Your Virtual Credit Manager

SEPTEMBER 10, 2024

High Deduction Volumes: Consumer goods manufacturers and distributors, and in particular those selling to chain stores, often incur high volumes of payment deductions. Investigating and resolving deductions alone is much too costly. Do you need help assessing your customers’ credit risks?

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 3, 2023

” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion. Update your customer master file.

AR Automation 130

AR Automation Collector Credit and Collections Bad Debt 130

SAP Credit Management

AUGUST 29, 2023

Credit Value Adjustment (CVA) is the amount subtracted from the mark-to-market (MTM) value of positions to account for the expected loss due to counterparty defaults. Since CVA is a positive value, it is deducted from the risk free NPV calculation.

Transactions 162

Transactions Default Deductions Credit Risk 162

Your Virtual Credit Manager

OCTOBER 17, 2023

(Photo by Jandira Sonnendeck on Unsplash ) In most cases, you therefore have to extend credit to your B2B customers, which entails the following risks: Not being paid anything Being paid an amount less than the full invoice value Not being paid on time, whether in full or in part These outcomes are known as credit risks.

Bad Debt 130

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

Your Virtual Credit Manager

APRIL 18, 2023

Credit Risk Evaluations : If you purchase Credit Risk Insurance, the insurer will serve as your Credit Department. They will perform credit evaluations on all your customers, and they will exclude customers deemed too risky from their coverage.

Bad Debt 130

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

Your Virtual Credit Manager

NOVEMBER 14, 2023

Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). Most companies, however, need incremental sales volume from higher-credit-risk customers to break even and achieve profitability. Insurers want to be paid for the risk they bear.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Your Virtual Credit Manager

APRIL 4, 2023

” This junk AR comes in a variety of forms, such as: Short Payments / Deductions Debit Memos Unapplied Credit Memos Unapplied Cash Late Payment Fees and other Surcharges Unearned Early Payment Discounts Clutter obscures the actual amount a customer owes and when presented as a statement of account can confuse their accounts payable (AP) team.

Past Due Invoices 100

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

Trade Credit & Liquidity Management

APRIL 25, 2025

Options: Off-the-shelf alternatives to maximize revenue and manage risk within the risk tolerance of the company. Credit & Collections Management is both Art & Science Anyone who has managed credit and collections over time knows that this profession is a mix of science and art.

Credit Management 52

Credit Management Credit and Collections Accounts Receivable (AR) Dashboards 52

Gaviti

DECEMBER 18, 2024

Its order to cash software delivers reports that go beyond the standard collections, deductions, cash application, credit, electronic invoicing, and payment processes to include KPI tracking that uncover insights to help improve performance.

Collection Effectiveness Index 52

Collection Effectiveness Index DSO Credit and Collections Invoice to Cash 52

Gaviti

JULY 18, 2024

Gaviti’s invoice-to-cash A/R management and automation platform helps organizations streamline their entire A/R lifecycle, from invoice distribution and credit monitoring through cash application, disputes and deductions. Credit Management and Monitoring. Dispute Management and Deductions.

Cash Forecasting 95

Cash Forecasting DSO Credit and Collections Deductions 95

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.

Credit and Collections 130

Credit and Collections Bad Debt Invoice Disputes Default 130

RMAi Blog

APRIL 13, 2023

When you pay the total amount charged on your card within a billing cycle on time, you will not have to pay interest to the card company, and you will be considered a good credit risk. This will help you qualify for other types of credit such as a home loan, a car loan or even other credit cards.

Credit and Collections 130

Credit and Collections Credit Unions Deductions Credit Application 130

Abrigo

DECEMBER 21, 2020

The specific measures related to small business lending broadens the list of eligible PPP expenses for new borrowers and allows past and future PPP borrowers to deduct expenses paid for by PPP loans. Repeal of EIDL Advance deduction. Lending & Credit Risk. Lending & Credit Risk. Whitepaper.

Credit Risk 78

Credit Risk Deductions Credit Unions Small Businesses 78

Abrigo

JANUARY 24, 2021

Aside from the change to EIDL advance deductions, most of the other revisions to the forgiveness process in the new guidance apply to new loans or loans for which the SBA hadn’t remitted forgiveness payments as of Dec. Credit Risk Management. Lending & Credit Risk. Lending & Credit Risk.

Credit Risk 78

Credit Risk CECL Deductions Small Businesses 78

Emagia

FEBRUARY 21, 2025

With cutting-edge AI, predictive analytics, and seamless integrations, Emagia empowers organizations to optimize cash flow, reduce credit risks, and enhance financial operations.

Accounts Receivable (AR) 40

Accounts Receivable (AR) AR Automation Credit and Collections Cash Forecasting 40

Your Virtual Credit Manager

SEPTEMBER 17, 2024

A former client had the necessary credit and collection expertise for their industry. They understood the dynamics that affected their customers and marketplace, as well as the credit controls needed to keep credit risk in check in this environment. Do you need help assessing your customers’ credit risks?

Credit and Collections 100

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

Your Virtual Credit Manager

JUNE 27, 2023

Firms that take a lot of payment deductions can fall into this category. The key lies in regularly conducting thorough risk assessments, establishing clear risk management strategies, and maintaining open communication to monitor and address any potential issues promptly.

Collector 26

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

Your Virtual Credit Manager

JUNE 13, 2023

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. Sound Credit and Collection practices will help you navigate the impact of these risks. it just might help them pay you sooner!

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

Your Virtual Credit Manager

SEPTEMBER 19, 2023

Raise Their Prices: When you have a high credit risk customer, you should be charging them the highest price possible. This will help compensate you for the high risk you bear and reduce the ultimate loss you may suffer.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

Gaviti

AUGUST 27, 2024

Customers can also use it to view past invoices and payment history and make credit requests from one centralized place. Credit monitoring and management. Automatically manage customer credit from the credit application process through ongoing monitoring with real-time credit risk alerts.

DSO 92

DSO Credit and Collections Deductions Payment Portals 92

Abrigo

MAY 11, 2021

Financial institutions should ask two questions before looking at a global cash flow analysis: Why do examiners want you do to global cash flow analysis, and could the borrower’s credit risk improve by looking globally? The more complex the borrower is, the more risk is involved with the relationship. Lending & Credit Risk.

Credit Risk 78

Credit Risk Credit and Collections Credit Card Payments Deductions 78

Your Virtual Credit Manager

MARCH 12, 2024

(Photo by David Gardiner on Unsplash ) Updating trade credit programs goes beyond defensive measures; it should also align with growth strategies, lower operational costs, and enhance the customer experience. How they pay, determines any additional collection costs that will reduce gross margin.

AR Transformation 100

AR Transformation Credit and Collections Accounts Receivable (AR) Order to Cash 100

Your Virtual Credit Manager

MARCH 21, 2023

In addition to the effect of inflation, AR loses value as a result of profit dilution (when customers do not pay you the full invoice value due to payment deductions or disputes) and bad debt losses. The role of credit should not be focused on preventing bad debt losses, but rather maximizing profits.

Accounts Receivable (AR) 130

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

Emagia

DECEMBER 3, 2024

Managing credit approvals, invoicing, collections, and deductions manually can be overwhelming, error-prone, and inefficient. Manufacturing: Global manufacturers often deal with complex credit risks and diverse customer bases. Emagia automates invoicing and deduction management, ensuring faster cash realization.

Days Sales Outstanding 52

Days Sales Outstanding DSO Revenue Recognition Credit and Collections 52

Your Virtual Credit Manager

DECEMBER 26, 2023

Subscribe now Learn to Recognize These Red Flags There are two types of credit risk affiliated with selling on open credit terms. 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

Gaviti

APRIL 18, 2024

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Disputes and deductions. Credit management and monitoring. Send online credit applications to both existing customers and potential prospects.

AR Aging 52

AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52

Gaviti

FEBRUARY 18, 2024

Monitoring and limiting customer credit to customers with good credit risk helps to avoid late invoice payments, write-offs, and customer debt, all of which impact your cash flow. Having a streamlined and automated process for this eliminates the need for manual credit checking which is time-consuming and resource intensive.

Credit and Collections 52

Credit and Collections Deductions Collector Payment Portals 52

Gaviti

FEBRUARY 18, 2024

Monitoring and limiting customer credit to customers with good credit risk helps to avoid late invoice payments, write-offs, and customer debt, all of which impact your cash flow. Having a streamlined and automated process for this eliminates the need for manual credit checking which is time-consuming and resource intensive.

Credit and Collections 52

Credit and Collections Deductions Collector Payment Portals 52

Gaviti

DECEMBER 28, 2023

For example, the dunning process can be automatically adjusted to segment customers with a high level of credit risk, offering better payment terms and more flexibility to those with a better credit history. It also documents an audit trail of all disputes and deductions for any future analysis or audits.

Credit and Collections 52

Credit and Collections Invoice to Cash Deductions Collector 52

TreviPay

OCTOBER 17, 2024

Benefits and Drawbacks of Each Financing Method Debt Financing Benefits: Retain full ownership, and interest payments on debt are tax-deductible, potentially lowering taxable income. Excessive debt may impact the company’s financial health and credit score. This is because businesses do not have strict repayment schedules.

Credit Scoring 52

Credit Scoring Deductions Credit Risk 52

Gaviti

JUNE 25, 2024

Credit Management and Monitoring. Automatically manage customer credit from the credit application process through ongoing monitoring with real-time credit risk alerts. Tailor the risk assessment process of each customer according to the requirements that align with your business needs. Collections Analytics.

Days Sales Outstanding 52

Days Sales Outstanding DSO Credit and Collections Deductions 52

Emagia

JANUARY 3, 2023

A wrong flagging of a customer with credit risk based on inaccurate data in the OTC or ERP system can trigger an alert negatively impacting the continuation of supplies. Payment received from a customer cannot be used in the business until it has been thoroughly verified and assigned to an open sales invoice(s).

Cash Applicator 52

Cash Applicator Automated Cash Application DSO Credit and Collections 52

Gaviti

APRIL 3, 2024

Use a credit monitoring tool to example customers’ past payment history and require stricter payment terms and implement tighter escalation processes for customers who present a higher credit risk. Carefully assess the payment history of the company and the risk it poses to your business. Disputes and deductions.

DSO 52

DSO Days Sales Outstanding Credit and Collections Collection Effectiveness Index 52

Biz2X

OCTOBER 8, 2024

To calculate profit, or net income, the expenses operating are deducted from business revenues. Income Statement – An income statement tells business owners how much profit (or loss) the company has generated over a measured amount of time. If a SMB is showing a loss, then the company’s current sources of income are not enough to cover costs.

Cybersecurity 52

Cybersecurity Credit and Collections Deductions Small Businesses 52

TreviPay

SEPTEMBER 18, 2024

Deductibles: Some policies include deductibles, meaning the business must absorb part of the loss before the insurer covers the remainder. Policy Coverage and Limits Trade credit insurance typically covers non-payment because of buyer insolvency, protracted default and sometimes political risks.

Bad Debt 52

Bad Debt Default Credit and Collections Export Credit 52

Gaviti

OCTOBER 13, 2024

Proactively identify credit risks. AI can also analyze vast amounts of data to measure credit according to a baseline, discover patterns and predict future payment behavior based on the baseline and patterns. These include: Automate cash application and remittance.

Credit and Collections 59

Credit and Collections Automated Cash Application Bad Debt Invoice Amount 59

Due

OCTOBER 8, 2024

FICO Score This is a credit score created by Fair Isaac Corporation, ranging from 300 to 850, used by lenders to determine credit risk. Several factors determine a FICO score, including payment history, amounts owed, length of credit history, types of credit used, and new credit inquiries.

Deductions 52

Deductions Credit and Collections Credit Scoring Medical Billing 52