Credit Research Foundation

APRIL 12, 2024

Cash Flow – A B2B credit card program enhances cash flow through a reduction in the cycle time it takes to close a transaction, whether it be at the point of purchase or a defined payment date, by eliminating float time through the United States Postal Service.

Credit Card Companies 195

Credit Card Companies B2B Credit Bad Debt DSO 195

Your Virtual Credit Manager

OCTOBER 17, 2023

Not being paid in full or in part causes a bad debt loss. The first step is to estimate how much bad debt loss you can absorb as a percentage of sales in a year. Conversely, if the profit margin is low, bad debt losses will have a much greater impact, and credit controls will have to be tighter.

Bad Debt 130

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

Your Virtual Credit Manager

JANUARY 2, 2024

If collections are not done properly and in an adequate frequency , your AR will age, cash flow will decrease, and the risk of bad debt loss will increase. The customer may purchase smaller quantities, which might marginally reduce your annual revenue, but in return your cash flow benefits and your risk of bad debts is reduced.

Bad Debt 130

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

GoCardless

JUNE 24, 2020

Get a little more information on bad debt in accounting, right here.

Bad Debt 40

Bad Debt 40

aptic

OCTOBER 12, 2021

The post From unlikely-to-pay debt to bad debt: how to detect underperforming debtors appeared first on Aptic. Contact me to learn about Aptic’s innovative solutions for credit processing, factoring, e-commerce and retail payments, invoice to cash and leasing! Rick Terra.

Bad Debt 52

Bad Debt Credit and Collections Bankruptcy Invoice to Cash 52

Your Virtual Credit Manager

NOVEMBER 14, 2023

It affects the level of bad debt loss (uncollected Accounts Receivables) you suffer. Selling only to financially strong customers reduces the risk of bad debt loss, (and the cost of Credit and Collections activity required). The increased risk of a significant bad debt loss that your firm bears.

Credit Sales 130

Credit Sales Bad Debt Credit and Collections Credit Risk 130

GoCardless

FEBRUARY 25, 2021

Learn how to record a bad debt expense with our handy guide.

Bad Debt 40

Bad Debt 40

Your Virtual Credit Manager

FEBRUARY 27, 2024

Increased Bad Debt : Inadequate credit checks can result in over extending credit to high-risk customers, leading to slow payments and ultimately bad debt write-offs. Employ Shared Metrics and KPIs : Establishing common key performance indicators (KPIs) and metrics across departments fosters aligned objectives.

Accounts Receivable (AR) 130

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

Your Virtual Credit Manager

OCTOBER 31, 2023

Simply put, if customers have weak financials or a history of late payments or defaults, there is an elevated risk of bad debt. That does not mean you will be able to avoid all bad debt losses due to business failures, but rather be able to minimize them. it just might help them pay you sooner!

Bad Debt 130

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

Credit Research Foundation

JANUARY 11, 2024

This investment enhances customer service, increases productivity, and utilizes data to analyze new customer accounts while monitoring existing customers nearing default and taking proactive, timely actions to reduce bad debt expense.

Credit Application 195

Credit Application Bad Debt Dashboards Default 195

Your Virtual Credit Manager

FEBRUARY 13, 2024

This prediction, although bold, is corroborated by the broader economic data, including escalating corporate bankruptcies, tightening loan standards by banks, and the surge in delinquent debt balances and consumer debt. This is a great way to indemnify your company from most bad debt losses.

Bankruptcy 130

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

Know-It Global

APRIL 26, 2023

Failure to manage credit risk can lead to bad debts, cashflow problems, and eventually, business failure. Use trade credit insurance Trade credit insurance is a type of insurance that protects businesses from bad debts. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them.

Credit Risk 98

Credit Risk Bad Debt Credit and Collections Default 98

Your Virtual Credit Manager

JANUARY 23, 2024

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. We are currently offering 33 percent off our standard small business consulting rates.

Credit Application 130

Credit Application Bad Debt Bankruptcy Credit Scoring 130

Credit Management Group UK

JANUARY 7, 2024

Have you ever had to write of a bad debt? Have you ever put off taking action on a debt, due to uncertainty? Subsequently, moving forward, you will be able to make decisions more quickly, ultimately improving cash flow and reducing your risk to bad debt. Do you find it difficult to get paid on time?

Credit Management 88

Credit Management Bad Debt Credit Risk Credit and Collections 88

Your Virtual Credit Manager

NOVEMBER 22, 2022

Photo by Erik Mclean on Unsplash As discussed in several prior newsletters, the threat of bad debt loss and diminished cash flow from delayed payments increases significantly during a recession. This inevitably result… Read more.

Bad Debt 130

Bad Debt 130

Your Virtual Credit Manager

APRIL 2, 2024

Mitigating Bad Debt Losses : Prioritizing collections based on credit scores will help you minimize bad debt losses by proactively addressing those customers who will tend to become delinquent before they escalate into defaults.

Credit Scoring 130

Credit Scoring Credit and Collections Bad Debt Credit Risk 130

Your Virtual Credit Manager

FEBRUARY 20, 2024

Doesn't Account for Bad Debts : DSO doesn't differentiate between collectible and noncollectable receivables. A company may have a low DSO but still face significant losses due to bad debts. In fact, writing off bad debts will lower your DSO.

DSO 130

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

Your Virtual Credit Manager

OCTOBER 4, 2022

Photo by Ben Cliff on Unsplash A key objective of Accounts Receivable (AR) management is minimizing past due AR to ensure cash in-flows and minimize bad debt losses.

Accounts Receivable (AR) 130

Accounts Receivable (AR) Bad Debt 130

Your Virtual Credit Manager

SEPTEMBER 20, 2022

This creates cash flow shortages, increased risk of bad debt, and a significant work requirement to mitigate the impact of late payments. Photo by Muyuan Ma on Unsplash For most companies, a quarter to a third (and maybe more), of their customers will pay significantly beyond the terms of sale.

Bad Debt 130

Bad Debt 130

Credit Management Group UK

AUGUST 28, 2023

Every business should continually monitor their credit management activity so that any downfalls in the process can be addressed promptly; poorly executed credit management can create significant issues for a business, including, late payments, bad debt and in worst case scenarios, insolvency.

Credit Management 78

Credit Management Bad Debt 78

Your Virtual Credit Manager

APRIL 11, 2023

Late or inconsistent follow-up on overdue accounts leads to longer payment cycles and increased bad debt write-offs. Failure to monitor your receivables, and identify the emerging risks in your AR portfolio, leads to missed payments, increased bad debt write-offs, and reduced cash flow. Business failures are the norm.

Bad Debt 130

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

Your Virtual Credit Manager

MARCH 14, 2023

Focus on the over 60 day past due AR balances to get the most bang for your collection buck This approach foregoes a huge cash flow opportunity (collecting AR that is under 60 days past due), and is not very effective at preventing bad debt (too little, too late). For more on collection efficiency, check out this article.

Collector 189

Collector Past Due Invoices Bad Debt Credit and Collections 189

Your Virtual Credit Manager

FEBRUARY 28, 2023

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. Offering Prompt Payment Discounts to customers can significantly advance your cash inflow from AR and reduce overall exposure to bad debt loss.

Bad Debt 130

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy 130

Credit Management Group UK

MARCH 4, 2024

Having credit risk processes in place from the outset is ideal, but credit risk management procedures can be implemented at any stage to reduce your exposure to risk of bad debt write off, improve cash flow and protect your profit Below are a few methods to use for managing credit risk.

Credit Risk 94

Credit Risk Bad Debt Credit and Collections Credit Application 94

Your Virtual Credit Manager

SEPTEMBER 12, 2023

When unobserved risks build up in your AR, the impact will be slower payments and defaults leading to bad debts. Age of the receivable is secondary because you want to collect as much as possible as soon as possible as well as minimize bad debts. More About Purchasing Credit Reports 4.

Credit and Collections 130

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

Chaser

OCTOBER 16, 2023

Three years later… While a bad debt is incredibly frustrating in our personal lives, overdue payments in business can be crippling. We've all had that one friend who borrows money and assures us that he's going to pay as soon as the cash from his car comes through. These outstanding amounts in business are known as Accounts Receivable.

Bad Debt 98

Bad Debt Small Businesses Debt Collections 98

Chaser

JANUARY 29, 2024

Businesses can seamlessly transfer data via Zapier, between Chaser and their chosen system, to start managing their accounts receivables automatically and reducing bad debts.

Bad Debt 64

Bad Debt 64

Your Virtual Credit Manager

JANUARY 16, 2024

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. Effective debt collection requires a delicate balance between credit analysis and strategic collection efforts.

Debt Collections 130

Debt Collections Collector Credit and Collections Bad Debt 130

Chaser

OCTOBER 16, 2023

We know it's not flashy or exciting, but making sure you've got your admin right will help you get paid faster, avoid bad debt, allow you to accurately predict your cash flow, and even improve your relationship with your customers.

Bad Debt 98

Bad Debt 98

Credit Management Group UK

FEBRUARY 25, 2024

Whilst this figure is slowly reducing, arguably as the issue has garnered a massive amount of press over the last few years, businesses should have strong collection procedures in place to ensure that their risk to bad debt is kept to a minimum.

Bad Debt 90

Bad Debt Credit and Collections Order to Cash Credit Management 90

Know-It Global

MAY 8, 2023

Failure to manage credit risk can lead to bad debts, cashflow problems, and eventually, business failure. Use trade credit insurance Trade credit insurance is a type of insurance that protects businesses from bad debts. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them.

Bad Debt 52

Bad Debt Credit and Collections Credit Risk Default 52

Know-It Global

MAY 8, 2023

Failure to manage credit risk can lead to bad debts, cashflow problems, and eventually, business failure. Use trade credit insurance Trade credit insurance is a type of insurance that protects businesses from bad debts. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them.

Credit Risk 52

Credit Risk Bad Debt Credit and Collections Default 52

Know-It Global

MAY 8, 2023

Failure to manage credit risk can lead to bad debts, cashflow problems, and eventually, business failure. Use trade credit insurance Trade credit insurance is a type of insurance that protects businesses from bad debts. Credit risk is the potential for a borrower to fail to repay a loan or credit extended to them.

Credit Risk 52

Credit Risk Bad Debt Credit and Collections Default 52

Your Virtual Credit Manager

OCTOBER 10, 2023

While substantially higher bad debt losses were realized compared to the rest of the receivables portfolio, the company still made a profit while increasing sales 10 percent and using up excess manufacturing capacity. Over the course of a year, this program proved to be very successful.

Bad Debt 130

Bad Debt Credit Risk Credit Management 130

Your Virtual Credit Manager

AUGUST 22, 2023

The bad news is that nearly 21 percent of last year’s startups will fail this year leaving you with a bad debt on your books if you sold to them on credit terms. However, when the new customer(s) are startups, extending credit can be very risky and potentially damaging should substantial bad debt losses result.

Credit and Collections 130

Credit and Collections Bad Debt Credit Risk Bankruptcy 130

Know-It Global

JULY 5, 2023

By effectively managing your business’s credit and collection processes, you can optimise cashflow, minimise bad debt, and enhance overall financial health. Reduced Bad Debt By carefully evaluating the creditworthiness of customers and setting appropriate credit limits, you can minimise the risk of bad debt.

Bad Debt 52

Bad Debt Credit and Collections Debt Collections Credit Risk 52

Chaser

JANUARY 5, 2024

This comprehensive guide aims to delve deep into the intricacies of credit control, highlighting its pivotal role in maintaining cash flow, preventing bad debt, and ultimately steering businesses towards financial success.

Bad Debt 52

Bad Debt 52