Mountain States Commercial Credit Management Blog

More and more companies are ditching traditional payment methods and switching to digital platforms. What are the benefits — and drawbacks — to this approach?

A mechanic’s lien is a valuable tool for ensuring construction workers and suppliers get paid, but “bonding off” a mechanic’s lien — while sometimes used to discourage claimants from filing a lien — might actually be the best solution for all involved.

Commercial credit is an important element of business strategy, but it does introduce an element of risk. With due diligence, lenders can keep clients happy, increase cash flow, and limit inherent risk.

When a formerly prompt-paying customer falls behind in payments, there’s often a good reason. A tactful approach and willingness to negotiate will usually alleviate tension in the business relationship as well as get the debt paid.

If you rely more on judgment and gut feelings than sound credit practices when extending credit, perhaps it’s time update your process with a credit risk scorecard.

Suddenly switching to having a remote workforce was a necessity for many businesses due to the arrival of COVID-19, and many were unprepared for the switch. Now that we’re a year in, you might want to review some of the legal and related considerations for your remote employees to ensure you remain compliant.

Accounts receivable (A/R) serves a critical function in your business — namely to ensure consistent and accurate cash flow. There are many challenges for those responsible for A/R, and having a dedicated staff to manage them is helpful. Unfortunately, the overhead cost can be prohibitive for some businesses. In those instances, working with a third-party…

The cash conversion cycle (CCC) is an essential metric for businesses who depend on inventory management and related operations. It measures how many days a company takes to convert their raw materials into cash flow from sales, and takes into consideration the payment terms to avoid sustaining penalties. Additionally, CCC helps businesses evaluate their operational…

Cash flow is critical to the success of your business; but when that cash flow is tied up in accounts receivable, you may not be able to keep up with business expenses to keep the business viable. With good people and good accounts receivables (AR) management, you should be able to stay on track. What…

Collection calls for past due invoices are never easy. During the financial crisis brought on by the COVID-19 pandemic, these calls are even more difficult. You’ve spent a lot of time and effort building and maintaining this valuable business relationship, and it’s important to try to preserve it. But cash flow is still a critical…