Bad Debt Default Presentation 
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. Those who are financially weak (high credit risk), in addition to essentially turning down the faucet for your cash inflow, present a higher risk of never paying for everything they owe.
Your Virtual Credit Manager
JANUARY 7, 2025
Besides driving process improvement, the experts at Your Virtual Credit Manager can apply default risk probabilities & other financial benchmarks to your AR portfolio to reveal actionable credit & collection insights. To receive new posts and support my work, please subscribe for just $5 per month ($49 yearly).
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Credit Research Foundation
APRIL 12, 2024
Risk Mitigation – A seldom noted but important point is that a properly implemented program can reduce your risk of slow payment, fraud, and default within your portfolio. A properly implemented credit card program is becoming an essential tool in the payment process for organizations both large and small.
Your Virtual Credit Manager
JUNE 25, 2024
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. Commensurate with a rising expectation of defaults, is a worsening of the quality of your AR portfolio along with profit shrinkage.
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 10, 2023
Photo by Patrick Hendry on Unsplash Although defaults resulting in significant bad debt losses are a rare event for trade creditors, much of the focus of AR Management is on credit risk. While the impact of defaults can be severe, late payments are very common though their impact less visible.
Your Virtual Credit Manager
DECEMBER 20, 2022
The one measure that may fall short if the customer defaults is a Uniform Commercial code (UCC) Security Agreement — you may not be able to recover all your collateral or the proceeds thereof, especially if your UCC filing puts you in a second position behind a lender, which is a common situation.
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