Bad Debt Deductions Presentation 
Your Virtual Credit Manager
OCTOBER 2, 2024
In determining the cost/benefit of any collateralization program, you must factor in the differences presented by each type of program, which include: Who owns the AR — is it sold or pledged as security? Match unapplied payments and unapplied credit memos to open invoices, deductions, and debit memos.
Your Virtual Credit Manager
DECEMBER 20, 2022
All these bad customer behaviors are a drain on your profit. Buy Credit Reports Managing Credit In-house Your other option is to assess, monitor and control the bad debt exposure yourself. This is the impetus for presenting documentation to the customer and pressing for reimbursement.
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Your Virtual Credit Manager
NOVEMBER 14, 2023
Credit industry groups discuss the payment history of common customers, but they always have an independent moderator present so that customer discussion do not veer off onto the topic of how individual companies plan on selling those same customers in the future. The increased risk of a significant bad debt loss that your firm bears.
Your Virtual Credit Manager
JANUARY 3, 2023
” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.
Your Virtual Credit Manager
JANUARY 9, 2024
In contrast, profit driven enterprises often miss opportunities because they are too restrictive out of a fear of bad debt losses. As a result, their exposure to risk can exceed their level of tolerance. A segmentation analysis will help you refine your credit policy guidelines and thereby improve the efficacy of your credit decisions.
Your Virtual Credit Manager
APRIL 11, 2023
That all the above consequences can present themselves simultaneously, only makes the downside worse. Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. Not a subscriber … why don’t you take advantage of a free YVCM subscription?
Your Virtual Credit Manager
SEPTEMBER 17, 2024
Photo by Willian Cittadin on Unsplash ) Neglecting collections can also lead to longer payment cycles, strained client relationships, and an increase in bad debt. This delay in cash inflows can create a vicious cycle, where a lack of working capital stalls the business’s ability to function efficiently.
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