Your Virtual Credit Manager

APRIL 2, 2024

Despite these shortcomings, commercial credit scores can be valuable tools for a company offering trade credit to other businesses. Scores provide valuable insights into the creditworthiness of business customers and help companies make informed decisions regarding trade credit extension, terms, and risk management strategies.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 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

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. Collections also has to be done effectively with minimal alienation of customers.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Management 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. Update financial information: at least annually.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 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

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

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

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

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

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. Because most of your biggest customers will be larger firms instead of smaller, it is typically the larger firms that will require higher credit limits.

Chapter 11 130

Chapter 11 Accounts Receivable (AR) Bankruptcy 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

Know-It Global

JUNE 20, 2023

Credit control is a vital aspect of financial management for businesses. It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. Setting Up Credit Control Processes 1.1

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

Your Virtual Credit Manager

FEBRUARY 6, 2024

Continue reading to learn about seven AR pitfalls that you should avoid, including: Relying on Outdated Information Creating an Imbalance Between Risks and Rewards Failing to Prioritize Effectively Relying on Band Aids Instead of Addressing Root Causes Seven AR Pitfalls 1.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) 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

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

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

DECEMBER 6, 2022

The company ended up writing off millions of dollars in bad debt. In addition, bad debt and concession expenses decreased by several million dollars annually. As a reader of Your Virtual Credit Manager, you can access reasonably priced business credit reports from multiple bureaus through Accredit , a leading reseller.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 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. These bad debt losses can put your own business at risk of failure. 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

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

Lockstep

JUNE 15, 2022

Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . The Credit Research Foundation estimates that only 20% of credit departments have formalized policies. The credit plan will help your organization reduce bad debt and write-offs.

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Gaviti

NOVEMBER 21, 2024

Missing details, such as purchase order numbers or bank information, can lead to disputes or delays in processing payments. Tip: Use A/R solutions with template features to ensure all essential information is included. Credit management and monitoring.

Automated Cash Application 98

Automated Cash Application Credit and Collections Cash Applicator Deductions 98

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 89

Credit Scoring Bad Debt Credit Risk Credit Management 89

Lockstep

JULY 27, 2022

In today’s economy, it is essential to be able to allocate credit where it is needed most. This means that businesses need to have accurate and up-to-date information about their customers’ creditworthiness. However, there are also some risks associated with offering customer credit, including: .

Credit Scoring 89

Credit Scoring Accounts Receivable (AR) Bad Debt AR Automation 89

Your Virtual Credit Manager

SEPTEMBER 10, 2024

To continue reading and learn how to recognize O2C shortcomings along with seven critical factors for AR success you must be a paid subscriber to Your Virtual Credit Manager. Do you need help assessing your customers’ credit risks? Is all necessary information easily accessible, or is it difficult to locate?

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

MARCH 28, 2023

Volumes have been written about the criteria you should use to make a credit decision. The rigor with which this information is often presented belies the fact most business credit decisions are not that difficult. There is a challenge, however, with the 20 to 30 percent of credit decisions that fall in between.

Credit Scoring 130

Credit Scoring Credit Application Bad Debt Credit Risk 130

Gaviti

JULY 24, 2024

Here are some examples: Invoice numbers Purchase order period Payment deadline period Customer information Product(s) or service(s) ordered 5. Verify Information No matter how legitimate an invoice looks at a first glance, never skip the verification process. However, you still need identifying characteristics to make them searchable.

Credit and Collections 98

Credit and Collections Bad Debt DSO Payment Portals 98

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

Know-It Global

JULY 26, 2023

Conduct thorough business credit checks Perform comprehensive business credit checks on new customers to evaluate their creditworthiness. Review their payment history, financial stability, and credit references to make informed decisions about extending credit. Best of all, it’s free to get started!

Electronic Funds Transfer 98

Electronic Funds Transfer Credit and Collections Debt Collections Bad Debt 98

Your Virtual Credit Manager

SEPTEMBER 19, 2023

Now that you understand that your customer has become a liability, it’s time to review their credit worthiness again so you can make informed choices. Order a new credit report, request updated financial statements, and re-check the references provided when they first applied for credit.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 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

APRIL 4, 2023

Supporting profitable sales through the extension of credit Collecting as much of the AR generated as possible by or near the due date to ensure a substantial cash inflow Mitigating the risk of bad debt losses These tasks are best accomplished in a tidy environment. Update your customer master file.

Past Due Invoices 100

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 100

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

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

Credit Management Group UK

JULY 19, 2023

. • Use Late Payment Legislation as a negotiating tool to get paid more quickly Credit control should no longer be the ‘anti sales’ department by the rest of the company, they should work with all areas of the company to provide good customer service whilst improving cash flow and reducing bad debt exposure.

Credit Management 49

Credit Management Bad Debt Credit and Collections Credit Application 49

MNS Credit Management Group

AUGUST 7, 2023

According to the US Small Business Administration, your company will require a credit score of around 75 to qualify for a small business loan. Credit scores can also affect a company’s ability to sign a lease or purchase products on credit from suppliers. “ Business Credit Scores Are Determined By A Number Of Things.

Credit Scoring 52

Credit Scoring Credit Risk Credit and Collections Bad Debt 52

Gaviti

APRIL 18, 2024

It usually includes information such as the customer name, invoice details, amount due, outstanding balances and the aging categories (e.g. AR aging reports provide concrete information that can be used to take action. Send online credit applications to both existing customers and potential prospects. Disputes and deductions.

AR Aging 52

AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52

Emagia

MAY 8, 2023

They give other firms knowledge about a company’s payment history and trade credit utilization , which can assist them in assessing the risk associated with extending credit or starting a business partnership. It is an essential tool for organizations to assess credit risk and decide whether to issue credit.

Credit Scoring 52

Credit Scoring Bad Debt Days Sales Outstanding Credit Reporting Agencies 52