Your Virtual Credit Manager

JANUARY 30, 2024

The evolution of Accounts Receivables (AR) automation has revolutionized our collection strategies. Previously, decisions were largely left to the discretion of individual collectors, resulting in subjective and inconsistent approaches. Please feel free to share this newsletter with your small business customers.

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Credit and Collections Collector Accounts Receivable (AR) AR Automation 130

Your Virtual Credit Manager

DECEMBER 13, 2022

Photo by Icons8 Team on Unsplash Commercial collections is not unlike convincing somebody to buy something, but people with that talent tend to go into Sales. For most people, however, collecting B2B debts is an acquired skill. People do not aspire to become commercial debt collectors. it just might help them pay you sooner!

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Collector Credit and Collections Past Due Invoices Credit Management 130

Your Virtual Credit Manager

MARCH 5, 2024

Finding the time and resources to accomplish all the collection activities required to do a good job is a constant challenge. Most small companies come up short because when there isn’t a dedicated employee responsible for credit and collections, the owner or CFO have more important things to do.

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Past Due Invoices Credit and Collections Collector Accounts Receivable (AR) 100

Your Virtual Credit Manager

JULY 2, 2024

Moreover, if you are trying to collect from a small business, you may have to deal with the owner, who will have a lot on their plate in addition to their debt to your company. New to collections? You should attend Introduction to Business/Commercial Collections on Tuesday, July 16 at 1:30 PM EDT.

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Collector Debt Collections Past Due Invoices Credit and Collections 130

Your Virtual Credit Manager

JUNE 6, 2023

People who are new to business collections are inclined to fall into one of several patterns. Seldom does a new collector appreciate the need for a balanced, holistic approach to debt collections. In time, as they become more familiar with the process of collecting, their productivity increases.

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Debt Collections Collector Credit and Collections Default 100

Your Virtual Credit Manager

NOVEMBER 7, 2023

Frequently there is a small window of opportunity for getting paid sooner rather than later. If their collection efforts are more aggressive than yours, the customer will tend to pay your competitor sooner, while you end up waiting for this mutual customer to accumulate additional funds to pay you. All these situations are avoidable.

Credit and Collections 100

Credit and Collections Collector Credit Management Small Businesses 100

Your Virtual Credit Manager

FEBRUARY 14, 2023

Photo by NoWah Bartscher on Unsplash Collecting past due balances takes skill, but not rocket science level skill. Once you have made a few collection calls it gets easier. Furthermore, in a commercial credit environment you seldom are dealing with the owner, but rather an employee and the money is not coming out of their own pocket.

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Collector Credit and Collections Credit Management Small Businesses 100

Your Virtual Credit Manager

MAY 21, 2024

Collectors face numerous challenges when attempting to collect past due balances from business customers. These difficulties can stem from both the financial and operational circumstances of the debtor as well as the interpersonal dynamics between the collector and the customer.

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Collector Credit and Collections Credit Management Small Businesses 100

Your Virtual Credit Manager

JUNE 11, 2024

My first exposure to the power of accounts receivable (AR) automation came in 1990 when I was credit manager at ERICO Fasteners, a mid-market, specialty metals manufacturer. During the 10 years I’d been in business credit, I had never seen anything like it. Photo by ThisssEngineering RAEng on Unsplash In the Beginning.

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AR Automation DSO Collector Accounts Receivable (AR) 130

Your Virtual Credit Manager

NOVEMBER 1, 2022

Photo by Kenny Eliason on Unsplash Effective collections is the single most important factor for achieving reliable cash inflows. Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The solution to the collections challenge therefore starts with Prioritization.

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Credit and Collections Past Due Invoices Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

JULY 16, 2024

Keeping these latter two groups under control requires collection efforts. Photo by Michael Starkie on Unsplash ) At a fundamental level, collections involves contacting customers to collect the money they owe you. Collections becomes more challenging when the customer objects. Keep upping the pressure until you are paid.

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Accounts Receivable (AR) Collector Past Due Invoices Credit and Collections 100

Your Virtual Credit Manager

JANUARY 3, 2023

Over time, AR Ledgers unfortunately tend to collect “Clutter.” Clutter can also cause new orders to be placed on a credit hold when it otherwise would have been automatically released. Please share this newsletter with your small business customers. it just might help them pay you sooner!

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AR Automation Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

APRIL 23, 2024

” (Photo by Devon MacKay on Unsplash ) This applies to credit and collections as well as anything else. Collectors are continually learning what works to get people to pay up and what doesn’t. Do you need help with Customer and Portfolio Risk Analysis, or are there Past-Due Accounts you are trying to collect?

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Bankruptcy Chapter 11 Credit and Collections Collector 130

Your Virtual Credit Manager

MAY 28, 2024

Next comes billing, followed by collections cleaning up all the garbage left by everybody that has gone before. If you remember the Rocky and Bullwinkle cartoons, some seasons there was a parade during the closing credits. The collection role is a lot like that of the little janitor with the big mustache sweeping up behind the parade.

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Accounts Receivable (AR) Past Due Invoices Credit and Collections Collector 130

Gaviti

FEBRUARY 18, 2024

Even with the most streamlined and automated A/R management process and B2B collections best practices , customers don’t always pay on time. At this point, your business should move from handling the invoice in-house to managing it through one of the debt collection outsourcing services listed below. billion by 2025 in the U.S.

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Debt Collections Credit and Collections Days Sales Outstanding Invoice to Cash 52

MNS Credit Management Group

SEPTEMBER 24, 2023

In addition to giving solicitors instructions to start legal proceedings, we also offer credit management services including sending letters of demand prior to legal action, a service that looks into a company’s history, credit reports, and status reports. When a client owes a business money, consumer collections take place.

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Debt Collections Credit and Collections Collector Credit Management 52

Your Virtual Credit Manager

JANUARY 9, 2024

Two weeks ago we recapped the three most read articles from 2023: identifying red flags, understanding why customers pay late, and the secrets of successful collectors. Then last week we looked at credit hold best practices. From a credit management perspective, these are largely reactive topics.

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Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

CreditStrong for Business

AUGUST 30, 2024

Good credit is essential for obtaining the financing many businesses need to grow their operations. If your business credit has suffered some setbacks, you’ll need to rebuild it before applying for new loans or credit cards. Repairing bad credit works a little differently from establishing it the first time.

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Credit Scoring Credit and Collections Credit Reporting Agencies Collector 52

Your Virtual Credit Manager

APRIL 18, 2023

Photo by Chris Montgomery on Unsplash For small enterprises, however, a “wide range of tasks” is usually the norm for its limited staff. So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset?

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Bad Debt Credit and Collections Accounts Receivable (AR) Third Party Collections 130

Your Virtual Credit Manager

APRIL 25, 2023

Inevitably you will need to initiate collection activities; in other words, start requesting past due customers pay what they owe your firm for goods and/or services provided on credit terms. What are the other tasks that will not get done or be delayed because of the time you devote to collections?

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Credit and Collections Past Due Invoices Collector Deductions 130

Fundera

SEPTEMBER 18, 2018

When a credit bureau computes your credit score, their job is to produce a number that estimates—given your past and current financial history—how likely you are to default on future debts. There are five notable components of a personal credit score. There are five notable components of a personal credit score.

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Credit Scoring Small Businesses Credit and Collections Collector 93

Your Virtual Credit Manager

JULY 25, 2023

Turning your inventory over faster and your payables slower will add cash to your balance sheet, as will raising capital by selling shares in your company or getting a loan or line of credit. Collection Efficiency Index (CEI) - As your collection process increases in efficiency, the fewer dollars there will be trapped in your AR.

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Best Possible DSO (BPDSO) DSO Cash Forecasting Credit and Collections 130

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you. Cash Flow is the number one cause of small business bankruptcies.

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DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

SEPTEMBER 26, 2023

Suppliers, lenders, and credit rating agencies place substantial importance on these numbers when assessing your liquidity and overall financial strength. Their assessments of your business based in large part upon these metrics will determine your credit limits, collateral requirements, lines of credit and borrowing capacity.

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Credit and Collections Accounts Receivable (AR) Deductions Collector 147

Your Virtual Credit Manager

JUNE 27, 2023

Just like people, business customers come in all shapes and sizes — personalities, too. Some business customers are easy to deal with, others not so much. Some have good credit, others are clear risks. When that happens, it is time to review their credit again.

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Collector Credit and Collections High-Risk Accounts Accounts Receivable (AR) 26

Lendio

NOVEMBER 29, 2022

Before a lender in particular will approve your application for a business loan , you typically need to prove that you and your business are good credit risks. Here’s what you need to know about how this alternative business loan solution works. Next, make sure you’re in a position to afford a new business loan.

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Credit and Collections Collector Credit Scoring Small Businesses 72

Fundera

FEBRUARY 26, 2019

Best Credit Repair Services. Best Overall: Key Credit Repair. Best Value: Sky Blue Credit. Best Customer Service: Credit Saint Credit Restoration. Best for Long-Term Use: The Credit People. One of the most important factors in a business loan application is your credit score.

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Credit Scoring Collector Credit and Collections Bankruptcy 57

Fundera

MARCH 3, 2019

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. Your business might not be generating enough cash flow to cover the payments.

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Default Collector Credit and Collections Credit Scoring 59

Fundera

JULY 22, 2018

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. Your business might not be generating enough cash flow to cover the payments.

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Default Collector Credit and Collections Credit Scoring 59

Fundera

MAY 25, 2017

We all know that one of the biggest challenges small business owners face is access to capital. Access to sufficient capital in business is the lifeline that can keep an entrepreneur afloat. Fortunately, some changes coming down the pipeline could positively affect millions of Americans’ credit scores.

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Credit Scoring Credit and Collections Collector Credit Application 74

Fundera

NOVEMBER 30, 2015

Cash flow has always been king for small businesses. In fact, more small businesses fail because of cash flow problems than for any other reason. Be a Diligent Collector. Because of their light management and administrative structures, small businesses can find collections a challenge.

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Electronic Funds Transfer Collector Cash Forecasting Credit and Collections 59

Fundera

JUNE 12, 2017

With over 19 million residents, there are plenty of entrepreneurially minded Floridians asking the same question: What are the economics of starting my own small business? It’s clearly a popular query: Florida has the second-highest density of startup businesses in the U.S., This is everyone’s favorite part of owning a business.

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Credit and Collections Collector Small Businesses 85

Fundera

SEPTEMBER 23, 2019

Cash flow has always been king for small businesses. In fact, more small businesses fail because of cash flow problems than for any other reason. If your business makes more money than it spends within a given year, you’re profitable. Be a Diligent Collector. Work on being a diligent collector.

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Electronic Funds Transfer Collector Cash Forecasting Credit and Collections 45

Fundera

MAY 7, 2019

Inland marine insurance covers business property that moves over land or that’s stored away from business premises. Most small business owners have all their property where their company is located. Most business owners with tangible assets should already have a commercial property insurance policy. [For

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Insurance Companies Collector Credit and Collections Small Businesses 97

Your Virtual Credit Manager

NOVEMBER 29, 2022

Photo by Ralph Hutter on Unsplash Confronted with high interest rates and inflation, and heading into a what is increasingly looking like a recession, small- and medium-sized businesses (SMBs) will probably need to use a Collection Agency more than they have in the past. it just might help them pay you sooner!

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Credit and Collections Accounts Receivable (AR) Default Collector 130

Fundera

JULY 7, 2018

But a few of your bigger clients are other businesses for whom you had to send invoices for some of that $50,000. And for a few more sales, you’re still waiting for payments to process through the credit card company—so that money hasn’t actually hit your business bank account. Some payments are still outstanding.

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Credit and Collections Collector Credit Card Companies Transactions 89

Fundera

JANUARY 7, 2019

But a few of your bigger clients are other businesses for whom you had to send invoices for some of that $50,000. And for a few more sales, you’re still waiting for payments to process through the credit card company—so that money hasn’t actually hit your business bank account. Some payments are still outstanding.

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Credit and Collections Collector Credit Card Companies Transactions 75