Abrigo

OCTOBER 21, 2024

Warning signs Reacting to the signals of problem loans A problem loan or credit is often identified as a problem asset due to a lack of repayment, a default, or the early identification of a cash concern with the borrower. Read and review every document in full. Review: Are there any defaults under the loan documents?

Credit Unions 78

Credit Unions Default Credit and Collections Credit Risk 78

Your Virtual Credit Manager

OCTOBER 2, 2024

A common approach is to pledge a company’s AR as collateral to secure a loan whose funds are advanced shortly after you submit the necessary documentation confirming the AR’s creation, often an invoice and bill of lading. Do you need help assessing your customers’ credit risks?

Past Due Invoices 130

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

Abrigo

MAY 19, 2023

You might also like this webinar, "Return to basics: Asking the right credit risk questions." Introduction A few good men and women In previous articles, we have explored the objectives of a loan review and credit risk review system in general.

Credit Risk 78

Credit Risk Credit Unions Revenue Recognition Default 78

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. it just might help them pay you sooner!

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

Abrigo

MAY 18, 2023

You might also like this webinar, "Return to basics: Asking the right credit risk questions." How broad a field does loan review need to plow to unearth potential credit risks and assess overall credit quality? Scope in loan reviewing What is the scope of an adequate loan review?

Credit Risk 78

Credit Risk Credit and Collections Default Credit Scoring 78

Your Virtual Credit Manager

DECEMBER 20, 2022

Share Controlling Credit Risk Increasing sales to high margin customers disproportionately increases total gross profit. Readers of Your Virtual Credit Manager can now access sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit. Here’s how?

Deductions 130

Deductions Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Pricing Problems: A supplier of medical devices implemented a new ERP system, but flaws in the pricing application caused it to frequently default to list price (nearly every accounts had exceptions), thereby generating hundreds of incorrect invoices. 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

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

Abrigo

AUGUST 28, 2022

Officials with the banking regulatory agencies recently outlined best practices they encourage as they relate to evaluating an institution’s fair lending risk, and one of those best practices was to document pricing and other underwriting criteria, including exceptions. Lending & Credit Risk. Ag Lending. Learn More.

Credit Unions 78

Credit Unions Credit Risk Default 78

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. An Irrevocable Letter of Credit (LC) confirmed by a solid bank, with your firm named as the beneficiary.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

Your Virtual Credit Manager

DECEMBER 26, 2023

First we look at Red Flags that may indicate a customer could begin paying slower or default. Subscribe now Learn to Recognize These Red Flags There are two types of credit risk affiliated with selling on open credit terms. Far more damaging is a customer that defaults (never pays).

Collector 130

Collector Credit and Collections Default Third Party Collections 130

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 Credit Management 130

Your Virtual Credit Manager

JULY 2, 2024

Hopefully, that gets you past the emotions so you can have a rational discussion about getting paid Habitual debtors repeatedly default on promises and usually have a history of slow payment and defaults. These account provide a serious credit risk, and should not be approved for open credit terms.

Collector 130

Collector Debt Collections Past Due Invoices Credit and Collections 130

TreviPay

SEPTEMBER 18, 2024

Trade credit insurance has become a vital tool for businesses looking to protect themselves from the risk of non-payment by customers. This type of insurance acts as a safety net, covering unpaid invoices when clients default or face financial difficulties. How Does Trade Credit Insurance Work?

Bad Debt 52

Bad Debt Default Credit and Collections Collector 52

Your Virtual Credit Manager

FEBRUARY 28, 2023

It will reduce your Accounts Receivable (AR) balance and the associated elevated credit risk inherent in a larger AR. Getting customers to pay now rather than later reduces the risk of a default down the road. Most distressed companies continue paying, until they can’t. What do you need help doing?

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Abrigo

FEBRUARY 7, 2023

For example, construction loan management software can automate much of the tracking required for preparing draw requests for approval and can ensure approvals and relevant documents are easily accessible for auditability. Manage risk & avoid defaults. Read the whitepaper, "Red flags and warning signs of contractor failure."

Credit Risk 78

Credit Risk Credit Unions Default Transactions 78

Abrigo

MAY 2, 2024

Overall, the bank's loan policy serves as a foundational document that guides the entire small business lending process and ensures that the institution's lending efforts are aligned with its strategic objectives. This includes defining the threshold for material loans or transactions and structuring the lending process accordingly.

Small Businesses 88

Small Businesses Credit Risk Credit Unions CECL 88

CreditStrong for Business

AUGUST 30, 2024

Several industries fall into the low-risk category: Business management consulting Doctor’s offices Dentistry Educational services Software development Utilities These industries also share some key factors that make them safer to lend money to from a bank’s perspective. The best way to get the financing you need is to build business credit.

Credit Scoring 52

Credit Scoring Credit and Collections Insurance Companies Credit Risk 52

Abrigo

MARCH 3, 2021

For more information on the basics of credit analysis, check out this webinar: WATCH NOW. Takeaway 1 Understanding credit risk and assigning risk to loans is the foundation of credit analysis. . Takeaway 2 To determine creditworthiness, most analysts rely on the 5 Cs of Credit. Understanding credit risk.

Credit Risk 78

Credit Risk Credit Unions Credit Scoring Default 78

tillful

JANUARY 9, 2023

Or why SBA loans, the crème de la crème of small business loans, require so much documentation? You’re probably aware that good business credit comes with perks, but it might be less clear as to why. Well, it all comes down to credit risk. What is Credit Risk? In other words, it's the probability of default.

Credit Scoring 52

Credit Scoring Credit and Collections Credit Risk Default 52

Biz2X

JULY 11, 2023

Optical character recognition (OCR) scans and reads submitted documents like tax forms and bank statements so they can quickly be used in evaluations. Easy-to-set borrower eligibility requirements, including minimum monthly income, geographical location, credit history, and more, based on your firm’s lending policies.

Credit and Collections 52

Credit and Collections Debt Collections Credit Risk Credit Unions 52

Credibly

JULY 31, 2024

Going beyond the basic eligibility qualifications for a small business loan Evaluating your small business credit score for a small business loan Collateral and guarantees required for small business loans Why do some lenders require down payments for small business loans? Be aware that different lenders have varied requirements.

Credit Scoring 78

Credit Scoring Small Businesses Credit Unions Default 78

Abrigo

NOVEMBER 15, 2019

Key Takeaways Effective credit risk review promotes lending agility. Many of the objectives of a credit risk review system support business goals. But beyond making it easier to pass examiners’ scrutiny, is a strong loan review system good for your bank or credit union’s business? Identify problem loans early.

Credit Unions 60

Credit Unions Credit Risk CECL international credit 60

Abrigo

JULY 15, 2019

There are four key financial variables industry experts utilize to represent a company’s credit risk profile and to predict their likelihood of default. These variables provide a unique indicator of a private company’s financial standing and have significant implications when evaluating credit risk.

Credit Risk 60

Credit Risk Default Credit Scoring 60

CreditStrong for Business

OCTOBER 24, 2024

Qualifying for a business loan will generally require documentation such as a bank statement confirming the revenue, credit, assets, or banking history of the business. Some small business owners with good personal credit might qualify for a loan that they use for business-related purposes.

Bankruptcy 52

Bankruptcy Credit Scoring Credit and Collections Credit Unions 52

Biz2X

APRIL 13, 2023

Portfolio monitoring occurs after the loan documents have been tucked away and the borrowers have resumed their businesses as usual. Proper portfolio monitoring is important in banking because it reduces portfolio risk, promotes regulatory compliance, and minimizes losses.

Credit Unions 52

Credit Unions Default Credit Risk Credit Scoring 52

Pactola

DECEMBER 7, 2020

While distressed loan servicing may pose significant new challenges, if addressed on a structured approach, it can significantly reduce risk, facilitate timely correction of borrower loan defaults and may ultimately contribute to strong customer loyalty.

Credit and Collections 40

Credit and Collections Bankruptcy Credit Risk Default 40

Abrigo

SEPTEMBER 11, 2023

In the 10 years that followed the Great Recession, mortgages initiated through fintech channels on average grew 30% year over year, reducing the time to originate by 10 days without increasing the default rate.

Credit Unions 78

Credit Unions CECL Default Transactions 78

Abrigo

APRIL 7, 2022

Suppose your institution’s loans are well-secured and strongly underwritten, and you rarely have defaults or loss events. But generally, institutions in this position experienced an increase in reserves in the Great Recession due to risk and saw realized losses between 2008 and 2010. Portfolio Risk & CECL. Keep me informed.

CECL 78

CECL Credit Unions Default Credit Risk 78

Abrigo

APRIL 19, 2022

Takeaway 2 The importance of documentation tracking and storage. Minimize institutional risk by tracking, housing and reporting critical loan and financial documentation. . Loan application software can speed up the process by creating a digital experience that makes document management and processing easier.

Credit and Collections 78

Credit and Collections Credit Unions Default Credit Risk 78

apruve

OCTOBER 5, 2022

Extending net terms to B2B clients has many advantages, but companies run into difficulties in two areas – trade credit administration and accounts receivable management. Trade Credit. Lack of data or credit management experience that exposes the company to higher default risk. Promissory Notes Trade Credit.

Credit and Collections 52

Credit and Collections Days Sales Outstanding DSO Default 52

Biz2X

JANUARY 24, 2023

The software allows lending businesses to make quick credit decisions using customized credit risk profiles, enhance customer experience by implementing full automation or more basic human enablement, and make workflows more efficient to lower costs. The backbone of the digitization of lending is software.

Credit and Collections 52

Credit and Collections Credit Unions Credit Risk Credit Scoring 52

Biz2X

JUNE 27, 2023

Generative AI can also create synthetic data that resembles real-world examples, facilitating robust training of models and simulations to improve credit risk assessment. Risk management While risk management has always been a factor in this industry, in the post-SVB world , risk management has taken on new importance.

Credit Risk 40

Credit Risk Credit and Collections Credit Scoring Credit Decision Automation 40

CreditStrong for Business

SEPTEMBER 4, 2024

The credit bureaus all have multiple ways for consumers to dispute any information contained within their reports that appear incorrect. Be sure to clearly describe the potentially incorrect information and gather any supporting documentation that might be necessary. Can You Buy a House With a Foreclosure on Your Credit Report?

Credit Scoring 52

Credit Scoring Credit and Collections Bankruptcy Credit Reporting Agencies 52

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. Far more damaging is a customer that defaults (never pays). If you haven’t, you almost certainly will…on all three accounts.

Credit and Collections 26

Credit and Collections Bad Debt Default Credit Risk 26

Biz2X

AUGUST 7, 2022

If a recession does occur, then the business loans that are outstanding on a bank’s balance sheet could face higher default rates because of reduced business profits and a potential rise in business failures. Determining Credit Risk for Business Borrowers.

Credit Scoring 40

Credit Scoring Credit and Collections Credit Risk Credit Unions 40