Mountain States Commercial Credit Management Blog

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…

The ultimate goal of portfolio management is to minimize risk and maximize opportunities to grow the business. Organizations that proactively manage portfolio risk are in a better position to take on more risk, with a greater opportunity for return on that investment. But how? One way companies can be proactive and make better risk decisions…

Any conversation dealing with money, especially money that’s owed, has the potential to disintegrate into ugliness. That’s why understanding human nature is just as important as understanding Days Sales Outstanding (DSO) when it comes to making those difficult collection calls. The number one piece of advice is to be prepared. Check out the following tips…