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Aligning Credit and Sales

Trade Credit & Liquidity Management

When Sales and Credit are misaligned, there will be conflicts that affect both cash flow and your bottom line. Credit’s job is to facilitate a profitable sale. That means rather than stop sales to high-risk accounts, credit should find ways to make the sale without incurring undue exposure.

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Balancing Credit Sales with Profits

Your Virtual Credit Manager

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.

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It's Time for a Layered Approach to Collections

Your Virtual Credit Manager

More About Purchasing Credit Reports Over time, insights gained from this approach can inform risk assessments for new accounts, which you can use to refine your credit risk parameters.

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The Best Accounts Receivable Reporting Software Solutions of 2025

Gaviti

These reporting features also help businesses predict trends and make more informed strategic business decisions. Accounts receivable automation software , in contrast, refers to a solution that automates the manual tasks of the accounts receivable processes and optimizes them to improve cash flow. Greater A/R efficiency.

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Complete Guide To Credit Control For Business

Know-It Global

Credit control is a vital aspect of financial management for businesses. It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. Setting Up Credit Control Processes 1.1 Setting Up Credit Control Processes 1.1

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Is Granting Credit Terms Worth the Risk?

Your Virtual Credit Manager

As we've shifted from a consumer-driven, industrial society to an information-driven, service-oriented economy, a flood of new risks have worked their way into the credit function. Regulatory and compliance risks have surged with the Gramm-Leach-Bliley and Dodd-Frank acts. Be cautious about sharing sensitive information.

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9 Trade Credit Traps to Avoid

Your Virtual Credit Manager

Subscribe now Nine Credit Traps to Avoid Like anything else, you do not want your credit decisions biased by common fallacies or misplaced trust and perceptions. Credit evaluations prevent more bad debts than collection efforts. In fact, most credit reports have a limited amount of information about their subject.

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