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. First we look at Red Flags that may indicate a customer could begin paying slower or default. Far more damaging is a customer that defaults (never pays).

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Collector Credit and Collections Default Third Party Collections 130

Your Virtual Credit Manager

JUNE 4, 2024

Successful collections require the coordination of a variety of activities: timely and accurate invoices and payment posting, monthly statements, email reminders and other dunning notices as well as telephone calls. A Cautionary Tale… As a corporate credit manager, I periodically was tasked with other finance department activities.

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Collector Credit and Collections Past Due Invoices Credit Management 130

Your Virtual Credit Manager

MARCH 19, 2024

If all your customers paid promptly — by the time the invoice was due — you would not need to do any collection work. Collections is a reactive process. The amount of collection activity with which you are tasked is directly proportional to your customers’ payment habits.

Bulk Transfer 100

Bulk Transfer Credit and Collections Bankruptcy Accounts Receivable (AR) 100

Your Virtual Credit Manager

NOVEMBER 12, 2024

Monitoring and evaluating the credit risk posed by public companies and other large firms differs significantly in comparison to small and mid-sized businesses. Because most of your biggest customers will be larger firms instead of smaller, it is typically the larger firms that will require higher credit limits.

Chapter 11 130

Chapter 11 Accounts Receivable (AR) Bankruptcy Credit and Collections 130

Your Virtual Credit Manager

APRIL 2, 2024

Commercial credit scores predict the likelihood of a business fulfilling its financial obligations, particularly regarding debt repayment and trade credit. Commercial credit scores are often not as well understood as consumer credit scores such as FICO.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

AUGUST 27, 2024

Imagine a world where extending trade credit was completely risk-free, and granting open terms of sale to business customers required no second thought. In such an ideal scenario, every customer would have both the ability and the integrity to pay their bills in full and on time, eliminating any need for a credit management.

Accounts Receivable (AR) 100

Accounts Receivable (AR) Credit and Collections Default Cybersecurity 100

Your Virtual Credit Manager

AUGUST 29, 2023

Effective collections are crucial to maintaining a healthy cash flow and the financial stability of your company. If your business is struggling with cash flow or AR balances are growing, it could be a sign that your collections policy requires updating. There are a myriad of issues that can affect collections.

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DSO Credit and Collections Bad Debt Collection Effectiveness Index 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.

Past Due Invoices 100

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

Your Virtual Credit Manager

JANUARY 23, 2024

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. Even more likely are changes to a customer’s business. Situations change, both for you and for your customer.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

NOVEMBER 5, 2024

In other words, they weren’t collecting everything being sold. Three staff members handled both customer service and collection duties, while the Controller managed credit. For the most part, the customer service team only addressed collection issues when a customer placed a new order, which was woefully inadequate.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Credit and Collections Credit Management Default 130

Your Virtual Credit Manager

JUNE 18, 2024

Small businesses in general have a short life span. That means 20% of those smaller firms still in business at year 5 will fail before year 10, and of those that make it that far, 10% more will fail before reaching their 20 year anniversary. The challenge with businesses that employ less than five people is even more acute.

Bad Debt 100

Bad Debt Credit and Collections Credit Risk Credit Card Companies 100

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.

Credit and Collections 130

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

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Credit Sales Bad Debt Credit and Collections Credit Risk 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

JUNE 25, 2024

Rising Days Sales Outstanding DSO measures the average number of days it takes to collect payment after a sale. A rising DSO indicates that your collections are not matching the rate of new sales, and if that goes on for any length of time, your cash flow will not be able to support the volume of your current business operations.

Bad Debt 130

Bad Debt Credit and Collections DSO Days Sales Outstanding 130

Your Virtual Credit Manager

AUGUST 6, 2024

Extending credit is standard practice if you are selling to other businesses. In the world of business-to-business (B2B) commerce there aren’t many situations where you can require payment in advance or upon receipt of goods or services. Extending credit is therefore a risk versus reward equation.

Bad Debt 100

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk 100

Your Virtual Credit Manager

SEPTEMBER 24, 2024

Credit and collections management too often involves simultaneously handling multiple urgent tasks that demand immediate attention. This advice should resonate deeply for anybody involved in credit management, particularly in times of economic uncertainty. Do you need help assessing your customers’ credit risks?

Accounts Receivable (AR) 130

Accounts Receivable (AR) Credit and Collections Credit Management Default 130

Abrigo

DECEMBER 29, 2023

Abrigo's most popular whitepapers and checklists on lending and credit risk Abrigo experts' insights on CFPB 1071, loan policies, and risk ratings were popular with banking professionals. Watch NOW Takeaway 1 Abrigo's experts produced many pieces on lending and credit risk to provide strategies and tools to help banking professionals.

Credit Risk 88

Credit Risk Credit Unions Credit and Collections Small Businesses 88

Your Virtual Credit Manager

MAY 16, 2023

When a commercial account wants to buy your product, chances are they will want credit terms. Business credit, also known as trade credit, facilitates the flow of goods and services between business trading partners. Credit evaluations prevent more bad debts than collection efforts.

Bad Debt 100

Bad Debt Credit and Collections Default Small Businesses 100

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

Your Virtual Credit Manager

JULY 23, 2024

It usually only takes about six months to figure out the segment into which a new business customer will fall. Once each customer’s payment proclivities are known, assigning appropriate monitoring and collection strategies is easily done, thereby ensuring adequate collection coverage. that’s nearly a 30% discount!

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Shared Service Center Small Businesses 130

Your Virtual Credit Manager

NOVEMBER 19, 2024

If that’s the case, collection activities should be at the top of your to do list, because any changes in credit policy and procedures will be too little too late for this year. For those twenty days when you can count on your customers being at work, you need to concentrate on making collection calls.

DSO 100

DSO AR Metrics Credit and Collections Accounts Receivable (AR) 100

Your Virtual Credit Manager

DECEMBER 27, 2022

For example, there are firms burning through their cash reserves that may still be considered worthy of credit on their next order, but not the order that comes in three months from now. Cash flow is the biggest cause of customers defaults, but often cash flow is a result of other financial problems or miscues.

Credit Scoring 130

Credit Scoring Credit and Collections Accounts Receivable (AR) Credit Application 130

Lendio

OCTOBER 26, 2023

Another term for this type of financing is an unsecured business loan. It is important to point out that the lender’s risk is higher with an unsecured loan since it has no assets to take possession of in the event of a default. Because no collateral business loans involve more risk for lenders, these loans tend to be less common.

Small Businesses 97

Small Businesses Credit Scoring Credit and Collections Default 97

Lendio

NOVEMBER 8, 2023

Some lenders are more tolerant of delinquency than others, but at a certain point, late and missed payments result in a default. Read to better understand how a default on a business loan typically plays out and how it could affect you. Default vs delinquency: Understanding the difference. So what happens if you default?

Default 52

Default Credit Scoring Credit and Collections Bankruptcy 52

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

Lendio

NOVEMBER 1, 2023

There are many different kinds of small business loans, making it essential to do your research before beginning any application process. The 11 most popular types of small business loans The following information covers the common routes entrepreneurs take to get the capital they need.

Small Businesses 98

Small Businesses Credit Scoring Credit and Collections Default 98

CreditStrong for Business

SEPTEMBER 27, 2024

Common advice for entrepreneurs is to keep business and personal finances separate. That becomes difficult to do when every business loan or credit line requires a personal guarantee. To keep your personal assets out of business affairs, it’s best to go for business loans and lines of credit that don’t have a personal guarantee.

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Credit and Collections Deductions Default Credit Scoring 52

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

CreditStrong for Business

AUGUST 23, 2024

A good business credit report can be a valuable asset. Keep reading to learn more about how business credit reports work, who creates them, and the information included in these important but poorly understood reports. What Is a Business Credit Report? Good business credit can open the door to opportunities.

Credit Reporting Agencies 52

Credit Reporting Agencies Credit Scoring Credit and Collections Bankruptcy 52

Abrigo

DECEMBER 22, 2023

The most-read lending & credit blogs in 2023 Probability of default, CECL model validation, and stress testing were among Abrigo's top blogs on ALM, CECL, and portfolio risk this year. download NOW Takeaway 1 The most popular blog posts on the Abrigo site reflect many of the priorities community banks and credit unions had in 2023.

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Credit Risk Credit Unions Dashboards CECL 88

CreditStrong for Business

JULY 11, 2024

Equifax’s three primary business credit scores are their Credit Risk Score, Payment Index Score, and Business Failure Score. A good Credit Risk Score or Payment Index Score generally indicates that your business is likely to make its payments on time. The lower the score, the higher the risk.

Credit Scoring 52

Credit Scoring Credit Risk Credit and Collections Credit Reporting Agencies 52

Lendio

APRIL 24, 2024

One key aspect that small business owners encounter when applying for Small Business Administration (SBA) loans is the SBA guarantee fee. In this guide, we’ll explain everything you need to know about it, including its implications, to help you make informed financial decisions for your business.

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Small Businesses Default Credit and Collections 52

Credibly

OCTOBER 31, 2023

Table of Contents What happens if you default on a business loan? What happens if your business defaults on a loan? What’s the difference between default and delinquency? What you can do before your loan goes into default Does defaulting on a business loan affect my personal credit?

Default 40

Default Credit Scoring Credit and Collections Bankruptcy 40

Your Virtual Credit Manager

APRIL 23, 2024

” (Photo by Devon MacKay on Unsplash ) This applies to credit and collections as well as anything else. Credit analysts should also review past decisions to improve their future performance regarding approvals, limits and term setting. it just might help them collect faster enabling them to pay you sooner.

Bankruptcy 130

Bankruptcy Chapter 11 Credit and Collections Collector 130

Your Virtual Credit Manager

APRIL 9, 2024

In such a time of easy money, receivables management becomes less critical and credit policies tend toward laxity. Now that interest rates are higher, it is time for companies to reset their credit policies in order to adjust to the current interest rate environment. Where Are Interest Rates Headed?

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Credit Card Payments Default 130

Your Virtual Credit Manager

FEBRUARY 13, 2024

Following the sharp but short Covid Recession, roughly 5 million small businesses closed shop in the first six months after the economic shutdown, but commercial bankruptcies did not begin increasing until May of 2023, ostensibly due to the government’s economic stimulus programs. it just might help them pay you sooner!

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Bankruptcy Credit and Collections Bad Debt Accounts Receivable (AR) 130