Bad Debt Credit Risk Order to Cash 
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 7, 2025
Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Photo by Jonathan Wheeler on Unsplash ) The Consequences of Poor AR Performance First and foremost, poor AR performance impacts your cash flow, which causes financial strain and operational challenges.
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Your Virtual Credit Manager
MAY 23, 2023
Incidentally, the higher your gross margin, the more latitude you have in extending credit to marginally risky accounts. Any subsequent collection expenses and bad debt write-offs are more easily recouped through additional sales than if your gross margins are low. Do you need help with your credit policies and procedures?
Your Virtual Credit Manager
MARCH 14, 2023
A large percentage of past due invoices are caused by up-stream problems in the order-to-cash process. You also need to be requesting payment from any customer that has placed a new order and is past due beyond a small grace period. For more on collection efficiency, check out this article.
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.
Emagia
DECEMBER 3, 2024
Emagia is a leading provider of Autonomous Finance Solutions, designed to revolutionize and modernize the way enterprise finance teams operate, particularly in the Order-to-Cash (O2C) cycle. Enables proactive decision-making with AI-driven cash flow forecasting and actionable insights.
Your Virtual Credit Manager
FEBRUARY 27, 2024
It's essential, however, for everybody to recognize that credit decisions also have broader implications across various aspects of company operations. In order for that to happen, everybody needs to be aligned in regard to sales and credit in general and the objectives of the order-to-cash process (O2C) in particular.
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