Your Virtual Credit Manager

JANUARY 30, 2024

The evolution of Accounts Receivables (AR) automation has revolutionized our collection strategies. Manual collection processes centered on an aged accounts receivable trial balance (ARTB) lack the regimentation and efficiency brought about by automation. For a more in depth discussion of systematic collections, click here.

Credit and Collections 130

Credit and Collections Collector Accounts Receivable (AR) Days Sales Outstanding 130

Your Virtual Credit Manager

NOVEMBER 14, 2023

Credit Policy is an inextricable part of a company’s Sales Policy. If you choose to sell on open credit, the terms you offer are in effect part of the price. If you discuss credit terms with a competitor, you are in violation of anti-trust statutes forbidding price fixing. What’s Right for Your Firm?

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Abrigo

OCTOBER 21, 2024

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.

Credit Unions 78

Credit Unions Default Credit and Collections Credit Risk 78

Your Virtual Credit Manager

OCTOBER 8, 2024

Companies selling other businesses on open terms need to ensure any collection agency partners can effectively collect non-performing receivables. Here are four prime example of issues that impede third party collections: 1. Doing this involves taking a series of proactive steps.

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

Abrigo

AUGUST 8, 2021

Independent Loan Review Systems in Banking Banking regulators have outlined expectations for effective, independent loan review and credit risk review. . Takeaway 1 A system for ongoing, independent credit risk review will not look the same from institution to institution. 2020 Interagency Guidance.

Credit Risk 78

Credit Risk Credit Unions CECL Credit and Collections 78

Your Virtual Credit Manager

FEBRUARY 27, 2024

For a small business owner or executive, navigating credit decisions can be challenging, especially when they clash with the goals of other stakeholders within the company. Due to a lack of risk awareness and misaligned priorities these actions often perpetuate internal friction, which can sometimes overflow into the customer experience.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bad Debt Days Sales Outstanding Credit and Collections 130

Your Virtual Credit Manager

DECEMBER 26, 2023

In our case, we found our readers had an affinity for articles on identifying collection risks and the best ways of dealing with past due balances. Hopefully, these insights will help you with your collection efforts Not a subscriber … why don’t you take advantage of a YVCM subscription?

Collector 130

Collector Credit and Collections Default Third Party Collections 130

Abrigo

FEBRUARY 12, 2025

Banks & credit unions use technology to solve challenges AI today is the result of decades of research and development. Financial institutions have embraced advances in data-driven decision-making , using them to improve credit assessment, fraud prevention, and financial inclusion. This Transformer architecture really took off.

Credit and Collections 88

Credit and Collections Credit Reporting Agencies Credit Unions Credit Risk 88

Abrigo

SEPTEMBER 25, 2024

Understanding the role of E-Tran in SBA lending is the first step for banks and credit unions to ensure smooth loan processing. Credit unions only make 2.4%. But both banks and credit unions have substantially increased their lending activity through 7(a) since 2020. SBA-backed loans What is E-Tran?

Credit Unions 151

Credit Unions Credit Risk Credit and Collections Small Businesses 151

Your Virtual Credit Manager

OCTOBER 2, 2024

Who absorbs any potential bad debt loss — does the lender have recourse to return the AR if they cannot collect it versus a non-recourse arrangement? Who performs the Credit & Collection activities — you or the finance company? Your Virtual Credit Manager is a reader-supported publication.

Past Due Invoices 130

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

Abrigo

APRIL 12, 2021

Takeaway 2 Once a bank or credit union understands the need for an LOS, it develop one or use a third-party vendor. A loan origination system (LOS) has become a common banking buzzword among banks and credit unions in recent years. It’s also important to understand how an LOS may be able to help your bank or credit union.

Credit Unions 135

Credit Unions Credit Risk Credit and Collections Cybersecurity 135

Your Virtual Credit Manager

JUNE 18, 2024

That’s why it is standard to ask on a credit applications the year in which the business was formed. Years in business is a critical factor in the assessment of credit risk along with number of employees, which can be a good proxy for sales volume, something private businesses are not always willing to disclose.

Bad Debt 100

Bad Debt Credit and Collections Credit Risk Credit Card Companies 100

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . The credit plan will help your organization reduce bad debt and write-offs.

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Know-It Global

JUNE 20, 2023

Credit control is a vital aspect of financial management for businesses. It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. Setting Up Credit Control Processes 1.1 This is where business credit checking comes into play.

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

Credit Management Group UK

JUNE 16, 2024

Throughout my years in commercial credit management, I have identified several mistakes that companies make within their order to cash process; mistakes that are often very small and easily fixed; make enough of them, however, and you could find your cash flow isn’t flowing the way you would like it to.

Credit Management 101

Credit Management Credit and Collections Order to Cash Credit Risk 101

Abrigo

AUGUST 29, 2022

E-signature capabilities benefit both customers and staff Banks and credit unions that leverage electronic signature capabilities reap the benefits of a more efficient lending process. Takeaway 1 Optimize the signature collection process. Better communication, data collection, and storage offer opportunities for efficiency gains.

Credit Unions 78

Credit Unions Credit Risk Credit and Collections 78

Your Virtual Credit Manager

SEPTEMBER 10, 2024

To optimize the order-to-cash (O2C) process, it's crucial to understand the significant role Credit and Collections plays. Photo by Jay Heike on Unsplash ) What happens during the O2C process, however, apart from credit and collection activities, can have an outsized impact on cash flow and AR performance.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Emagia

OCTOBER 17, 2022

Enterprises digitally transform their credit risk management processes to manage and navigate volatile market conditions, new regulatory pressures, increasing customer expectations, and other credit risks related to customers and vendors. Robotic Process Automation (RPA). Artificial intelligence (AI).

Credit Risk 52

Credit Risk Credit Scoring Bankruptcy Credit and Collections 52

Your Virtual Credit Manager

JUNE 13, 2023

Open Credit Terms dominate the Business-to-Business (B2B) marketplace. Photo by Jamie Street on Unsplash There are two types of credit risk that arise from selling on open credit terms: Customers paying beyond terms (past due) reduce your cash flow. These bad debt losses can put your own business at risk of failure.

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

Abrigo

APRIL 12, 2023

Building a strong credit review process A critical element of monitoring is an organization’s credit risk rating system. This blog will examine credit review in more detail. DOWNLOAD Takeaway 1 Loan review, or credit review, must be timely, thorough, and accurate to meet regulatory requirements.

Credit Risk 78

Credit Risk Credit and Collections CECL 78

Your Virtual Credit Manager

JANUARY 10, 2023

Photo by Patrick Hendry on Unsplash Although defaults resulting in significant bad debt losses are a rare event for trade creditors, much of the focus of AR Management is on credit risk. Banks make money by lending so they pay close attention to the credit risk of the borrower. What are these barriers?

Credit and Collections 130

Credit and Collections Bad Debt Invoice Disputes Default 130

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. annualy, forever.

Collector 130

Collector Debt Collections Past Due Invoices Credit and Collections 130

Abrigo

NOVEMBER 13, 2015

Improving policies and procedures starts with asking for and collecting the right data to fully understand a borrower. Banks, in particular, community banks, have often relied on a borrower’s character, one of the 5 Cs of Credit , to make lending decisions. Throughout the process, consistency among lenders and analysts is key.

Credit and Collections 68

Credit and Collections Credit Risk Credit Unions 68

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. Share How to Clean Up Your AR Ledger Launch a collection program to collect all past due invoices at least 15 days late.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

aptic

DECEMBER 5, 2024

Automated algorithms then assess creditworthiness based on data such as credit reports, historical data, advanced risk assessments, etc. the customer chooses to accept the loan offer, all documents are created and signed digitally. the customer chooses to accept the loan offer, all documents are created and signed digitally.

Credit and Collections 52

Credit and Collections Credit Scoring Credit Risk 52

Abrigo

JULY 5, 2020

Key Takeaways Credit unions participating in the Paycheck Protection Program (PPP) found that the right technology helped them serve business members when they needed help and also gain new members. Technology can facilitate delivery on credit unions' brand promise of relationship-based services.

Credit Unions 78

Credit Unions Credit and Collections Credit Risk Small Businesses 78

Abrigo

MARCH 31, 2023

NCUA expectations for credit unions post-CECL adoption The NCUA's focus on risk, especially credit risk, has implications for credit unions instituting CECL this quarter. Takeaway 2 Credit unions may still have questions about regulatory expectations for CECL after adopting the new standard.

Credit Unions 78

Credit Unions CECL Credit Risk Credit and Collections 78

Due

JANUARY 3, 2023

You might get asked similar questions by lenders when you apply for loans and credit cards. To find out, they might check your credit report. What are credit reports, why are they important and what is in them? What is a Credit Report and Why is it Important? Credit Reports vs. Credit Scores.

Credit Scoring 119

Credit Scoring Bankruptcy Credit and Collections Credit Reporting Agencies 119

CreditStrong for Business

NOVEMBER 7, 2024

Prospective homebuyers seeking a mortgage loan may use several strategies for improving low credit scores. Examples include reviewing credit bureau reports for possible credit account errors, avoiding late payments, paying down debt, and getting a credit builder loan.

Credit Scoring 40

Credit Scoring Credit and Collections Credit Reporting Agencies Credit Card Companies 40

Your Virtual Credit Manager

JUNE 27, 2023

Some have good credit, others are clear risks. The first evidence a business fits this persona is when their payment history — both references and credit bureau report — indicates they pay all their vendors promptly. When that happens, it is time to review their credit again.

Collector 26

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

Your Virtual Credit Manager

APRIL 4, 2023

Supporting profitable sales through the extension of credit Collecting as much of the AR generated as possible by or near the due date to ensure a substantial cash inflow Mitigating the risk of bad debt losses These tasks are best accomplished in a tidy environment. What constitutes optimization of a company’s AR?

Past Due Invoices 100

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

Your Virtual Credit Manager

SEPTEMBER 19, 2023

Now that you understand that your customer has become a liability, it’s time to review their credit worthiness again so you can make informed choices. Order a new credit report, request updated financial statements, and re-check the references provided when they first applied for credit.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

Abrigo

NOVEMBER 17, 2023

How to close more loans by speeding up lending and credit analysis Seeking a quicker loan origination workflow is worth it. You might also like this on-demand webinar on the red flags of emerging CRE risk. At many banks and credit unions, the way lenders and underwriters have handled loans is basically unchanged from decades ago.

Credit Unions 88

Credit Unions CECL Credit Risk Credit and Collections 88

Abrigo

AUGUST 28, 2022

Takeaway 3 Better ag lending workflows streamline document collection and management and increase credit analysis accuracy. . A better ag lending process that makes applying smoother for borrowers can also mean a more efficient workflow for bank or credit union staff. Streamline document collection and management.

Credit and Collections 78

Credit and Collections Credit Unions Credit Risk 78

Abrigo

JULY 30, 2019

Why is writing effective credit memos so vexing? Given that a credit memorandum is one of the most critical documents in the life of the loan, it would seem like a straightforward process. However, lenders, credit analysts, and other banking staff frequently seek tips for writing better credit memos.

Credit Risk 60

Credit Risk Credit and Collections CECL Credit Unions 60

Abrigo

AUGUST 28, 2019

Ask the staff of banks and credit unions about the loan application, underwriting, and onboarding processes at their respective institutions, and you’ll likely hear some complaints from them, too. A look at the steps of an institution relying on manual processes and an institution utilizing technology sheds light.

Credit Unions 60

Credit Unions Credit and Collections Credit Risk Credit Scoring 60

Abrigo

MAY 14, 2021

Data Entry, Documents Vex Busy Lenders in 2021 If your institution adopted more digital processes this year, you're not alone. Takeaway 3 Tracking and following up on documents (largely a manual process in many institutions) is a big obstacle for a third surveyed. But many lenders continue to rely on manual processes .

Credit Unions 78

Credit Unions Credit Risk Credit and Collections 78