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Webinar Date: January 13, 2021
Time: 01:00 PM EDT | 10.00 AM PDT
As economic and industry challenges emerge, 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. The Covid 19 economy has substantially increased the likelihood of customer bankruptcies.
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 past 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.
Areas Covered in the Session:
• 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
Speaker: John G Salek
John Salek is President of Revenue Management Associates, an Accounts Receivable & Order to Cash consulting company. He is a highly experienced financial professional with proven performance in the Order to Cash process including order and contract processing, billing, dispute management, credit control, collections, and cash application. John has worked in a broad range of industries with over 250 clients.
Tags: Anticipate Bankruptcies, bankruptcy as a financing tool, bankruptcy filings, COVID 19, customer bankruptcies, customer’s bankruptcy filing, declining credit ratings, due payments, exhausting lines of credit, filing bankruptcy, Identifying Bankruptcies Sooner, improved Credit Risk Management process, John G Salek, operating losses, shrinking of cash reserves, SHRM, Tactics to mitigate risk & exposure to bad debt loss, Techniques to identify an impending bankruptcy, The Accounts Receivable, Top 10 Warning Signs of an Impending bankruptcy