Abrigo

FEBRUARY 23, 2022

Loan Decisioning Allows Small Business Lending to Grow Community financial institutions can leverage automated loan underwriting to increase small business lending and achieve consistency. . Takeaway 1 Financial institutions are using small business loans as a source of growth and this trend will continue. .

Small Businesses 78

Small Businesses Credit Unions Credit Risk CECL 78

Your Virtual Credit Manager

SEPTEMBER 3, 2024

To continue reading and learn how to best prioritize your collection efforts for maximum cashflow you must be a paid subscriber to Your Virtual Credit Manager. Do you need help assessing your customers’ credit risks? Learn More About Credit Reports Please share this newsletter with your small business customers.

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

SEPTEMBER 24, 2024

To continue reading and learn how to use calmness and clarity to turn nervousness into excitement to fuel success, you must be a paid subscriber to Your Virtual Credit Manager. Do you need help assessing your customers’ credit risks? it just might help them collect faster and pay you sooner. Share Read more

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

SEPTEMBER 17, 2024

For small business executives, and many mid-sized businesses as well, managing collections effectively can be a significant challenge, particularly when time and resources are limited. Over time, this erodes profitability and financial stability, making it harder to keep the business running smoothly.

Credit and Collections 100

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

Your Virtual Credit Manager

APRIL 2, 2024

Still others may be predictive of default, financial distress or financial health, and creditworthiness. Companies tend to offer more favorable terms to customers with higher credit scores, such as higher credit limits or longer payment terms while imposing stricter terms on higher-risk customers with lower scores.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

JANUARY 23, 2024

Furthermore, new businesses and small businesses tend to have high failure rates, and there is good reason to believe a wave of defaults is coming. The experts at Your Virtual Credit Manager are ready to help you improve cash flow and reduce AR risks during these challenging times.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

CreditStrong for Business

OCTOBER 18, 2024

Yet lenders that use PayNet Scores will typically consider a PayNet MasterScore of 700 or higher to indicate a low level of credit risk. PayNet® is a business credit reporting agency that maintains a database of more than 25 million small business contracts — small business loan accounts, business leases, and business lines of credit.

Credit Scoring 52

Credit Scoring Credit Reporting Agencies Default Credit Risk 52

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

AUGUST 27, 2024

Just 25 years ago, credit executives were primarily concerned with financial risks — except of course for the Y2K bug that briefly stole the spotlight. Delinquency risk and the risk of default were the primary focus. Do you need help assessing customer credit risks?

Accounts Receivable (AR) 100

Accounts Receivable (AR) Credit and Collections Default Cybersecurity 100

Your Virtual Credit Manager

OCTOBER 29, 2024

Don’t get sucked into a prolonged discussion on business conditions or the problems the customer is facing, unless they appear to be indicators of default or business failure. For an Introduction to Business/Commercial Collections, join David Schmidt online November 12, 2024, at 1:30 PM EDT. Share Read more

Past Due Invoices 100

Past Due Invoices Credit and Collections Collector Default 100

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. Here’s more on setting credit limits.

Bankruptcy 130

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

Your Virtual Credit Manager

OCTOBER 15, 2024

To learn more about implementing a strategic collections process, join David Schmidt on October 16, 2024, at 1:30 PM EDT for a webinar on the subject Webinar Registration Do you need help assessing your customers’ credit risks? Learn More About Credit Reports Please share this newsletter with your small business customers.

Chapter 11 130

Chapter 11 Bad Debt Accounts Receivable (AR) Chapter 7 130

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

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

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

AUGUST 22, 2023

Selling to new businesses on credit terms has always meant taking on more risk than is involved with established businesses, but recent substantial increases in inflation, interest rates, and labor costs raises the specter of a large number of business defaults for the foreseeable future. Furthermore, 86.5

Credit and Collections 130

Credit and Collections Bad Debt Credit Risk Small Businesses 130

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

AUGUST 6, 2024

Aggregate Credit Risk and Seamless Trading An important goal for your business is to trade seamlessly with your customers; that is to fulfill their orders completely, accurately and QUICKLY. This will determine how much credit risk you can bear and how tight your credit controls need to be.

Bad Debt 100

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

Your Virtual Credit Manager

MAY 2, 2023

Growth is down, interest rates continue rising, small businesses are facing a credit crunch, commercial bankruptcies are skyrocketing and experts see an emerging threat: Washington Post: U.S. A critical part of this exercise involves identifying active and new customers posing high, or even just marginal, credit risks.

Bankruptcy 100

Bankruptcy Credit and Collections Accounts Receivable (AR) Default 100

Your Virtual Credit Manager

OCTOBER 31, 2023

Economic downturns can impact a customer's ability to pay, leading to delayed or defaulted payments. A recession or industry-specific downturn can significantly impact the value of accounts receivable, making it essential for businesses to diversify their customer base as much as possible. it just might help them pay you sooner!

Bad Debt 130

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

Your Virtual Credit Manager

OCTOBER 8, 2024

Do you need help assessing your customers’ credit risks? The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights. it just might help them collect faster and pay you sooner. Share Read more

Third Party Collections 100

Third Party Collections Credit and Collections Bankruptcy Bad Debt 100

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. 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

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

Your Virtual Credit Manager

DECEMBER 27, 2022

Cash flow is the biggest cause of customers defaults, but often cash flow is a result of other financial problems or miscues. A customer can be paying you with no problems, but then their bank line of credit comes up for review and is drastically cut back by the bank. Please share this newsletter with your small business customers.

Credit Scoring 130

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

Your Virtual Credit Manager

DECEMBER 20, 2022

Why not share this newsletter with your small business customers. Share Controlling Credit Risk Increasing sales to high margin customers disproportionately increases total gross profit. Buy Credit Reports Managing Credit In-house Your other option is to assess, monitor and control the bad debt exposure yourself.

Deductions 130

Deductions Credit and Collections 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

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

OCTOBER 2, 2024

Do you need help assessing your customers’ credit risks? The experts at Your Virtual Credit Manager have default risk probabilities and other financial benchmarks for analyzing your AR portfolio and revealing actionable insights. it just might help them collect faster and pay you sooner.

Past Due Invoices 130

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

Your Virtual Credit Manager

JUNE 20, 2023

Small businesses are under a lot of pressure. It is therefore no surprise that small business owners’ top economic concerns are inflation, recession, commodity prices, the U.S. By altering its Credit Risk Management Policy in this way, businesses can boost revenue and protect profitability.

Credit Risk 20

Credit Risk Bad Debt Credit and Collections AR Aging 20

Abrigo

NOVEMBER 12, 2016

Many community banks and credit unions are turning to small business loans as a source of loan growth. In their Spring 2016 Semiannual Risk Perspective , regulators have publicly acknowledged increasing risk in commercial real estate lending, so small business lending seems like it may be an alternative path.

Small Businesses 74

Small Businesses Credit Unions Credit Risk Default 74

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. Please feel free to share this newsletter with your small business customers.

Credit and Collections 130

Credit and Collections Default Bad Debt Credit Risk 130

MNS Credit Management Group

AUGUST 7, 2023

However, there is always the possibility of loan default. Lenders are picky about whose businesses they give credit to. A company that does not have a sufficient corporate credit score may struggle to obtain crucial loans. What is a company credit score?

Credit Scoring 52

Credit Scoring Credit Risk Credit and Collections Bad Debt 52

Your Virtual Credit Manager

AUGUST 11, 2024

Chapter 11 filings, used by businesses hoping to reorganize, have increased by 34 percent in the first six months of 2024 compared to last year. Chapter 7 commercial liquidation filings are up 28 percent and sub-chapter V small business elections are up a staggering 61 percent despite the filing threshold recently being cut in half.

Sub-Chapter V 100

Sub-Chapter V Bankruptcy Credit and Collections Chapter 11 100

CreditStrong for Business

AUGUST 30, 2024

Solid revenues, profitability, good credit scores, and length of time in business are all driving forces behind what minimizes the credit risk for a lender. Many times even if your business is in a high-risk category, you may still be able to qualify for funding as long as you meet the other criteria.

Credit Scoring 52

Credit Scoring Credit and Collections Insurance Companies Credit Risk 52

Biz2X

JULY 17, 2024

Reading Time: 4 minutes As the Head of Credit Risk at Biz2credit and Biz2X, I manage a team of risk and data science processionals across North America and India, focusing on credit and price decisioning, automation and efficiency in customer journey, and portfolio risk management.

Credit Risk 52

Credit Risk Small Businesses Default 52

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

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? Borrower Reputation.

Credit Scoring 52

Credit Scoring Credit and Collections Credit Risk Default 52