Insights
How to Identify Financial Distress in Clients Early
Every business cherishes its reliable, long-standing clients. They pay on time, communicate clearly, and contribute consistently to your bottom line. But what happens when these “good clients” start to falter? When late payments become the norm, excuses pile up, or communication suddenly stops? It’s a scenario many businesses dread, and one that often signals...Read more→
B2B Credit and Collection: Best Practices for Healthy Cash Flow
Extending credit to B2B customers can be a powerful driver of sales growth, but it requires careful management to minimize financial risk. Here’s how to optimize your credit and collection operations: Leverage Technology Cloud-Based AR Software: Say goodbye to outdated spreadsheets and hello to automation! Modern accounts receivable software streamlines your entire order-to-cash process, automating...Read more→
A/R Invoice Collectibility By Age
The average collectibility for B2B invoice receivables by age can vary widely depending on industry, customer base, economic conditions, and credit practices. However, a general trend can be observed in how the likelihood of collection changes over time. The time for outside, “third-party” collection agency action is when the debt may still be collectible, best...Read more→
A/R Deduction Recoverability by Age
Accounts Receivable deductions can dilute revenues from 5% in industrial companies to 20% in consumer products companies. These deductions arise from various issues, including ordering and billing errors, returned merchandise, pricing discrepancies, trade promotion deals, payment discounts, shipping errors, and non-compliance with customer vendor policies. Deduction overcharges, far from being exceptional, are a common occurrence....Read more→