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  • Profile image
    Oracle ERP
    By
    Liza Singh, CCP
    on
    July 6, 2021
    Hello Credit and Collection professionals does anyone have experience with Oracle? Looking to get a short overview, pro and cons for collection purpose. Saving contact info, collection notes, reconciliation, adjustment entries etc. Please reach out here or via lizansingh@gmail.com if able to provide insight.  Thank you

  • Profile image
    Welcome letter
    By
    Ron Murphy, CCP
    on
    March 24, 2021
    Upon opening an account for a customer, do you send out an official letter to your customer to confirm that the account has been opened?
    If so, do you include specific information like payment terms and limit?
    If not, how is your customer notified of the account approval?
    Last reply on July 17, 2021 by Christine Valitutti, CCP

  • I have a question and i am looking for some advice.

    We are moving away from "paper" Credit Card Authorizations when obtaining customers credit cards and will be obtaining them through a secure web link.  However, with the paper authorization forms they include the Card holders authorization to charge their card as payments for goods become due.

    For our new process when we send the link, we can add some verbiage indicating "your card will be retained and used for future purchases........." but the customer never clicks off or signs anything. 

    Does the verbiage hold up if there are charge backs or disputes?  Or do we need an actual signature or clicking off on the terms and conditions?

    Thanks!

    Last reply on February 28, 2021 by Uchechukwu Adams Okorie Daniel, CCP

  • I live in Toronto. I was bad with my credit cards and had so many racked up. I have three credit cards which the lowest credit line was $12,000. My wife and I were spendthrift shoppers, which made me have debt on all my credit cards. It ruined my credit score. We never thought that we would land into such an overwhelming situation. Then I came online to see if there any debt relief solutions and came to know about debt consolidation in Toronto. I'm thinking about applying for it. Has anyone has come across a similar situation like me and consolidated your debts? Did it really help you? If my application for debt consolidation is not approved, then what can I do? If it happens due to a bad credit score, then how can I improve it? Please share your thoughts and advise me on this.
    Thanks

  • Hi there,
    I'm wondering if people who have online services in Canada have to have business license in the USA if they sell to their services to Americans

  • Hey There,
    Recently, I have started a shoe business in Brampton. I am planning to insure my business under a commercial insurance policy. I have heard about this before but was not much aware of it. When I searched online, I saw many people were told it is good to insure the business as it may provide financial assistance in case any loss happens. I understood its importance when my friend Kenny who is a financial expert told me why to insure my business. I think he is right. So I researched online and about these commercial insurance coverages in Brampton. But I am confused whether to choose this company for purchasing a commercial business insurance policy or not. Had any bought policy from here? Can I proceed with this company? Please do share your experience with this company if you had. So that I can make the final decision.
    Thank you!

  • Profile image
    Covid-19
    By
    Shane Jon Knight, CCP
    on
    March 17, 2020
    So who has some war stories or advice. I am already starting to see companies requesting skip payments

  • Hi All,

    I am living in Toronto. I am here to know your opinions about consumer proposals.
    I had started my business a few years before with a lot of expectations. Many of my friends and family members had helped me financially to start this new venture in my life. Everything was cool in the beginning. I had given my full effort to make my business operations smooth. I was using credit cards to finance my business and hadn't delayed making the payments. But things went wrong when I met with an accident. My business went down and I couldn't look up my business activities. It had affected everything badly and has put me in a difficult financial situation. I am not able to make payments to my creditors.

    As I was not well, my wife was looking after all these things. She had to buy debts from many. On one side, we are facing the harassing calls from the creditors and on the other side, we are struggling to make money for my treatment and business needs. These circumstances had increased our debts and we are struggling to get relief from this. When I discussed this with one of my friends, he told me to approach consumer proposal services in Toronto. But I am not sure about it. Had any tried this service? Did it take too long to get relief from debts? How did you manage your debts? Please share your opinions and suggestions from your experiences.

    Thanks!

  • Fundbox is taking a swing at digitizing and disrupting the B2B trade credit space. Read some words of wisdom from their CEO Eyal Shinar as he discusses how Fundbox is looking to leverage API's and digitized payment history to improve the predictability of cash flow through the AR cycle. 
    https://www.pymnts.com/news/b2b-payments/2019/rethinking-b2b-trade-credit-status-quo/

  • Profile image
    Are you Down Turn ready?
    By
    GUEST
    on
    November 29, 2019
    Brian Porter, CEO of Scotiabank has recently declared Scotia "Down Turn Ready".
    https://www.bnnbloomberg.ca/scotiabank-is-downturn-ready-says-ceo-brian-porter-1.1354408
    What are people out there doing to ensure they are also Down Turn Ready. Is anyone making significant changes in Credit policy to shore up their AR if things start to go south. 
    Is anyone increasing their allowance for impaired loans?
    Last reply on January 15, 2020 by Ruth Storms, CCP

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Posted April 28, 2021 by Shalini Bazari
According to Federico de Noriega, Partner, Hogan Lovells, if you are a supplier to an insolvent company in Mexico there are many areas of concern.

Like what can you the supplier do during an insolvency? Will you be paid? Are you required to continue supplying? In this case, if you are a supplier in Mexico, you can contact the conciliator to check the status of the contract. Next to continue being paid during the proceedings, consider being listed as an essential supplier.

As a supplier to an insolvent debtor, you should get involved during the proceeding to safe guard your interest.

 What are your thoughts? If you faced a similar situation what steps did you take to protect your company? Share your thoughts, experiences and feedback with your credit community.









0 Replies
Posted January 26, 2021 by Shalini Bazari
This month`s featured article focusses on some of the key pitfalls to avoid as a credit analyst. 
They are as follows:

#1 Overlooking warning signs of client insolvency

#2 Waiting too long to act on overdue accounts

#3 Gathering insufficient information about clients in the beginning

#4 Failing to provide an effective reference guide to credit personnel

#5 Giving authority to sales over the credit department to make decisions

Which one of these have worked or not worked for you and why is that?
Do you have any more gems to add to the list? 


#businesscredit #riskmitigation




0 Replies
Posted December 16, 2019 by Courtney Wilkinson

Determining Vitamin C Deficiency: and An Important Question To Be Asked
By: Ken Young, CCP Emeritus

Those who have been trained in the art of credit management know very well the 5 C’s of credit that should be investigated prior to granting a line of credit.  TheseC’sconsist of the following:

1) Capacity measures the borrower’s ability to repay the funds by assessing the cash flow and financial capabilities of the company. Investigating the trade references of the firm gives insight into the past history and current status of repayment of amounts owing, and is a good method to help determine the probability of timely repayment.

2) Capital refers to the investment made into the company.  A large investment into the firm decreases the chance of default.  An element of excess capital provides a cushion for any unexpected financial setback.  The questions that need to be asked are: Who is investing more in the firm, the owner or the lender? And if the firm is losing money how long can it survive?

3) Collateral determines what security the firm has available, and what has already been pledged.  Has the firm granted the bank collateral on all of the assets?

Is it appropriate for you to consider an element of security from the firm or a personal guarantee? This gives the supplier a plan B if everything does not go well.

4) Conditions relate to a number of areas, such as interest rate or currency fluctuation and the life cycle or shelf life of the product.  If the firm is barely making ends meet could they withstand an increase in the interest rate?  Is there new technology that is going to make their product irrelevant soon?  Is the shelf life almost at the end?  If the firm exports and sells in adifferent currency what effect could that have?  Will a change in the overall economic conditions have an effect on the buying patterns of the customer?

5) Character gauges the trustworthiness of the owner(s).  Do you feel comfortable selling to them?  Do you perceive them to be honest, possess a sense of responsibility and believe that they will keep their word if they make a commitment?  This may be described as a “gut feel.”

I recall very clearly many years ago at an industry trade meeting, a fellow Credit Manager made a unique point about financial statements.  He said that when you are reviewing financial statements (which assists greatly in the assessment of the 5C’s) with a customer, the first thing you should do is to ask, “Is there anything you would like to tell me about these before I review them?”

This gives the client the golden opportunity to explain any weak areas and to let you know what they are doing to remedy them.  If they don’t disclose anything specific at the time and upon review of the statements you ultimately see some areas of concern, before you ask for an explanation from them about it, you may ask yourself are they even aware of this?  Is there a concern that the firm is suffering from a Vitamin C deficiency – namely, cash, credit and customers?  That’s a very simplified version of the 5C’s.

Over the years I’ve found that asking this question can get to the heart of concerns more quickly.  This allows for more time to be spent on questioning how the business will change and grow profitably in the future and on determining how your firm can assist in that.

Ken has been a credit management professional for over twenty-five years and has global experience in a broad range of industries including the food (aquaculture & beverage), chemical, manufacturing and transportation sectors.  Ken is honored to serve on the board of the Credit Institute of Canada representing the Ontario region.

He has been awarded the highly esteemed CCP Emeritus award from the Credit Institute of Canada for distinguished and meritorious service for the advancement of credit education and the credit profession.  
Consulting projects and speaking engagements have included Toronto, Brunei (S.E. Asia) and Jamaica.


Tell us how you have dealt with 'Vitamin C' deficiency in your assessment of customers' credit-worthiness.

Please sign in or create an account to leave a reply.

0 Replies
Posted May 16, 2019 by Nawshad Khadaroo, CCP
How has CIC added value to your career? Post your answer for a chance to win two tickets to the May 23rd Blue Jays v/s Red Sox game.
Last reply on May 18, 2019 by Divya Lakshminarasappa, CCP
1 Reply
Posted November 27, 2018 by Andre R. Brooker
Please reply to this post to ask a question or start your own discussion. 
  • Click on General Forum
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Last reply on August 13, 2020 by Marci Adams
3 Replies
Posted September 11, 2017 by Andre R. Brooker
As the retail landscape changes and bankruptcies of brink and mortar stores are becoming ever more present, what reforms would you like to see in place that would fairly protect both the interest of employees and creditors of companies that file for bankruptcy or protection?
pexels-photo-207489 x2.png
Last reply on September 11, 2017 by Nawshad Khadaroo, CCP
1 Reply
Posted June 30, 2017 by Andre R. Brooker

Being able to offer highly flexible payment terms can give you a competitive edge with your
international customers. But if your terms are too lenient, you may increase your risk of payment
problems that could undermine your cash flow. This paper examines how you can choose payment
strategies that will attract overseas buyers while keeping your financial risks under control.

Read the full whitepaper

0 Replies
Posted September 27, 2016 by Nawshad Khadaroo, CCP
Can a creditor take security on intellectual property?
Last reply on September 27, 2016 by Tony Lengua, CCP, CCE, CICP, CRM
1 Reply
Posted August 17, 2016 by Nawshad Khadaroo, CCP
Has anyone ever used a "negative pledge letter security? Banks' have used this in the past in the event that a customer won't sign over security. This letter essentially outlines what they agree to and should they fail to follow through, you can then put security in place. Seems a little odd.  Please share your thoughts on this.
Last reply on October 29, 2019 by Ruth Storms, CCP
4 Replies
Posted August 15, 2016 by Andre R. Brooker
A stock buyback affects a company's credit rating when it uses debt to repurchase its own shares.
Last reply on August 27, 2016 by Sean Raymond Monaghan, CCP,CPA,CMA
2 Replies

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