Remove terms-of-use
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“Must Have” Metrics for Receivables Management

Your Virtual Credit Manager

Even if your accounting solution isn’t robust, it should allow you to export your AR details into a spreadsheet that can then be used to create the needed reports and metrics. Photo by Myriam Jessier on Unsplash The alternative. running short of cash can be a disaster! Photo by Myriam Jessier on Unsplash The alternative.

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Gleaning Actionable Insights from Credit Scores

Your Virtual Credit Manager

Scores provide valuable insights into the creditworthiness of business customers and help companies make informed decisions regarding trade credit extension, terms, and risk management strategies. Setting Credit Terms: Scores help the person doing the analysis determine appropriate credit terms, such as credit limits and payment terms.

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Are You Secure?

Credit Research Foundation

They both shared an overview of Article 9 of the Uniform Commercial Code and the use of the same to better your position in the priority chain of being paid on your invoices. So, the question is: What are credit professionals doing about it? The process may seem daunting but there is support available.

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Moving Beyond DSO

Your Virtual Credit Manager

Short-term vs. Long-term Focus : Some metrics may be more suitable for short-term monitoring and decision-making, while others may provide insights into long-term trends and performance. Metrics that are commonly used in your industry or are standardized for benchmarking purposes may be preferred in such cases.

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There's Nothing Good about Extended Payment Terms

Your Virtual Credit Manager

Payment Terms define when a customer is supposed to pay your invoice for the products and/or services your firm provided. at your expense, using your cash. Problems arise when customers try to extend payment terms by another 15 to 30 days or even more. Also, once granted, extended payment terms are very difficult to rescind.

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If You're Not Delivering an Excellent Customer Experience, You're Making Getting Paid Harder

Your Virtual Credit Manager

Here are seven potential impacts: Delayed Payments: If a customer is dissatisfied with the service or product provided, they may delay making payments as a form of protest or to leverage negotiation for better terms. This process can take days or even weeks depending on the complexity of the issue. Here’s a case in point.

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Understanding Your Business Credit Score Range

Lendio

You use it to apply for credit cards and other financing options to cover major purchases. It is used by lenders, suppliers, and other financial institutions to evaluate the likelihood that a business will repay its debts. A personal credit score determines the level of risk that comes with lending to you.