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  • How can a supplier protect their interest in inventory shipped to a customer from banks and other creditors?
    Enjoy this complimentary Webinar
     
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  • BANKRUPTCY FRAUD WARNING SIGNS - A CHECKLIST

    Use the following list to identify signs of bankruptcy fraud.

    • Failure to keep commonly used business records; incomplete or missing business records
    • Unusual depletion of assets shortly before bankruptcy filing
    • Assets are concealed
    • ...
     
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  • 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 ...

     
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  • Black Holes and Heroes

    At times, the only force holding an organization together and preventing it from falling into the abyss comes from unsung heroes within its ranks. Read this article by Ron Lutka, CMA to find out more about the unsung heroes. There might even be parallels here to your organization.

     
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  • 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.

     
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  • Court Declines to Approve Sale of Assets as Part of Proposal Proceedings

    In the decision of Justice Cumming In the Matter of the Proposal of Hypnotic Clubs Inc. (“Hypnotic” or the “Debtor”) the court dismissed a motion by the Debtor for a sale of its assets pursuant to s.65.13 of the Bankruptcy and Insolvency Act (“BIA”).

     
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  • PPSA & Legislative Q's
     
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  • 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.

     
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  • 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.

     
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  • Common Forms of Financial Statement Fraud

    In the summer edition of To Your Credit, we published an article on the work of Professor Messod D. Beneish from the Kelley School of Business, Indiana University on the subject of earnings manipulation.  In the sample of 74 companies that Pr. Beneish looked into for his research, he concluded that the typical manipulators “overstated earnings by recording fictitious, unearned, or uncertain revenues, recording fictitious inventory, or improperly capitalizing costs.”

     
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  • 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.

     
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  • CREDIT’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.

     
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  • 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...

     
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  • Credit Policy

    Credit policy ideally should be updated quarterly, but at a minimum annually. It needs to be signed off by Senior Managers/Directors to make it enforceable and taken seriously by internal staff.

     
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  • Standard Ratios

    Liquity Ratios

    • current Ratio
    • Acid Test

    Debit - Equity Ratios

    • Current Debt to Tangible Net Worth
    • Total Debt to Tangible Net Worth
    • Working Capital
    • Net Worth
     
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  • 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.

     
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  • PPSA Registrations - Is this the Weakness in Your Armour?

    As the saying goes, an ounce of prevention is worth a pound of cure. This expression is particularly apt when it comes to secured creditors and their registrations under the Ontario Personal Property Security Act (the "PPSA"). Although "getting it right the first time" has always been the mantra of secured creditors, the economic roller coaster ride of recent months has heightened the need to ensure a properly perfected secured claim.

     
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  • Credit and Collections as a Revenue Generator
    Next time you are spending quality time with a client, at a board meeting, or getting an update from the CFO you may want to inquire about practices of their company’s credit and collections department. The credit and collections department is constantly interacting with the company's customer base. This provides them with opportunities to augment sales, identify customer needs and problems, and / or be proactive in collecting those slow paying accounts. A properly operated credit and collections department can enhance profits and earnings per share.
     
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  • Credit and Collections Department Should Be Generating Revenue

    Next time you are spending quality time with a client, at a board meeting, or getting an update from the CFO you may want to inquire about practices of their company's credit and collections department. The credit and collections department is constantly interacting with the company's customer base. This provides them with opportunities to augment sales, identify customer...

     
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  • Credit Risk Management

    Credit risk is defined as the likelihood of loss resulting from a customer's failure to pay for the goods delivered. It is the responsibility a Credit Manager to verify that all customer files are complete and contain all the necessary information to protect the accounts receivable.

     
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  • PPSA

    The Personal Property Security Act ("PPSA") is the name given to each of the statutes passed by all common law provinces, as well as the territories, of Canada. They regulate the creation and registration of...

     
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  • Floor Plans

    Go to any large auto dealer and there are hundreds of cars on the lot. You may wonder how much the dealer had to spend to provide you with almost limitless choices. What you don't realize is that, like most new car dealers, a floor plan was used to the cars. Simply, it is a way for...

     
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  • Terms used by CPA's

    A CPA will competently assist an organization (whether it is a privately held business, a publicly owned corporation, or a nonprofit organization) with preparing reports on its financial performance. Such reports help owners and managers make operational decisions, enable creditors to evaluate loan applications, and provide individuals with information to make investment decisions.

     
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  • The Automotive Industry
    Discussion 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.
     
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  • 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:

     
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  • BMC's 3Q Net Doubles; Lumber Price Hikes Help Sales Grow 7.3%
    BMC 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.
     
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Wiki (1)
  • Receiver
    https://creditedu.org/knowledgecentre/index.php/site/wiki/62
    A person who has taken possession pursuant to a security agreement of substantially all of the inventory, accounts receivables or the other property of the debtor. Receiver also includes a person who has been appointed privately pursuant to a security agreement or by an order of the court for the protection or collection of property that is the subject of diverse claims, usually to seize and sell the property of the debtor.