Remove Books Remove Deductions Remove Default
article thumbnail

Storm Warning: Private Company Red Flags

Your Virtual Credit Manager

In contrast, customer bankruptcies or other defaults typically cause the loss of most, if not all, the AR owed. Customer defaults can be devastating , especially when they cause a substantial bad debt loss. High levels of delinquency, however, can significantly damage cash flow, severely limiting your organizations options.

Bad Debt 130
article thumbnail

Scrap Value, Cut off Value and Memo Value in Fixed Asset Accounting

SAP Credit Management

In certain countries it is a legal requirement that assets must not be fully depreciated; depreciation should stop when a certain net book value is reached. With the use of a cut-off value key, we can stop depreciation once a certain net book value is reached. In this case, the cut-off value is reached as the net book value.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

There was a lot of gnashing of teeth on the part of the sales team at the beginning, but invoice accuracy improved in each subsequent month as sales began transmitting accurate pricing and terms to order processing, thereby reducing downstream disputes and payment deductions. it just might help them pay you sooner!

article thumbnail

Position Your AR to Enhance Working Capital

Your Virtual Credit Manager

The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights. That is why lenders will only advance a portion of the collateral’s book value. Do you need help assessing your customers’ credit risks?

article thumbnail

Business Loan Default vs. Delinquency: The Important Difference

Fundera

Default vs. Delinquency. Loan defaults and delinquencies both stem from overdue loan payments. If you miss several payments or can’t make payments for an extended time (usually 90 to 120 days), the lender will place the loan in default and can start collection proceedings against you. What’s a Defaulted Loan?

Default 59
article thumbnail

Delinquent Loans: What They Are, How They Differ From Default

Fundera

If you miss several payments or can’t make payments for an extended time (usually 90 to 120 days), the lender will place the loan in default and can start collection proceedings against you. Both delinquencies and defaults damage your credit. This is called a “penalty rate” or “default rate” and is more prevalent with credit cards.

Default 59
article thumbnail

Employee Loans: Everything You Need to Know

Fundera

The employee pays back the loan in accordance with the repayment schedule typically via deductions in their future paychecks. Repayment method : The most common repayment method for an employee loan is payroll deductions. However, check to make sure your state doesn’t have laws against this type of wage deduction.