article thumbnail

Tackling Customers that Always Pay Late

Your Virtual Credit Manager

To better deal with these customers, it is helpful to segregate them into three groups: Those who are financially strong (low credit risk) and are trying to increase their cash position through late payments. It is, therefore, incumbent that you minimize bad debt losses without overly restricting sales.

Bad Debt 130
article thumbnail

Dealing with Difficult Debtors

Your Virtual Credit Manager

These account provide a serious credit risk, and should not be approved for open credit terms. When an otherwise good customer because a habitual debtor, their credit limit should be revoked. Recovering what you are owed by this type of debtor requires an aggressive, though still professional, collection effort.

Collector 130
Insiders

Sign Up for our Newsletter

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

article thumbnail

The Implications Of Company Structure On Debt Collection

JSP Credit Management

This article aims to explore the different types of companies that exist in the UK and discuss the implications of each of the different structures for the debt collection industry. Therefore, a business owner operating as a Sole trader will be 100% personally liable for all debts owed by the business.

article thumbnail

What is Credit Risk Management: Principles, Examples, and Best Practices

Emagia

Credit risk management plays a critical role in the financial health and stability of businesses across industries. It involves identifying, assessing, and mitigating the potential risks associated with extending credit to customers or counterparties. What is Credit Risk Management?

article thumbnail

What Does 2023 Have in Store for U.S. Credit Risk and FICO Score Trends?

FICO Blog

Credit Risk and FICO Score Trends? Consumers face debt burden challenges that could impact U.S. credit risk and FICO® Score trends. economy, credit scores, and credit risk trends were headed. First, the three main credit bureaus in the U.S.

article thumbnail

Complete Guide To Credit Control For Business

Know-It Global

This guide provides a comprehensive overview of credit control practices and strategies that your business can implement to mitigate credit risk, reduce debtor days and boost cashflow! Setting Up Credit Control Processes 1.1 3: Debt Recovery and Minimising Bad Debt 3.1

article thumbnail

Effective Strategies to Reduce Debtor Days

Know-It Global

Ensure you have a dedicated team or individual responsible for debt collection, maintaining regular communication with customers, and resolving payment issues. These tools streamline processes, reduce errors, and improve overall efficiency, enabling faster and more accurate credit management. Struggling for time?