Bad Debt Credit Risk Transactions 
Your Virtual Credit Manager
FEBRUARY 25, 2025
This creates cash flow shortages, an increased risk of bad debt, and a significant work requirement to mitigate the impact of late payments. Those who are financially weak (high credit risk), in addition to essentially turning down the faucet for your cash inflow, present a higher risk of never paying for everything they owe.
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?
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
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!
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. Invoices need to be generated and transmitted the same day as the transaction or at latest the morning following.
Your Virtual Credit Manager
AUGUST 6, 2024
And when the risk does not warrant open credit terms ; How can we structure the transaction to ensure a profitable sale? Too often, extending credit is viewed as a yes or no function. In reality, granting credit is much more complicated. The goal is not preventing bad debt losses but rather maximizing profits.
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!
Your Virtual Credit Manager
JANUARY 3, 2023
Clear from your AR ledger as many of the clutter transactions as possible. Match as many unapplied payments and unapplied credit memos to open invoices, deductions, and debit memos as possible. Refresh the credit risk ratings and credit limits of customers that have not been updated within the past two years.
Expert insights. Personalized for you.
130 
Let's personalize your content