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  • How to Better Know Your Customers

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    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.

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    Related content: Portfolio Management

  • What’s the Link Between Communication and Credit Management?

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    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...

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    Related content: B2B Credit

  • Do You Have a Credit Policy for Your Organization?

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    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.

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    Related content: B2B Credit

  • PetSmart taps advisers to trim $8 billion debt pile: sources

    Article
    (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.

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    Related content: Credit Risk

  • Cedar Creek Deal, Other Costs Push BlueLinx Into the Red

    Article

    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.

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    Related content: Financial Analysis

  • BMC's 3Q Net Doubles; Lumber Price Hikes Help Sales Grow 7.3%

    Article
    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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    Related content: B2B Credit

  • Is Client Service at Risk of Being Displaced by Technology?

    Article

    Nowadays, money transfer services have taken on an entirely new complexion in the financial markets. For starters, traditional banks and the international money transfer services they offer to clients are no longer cost-effective, or efficient. In the United Kingdom, there are several ranking money transfer services used by clients, including World First and Transferwise. Contrary to popular belief, FinTech does not eliminate the face-to-face communication or human-voiced support of traditional international currency transfer services; it enhances the efficiency of the services to ensure a seamless experience for clients.

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    Related content: Credit Risk

  • Direct payments and construction insolvency

    Article
    Main contractor Carillion’s entry into liquidation has resulted in many employers seeking to establish relationships with subcontractors, under which they will be paid directly in order to stay on site and finish the relevant project. On the face of it, this seems like an attractive solution, and may leave some employers wondering why they didn’t procure their projects by construction management in the first place. However, establishing direct relations is not without risks, and requires safeguards for employers and subcontractors alike. Those are set out in the last section of this article, but it is important to understand the pitfalls, particularly of direct payment, first.

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    Related content: Collections

  • Already pinched, many Canadians anxious about higher rates

    Article

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    Related content: Credit Risk

  • The warning signs that preceded Carillion's fall

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    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.

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    Related content: Credit Risk

  • 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


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