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(Compounding its woes, Monsanto, which sold $150 million of its Roundup Ready soybeans last year in Argentina, had to write down $154 million for bad receivables there).
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Or that the customer has suddenly been hit by a big lawsuit, inadequate insurance, stale inventory or bad receivables?
In September 2000 WorldCom took a charge of $685 million to write off bad receivables and has a remaining bad-debt reserve of $1 billion against $6.3 billion in gross receivables.
Visa Commerce could become a new form of C.O.D. (competing with United Parcel Service) and let companies better manage their cash flow and reduce bad receivables.
Explanation for Bad Advice.
Fitch: For bad spaghetti!
Plan for bad behavior.
Bad-debt provisions accounted for 14% of receivables in fiscal 1997, up slightly from last year's 13%.
National Century gave health care providers cash for their receivables and packaged the income stream into notes it sold to investors.
Then there's the capital for buying receivables, typically around $250,000.
Be sure to send out invoices immediately to avoid waiting for incoming receivables.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com