Accounts Receivable (AR) and Bankruptcy - Credit Management Source

Get Ready for a Wave of Commercial Bankruptcies

Your Virtual Credit Manager

FEBRUARY 13, 2024

After, the Great Recession of 2008, commercial bankruptcies peaked in 2009 and did not drop below pre-recession levels until 2012. Department of Justice projects a substantial increase in bankruptcy filings. Trustee Program has estimated that bankruptcy filings will double over the next three years.

Bankruptcy

Bankruptcy Credit and Collections Bad Debt Accounts Receivable (AR)

Is Your Collection Agency a Good Fit?

Your Virtual Credit Manager

APRIL 16, 2024

Market volatility and rising costs are instead disrupting working capital budgets, causing late payments that inflate accounts receivable (AR). There’s scant hope that interest rates will return to pre-Covid, easy-money levels anytime soon.

Accounts Receivable (AR)

Accounts Receivable (AR) Debt Collections Credit and Collections Collector

Are There Hidden Risks in Your AR Portfolio?

Your Virtual Credit Manager

MARCH 26, 2024

Meanwhile, the number of commercial bankruptcies is accelerating. In February, Epiq Bankruptcy reported that commercial Chapter 11 bankruptcy filings climbed 118 percent year-over-year. The point is, where the risks are concentrated in your AR portfolio can change significantly from year-to-year. A Case in Point.

Bankruptcy

Bankruptcy Bad Debt Credit Scoring Chapter 11

Due Diligence Doesn't End with the Credit Application

Your Virtual Credit Manager

JANUARY 23, 2024

Among other things, commercial bankruptcies have been steadily climbing over the past year. Consequently, where the risks are concentrated in your AR portfolio can change significantly from year-to-year, which is why you need to have a program that involves both periodic account reviews and portfolio monitoring.

Credit Application

Credit Application Bad Debt Bankruptcy Credit Scoring

Seven Observations from Silicon Valley Bank's Failure

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. This ties into all the Covid startups and the lack of bankruptcies while stimulus funds were available.

Accounts Receivable (AR)

Accounts Receivable (AR) Bankruptcy Bad Debt Credit and Collections

What Triggers Your Collection Efforts?

Your Virtual Credit Manager

MARCH 19, 2024

Whether you have automated the collection process or not, mapping out collection strategies for the different types of customers in your accounts receivable (AR) portfolio is an accepted best practice. Collection Activity: Consult with legal counsel to understand the implications of the bankruptcy filing on debt recovery.

Bulk Transfer

Bulk Transfer Credit and Collections Bankruptcy Accounts Receivable (AR)

Gleaning Actionable Insights from Credit Scores

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

Credit Scoring Credit and Collections Bad Debt Credit Risk

There's Nothing Good about Extended Payment Terms

Your Virtual Credit Manager

APRIL 30, 2024

In addition, extended terms increase your exposure to customer bankruptcies and the resulting non-payment. Also, once granted, extended payment terms are very difficult to rescind. To compensate, you may have to borrow funds, pay interest and submit to the lender’s conditions and covenants.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Credit Risk Bankruptcy

Using Collateral to Make the Sale

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. There are several ways to mitigate the risk of extending credit on open terms. The headlines paint a grim picture.

Bankruptcy

Bankruptcy Credit and Collections Accounts Receivable (AR) Default

Hitting the Business Accelerator with AR Finance

lsq

AUGUST 15, 2023

Earlier, we discussed the importance of accounts receivable (AR) finance as a valuable lever for companies in survival mode during an economic downturn. Fortunately, not all businesses are in that position. But that doesn’t mean that AR finance isn’t a valuable tool for them.

Accounts Receivable (AR)

Accounts Receivable (AR) Bankruptcy

Are Early Payment Discounts a Good Idea in Today’s Economy?

Your Virtual Credit Manager

FEBRUARY 28, 2023

While bankruptcy filings have not increased substantially in the past year, they have begun to tick up and it is widely anticipated that filing will continue to increase as pandemic relief is finally spent, revenues decrease due to a faltering economy, and costs increase due to inflation and rising interest rates.

Bad Debt

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy

Why AR Finance is a Good Option When Your Bank Says “Go Fund Yourself”

lsq

JULY 31, 2023

For many companies, the answer is accounts receivable (AR) finance. AR finance provides a valuable way for businesses to access working capital quickly by leveraging their outstanding invoices for on-demand payments. AR finance has been a hallmark of LSQ’s business for our nearly 30-year history.

Accounts Receivable (AR)

Accounts Receivable (AR) Bankruptcy Credit and Collections Default

Why AR Finance is a Good Option When Your Bank Says “Go Fund Yourself”

lsq

JULY 31, 2023

For many companies, the answer is accounts receivable (AR) finance. AR finance provides a valuable way for businesses to access working capital quickly by leveraging their outstanding invoices for on-demand payments. AR finance has been a hallmark of LSQ’s business for our nearly 30-year history.

Accounts Receivable (AR)

Accounts Receivable (AR) Bankruptcy Credit and Collections Default

Don't Leave Converting Sales into Cash to Chance

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.

DSO

DSO Credit and Collections Bad Debt AR Aging

Is Your AR Generating All the Cash Flow It Should?

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. Here’s more on credit evaluations.

Credit and Collections

Credit and Collections Bad Debt Accounts Receivable (AR) Deductions

Do Your Customers Deserve Credit?

Your Virtual Credit Manager

DECEMBER 27, 2022

A business's credit history also includes any past bankruptcies or defaults, as well as collection agency placements. In addition, it is a plus when the owners and top managers have no history of bankruptcy. A business with a strong credit history is more likely to be considered creditworthy than one with a weaker credit history.

Credit Scoring

Credit Scoring Credit and Collections Accounts Receivable (AR) Bankruptcy

Is There a Minimum Credit Score for Business Loan Eligibility?

Fundera

MARCH 26, 2018

The number of credit accounts you have. Tax liens, judgments, bankruptcies, collections. On the other hand, if your personal financial history is mostly free of faults (like tax liens , bankruptcies, and judgments), then there’s a good chance you’ll stay on top of your business’s financials, too. . ?TL;DR: Payment history.

Credit Scoring

Credit Scoring Credit and Collections Accounts Receivable (AR) Bankruptcy

Credit Management Source

Get Ready for a Wave of Commercial Bankruptcies

Is Your Collection Agency a Good Fit?

Trending Sources

Are There Hidden Risks in Your AR Portfolio?

Due Diligence Doesn't End with the Credit Application

Seven Observations from Silicon Valley Bank's Failure

What Triggers Your Collection Efforts?

Gleaning Actionable Insights from Credit Scores

There's Nothing Good about Extended Payment Terms

Using Collateral to Make the Sale

Hitting the Business Accelerator with AR Finance

Are Early Payment Discounts a Good Idea in Today’s Economy?

Why AR Finance is a Good Option When Your Bank Says “Go Fund Yourself”

Why AR Finance is a Good Option When Your Bank Says “Go Fund Yourself”

Don't Leave Converting Sales into Cash to Chance

Is Your AR Generating All the Cash Flow It Should?

Do Your Customers Deserve Credit?

Is There a Minimum Credit Score for Business Loan Eligibility?

Stay Connected