Search results for Canadian Debt
http://www.strategis.gc.caThis is the official Industry Canada website. It provides information and links to a wide range of government services that support Canadian businesses.
Canadian National Debt
American National Debt vs. Canadian National Debt
Canadian Unemployment Statistics
Canadian Inflation Rate
Canadian Natural Gas Prices
Managing Risk in Uncertain Times
The Role of the Credit Professional in the Commercial Leasing Industry by Lisa Moore CCP
December 15, 2009: civil servants in Ireland rally in reaction to the Irish government's vote in favour of a reduction in public sector compensation by 5-15%. The Republic of Ireland is claimed to be facing the deepest financial crisis of any advanced nation and it isn't over yet.
May 5, 2010: striking protestors in Greece, the undisputed pillar of ancient democratic civilization, jam the streets setting the finance ministry ablaze, killing three.
Who Is Committing Fraud in Canada?
A 2009 survey conducted by KPMG called: Profile of a Canadian Fraudster, revealed some interesting demographics on who commits fraud in Canada.
The survey polled senior executives such as CFOs and Vice-Presidents from across Canada and covered a wide range of industries, including Financial Services, Energy and Natural Resources, Consumer Markets, and Industrial Markets. One quarter of respondents had revenues of over CAD$1 billion, with another quarter having less than CAD$100 million in revenues.
Creditors, Suppliers and Security Breaches
Once upon a time, all the suppliers had to worry about what was the credit of their customers and the legal effectiveness of the security liens that they took on inventories. Now, debtors and creditors alike, for that matter, live under the constant threat of security breaches which can have consequences of a material order of magnitude. As a lawyer advising payments companies, I thought it would be interesting to discuss security breaches ...
Deception of the Gift and Prepaid Credit Card
What do you do about those not so great gifts, those gifts you didn’t get and really wanted? If you’re lucky you can return the gifts you don’t want and purchase what you really want! Or you may have received gift cards to buy whatever you want but it may not be from a retailer that you shop at.
Gift cards and pre-paid credit cards (credit cards with amounts already on them) have become more and more the option for giving, it’s simple and easy. The popularity of gift cards has created a new portal for fraudsters to deceive you and relieve you of your hard earned money.
Predictive Indicators - Learn how to read the signs and improve your bottom line
Managing your company’s exposure to risk has become a challenging task. There is more pressure to speed up the credit review process and more responsibility resting on your shoulders to be accountable for your decisions and improve company profitability.
Identity Theft - Practical tips for credit professionals
Every year, identity theft results in millions of dollars of reported losses for Canadians. This has serious implications for credit professionals when it comes to the collection, protection, usage and disposal of the information they gather on their customers. Whether your company accepts payment by credit card, by wire transfer, via e-commerce or by the ageless paper-based cheque method, you need to ensure that your department plays its part in having the necessary checks and balances in place.
Some Recent Canadian Developments in Cross-Border Litigation
Here are some recent developments important to anyone engaged in cross-border civil litigation involving common-law Canada. One, the criteria for determining whether a court has jurisdiction over a non-resident defendant have been revised. Two, the concept of "forum of necessity" is now established in Ontario. Three, Canadian courts will not, as readily as in the past, decline to exercise their jurisdiction in cases where a parallel action (one involving the same parties and issues) has already been commenced elsewhere.
CRA Trust Overrides Contractual Right To Set Off
In a recent decision involving the Canada Revenue Agency (CRA), and the Caisse populaire du bon Conseil (Caisse), the Supreme Court of Canada, (SCC) considered whether a lender’s contractual rights in respect of its customer’s term deposit account could be overridden by a deemed statutory trust in favor of the Crown.
The issue was whether the Caisse, by virtue of its contractual arrangement with its customer, Camvrac Enterprises Inc, held an iron clad security interest over the proceeds of its deposit account that could not be overruled.
Supreme Court Rules Crown DoesnĂ˘â‚¬â„˘t Have Rights To GST And QST
In a unanimous decision on October 30, 2009 relating to the Goods and Services Tax (“GST”) and the Quebec Sales Tax (“QST”), the Supreme Court of Canada rejected the most recent attempt of the Crown to secure its position by recovering the tax portion of accounts receivable outstanding at the time of bankruptcy where the bankrupt had not made the required remittances.
Factoring Agreement: Security or Sale of Assets?
Lenders and other members of the factoring community should be aware of the potential impact of a recent ruling on a priority fight over the accounts receivable of a bankrupt company. One of the issues that the court had to consider was the application of a factoring agreement.
Debt Collection Rules
If you deal with consumers, you should be mindful of the debt collection laws in force in the jurisdictions where your customers are located. Adapted from the...
Info from Visa
What is expected of a credit manager when a customer claims that he was a victim of identity theft, and the debt is not his?
PPSA & Legislative Q's
Links to Debt Collection Laws and Statutes
Financial Ratios and Related Tools
A ratio by itself is an incomplete figure that could be misleading if analyzed in isolation. To perform an analysis, inter-related ratios should be examined and calculated over a period of time to see the trends, and then compared to ratios of industry or peers.
International Financial Reporting Standards
Effective January 1, 2011, IFRS will replace current Canadian GAAP accounting standards for Canadian publicly accountable enterprises (PAE) and Government Business Enterprises. As of this date as well, private companies have the option of adopting IFRS or the new Canadian standards developed specifically to meet their users' needs which are referred to as the Accounting Standards for Private Enterprises.
Return on Equity Financial Expression
Efficient use of assets is important for the profitability and growth of any organization. One of the easiest ways to gauge whether a company is an asset creator or cash user is to look at the return on equity (ROE) ratio. ROE is a strong measure of how well management is creating value for shareholders.
All About Choice
Experience has told us that when the economy turns bad, it’s time to expect more accounting shenanigans from public companies. This can happen in three ways.
Sometimes, a company has been using aggressive accounting for years, and a dismal economic picture makes it difficult to hide the old chicanery any further. Other times, a firm decides to use accounting tricks to mitigate the impact of poor operating results.
Cash Flow Myths
It's just too easy to mislead the average investor in Canada. Financial reports can be arcane and confusing even for professionals. Adding to the problem are regulators who don't care to clean up pervasive scams, much less make financial statements more usable for investors.
Fraudulent Financial Information
Often, the depth and breadth of a credit analysis is based on the risk associated with a potential or existing customer. For example, when the risk is considered low, a simple trade reference check might suffice whereas in cases where the stakes are high, many seasoned and trained credit managers will resort to financial statement analysis. Aside from the challenge of getting your customers to furnish financial statements, determining the reliability of such documents can prove to be quite tricky.
Financial statement simple analysis
In today's environment the obtaining of Financial Statements from a customer is becoming virtually impossible. A good credit professional needs to sell his customer on the benefits of supplying at least a common size balance sheet and income statement in order to justify a credit limit sufficient to meet both yours and the customer's needs.
Role of the Credit and Collections Department in Business
Companies expect their credit department to be sales oriented. Put simply, this means the credit department should be looking for reasons to justify establishing open account terms and/or releasing orders pending, rather than looking for excuses to hold orders or to reject applicants for open account terms. Having this simple idea in mind can make
Webster’s dictionary defines ethics as: “ A set of moral principles or values”, and ethical as: “ Conforming to professional standards of conduct.” To help guide ethical behaviour in the credit department, it’s important to start with a written credit policy.
Role of the Office of the Superintendent of Bankruptcy (OSB)
The Office of the Superintendent of Bankruptcy (OSB) is part of Industry Canada. Their role is to ensure public confidence in the market place by protecting the integrity of the bankruptcy and insolvency system.
CREDITâ€™S UNTOUCHABLE CODE
There is one principle of credit management which is inviolable. In fact it’s as close to being sacrosanct as Canada’s right of sovereignty over the Northwest Passage. To break with this code would be to dismantle the basic principles of credit management and the outcome would be similar to the situation which I am certain that we have all experienced in the past, when the little boy visits the grocery store with his mother and is transfixed by the beautifully structured pyramid of apples.
BIA compared to the CCAA
The Companies' Creditors Arrangement Act (CCAA) is a federal law allowing insolvent corporations that owe their creditors in excess of $5 million to restructure their business and financial affairs. Under the CCAA, corporations ask the Court for protection while they prepare ...
Search Sites for Bankruptcies in Canada and the US
In Canada, you can check on the Superintendent of Bankruptcy search site, or in the US, by looking for a filing on PACER, (Public Access Court Electronic Records.) You will have to establish an account on PACER, but the fees are ...
PIPEDA and Collections
Often, collection activity requires interacting with personal information about a consumer, in order to research, contact or collect from that consumer. Whether you are in an internal receivables department, third party collection agency, or you are a legal agent...
The 4C's of Credit for Business
Credit people look carefully at trade accounts, especially in tough financial times, before they ship goods. What credit managers look for can be...
Foreign trade differs from domestic trade with respect to the instruments and documents employed. Most domestic sales involve an open-account credit where the customer is billed and has so many days to pay. In international trade, the seller is seldom able to obtain as accurate or as thorough credit information on the potential buyer as with a domestic sale.
What is a Proposal?
Under the Bankruptcy and Insolvency Act, a Trustee or an Administrator of Proposals files a Proposal or an arrangement between you and your creditors to have you pay off only a portion of your debts, extend the time you have to pay off the debt, or provide some combination of both.
What to do when a customer files for Bankruptcy
Find out exactly what the situation is. Most people when they think of bankruptcy only think of the final stage, where the customer is no longer in business. In reality there are a few different types and various levels of severity.
- current Ratio
- Acid Test
Debit - Equity Ratios
- Current Debt to Tangible Net Worth
- Total Debt to Tangible Net Worth
- Working Capital
- Net Worth
Credit Rules (Axioms)
If short-term credit suppliers are paid by asset conversions, then the primary interest should be centered on the balance sheet and their focus of attention should be liquidity.
If a customer must pay back a debt over time, what are the 6 critical elements in negotiating payment plan?
Why are monitoring and control procedures critical to reduce bad debts and overdue accounts?
Risk assessment is a step in a risk management procedure. Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat (also called hazard). Quantitative risk assessment requires calculations of two components of risk (R):, the magnitude of the potential loss (L), and the probability (p) that the loss will occur.
Web sites of companies that provide credit reports for Canadian companies.
Hypothec Definition: - Is a charge on property upon which an unpaid creditor may enforce payment of the debt. It is the right of a creditor to take a...
Construction credit is a unique and specialized form of mercantile credit. Although the field follows many of the same principles, practices and procedures as mercantile credit, there are a number of factors that make the practice unique. In order to be successful, the credit professional must...
Leasing and Rentals
Merchantile Credit Managers are well trained to deal with how to manage the credit and collections of the transactions of selling of a product or services from one business to another. However, the Leasing or Rentaling of a facility or a piece of equipment deserves special consideration.
The Quickening of Innovation in Asset Based Financing
Some would call it evolution: others, revolution. Semantic flourishes aside, financial technologies are increasingly in the foreground as drivers of product differentiation and proliferation in the asset-based financing industry.
Acceleration Clauses in the Event of Default â€“ Are they enforceable?
All leases have an acceleration clause when there is a default, however there is not a consistent approach as to what the damages will be. Some leases require the defaulted lessee to pay the balance of payments due without discount while others utilize a net present value formula applying a discount rate close to, but generally below, the interest rate implied in the lease. A few still use “the rule of 78’s” (but few under 50 know what that means). The recent case, Hav-A-Kar Leasing Ltd. v. Vekselshtein 2012 ONCA 826 (“Hav-A-Kar”) discussed this matter but may have not quite got it right.
Introduction to Corporate Governance
Why is governance important from a credit risk perspective? Jeremy Brisset, corporate lawyer at Osler, Hoskin & Harcourt will tell you at our next Live Webinar. This webinar will be of value to members of the credit sector, particularly those in commercial credit industry.
Sharpen Your Financial Analysis Skills
https://creditedu.org/knowledgecentre/index.php/site/video/143Presented by George Brown, MBA, CMA, CCP, CIA
Lifting or Piercing The Corporate Veil
https://creditedu.org/knowledgecentre/index.php/site/video/144If you always thought that incorporation generally protects shareholders and directors from personal liability when things go wrong, then this webinar is for you. Our webinar leader is Andrew Hladyshevsky, QC, LLB and a partner with the law firm, Fraser Milner Casgrain
Alternative Dispute Resolution In Credit and Collections
https://creditedu.org/knowledgecentre/index.php/site/video/148Presenter: Stephen Morrison, Partner, Cassels Brock, LLP
Target Take Two
http://www.creditedu.org/files/pdf/webinarsTarget_Canada_Keynote_Russell_Bennett_13Oct15.pdfBack by popular demand, Russell Bennett will revisit the bankruptcy of Target and the fall out for its creditors. In May, when we first held this Live-Webinar, it generated a lot of interest from our members â€“ follow up questions continue to come in to the National office.
Betting The Company: BOMBARDIER Goes All-In on C Series Jets and Blows Up Its Balance Sheet
https://creditedu.org/knowledgecentre/index.php/site/video/170A brief analysis of Bombardier's woes and what we can learn from a company undertaking a massive project, consuming working capital, and ultimately destroying its balance sheet.
Builders lien across Canada
https://creditedu.org/knowledgecentre/index.php/site/video/173Please mark this webinar in your to-do-list for what will surely be a very informative session from a noted authority on construction liens.
If A Customer Must Pay Back A Debt Over Time, What Are The 6 Critical Elements In Negotiating Payment Plan?
https://creditedu.org/knowledgecentre/index.php/site/tool/183Please enjoy this complimentary video from our Best Practices Series
If A Customer Must Pay Back A Debt Over Time, What Are The 6 Critical Elements In Negotiating Payment Plan?
https://creditedu.org/knowledgecentre/index.php/site/page/184Please enjoy this complimentary video from our Best Practices Series.
The Automotive Industry
https://creditedu.org/knowledgecentre/index.php/site/video/185Discussion topics will include: Key financial metrics for auto dealers, Inventory turnover and inventory cost vs. floorplan debt values, Gross profit and Absorption ratios, Debt-to-tangible net worth and debt service coverage, Dealing with the credit arm of banks to finance growth, Covenant requirements and what happens if covenants are in breach, and Common tax-planning items and the misconceptions this can have with credit institutes.
https://creditedu.org/knowledgecentre/index.php/site/video/191There are a few reasons a debtor might say theyâ€™ll see you in court, and none are in your favour. More importantly, you donâ€™t need to go to the stress, lost time and expense of suing an individual or business over a debt.
International Debt Recovery, Legal Obstacles & Strategies
https://creditedu.org/knowledgecentre/index.php/site/video/187INTERNATIONAL DEBT RECOVERY, LEGAL OBSTACLES & STRATEGIES
How a commercial lender will evaluate your creditworthiness for a loan
When you apply for a commercial loan, lenders assess your credit risk based on a number of factors known as the “5 C’s of Credit.” Understanding these factors will help you build your personal and company credit standing while ensuring your ability to obtain credit when your business needs it most.
Here is a breakdown to help you better understand these factors and what all lenders look for:
A Digital Approach To Receivables Management
This presentation will discuss: Receivables Management: Pre-delinquency, Collections, Pre-Legal/Recovery and Legal Enforcement; Utilizing highly automated platforms with integrated and configurable work flows; Outcome-based strategies for various types of debt, customers and agencies; Enhanced communications and document management; Receivables Analytics - what information you can get and what you can do with it.
The warning signs that preceded Carillion's fall
Not since the financial crisis has the collapse of a business had such a political impact, but the warning signs had been flashing at Carillion for all to see, says Jane Fuller.
Already pinched, many Canadians anxious about higher rates
BMC's 3Q Net Doubles; Lumber Price Hikes Help Sales Grow 7.3%
https://creditedu.org/knowledgecentre/index.php/site/page/222BMC Stock Holdings, corporate parent of the nation's second-biggest full-service lumberyard, reported today its net income doubled to $18.4 million in the third-quarter from a year-earlier $9.2 million on a 7.3% increase in net sales to $881 million.Operating income actually dipped 1.2% to $33.3 million. The big change in net income stemmed largely from the fact that the company incurred a $12.5 million loss last year on extinguishment of debt but didn't report any such action this year.
Cedar Creek Deal, Other Costs Push BlueLinx Into the Red
Fresh off of its acquisition of Cedar Creek, BlueLinx reported today a first-quarter net loss of $13.4 million, swinging from a $600,000 profit in the year-earlier period. Sales rose 2.1% to $437.5 million. Gross profit totaled $55.3 million, a 1.6% gain, the Atlanta-based distributor said. Gross margin was essentially unchanged at 12.6% of revenues.
Remington Outdoor Company Plan of Reorganization Confirmed by the Court
https://creditedu.org/knowledgecentre/index.php/site/page/225MADISON, N.C.--(BUSINESS WIRE)--Remington Outdoor Company (â€śRemingtonâ€ť or â€śthe Companyâ€ť), one of the worldâ€™s leading designers and manufacturers of firearms, ammunition, and related products, today announced the United States Bankruptcy Court for the District of Delaware confirmed the Companyâ€™s Plan of Reorganization (â€śthe Planâ€ť). Remington expects to emerge from bankruptcy before the end of May.
PetSmart taps advisers to trim $8 billion debt pile: sources
https://www.reuters.com/article/us-petsmart-debtrestructuring/petsmart-taps-advisers-to-trim-8-billion-debt-pile-sources-idUSKCN1J21YD(Reuters) - PetSmart Inc, the largest U.S. pet retailer, has hired restructuring advisers to explore ways to trim its debt pile of more than $8 billion as it continues to face falling profits, according to people familiar with the matter.
Do You Have a Credit Policy for Your Organization?
If your business lets your customers receive goods or services now in return for a promise to pay later, then your business grants credit. And you are not alone. Most businesses grant a credit to their customers, especially if their customers are other businesses (B2B—business-to-business). In fact, this is the most common type of credit offered in the business world and most of the credit offered in this way is unsecured.
Whatâ€™s the Link Between Communication and Credit Management?
Ultimately, having a credit policy only works if people know about it; what it covers and what the rules are. Put another way, why have a policy if staff members don’t know what is, or what it means? After all, it’s not a secret. So, the next step after you get a credit policy in place is to let your organization’s team know about it. This is the role of the credit team. They should meet with owners and/or a senior manager, to get the buy-in and sign-off, if that has not happened already. Once this is done, the next step is to...
How to Better Know Your Customers
As a credit manager, a critical part of your role is to identify who you can trust and to what extent you find their claims realistic. This is translated into knowing your customers well and defining whether they can pay you as agreed. Naturally, you may not have much information for new clients. The amount of credit awarded requires careful consideration when managing new and existing customers. Luckily, there is a method for evaluating how creditworthy they can be.
Legal insights on minimizing exposure to bad debt and maximizing recovery efforts
In this webinar you will learn: What information should you gather from new customers?, The importance of documenting, How can you identify opportunities for recovery?, and What remedies might the law offer?
Q and A (4)
What can creditors do to protect themselves when a customer remits a cheque, for less than the full amount owing, and marks it "Paid in Full" or words to that effect? Also, what can a creditor do to protect themselves in this situation when their company uses a "lock box" or "shared service" center and the A/R personnel may not even see the cheque prior to it being negotiated? Is the law that governs these scenarios Federal or Provincial?
Courts are very familiar with this tactic and will generally not give effect to it. A cheque marked “paid in full” may very well be evidence of an agreement to reduce the debt owing, but it is easily rebuttable by clear evidence that the creditor accepted the payment only as partial payment. This is based at least partially on the concept of consideration. Put simply, this concept involves the idea that you do not get something for nothing. What the debtor is attempting to do in this situation is to receive a discount on its debt without providing any real benefit to the creditor in return. The courts will not allow a debtor to unilaterally alter its agreement with its creditor - which is what it is attempting to do with the notation on the cheque.
One possible method of dealing with such attempts would be regularly forwarding statements thanking the debtors for any payments received and indicating the account balance to date. If the debtor then challenges the statement arguing that payment had been made in full by way of the cheque in question, all the creditor would have to do would be to respond by saying it was received in partial payment. Unless the debtor is able to produce some sort of an agreement with the creditor showing the creditor’s agreement to accept the reduced amount in full satisfaction for the amount owing, it is extremely unlikely that the courts find in favour of the debtor.
Of course, if the creditor notices the notation before it deposits the cheque, it can also send a specific letter to the debtor thanking it for the payment and saying that the payment has been applied against the amount owing, that the creditor did not agree to accept the payment in full satisfaction of the amount owing and that the balance remains owing by the debtor.
The law governing these scenarios is the common law of contract, which is a matter within the jurisdiction of the provinces. As such, the law as interpreted in one province may not necessarily be applied in another. However, frequently the courts in one province will consider and often follow the decisions of courts in other provinces.
We see more and more public companies partially or completely reorganizing as Income Trusts. What are the advantages and disadvantages to the company and what could the ramifications be to trade creditors? Is there anything we should be questioning or looking for in this type of transaction?
An income trust (the "Trust") is essentially an investment vehicle which a corporation (the "Corporation") can establish in order to divert and distribute its revenues in a generally more tax efficient manner to the investors of the Trust.
While the pros and cons of establishing an income trust are largely tax driven, extremely complex and beyond the scope of this forum, income trusts basically operate by taking the monies raised by the Trust from its investors and loaning them to the Corporation. Such loan can either be on a secured or an unsecured basis. Revenues from the Corporation's operations are then paid to the Trust in order to service the loan with those monies then being available for distribution to the Trust's investors.
The typical structure sees virtually all of the Corporation's distributable income paid out without corporate tax because the income is being used to service the Corporation's debt (e.g., the loan from the Trust). If the investors of the Trust are tax-exempt entities such as RRSPs or pension funds, payments to them from the Trust will be received on a more favourable tax basis than if the monies were distributed as dividends.
While the establishment of the Trust will not alter the manner in which the Corporation carries on its business (note that the Trust does not carry on business - it is simply an investment vehicle), the difference is that with the establishment of the Trust, the Corporation has a new and typically large creditor (being the Trust) whose debt must be serviced by the Corporation.
From the perspective of companies doing business with the Corporation and extending credit to the Corporation, while the creation of the Trust in and of itself will not negatively impact upon the Corporation's ability to carry on its business, companies doing business with the Corporation may be at a greater risk should the Corporation subsequently run into financial difficulties. Aside from the Corporation having less flexibility to refinance since cash flow will be committed to debt service on the monies owing to the Trust (and other lenders), the Trust represents a new creditor which did not previously exist. If the Trust's loan to the Corporation is made on a secured basis, the Trust will be entitled to recover its monies prior to all of the Corporation's unsecured creditors, thereby diminishing the pool of funds available to the unsecured creditors. Similarly, secured creditors are at risk to the extent that the Trust's security has priority over their security. If the Trust's loan to the Corporation is made on an unsecured basis, the Trust will be another unsecured creditor sharing in the monies available to the unsecured creditors, meaning less monies will be available for the unsecured creditors had the Trust not been created.
What action can be taken to address recessions?
Because recessions are often caused by decreasing demand, the financial engineers want to increase the demand by offering financial stimulants in the form of tax reductions, subsidies in the form of transfer payments or interest rate reductions to make credit easier to obtain. This slowdown is largely caused by a collapse of the debt structure resulting in many people declaring bankruptcy or being laid off. It is unlikely that easier credit is the answer. As the Sub Prime collapse really affected poor and middle-class families, a tax break is not about to put much money in their pockets. The solution may take us back to the 1930’s when the focus of Government had to be on creating real jobs. Fortunately, real jobs in Western Canada are insulating Canada from the full impact of the situation in the U.S., but there may only be a 3 to 6 month delay.
How does theoretical economics affect credit decisions?
- As we have seen in the recessions of 1991 and 2001, marginal companies in many sectors will be forced to file for protection because of liquidity problems caused by them failing to meet their financing covenants, or the bank not renewing their line of credit, or credit becoming more expensive. A failure of a major buyer can cause a company to break its covenants and be outside of its margining limit.
- With publicly traded companies, the problems may occur, but at least there is disclosure required if public companies are not meeting forecasts or they are outside of their banking covenants or they are having difficulty renewing their lines of credit. Furthermore, often the debt of these companies is rated and the company’s fortunes are followed by industry analysts.
By the time a credit manager gets the information, the company may already have a large exposure to the buyer. As the situation deteriorates it may be difficult to bring the exposure down. It is a question of timing, the poor results may not be reported for several months and during that period the exposure has been continuing to run. The time between the disclosure of the problem and the reorganization may be very short as the buyer and secured creditors want to protect the assets.
- With private companies the problem is exacerbated, as it is difficult to even obtain financial information, let alone be advised in advance of developing problems. Suppliers don’t know if sales are down, margins are being squeezed or there are problems with the bank. If a credit manager can obtain Financial Statements, they provide a historical picture at best. The effect of the recession is happening in real time, out of sight.
In summary, credit managers work with very imperfect information. Time works against them in obtaining information and they have to often make credit decisions projecting 3 to 6 months ahead. A recession in the U.S. affects many buyers, but in most cases, the credit manager can only guess at how much the buyer is impacted.
https://creditedu.org/knowledgecentre/index.php/site/wiki/10Property that is pledged as security against a debt.
https://creditedu.org/knowledgecentre/index.php/site/wiki/24The difference between the market value of an asset and the debt against it.
https://creditedu.org/knowledgecentre/index.php/site/wiki/31An individual or a corporation who takes on financial responsibility for another's debt.
https://creditedu.org/knowledgecentre/index.php/site/wiki/59Any liability of the debtor for a debt incurred before the date of the bankruptcy.
https://creditedu.org/knowledgecentre/index.php/site/wiki/15One to whom a debt is owed; in insolvency matters, a person or corporation having a claim provable under the Act.
https://creditedu.org/knowledgecentre/index.php/site/wiki/40A legal right or interest that a creditor has in the debtor's property, lasting usually until the debt that it secures is satisfied.
https://creditedu.org/knowledgecentre/index.php/site/wiki/16Liability on a claim; a specific sum of money due by agreement or otherwise; aggregate of all existing claims against a person or a corporation.
https://creditedu.org/knowledgecentre/index.php/site/wiki/39Financial obligations or debt of an individual or a corporation, including unpaid taxes, salaries, accounts payable etc.
https://creditedu.org/knowledgecentre/index.php/site/wiki/65A person holding an instrument such as a mortgage or hypothecary claim, a lien or preference on or against the whole or part of the property of a debtor as security for a debt due to him from the debtor.
https://creditedu.org/knowledgecentre/index.php/site/wiki/43A conveyance of title to property that is given as security for the payment of a debt. NOTE: In the province of Quebec, it is a real right on property securing the performance of an obligation, without relinquishment of its owner.
Division II Proposal (Consumer Proposal)
https://creditedu.org/knowledgecentre/index.php/site/wiki/23A simplified proposal for repayment of debt to creditors, available under the Act to a consumer debtor whose aggregate debts, excluding a home mortgage, do not exceed the amount prescribed in the Act.
https://creditedu.org/knowledgecentre/index.php/site/wiki/48A resolution carried by the majority of votes (one vote for each dollar of debt) of claims of creditors; disallowed claims do not vote.