Bad Debt Days Sales Outstanding Default 
Your Virtual Credit Manager
JANUARY 7, 2025
The primary way most companies measure AR performance involves looking at the Days Sales Outstanding (DSO) metric. Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. Your Virtual Credit Manager is a reader-supported publication.
Your Virtual Credit Manager
FEBRUARY 25, 2025
Chronic Late Payers There is also likely a substantial segment of your customers (often 20 percent or more) who will regularly pay significantly beyond the terms of sale. This creates cash flow shortages, an increased risk of bad debt, and a significant work requirement to mitigate the impact of late payments.
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Credit Research Foundation
SEPTEMBER 27, 2024
Since then, we’ve weathered the COVID-19 pandemic, which many experts predicted would lead to a wave of defaults and business closures. Does my team have the expertise and experience to keep us ahead of potential default situations? During that period, the U.S. economy shed over 8.7
Your Virtual Credit Manager
JANUARY 17, 2023
The sales team learned very quickly that eliminating the friction from the billing and payment processes facilitated earlier customer payments, hence larger commissions. The bottom line was a 13 percent reduction in Days Sales Outstanding (DSO) over a 6 month period in conjunction with invoice accuracy rising above 90 percent.
Your Virtual Credit Manager
JUNE 25, 2024
Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A growing volume of receivables overdue by more than 90 days indicates you are having severe challenges collecting payments before then, posing a significant risk of write-offs or bad debts.
Your Virtual Credit Manager
SEPTEMBER 3, 2024
billion in annual sales was dissatisfied with the management of its Accounts Receivable (AR). Days Sales Outstanding (DSO) was at 63 days on predominantly Net 30 day terms. Collection Prioritization Drives Performance Improvement A medical device manufacturer with $1.6
Your Virtual Credit Manager
APRIL 2, 2024
One score may indicate the chance of a company going bankrupt within the next two years while another provides the probability of going 90 days past due in the next 12 months. Still others may be predictive of default, financial distress or financial health, and creditworthiness.
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