Your Virtual Credit Manager

JANUARY 7, 2025

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. Improve Credit Management Sometimes the cause of cash flow problems is a liberal credit policy.

Days Sales Outstanding 130

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

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

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.

Bad Debt 130

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

Your Virtual Credit Manager

OCTOBER 31, 2023

Economic downturns can impact a customer's ability to pay, leading to delayed or defaulted payments. Simply put, if customers have weak financials or a history of late payments or defaults, there is an elevated risk of bad debt. There are a lot of reasons business fail.

Bad Debt 130

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

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.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

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.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

JUNE 13, 2023

Photo by Jamie Street on Unsplash There are two types of credit risk that arise from selling on open credit terms: Customers paying beyond terms (past due) reduce your cash flow. Far more damaging is a customer that defaults (never pays). Far more damaging is a customer that defaults (never pays).

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

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. Most distressed companies continue paying, until they can’t. it just might help them pay you sooner!

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

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 18, 2023

. “First party” means routine collection contact for slight to medium delinquency account verses their usual highly escalated, urgent (third party) collection of very aged AR in danger of default. Credit Risk Evaluations : If you purchase Credit Risk Insurance, the insurer will serve as your Credit Department.

Bad Debt 130

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

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

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 Default 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?

Credit Risk 52

Credit Risk Bad Debt Credit and Collections Default 52

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

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 11 100

Chapter 11 Bad Debt Bankruptcy Accounts Receivable (AR) 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?

Credit Risk 52

Credit Risk Bad Debt Credit and Collections Default 52

Know-It Global

JUNE 20, 2023

It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. This guide provides a comprehensive overview of credit control practices and strategies that your business can implement to mitigate credit risk, reduce debtor days and boost cashflow!

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

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

SEPTEMBER 19, 2023

From this conversation, you will learn how perilous the bad debt risk is with this customer, and how urgent your reaction must be. Raise Their Prices: When you have a high credit risk customer, you should be charging them the highest price possible. The bank will pay you if your customer defaults.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

Your Virtual Credit Manager

DECEMBER 6, 2022

Without effective AR management, your cash flow is subject to entropy as the AR ages, as well as to the shocks caused by customer defaults. The solution is the implementation of credit and collection best practices geared to ensure customer profitability and sufficient cash flow. it just might help them pay you sooner!

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Pricing Problems: A supplier of medical devices implemented a new ERP system, but flaws in the pricing application caused it to frequently default to list price (nearly every accounts had exceptions), thereby generating hundreds of incorrect invoices. Do you need help assessing your customers’ credit risks?

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

MAY 16, 2023

By avoiding the following common traps, or myths if you will, businesses can minimize the risk of non-payment or default and make better informed decisions about extending credit to other businesses that will boost sales and profits. Credit evaluations prevent more bad debts than collection efforts.

Bad Debt 100

Bad Debt Credit and Collections Default Small Businesses 100

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

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? Do you need help assessing your customers’ credit risks?

Past Due Invoices 130

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

Your Virtual Credit Manager

OCTOBER 8, 2024

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. Doing this involves taking a series of proactive steps.

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 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

Know-It Global

JULY 26, 2023

Check-it business credit reports are powered by Creditsafe! You’ll clearly see: Credit rating Credit score Credit limit Company financials Track record of recent payments and any defaults CCJs Exceptional Events Plus, you’ll also have access to Unsecured Creditor Claims data, information not included in standard business credit reports.

Electronic Funds Transfer 98

Electronic Funds Transfer Credit and Collections Debt Collections Bad Debt 98

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 40

Bad Debt Credit and Collections Credit Risk Default 40

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. A good business credit report will give you: Credit rating.

Bad Debt 52

Bad Debt Credit and Collections Debt Collections Credit Risk 52

MNS Credit Management Group

AUGUST 7, 2023

However, there is always the possibility of loan default. Lenders are picky about whose businesses they give credit to. A company that does not have a sufficient corporate credit score may struggle to obtain crucial loans. What is a company credit score? Business Credit Scores Are Determined By A Number Of Things.

Credit Scoring 52

Credit Scoring Credit Risk Credit and Collections Bad Debt 52

TreviPay

SEPTEMBER 18, 2024

Trade credit insurance has become a vital tool for businesses looking to protect themselves from the risk of non-payment by customers. This type of insurance acts as a safety net, covering unpaid invoices when clients default or face financial difficulties. How Does Trade Credit Insurance Work?

Bad Debt 52

Bad Debt Default Credit and Collections Export Credit 52

Know-It Global

JUNE 14, 2023

By identifying high-risk customers upfront, you’ll be able to make informed decisions about extending credit limits and payment terms, mitigating credit risk! Establishing Clear Credit Policies The next part of shielding your business from credit risk is establishing clear and well-defined credit policies.

Credit and Collections 52

Credit and Collections Bad Debt Credit Risk Default 52

Gaviti

FEBRUARY 6, 2023

Credit check and risk analyses, which offer a concrete way to determine which clients are most at risk of defaulting on payment terms. Utilizing credit scoring: Teams can use credit scoring models to evaluate the creditworthiness of customers and identify those who are most likely to default on their payments.

AR Automation 52

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

Serrala

MARCH 14, 2024

Read more Automate your credit risk management lifecycle value with AI-enabled processes to help protect your bottom line and improve trust. Read more Easily manage customer credit risk Automate your credit risk management lifecycle value with AI-enabled processes to help protect your bottom line and improve trust.

Credit and Collections 52

Credit and Collections Bad Debt Default Credit Risk 52

Serrala

MARCH 14, 2024

Read more Automate your credit risk management lifecycle value with AI-enabled processes to help protect your bottom line and improve trust. Read more Easily manage customer credit risk Automate your credit risk management lifecycle value with AI-enabled processes to help protect your bottom line and improve trust.

Credit and Collections 52

Credit and Collections Bad Debt Default Credit Risk 52