Your Virtual Credit Manager

FEBRUARY 13, 2024

Clearly, the level of Business Credit Risk is going to remain elevated as we move through 2024, bringing with it the potential for corresponding increases in bad debt and delinquency. The good news is that there are a number of actions you can take to reduce your loss exposure and shore up your accounts receivable (AR).

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

Your Virtual Credit Manager

JANUARY 23, 2024

We are currently offering 33 percent off our standard small business consulting rates. Learn More About YVCM Consulting Case Study: Portfolio Monitoring Pays Off Big-Time About 25 years ago, a credit manager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

APRIL 2, 2024

As such, they are just one of the many tools, such as credit reports, supplier and bank references, and financial statement analysis, that can help assess a business's creditworthiness. Commercial credit scores are often not as well understood as consumer credit scores such as FICO.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Accounting Department

JANUARY 19, 2023

However, late payments and bad debts are a constant threat looming over an accounts receivables (AR) team. Accounts receivable reports are a key tool for businesses to manage their AR balances, forecast cash inflow, and stay on top of overdue payments.

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Accounts Receivable (AR) Bad Debt Small Businesses 82

Your Virtual Credit Manager

JANUARY 16, 2024

This also requires that your don’t set yourself further behind by making mistakes collecting your debts. Having your collection efforts back-stopped by a collection agency provides additional leverage to your efforts to get your customers to pay, avoid bad debt losses and preserve future sales to seriously delinquent customers.

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Debt Collections Collector Credit and Collections Bad Debt 130

Your Virtual Credit Manager

JANUARY 17, 2023

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. it just might help them pay you sooner!

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Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

Your Virtual Credit Manager

FEBRUARY 6, 2024

As a small business owner or executive, managing accounts receivable (AR) and navigating through various credit decisions is an integral part of the job. From processing credit applications to negotiating payment plans, each AR activity you undertake requires thoughtful consideration.

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

Your Virtual Credit Manager

APRIL 11, 2023

Accounts Receivables (AR) require active management. Any O2C friction that results will ultimately have a negative affect on AR performance. Photo by Elisa Ventur on Unsplash When a company’s AR under-performs, the consequences are substantial. Business failures are the norm.

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

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. The reduction in revenue and margin, while painful, will be a smaller price to pay than a large drop in incoming cash and the higher risk of a larger, damaging, bad debt.

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Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Effectively managing accounts receivable (AR) is essential for a company's financial well-being. Poor receivables performance affects cash flow, and it is no secret that cash flow problems are the leading cause of business failures. More About Purchasing Credit Reports 4.

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

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. The credit plan will help your organization reduce bad debt and write-offs. You may want to reduce average outstanding receivables by 5% or decrease bad debt by 10% year-over-year.

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AR Automation Bad Debt DSO Accounts Receivable (AR) 89

Your Virtual Credit Manager

JANUARY 9, 2024

From a credit management perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accounts receivable (AR) management tasks that follow have a reactive component. There is nothing wrong with that.

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Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Emagia

NOVEMBER 28, 2023

Key Gains of Autonomous Finance Enhanced Productivity and Efficiency: Automating tasks in accounts receivable (AR), accounts payable (AP), and reconciliation processes reduces, if not eliminates, errors that are commonplace where manual processes still dominate a businesses’ finance functions.

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Accounts Receivable (AR) Bad Debt Order to Cash 64

billtrust

NOVEMBER 1, 2022

The primary goals of accounts receivable The best KPI for accounts receivable Ten AR optimization goals you should accomplish How to get paid faster with key collection strategies How accounts receivable automation can eliminate manual tasks. Bad debt expense.

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Accounts Receivable (AR) Bad Debt Days Sales Outstanding DSO 52

The Esker Blog

DECEMBER 13, 2022

With the New Year right around the corner, it’s an opportune time for finance leaders to review, reassess and rethink their accounts receivable (AR) strategies. Talent attraction & retention Pace of digitalization & innovation Security risks & data breaches Increasing bad debt. Internally.

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Accounts Receivable (AR) DSO Bad Debt Invoice to Cash 97

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you.

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DSO Credit and Collections Bad Debt AR Aging 130

Lockstep

JULY 27, 2022

Increased customer loyalty: Offering credit terms can show customers that you trust them and are willing to work with them, which can lead to increased loyalty and repeat business. . However, there are also some risks associated with offering customer credit, including: . What are some credit policy options?

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Credit Scoring Accounts Receivable (AR) Bad Debt AR Automation 86

Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. Cash that is tied up in AR can’t be used to pay your vendors or reduce the amount you are borrowing. As invoices age further past due, the probability of a bad debt loss increases. The list can go on.

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

Your Virtual Credit Manager

SEPTEMBER 13, 2022

Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. If not approved, there should be an attempt to collect the disputed amount to avoid diluting profits, and if not collected, the deduction should be cleared by a bad debt write-off.

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Deductions Credit and Collections DSO Accounts Receivable (AR) 130

Your Virtual Credit Manager

NOVEMBER 29, 2022

In fact, most SMBs should look into using Collection Agencies to not only maximize the recovery of Accounts Receivable (AR) at high risk of never being collected, but to collect all old receivables.

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Credit and Collections Accounts Receivable (AR) Collector Default 130

Emagia

DECEMBER 12, 2023

Until recently, finance teams managing cash flow have relied on manual processes that suffer from a lack of accuracy and inability to adapt quickly to changing market dynamics, making accounts receivable (AR) and accounts payable (AP) management challenging for the respective managers.

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Cash Forecasting Accounts Receivable (AR) Bad Debt Credit and Collections 52

Your Virtual Credit Manager

APRIL 4, 2023

With a growing number of experts predicting a recession to hit later this year, and inflation and interest rates remaining at elevated levels, squeezing every dollar out of your investment in Accounts Receivable (AR) is more important than ever.

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

Your Virtual Credit Manager

JUNE 20, 2023

In terms of extending credit, tightening credit controls to minimize the risk of bad debt loss is a natural result of this mindset. In our experience, sales and credit risk are never evenly distributed across a company’s accounts receivable (AR) portfolio, which raises opportunities.

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Credit Risk Bad Debt Credit and Collections AR Aging 20

Your Virtual Credit Manager

SEPTEMBER 5, 2023

Subscribe now Impact of Offering Discounts From the seller’s perspective, the effect on revenue from offering an early pay discount needs to be weighed against the potential reduction in Accounts Receivable (AR) carrying costs, bad debt and collection expenses. it just might help them pay you sooner!

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

Your Virtual Credit Manager

MARCH 21, 2023

Subscribe now Lessons to Be Learned Looked at from the perspective of somebody responsible for the management of a portfolio of accounts receivable (AR), the events surrounding the SVB collapse present a cautionary tale. The role of credit should not be focused on preventing bad debt losses, but rather maximizing profits.

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

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

APRIL 18, 2023

So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset? to minimize the chance of bad debt loss. One way is to outsource the function. Then you have a cost/benefit comparison.

Bad Debt 130

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

Your Virtual Credit Manager

NOVEMBER 1, 2022

Effective collections can also reduce bad debt losses by compensating for a liberal or weak Credit Control function. The eternal challenge for collectors is that that there are typically more customers to be contacted than time and resources allow. 15 days or 120 days?)

Past Due Invoices 130

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

Your Virtual Credit Manager

FEBRUARY 21, 2023

That certainly holds true for business processes, including the management of your Accounts Receivable (AR) and the part it plays in the order-to-cash process. If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Gaviti

APRIL 18, 2024

As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (AR) collections aging report. What Is an AR Aging Report? This ensures your invoicing processes are aligned with their accounts payable. Get a demo today.

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AR Aging Credit and Collections Bad Debt Accounts Receivable (AR) 52

Lendio

NOVEMBER 13, 2023

If you’ve faced rejection from lenders in the past , you should devote a long look at accounts receivable financing. What are accounts receivable? These are typically in the form of invoices raised by a business and delivered to the customer for payment within an agreed-upon time frame.

Credit and Collections 52

Credit and Collections Accounts Receivable (AR) Credit Scoring Invoice Amount 52

Gaviti

FEBRUARY 6, 2023

As accounting processes continue to evolve, it’s becoming increasingly clear that harnessing the power of technology can help businesses streamline their operations and make more informed decisions. Below, we’re reviewing some of the top accounts receivable challenges in 2023 and offering quick ways to shore up your collections process.

AR Automation 52

AR Automation DSO Accounts Receivable (AR) Days Sales Outstanding 52

Your Virtual Credit Manager

MARCH 26, 2024

In other words, Portfolio Monitoring involves looking out for external factors that affect your customers and the distribution of risk in your accounts receivable (AR) portfolio. About 25 years ago, a credit manager I know saved his company from a seven-figure bad debt loss by monitoring the Internet on his biggest customers.

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Bankruptcy Bad Debt Credit Scoring Chapter 11 130