Your Virtual Credit Manager

JUNE 18, 2024

A small, new account can become one of your top customers in a few years, and a key contributor to the growth you seek. Photo by Muhammad Daudy on Unsplash ) The problem with startup companies: there is a high probability they will fail , leaving you with a bad debt on your books. Think about it.

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Your Virtual Credit Manager

OCTOBER 31, 2023

Economic downturns can impact a customer's ability to pay, leading to delayed or defaulted payments. A recession or industry-specific downturn can significantly impact the value of accounts receivable, making it essential for businesses to diversify their customer base as much as possible. There are a lot of reasons business fail.

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Your Virtual Credit Manager

AUGUST 6, 2024

The goal is not preventing bad debt losses but rather maximizing profits. If you should try to eliminate all bad debt losses, chances are you will forego sales to customers that will eventually pay. On the one hand, controlling bad debt and delinquency losses is critical. ” The Bottom Line.

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Your Virtual Credit Manager

SEPTEMBER 5, 2023

Subscribe now Impact of Offering Discounts From the seller’s perspective, the effect on revenue from offering an early pay discount needs to be weighed against the potential reduction in Accounts Receivable (AR) carrying costs, bad debt and collection expenses. it just might help them pay you sooner!

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CreditStrong for Business

JULY 11, 2024

It’d be helpful if you get it, but you’re probably wondering what credit score you need to get a small business loan. In this article, we’ll cover the different types of business loans and the credit expectations for each. SBA Loans The SBA offers some of the most diverse small business loans.

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Your Virtual Credit Manager

NOVEMBER 14, 2023

It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). The increased risk of a significant bad debt loss that your firm bears.

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Your Virtual Credit Manager

FEBRUARY 13, 2024

Following the sharp but short Covid Recession, roughly 5 million small businesses closed shop in the first six months after the economic shutdown, but commercial bankruptcies did not begin increasing until May of 2023, ostensibly due to the government’s economic stimulus programs. it just might help them pay you sooner!

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Your Virtual Credit Manager

SEPTEMBER 17, 2024

For small business executives, and many mid-sized businesses as well, managing collections effectively can be a significant challenge, particularly when time and resources are limited. Over time, this erodes profitability and financial stability, making it harder to keep the business running smoothly.

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Your Virtual Credit Manager

MAY 16, 2023

By avoiding the following common traps, or myths if you will, businesses can minimize the risk of non-payment or default and make better informed decisions about extending credit to other businesses that will boost sales and profits. Credit evaluations prevent more bad debts than collection efforts.

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Your Virtual Credit Manager

APRIL 18, 2023

Photo by Chris Montgomery on Unsplash For small enterprises, however, a “wide range of tasks” is usually the norm for its limited staff. So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset?

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Your Virtual Credit Manager

OCTOBER 8, 2024

Companies selling other businesses on open terms need to ensure any collection agency partners can effectively collect non-performing receivables. The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights. Share Read more

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Your Virtual Credit Manager

APRIL 2, 2024

Still others may be predictive of default, financial distress or financial health, and creditworthiness. Learn More About Consulting Readers of Your Virtual Credit Manager can access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner accredit. it just might help them pay you sooner.

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Your Virtual Credit Manager

AUGUST 22, 2023

The bad news is that nearly 21 percent of last year’s startups will fail this year leaving you with a bad debt on your books if you sold to them on credit terms. Small businesses are particularly vulnerable to the impact of these cost increases. Moreover, the average lifespan of a small business is only 8.5

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Your Virtual Credit Manager

JANUARY 17, 2023

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. it just might help them pay you sooner! it just might help them pay you sooner!

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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. Delaying collection activities can lead to reduced cash flow and bad debt losses.

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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. Business failures are the norm.

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Your Virtual Credit Manager

FEBRUARY 28, 2023

Getting customers to pay now rather than later reduces the risk of a default down the road. A Prompt Payment Discount can help you avoid serious losses as customers go out of business. Please feel free to share this newsletter with your small business customers. it just might help them pay you sooner!

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Your Virtual Credit Manager

AUGUST 29, 2023

Please feel free to share this newsletter with your small business customers. Bad Debt Write-Offs Are Increasing: When bad debts get ahead of budget, you need to take a look at why that is happening. it just might help them pay you sooner! Then multiply the answer by 100 to get a percentage.

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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.

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Your Virtual Credit Manager

DECEMBER 20, 2022

Why not share this newsletter with your small business customers. Readers of Your Virtual Credit Manager can now access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit. it just might help them pay you sooner!

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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. it just might help them pay you sooner!

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Your Virtual Credit Manager

SEPTEMBER 12, 2023

Please feel free to share this newsletter with your small business customers. When unobserved risks build up in your AR, the impact will be slower payments and defaults leading to bad debts. it just might help them pay you sooner! More About Purchasing Credit Reports 4.

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Your Virtual Credit Manager

DECEMBER 6, 2022

Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order. Cash Flow is the number one cause of small business bankruptcies. 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.

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Your Virtual Credit Manager

OCTOBER 2, 2024

Who absorbs any potential bad debt loss — does the lender have recourse to return the AR if they cannot collect it versus a non-recourse arrangement? 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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Your Virtual Credit Manager

SEPTEMBER 19, 2023

From this conversation, you will learn how perilous the bad debt risk is with this customer, and how urgent your reaction must be. Please feel free to share this newsletter with your small business customers. The bank will pay you if your customer defaults. it just might help them pay you sooner!

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MNS Credit Management Group

AUGUST 7, 2023

However, there is always the possibility of loan default. Lenders are picky about whose businesses they give credit to. A business credit score is a credit rating that indicates how likely a company is to repay its loans on schedule and without default. What is a company credit score?

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Chaser

MARCH 23, 2023

Here are some factors to consider when evaluating whether selling more is a viable solution to cash flow issues your business may be experiencing: Payment terms and credit sales Customers may pay for goods or services on credit, which means that the business does not receive cash until a later date.

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Abrigo

JANUARY 14, 2021

Third round of PPP funding is available for small businesses. There is no doubt that the COVID-19 global pandemic has challenged communities across the country and has created a significant economic downturn, which has hit small businesses especially hard. Stopping PPP Fraud in New Round of Funding. PPP Fraud Spikes.

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Lendio

JULY 18, 2024

While some debt is considered good debt for small business owners—debt that ultimately helps the borrower net more in savings or income—other debt is deemed “bad debt.” Negotiate with your lenders Your lenders don’t want you to default.

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Your Virtual Credit Manager

JUNE 13, 2023

Far more damaging is a customer that defaults (never pays). These bad debt losses can put your own business at risk of failure. The inability to recover the loss with new business puts a serious crimp in a firm’s cash flow, especially when the default involves a large amount.

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Credibly

JANUARY 5, 2023

Bridge Loan for Business: Pros and Cons Securing a Bridge Loan is Fast and Easy, With Credibly In a perfect world, every business would have high liquidity and unlimited cash flow. That’s why understanding how to leverage debt is so important. Not all debt is bad debt.

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Credibly

JANUARY 5, 2023

In a perfect world, every business would have high liquidity and unlimited cash flow. But the unfortunate reality is that over 30% of small businesses fail because they lack adequate financing—and to help you achieve that next step, you might be wondering,”What is a bridge loan?”. Not all debt is bad debt.

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TreviPay

MARCH 17, 2023

Staples deployed the TreviPay solution in its Canadian business in June 2021 with their market leading small business membership program – Staples Preferred. The company can offer a line of instant credit to its business customers while leaving responsibility for risk assessment and underwriting to TreviPay.

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Your Virtual Credit Manager

JUNE 20, 2023

Small businesses are under a lot of pressure. It is therefore no surprise that small business owners’ top economic concerns are inflation, recession, commodity prices, the U.S. As economic headwinds build, business leaders tend to batten down the hatches by cutting cost and minimizing risk.

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Your Virtual Credit Manager

NOVEMBER 29, 2022

Please feel free to share this newsletter with your small business customers. There are two factors that determine the rate of decline: the cost of money for your business and the probability of default by the debtor. it just might help them pay you sooner!

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Your Virtual Credit Manager

MARCH 26, 2024

Going beyond the impact of macroeconomic trends, a company’s customers operate in dynamic business environments, and for a majority of them, the credit risk they pose is either increasing or decreasing. New and small businesses, moreover, have high failure rates. There is also a sequel to this case study.

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