and production goals are set, and then the budget formalized, scant consideration is given to the impact on credit policy. In most companies, sales are given a strong priority over the risk of slow payments and bad debts regardless of gross margins and the resources the credit and collection function can provide to mitigate risk.
Your Virtual Credit Manager
JANUARY 28, 2025
Meanwhile, customers who previously were approved during your initial credit evaluation may become past due, max out their credit limit, or, worse yet, be in a deteriorating financial situation, all of which become even more likely when the economy is volatile—the result: cash flow problems and more exposure to bad debt losses.
Your Virtual Credit Manager
NOVEMBER 12, 2024
If you are not on the lookout for customer red flags, especially those raised by public firms and other large enterprises, you will be at increased risk for incurring bad debt losses. Your Virtual Credit Manager is a reader-supported publication. Register Do you need help improving cash flow?
Your Virtual Credit Manager
JANUARY 7, 2025
Your Virtual Credit Manager is a reader-supported publication. Besides driving process improvement, the experts at Your Virtual Credit Manager can apply default risk probabilities & other financial benchmarks to your AR portfolio to reveal actionable credit & collection insights.
Expert insights. Personalized for you.
130 
Let's personalize your content