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  • How a commercial lender will evaluate your creditworthiness for a loan

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    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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    Related content: B2B Credit

  • CREDIT’S UNTOUCHABLE CODE

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    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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    Related content: Credit Risk

  • Acceleration Clauses in the Event of Default – Are they enforceable?

    Article

    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.

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    Related content: Bankruptcy

  • The Quickening of Innovation in Asset Based Financing

    Article

    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.

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    Related content: B2B Credit

  • Larry’s Recipe for Success – Top 30 Ingredients

    Article
    Larry Pollock, the past president of the Canadian Western Bank offered these tips for success in his recent address to the delegates at the 2013 national credit conference in Jasper. Larry should know. He is Canada’s longest serving bank CEO, having led the Canadian Western Bank from 1990 to 2013.

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    Related content: Portfolio Management

  • Builders Liens Across Canada

    Article

    What is a builders lien?

    Learn about the similarities and differences in builders liens acress Canada, including Quebec.

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    Related content: Construction

  • Terms used by CPA's

    Article

    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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    Related content: Financial Analysis

  • Leasing and Rentals

    Article

    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.

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    Related content: Selected Industries

  • Construction Credit

    Article

    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...

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    Related content: Construction

  • Warning Signs

    Article

    We've listed some of the warning signs of fraud below. The most important is the country of origin.

    • Orders originating from or containing shipping or billing addresses in some countries, particularly Romania, Macedonia, and Belarus, have an extremely high incidence of fraud.
    • ...

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    Related content: Credit Fraud

  • Floor Plans

    Article

    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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    Related content: Types of Securities

  • Hypothec

    Article

    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...

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    Related content: Types of Securities

  • Letters of Credit

    Article

    A letter of credit is a document that a financial institution or similar party issues to a seller of goods or services which provides that the issuer will pay the seller for goods or services the seller delivers to a third-party buyer. The seller then seeks reimbursement from...

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    Related content: Types of Securities

  • PPSA

    Article

    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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    Related content: Types of Securities

  • Collection and Dispute Management

    Article

    The objectives of the Collection team are to:

    • Facilitate a seamless processing of Sales orders within a specific risk guideline defined by the Credit and Collection department
    • Liaise with the Sales department and the credit department to anticipate any future discrepancy between the Sales plan and the maximum risk exposure
    • ...

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    Related content: Manufacturing

  • Credit Risk Management

    Article

    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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    Related content: Manufacturing

  • Credit and Collections Department Should Be Generating Revenue

    Article

    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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    Related content: Manufacturing

  • Credit Scoring

    Article

    Most credit scoring systems have been developed for use by banks. This has been adjusted to reflect both consumer and mercantile business. Credit scoring is a method of evaluating the credit risk of customers ...

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    Related content: Credit Risk

  • Credit Reporting

    Article

    Web sites of companies that provide credit reports for Canadian companies.

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    Related content: Portfolio Management

  • Risk Assessment

    Article

    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.

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    Related content: Credit Risk


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