Identifying Bankruptcies Sooner Than Later
Product ID : JOSA-0004
Level : Intermediate
Duration : 60 Minutes
John G. Salek, President, Revenue Management Associates, LLC
Revenue Management Associates (RMA) helps companies optimize their use of trade credit to increase revenue and margin, control exposure to bad debt, improve cash flow, and reduce operational cost
- 30 years experience in Invoice to Cash solutions development working in a broad range of industries with over 250 clients
- Author of Accounts Receivable Management Best Practices published by John Wiley
- B. S. Business Administration from the University of Connecticut, MBA in Finance from The Tuck School of Business at Dartmouth College
This topic will benefit anyone who manages the Accounts Receivable asset and its risk of bad debt and delinquency loss. Credit control teams are continuously asked to deliver improved results with the same or reduced resources. The marketplace has seen a proliferation of private financing tools which can increase customers’ leverage and subordinate unsecured creditors’ claims.
Completing this session will enable managers to focus their limited credit resources in the most efficient and effective way. This will result in:
- Greater recognition of credit risk, even in companies that are currently paying on time
- Lower bad debt exposure and expense
This methodology is designed for business customers, (vs consumer). It is relatively easy to implement without major help from Information Technology and Analytics. It may require a low-level investment in subscribing to credit bureaus and other sources. It can be a self-driven quick to medium term win for any Credit department.
After attending this live webinar you will be able to design and implement an improved Credit Risk Management process and better protect yourself from unexpected bankruptcy loss. As economic growth slows, customers with high debt levels and weak performance are at a greater risk of failure and filing bankruptcy. Often these bankruptcy filings are sudden with few advance warning signs.
- Current bankruptcy landscape: bankruptcy as a financing tool
- Techniques to identify an impending bankruptcy
- Tactics to mitigate risk & exposure to bad debt loss
- Top 10 Warning Signs of an Impending bankruptcy
Course Level - Intermediate
Who Should Attend
- Credit Directors and Credit Managers
- Treasurers and Controllers
- Chief Financial Officers
- Risk Officers and Internal Auditors
Why Should You Attend
In a recent survey conducted by The Accounts Receivable Network, 58% of Credit Managers say they have been surprised by a customer’s bankruptcy filing in the past year.
Although Credit departments have always managed risk exposure, the speed of bankruptcy filing has accelerated greatly in the past few years. Whereas in the past, a creditor would receive a number of warning signs (increasingly past due payments, declining credit ratings, operating losses, shrinking of cash reserves, exhausting lines of credit, etc.), from a deteriorating customer, that is no longer the case in many instances. We have observed customers who are moderately past due in their payments to a supplier file bankruptcy. This catches their suppliers by surprise, resulting in higher bad debt loss. “Identifying Bankruptcies Sooner than Later” will equip you with techniques to better forecast a potential bankruptcy and with actions to mitigate the risk of loss.