Your Virtual Credit Manager

AUGUST 29, 2023

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

JANUARY 3, 2023

During 1995, DSO was reduced by an additional 10 percent, and bad-debt write-offs cut in half. Eventually, the amount of AR over 60 days past due increased to over 50 percent of total receivables. The first month after GetPaid was implemented, July 1994, the client collected $7 million dollars more than anticipated.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

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. It involves intensive management of the customer’s total receivable balance supported by a substantial reduction in their credit limit.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130