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. Sighting red flags early on allows you to mitigate these risks and reduce your potential losses.

Chapter 11 130

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

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. The policy cost is acceptable.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Emagia

JUNE 12, 2023

Credit risk management plays a critical role in the financial health and stability of businesses across industries. It involves identifying, assessing, and mitigating the potential risks associated with extending credit to customers or counterparties. What is Credit Risk Management?

Credit Risk 52

Credit Risk Credit and Collections Bad Debt Default 52

Your Virtual Credit Manager

AUGUST 6, 2024

In reality, granting credit is much more complicated. The goal is not preventing bad debt losses but rather maximizing profits. If you should try to eliminate all bad debt losses, chances are you will forego sales to customers that will eventually pay. Share How Much Credit is Prudent for Each Customer?

Bad Debt 100

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

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. This initial uptick is only expected to get worse.

Chapter 11 130

Chapter 11 Bad Debt Accounts Receivable (AR) Chapter 7 130

Your Virtual Credit Manager

FEBRUARY 27, 2024

Here’s a rundown of the issues that arise from misalignment and a lack of risk awareness: Delays Processing Orders : If credit approvals are slow or inconsistent, sales orders may be held up, resulting in frustrated customers, sales reps, and potentially lost revenue. it just might help them pay you sooner!

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

OCTOBER 31, 2023

Simply put, if customers have weak financials or a history of late payments or defaults, there is an elevated risk of bad debt. The new customers you take on should exhibit an acceptable level of risk, but this can change over time. Please feel free to share this newsletter with your small business customers.

Bad Debt 130

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

Your Virtual Credit Manager

JANUARY 2, 2024

If collections are not done properly and in an adequate frequency , your AR will age, cash flow will decrease, and the risk of bad debt loss will increase. Another benefit is that your overall AR portfolio credit risk is reduced. The cash flow and bad debt benefits will usually outweigh the potential lost revenue.

Bad Debt 130

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

Your Virtual Credit Manager

SEPTEMBER 3, 2024

In response, two actions were taken: The firm implemented and enforced a new Collection Prioritization Methodology that focused the majority of effort on the 11% of customers who controlled 71% of the past due/high risk AR The company also improved the quality and promptness of its collection contacts The results were impressive.

Accounts Receivable (AR) 130

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

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. Share How Much Credit Risk Can You Bear?

Bad Debt 100

Bad Debt Credit and Collections Credit Risk Credit Card Companies 100

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. It will also help your prioritize your credit reviews as recommended in item #1.

Bankruptcy 130

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

Your Virtual Credit Manager

APRIL 2, 2024

Companies tend to offer more favorable terms to customers with higher credit scores, such as higher credit limits or longer payment terms while imposing stricter terms on higher-risk customers with lower scores. Monitoring Credit Risk : Companies may use credit scores to monitor the credit risk of their existing customers.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 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.

Credit Management 92

Credit Management Bad Debt Credit and Collections Credit Risk 92

Your Virtual Credit Manager

APRIL 18, 2023

Credit Risk Evaluations : If you purchase Credit Risk Insurance, the insurer will serve as your Credit Department. They will perform credit evaluations on all your customers, and they will exclude customers deemed too risky from their coverage. to minimize the chance of bad debt loss.

Bad Debt 130

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

Your Virtual Credit Manager

JANUARY 23, 2024

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. We are currently offering 33 percent off our standard small business consulting rates.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

FEBRUARY 28, 2023

It will reduce your Accounts Receivable (AR) balance and the associated elevated credit risk inherent in a larger AR. Getting customers to pay now rather than later reduces the risk of a default down the road. It will contribute to you realizing accelerated cash inflows, which will be critically important during a recession.

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Know-It Global

MAY 8, 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. The good news is you can avoid these issues. Did you know?

Bad Debt 52

Bad Debt Credit and Collections Credit Risk Default 52

Your Virtual Credit Manager

JUNE 20, 2023

As economic headwinds build, business leaders tend to batten down the hatches by cutting cost and minimizing risk. In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. Here’s more insights on customer profitability.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

AUGUST 22, 2023

The bad news is that nearly 21 percent of last year’s startups will fail this year leaving you with a bad debt on your books if you sold to them on credit terms. Actions that can be started immediately are: Establish Appropriate Customer Credit Limits and Risk Classifications.

Credit and Collections 130

Credit and Collections Bad Debt Credit Risk Small Businesses 130

Your Virtual Credit Manager

DECEMBER 20, 2022

Share Controlling Credit Risk Increasing sales to high margin customers disproportionately increases total gross profit. Readers of Your Virtual Credit Manager can now access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit. Here’s how?

Deductions 130

Deductions Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

FEBRUARY 20, 2024

Financial Health Priorities: Organizations may have specific financial health priorities such as improving liquidity, managing working capital, or reducing credit risk. Doesn't Account for Bad Debts : DSO doesn't differentiate between collectible and noncollectable receivables.

DSO 130

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

Your Virtual Credit Manager

OCTOBER 8, 2024

Your Virtual Credit Manager is a reader-supported publication. Do you need help assessing your customers’ credit risks? The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights.

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

Your Virtual Credit Manager

OCTOBER 10, 2023

Faced with a customer with less than stellar credit, the job of the person charged with approving credit is to find terms that allow the sale to go through while also ensuring payment will be secured. There are numerous risk management techniques that can be used to mitigate credit risk, but that’s fodder for another post.

Bad Debt 130

Bad Debt Credit Risk Credit Management 130

Your Virtual Credit Manager

MARCH 14, 2023

Focus on the over 60 day past due AR balances to get the most bang for your collection buck This approach foregoes a huge cash flow opportunity (collecting AR that is under 60 days past due), and is not very effective at preventing bad debt (too little, too late). For more on collection efficiency, check out this article.

Collector 189

Collector Past Due Invoices Credit and Collections Bad Debt 189

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. A former client had the necessary credit and collection expertise for their industry. Do you need help assessing your customers’ credit risks?

Credit and Collections 100

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

Know-It Global

MAY 8, 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. The good news is you can avoid these issues. Did you know?

Bad Debt 52

Bad Debt Credit and Collections Credit Risk Default 52

Your Virtual Credit Manager

OCTOBER 2, 2024

Who absorbs any potential bad debt loss — does the lender have recourse to return the AR if they cannot collect it versus a non-recourse arrangement? Who performs the Credit & Collection activities — you or the finance company? Your Virtual Credit Manager is a reader-supported publication.

Past Due Invoices 130

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

Your Virtual Credit Manager

JANUARY 10, 2023

Photo by Patrick Hendry on Unsplash Although defaults resulting in significant bad debt losses are a rare event for trade creditors, much of the focus of AR Management is on credit risk. Banks make money by lending so they pay close attention to the credit risk of the borrower.

Credit and Collections 130

Credit and Collections Bad Debt Invoice Disputes Credit Management 130

Your Virtual Credit Manager

FEBRUARY 6, 2024

Consider creating a risk pool for prospective accounts that are elevated credit risks. By the same token, many organizations focus on sales without considering credit risk. That’s a sure path to increasing past due balances and ultimately bad debt losses.

Credit and Collections 130

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

Credit Management Group UK

SEPTEMBER 26, 2023

Every company should credit check their potential customers prior to carrying out work with them; or at least credit check ones with higher value orders. There are specific things that you should look out for on a credit risk report that should give you an effective overview of your customer’s credit risk.

Credit Scoring 91

Credit Scoring Bad Debt Credit Risk Credit Management 91

Know-It Global

JULY 5, 2023

One effective strategy for achieving this goal is to implement a robust credit control system. By effectively managing your business’s credit and collection processes, you can optimise cashflow, minimise bad debt, and enhance overall financial health.

Bad Debt 52

Bad Debt Credit and Collections Debt Collections Credit Risk 52

Your Virtual Credit Manager

JANUARY 3, 2023

Do not match unapplied credits with open deductions and debits unless there is documentation to relate them or you will be in violation of escheatment laws. Refresh the credit risk ratings and credit limits of customers that have not been updated within the past two years. Update your customer master file.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

Credit Tools

JUNE 22, 2023

Late payments or deadlines monitor credit and reduce the risk of bad debts. Reminding customers of their financial obligations promotes prompt payment, cash flow and reduces credit risk.

Bad Debt 52

Bad Debt Credit Risk 52

Credit Tools

JUNE 10, 2023

Late payments or deadlines monitor credit and reduce the risk of bad debts. Reminding customers of their financial obligations promotes prompt payment, cash flow and reduces credit risk.

Bad Debt 52

Bad Debt Credit Risk 52

Gaviti

JULY 24, 2024

Ensure you do business with creditworthy customers by gaining visibility into past credit history, predictive behavior analytics, and available credit reports. Stay ahead of credit risk by setting credit limits and getting credit risk alerts in real time to minimize impact on your cash flow and the likelihood of bad debt.

Credit and Collections 98

Credit and Collections Bad Debt Payment Portals DSO 98

Lockstep

JUNE 15, 2022

As such, the primary goal of a credit plan is to clearly define these elements so that employees adopt documented steps and procedures designed to improve all related business processes. . Your credit plan provides a documented roadmap aligning corporate goals with business processes. Getting Started . External and Supporting Data

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Know-It Global

APRIL 19, 2023

Supply chains threatened by soaring insolvencies Recent data has revealed the average bad debt for UK SMEs is £16,641, a spike of 61% in a year! Bad debts If the insolvent company owes you money, you may not be able to recover the debt, or you may only receive a fraction of what you are owed.

Bad Debt 98

Bad Debt Credit and Collections Credit Risk Credit Management 98