Your Virtual Credit Manager

OCTOBER 22, 2024

To manage the risk that a customer might default, companies implement credit and collection policies and procedures. When a fraud isn’t quickly detected, legal action to recover past due invoices can impact unaware customers. Falsifying documents is another way criminals perpetrate frauds.

Past Due Invoices 130

Past Due Invoices Credit and Collections Credit Card Payments Default 130

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. Clean up your AR Ledger In a perfect world, your AR Ledger would contain only whole, current invoices.

Past Due Invoices 130

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 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. Dealing with this type of debtor requires you to be empathetic, offer support and provide guidance.

Collector 130

Collector Debt Collections Past Due Invoices Credit and 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. Customers refused to pay as billed, frequently demanding corrected invoices.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

MARCH 5, 2024

If you send an email or text you can attach a copy of their account statement and/or invoice ccopies. On a phone call, you should summarize all amounts past due, such as “you owe $10,000 that is over 30 days past due” or reference one or two large past due invoices (number, amount and due date), but no more.

Past Due Invoices 100

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

Your Virtual Credit Manager

JUNE 4, 2024

Successful collections require the coordination of a variety of activities: timely and accurate invoices and payment posting, monthly statements, email reminders and other dunning notices as well as telephone calls. Of all these items, making the necessary phone calls generates the greatest value in respect to recovering past due invoices.

Collector 130

Collector Credit and Collections Past Due Invoices Credit Management 130

Your Virtual Credit Manager

NOVEMBER 14, 2023

Try to get a guaranty from a financially strong related party who will pay the AR if the customer defaults. These customers will require more intense follow up of past due invoices (e.g., at 4-7 days past due versus the two weeks or more that is typical). that is most compatible with the customer.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130