Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind. Collections is always playing a bit of catch up to sales.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

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 company ended up writing off millions of dollars in bad debt. As you can see, there was a huge increase in the stock price commensurate with the reduction in DSO.

DSO 130

DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Pricing Problems: A supplier of medical devices implemented a new ERP system, but flaws in the pricing application caused it to frequently default to list price (nearly every accounts had exceptions), thereby generating hundreds of incorrect invoices. Poor credit approval and collection practices can single-handedly wreck DSO.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

APRIL 11, 2023

Poor Credit Controls: Poor credit control practices can result in providing goods or services to high-risk accounts that are likely to pay beyond terms or even default on payments. Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. An under performing AR.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 130

Your Virtual Credit Manager

APRIL 2, 2024

Still others may be predictive of default, financial distress or financial health, and creditworthiness. delinquency or default) than will be found in a random sample. As a rule of thumb, however, the more specific the outcome being predicted, the more accurate will be the score.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The task is twofold: Optimizing cash inflows (and avoiding bad debt) confined by the number of requests for payment that can be made within a specified time period.

Past Due Invoices 130

Past Due Invoices Credit and Collections Bad Debt Accounts Receivable (AR) 130

Emagia

MARCH 3, 2025

Financial Stability : Reducing outstanding receivables minimizes bad debts and improves financial health. Collections Management Effective collections management involves tracking overdue invoices and implementing escalation strategies for persistent defaulters. What is Days Sales Outstanding (DSO) and why is it important?

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

billtrust

NOVEMBER 1, 2022

In short, they include three key objectives: maximizing cash flow , minimizing bad debt, and maintaining customer satisfaction. Minimizing bad debt , on the other hand, helps businesses to avoid write-offs and keep their bottom line healthy. Bad debt expense. What is the best KPI for accounts receivable?

Accounts Receivable (AR) 52

Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

Gaviti

FEBRUARY 6, 2023

Credit check and risk analyses, which offer a concrete way to determine which clients are most at risk of defaulting on payment terms. As a top area of focus, consider metrics like your days sales outstanding (DSO) rates and how small changes to processes can improve the accounts receivable cycle.

AR Automation 52

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

Emagia

FEBRUARY 5, 2023

If the automated AR application can alert the collection team about the probability of any payments getting overdue, they can proactively reach out to such customers to try mitigating the risk of a likely payment defaults. There are case studies that have founds that AI-powered AR automation software helps shorten your DSO up to 25 percent.

AR Automation 52

AR Automation Days Sales Outstanding DSO Credit and Collections 52

TreviPay

MARCH 20, 2023

Factors for evaluating creditworthiness Average days sales outstanding (DSO) needs to be balanced against supplier terms so that your cash flow remains steady. If bad debts are increasing, finding their source may uncover problems in your credit approval process. You might even miss warning signs.

B2B Credit 52

B2B Credit Credit Management Credit and Collections Days Sales Outstanding 52

Serrala

MARCH 14, 2024

Helping you to put an end to bad debt and write-offs, eliminate errors, and provide you and your customers with the transparency and experience that helps reduce churn and improve your position. sites/default/files/styles/webp/public/202403/bg-industry-desktop.jpeg.webp?itok=sioB6G6S section-marketo-background').length>0){

Credit and Collections 52

Credit and Collections Automated Cash Application Cash Applicator Bad Debt 52

Bectran

MARCH 5, 2025

The accumulation of bad debt is a massive hindrance for businesses that rely on consistent cash flow in their accounts receivable. Piling bad debt reduces your companys expected revenue and limits your ability to reinvest liquidity into business operations. The Bad Debt Spiral.

Bad Debt 52

Bad Debt High-Risk Accounts Credit and Collections Default 52

Gaviti

APRIL 22, 2025

Specific: Clearly define the objective, such as reducing the average days sales outstanding (DSO) by a certain percentage. Reduce Days Sales Outstanding (DSO): Objective: Decrease the average number of days it takes to collect payments, thereby improving cash flow. A lower DSO indicates prompt collections, enhancing cash flow.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Average Days Delinquent 52

Gaviti

MARCH 11, 2025

Without proper credit assessments and checks, businesses expose themselves to significant financial risks, including cash flow disruptions and potential bad debts. Risk Mitigation: Proactive identification and management of potential credit risks reduce the likelihood of defaults and financial losses.

Credit Risk 52

Credit Risk Credit Scoring Credit and Collections Credit Application 52