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Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

Among other things, commercial bankruptcies have been steadily climbing over the past year. If the European parent company defaulted, the North American subsidiary would be pulled into bankruptcy even though its operations were profitable. request for substantially more credit, change in leadership, merger or acquisitions, etc.).

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Get Ready for a Wave of Commercial Bankruptcies

Your Virtual Credit Manager

After, the Great Recession of 2008, commercial bankruptcies peaked in 2009 and did not drop below pre-recession levels until 2012. Department of Justice projects a substantial increase in bankruptcy filings. Trustee Program has estimated that bankruptcy filings will double over the next three years.

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Is Your Collection Agency a Good Fit?

Your Virtual Credit Manager

Ensuring Successful Debt Collections Even with these headwinds, there are steps trade creditors can take to improve their collections game: Be Proactive: It starts with a comprehensive credit application and vetting process and is complemented with clear communications about terms, the billing process, and the expectation of on-time payments.

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Credit and Finance Need to Make Moves Against Fast-Rising Bankruptcy Levels

Emagia

As NACM Connect ’s Great Lakes Conference closed the final in its trio of fall conferences in Ohio this week, experts from law practices like Lowenstein Sandler LLP and credit report giant Experian warned that corporate bankruptcy numbers are trending worse than any time since the pandemic began about 3 ½ years ago. “We

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Do Your Customers Deserve Credit?

Your Virtual Credit Manager

A business with a strong credit history is more likely to be considered creditworthy than one with a weaker credit history. A business's credit history also includes any past bankruptcies or defaults, as well as collection agency placements. Click here for more information about credit applications.

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What Triggers Your Collection Efforts?

Your Virtual Credit Manager

To do this you may want to order an updated credit report as well as recontact any suppliers they provided as a credit reference on their credit application. Have the customer complete an updated credit application and request updated financial information so you can assess their current financial status.

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Don't Leave Converting Sales into Cash to Chance

Your Virtual Credit Manager

Cash Flow is the number one cause of small business bankruptcies. The solution is the implementation of credit and collection best practices geared to ensure customer profitability and sufficient cash flow. Under-performing AR has the potential to create a cash flow crisis that can shut down your business in very short order.

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