Your Virtual Credit Manager
APRIL 8, 2025
The Imperative to Keep Past Due Balances in Check A key objective of Accounts Receivable (AR) management is minimizing past due AR to ensure cash in-flows and minimize bad debt losses. On the other hand, a customer bankruptcy or other default typically causes the loss of most if not all the AR owed by the customer.
Your Virtual Credit Manager
JANUARY 14, 2025
The Customer Delinquency Challenge Successful accounts receivable (AR) management involves minimizing past due balances to ensure steady cash in-flows and limit bad debt losses. In contrast, customer bankruptcies or other defaults typically cause the loss of most, if not all, the AR owed. Do you need help improving cash flow?
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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. The Impact of Bad Debts The problem with larger customers who chronically pay late is the increased probability of a bad debt loss, which is costly.
Your Virtual Credit Manager
MARCH 4, 2025
This company was fortunate to avoid significant bad debt loss until Ames Department Stores, Kmart, and Fleming Foods (a distributor) all filed bankruptcy within the same year. Bad debt losses were understandably huge. Making uninterrupted sales was deemed more important to their distribution network.
Your Virtual Credit Manager
FEBRUARY 4, 2025
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. Customers default. Photo by Piret Ilver on Unsplash ) Too often, credit and collections are an afterthought. .”
Your Virtual Credit Manager
JANUARY 28, 2025
Meanwhile, customers who previously were approved during your initial credit evaluation may become past due, max out their credit limit, or, worse yet, be in a deteriorating financial situation, all of which become even more likely when the economy is volatile—the result: cash flow problems and more exposure to bad debt losses.
Your Virtual Credit Manager
NOVEMBER 12, 2024
If you are not on the lookout for customer red flags, especially those raised by public firms and other large enterprises, you will be at increased risk for incurring bad debt losses. Trustee Program estimates that bankruptcy filings will double over the next three years. Register Do you need help improving cash flow?
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