Bad Debt Credit Risk Default 
Credit Research Foundation
SEPTEMBER 27, 2024
Since then, we’ve weathered the COVID-19 pandemic, which many experts predicted would lead to a wave of defaults and business closures. It’s been noted in a survey that nearly 40% of companies reported reducing their credit department staff during the pandemic. During that period, the U.S. economy shed over 8.7
Know-It Global
APRIL 26, 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?
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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.
Your Virtual Credit Manager
OCTOBER 17, 2023
(Photo by Jandira Sonnendeck on Unsplash ) In most cases, you therefore have to extend credit to your B2B customers, which entails the following risks: Not being paid anything Being paid an amount less than the full invoice value Not being paid on time, whether in full or in part These outcomes are known as credit risks.
Your Virtual Credit Manager
JANUARY 23, 2024
Furthermore, new businesses and small businesses tend to have high failure rates, and there is good reason to believe a wave of defaults is coming. If the European parent company defaulted, the North American subsidiary would be pulled into bankruptcy even though its operations were profitable.
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.
Your Virtual Credit Manager
APRIL 2, 2024
Still others may be predictive of default, financial distress or financial health, and creditworthiness. 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.
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