Bad Debt Default Presentation 
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.
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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.
Your Virtual Credit Manager
APRIL 11, 2023
That all the above consequences can present themselves simultaneously, only makes the downside worse. 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. Here’s more on Credit Checks.
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? To receive new posts and support this work, please consider subscribing for $5 monthly ($49 yearly).
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. The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights.
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