“How to Minimize Bad Debt Losses” is the second in a series of animated tutorial videos that educate business owners on the features of factoring and how the service could benefit their business.
A bad debt loss occurs when a business is unable to collect a debt that it is owed, and all reasonable efforts have been exhausted to collect the amount owed.
Bad debt losses can be a significant problem for business owners who need these funds to operate their companies.
Make More Informed Credit Decisions
A business owner can help minimize bad debt losses by calling a factoring company before doing business with a new customer. Factoring companies have credit information on retailers of all sizes across the nation and evaluate a retailer’s future ability to pay. This helps the factor make an informed credit decision about a retailer’s creditworthiness. If you factor with a company like CIT, and your invoice is approved and undisputed, you know you’ll get paid.
This short video provides business owners with more information about how a factoring company could help them minimize bad debt losses.
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