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.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 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

AUGUST 29, 2023

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

AUGUST 6, 2024

Most commercial enterprises are simply not willing to continue trading without credit terms, making it difficult for any trade credit grantor to generate enough revenue to survive on cash sales. Photo by Headway on Unsplash ) While credit sales allow you to increase revenue, they also come with a downside.

Bad Debt 100

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 100

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

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. 3: Debt Recovery and Minimising Bad Debt 3.1

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

Chaser

MARCH 23, 2023

This is because many customers may pay on credit or require payment terms. For small businesses, significant delays in cash inflows, such as from a large sale, can have a significant impact on a business's ability to meet its financial obligations and cover expenses, such as paying employees or vendors.

Bad Debt 87

Bad Debt Credit Sales Default Small Businesses 87