Remove Books Remove Credit and Collections Remove Default
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Here Are the Distress Signals Private Firms Flash When They Are in Trouble

Your Virtual Credit Manager

Here’s a warning to trade creditor’s from a major commercial credit bureau (from CreditSafe’s Cost of Late Payments report). If you are extending credit to other businesses, it’s high time you began watching your customers closely for late payments and other signs of distress.

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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

Inevitably they will need to initiate Collection activities to recover some of this money owed; in other words, contacting delinquent customers and requesting them to pay your firm for goods and/or services provided on credit terms that have become past due. it just might help them pay you sooner!

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Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

Customer past due balances cause cash flow shortages, increase the need for borrowing, and create a significant work requirement in order to accelerate collections. When you do eventually get paid, you recover the cost you expended in fulfilling the customer order less the cost of collections and any interest on loans.

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Navigating distressed & problem loans: Legal & borrower considerations

Abrigo

How financial institutions deal with problem loans Problem loans are a natural outcome of the risks banks and credit unions take when lending, and they should be expected over the long run during the ups and downs of the business cycle. They would then be able to take steps to mitigate or avoid the losses as much as possible.

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Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

Approving a customer for credit terms is merely the first step in an open credit relationship. Economic circumstances may cause you to tighten your credit policies and customer credit limits. Situations change, both for you and for your customer. Even more likely are changes to a customer’s business.

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How to Collect Outstanding Invoices Faster With Better Dunning A/R Collections Templates

Gaviti

Effective communication is the most critical aspect of any A/R collections strategy. Even so, there are some basics you can apply across most templates you may use for collections. How Can You Use Templates To Collect Invoices Outstanding for Payment? Create an invoice for every step of the collections process.

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Use Caution Extending Credit to Startup Companies

Your Virtual Credit Manager

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. That’s why it is standard to ask on a credit applications the year in which the business was formed. How much credit (if any) should you extend to a young business?

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