Bankruptcy Credit Application Default 
Your Virtual Credit Manager
JANUARY 7, 2025
While multiple factors can contribute to an organization's financial downfall, insufficient cash flow is typically the primary trigger for bankruptcy proceedings. Credit application processing automation as well as portfolio monitoring and analysis software can help deliver the improvements you seek.
Your Virtual Credit Manager
JANUARY 23, 2024
Furthermore, new businesses and small businesses tend to have high failure rates, and there is good reason to believe a wave of defaults is coming. Among other things, commercial bankruptcies have been steadily climbing over the past year. request for substantially more credit, change in leadership, merger or acquisitions, etc.).
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Your Virtual Credit Manager
FEBRUARY 13, 2024
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.
Your Virtual Credit Manager
MARCH 4, 2025
We don’t, however, want to minimize the importance of the credit side of the equation. As discussed in a recent post , gathering customer information doesn’t stop with the credit application. You put your firm at risk by limiting credit assessments to only new customers, which is too often the case.
Your Virtual Credit Manager
DECEMBER 27, 2022
Cash flow is the biggest cause of customers defaults, but often cash flow is a result of other financial problems or miscues. A customer can be paying you with no problems, but then their bank line of credit comes up for review and is drastically cut back by the bank. Click here for more information about credit applications.
Your Virtual Credit Manager
MARCH 19, 2024
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.
Your Virtual Credit Manager
DECEMBER 6, 2022
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. 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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