Bankruptcy Credit and Collections Small Businesses 
Your Virtual Credit Manager
FEBRUARY 4, 2025
At many companies, credit policy is an afterthought. When sales and production goals are set, and then the budget formalized, scant consideration is given to the impact on credit policy. Photo by Piret Ilver on Unsplash ) Too often, credit and collections are an afterthought. Customers don’t pay on time.
Your Virtual Credit Manager
NOVEMBER 12, 2024
Monitoring and evaluating the credit risk posed by public companies and other large firms differs significantly in comparison to small and mid-sized businesses. Because most of your biggest customers will be larger firms instead of smaller, it is typically the larger firms that will require higher credit limits.
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Your Virtual Credit Manager
JANUARY 14, 2025
The United States has witnessed a significant surge in corporate bankruptcies, reaching a 14-year high in 2024. Business bankruptcy filings increased by 33.5% Customer past due balances cause cash flow shortages, increase the need for borrowing, and create a significant work requirement in order to accelerate collections.
Your Virtual Credit Manager
JANUARY 7, 2025
Accelerating sales can increase DSO, but most often the cause is problems in the order-to-cash (O2C) pipeline affecting collections. While multiple factors can contribute to an organization's financial downfall, insufficient cash flow is typically the primary trigger for bankruptcy proceedings. Need help improving cash flow?
Your Virtual Credit Manager
APRIL 8, 2025
Courts , commercial bankruptcy filings increased 40.3% Here’s a warning to trade creditor’s from a major commercial credit bureau (from CreditSafe’s Cost of Late Payments report). On the other hand, a customer bankruptcy or other default typically causes the loss of most if not all the AR owed by the customer.
Your Virtual Credit Manager
MARCH 4, 2025
We often talk about the importance of having an efficient and effective collection process and how, from a process improvement perspective, collections automation provides substantial benefits. We don’t, however, want to minimize the importance of the credit side of the equation. Bad debt losses were understandably huge.
Your Virtual Credit Manager
JANUARY 28, 2025
When a business reaches the point of multiple team members making new sales and taking orders from existing customers, the credit approval process gets more complicated. This company’s evaluation of the risk/reward tradeoff was flawed because it underestimated the credit risk of “large” enterprises.
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