Mountain States Commercial Credit Management Blog

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…

As businesses struggle to deal with reduced budgets, staff reductions, supply chain disruptions, and transitions to a primarily remote workforce, security issues may take a backseat, leaving your company vulnerable. Without the proper cybersecurity in place to protect your data and systems, your company could be at risk for cybersecurity attacks. These attacks could not…

We all know the importance of regularly checking our personal credit score; but it’s equally important to monitor your business or commercial credit score as well. A business credit score can affect your ability to secure credit or loans, and can influence your interest rates. It’s important that you check your report regularly to ensure…

In recent years, many companies have adopted remote work options, providing greater flexibility for their employees. This year, however, remote work environments were no longer an option, they became a necessity. For accounts receivable teams, working remotely can present unique challenges, not the least of which include the heightened security and privacy measures required for…

There is inherent risk whenever you extend credit to a business. Managers must perform their due diligence to determine whether that risk is justified. Unfortunately, unforeseen circumstances can arise that may force a company to declare bankruptcy, resulting in unpaid debts. Those circumstances will likely become more prevalent as the COVID-19 pandemic continues to ravage…