The Credit Department, Inc. Proactive Trade Credit Analysis Saved This Toys R Us Supplier from US Bankruptcy Court

In September many suppliers were busy shipping merchandise for the busy fourth quarter retail holiday season. It was late Friday afternoon and Toys R Us quietly announced that the company was filing for Chapter 11 bankruptcy protection from their creditors. Many creditors of Toys R Us were caught unaware of their precarious financial situation but… Continue reading>

Are Your Trade Receivables “Audit Ready?”

Most companies subject to audits of their financial statements view it as a necessary evil. They also assume it comes with a baseline cost. Sophisticated companies, however, are always looking to lower the costs of such audits, particularly in light of regulatory changes that further complicate the audit process. For example, according to a report… Continue reading>

Why You Need to Analyze Your Credit Risk

Logic tells us to look at management when a company is consistently underperforming. Hindsight shows that bringing in new leaders may not solve the whole problem. CFOs, CEOs and owners need better access to critical data to make operational decisions. A study by Ernst & Young found that 62 percent of CFOs believe they contribute… Continue reading>

How World-Class Organizations Manage Debt

Most corporate finance leaders don’t see receivables data often enough or understand the significance of it. When they do, it is usually stale and non-specific to proactively analyze trends and manage any problem accounts. A study by IP consultancy The Hackett Group noted that world-class organizations are tackling this issue. They are employing sophisticated and… Continue reading>

The New Normal: Lower PE Returns and Expensive Credit

According to Moody’s, record corporate debt is coming due in the next five years. Companies that are borrowing or funding businesses through debt will need to pay close attention to debt covenants, debt ratios, cash flow from operations and interest coverage in their holdings. This concern includes portfolio companies. A recent report by the Center… Continue reading>

Top Mistakes that Cost Private Equity Firms

What mistakes are costing private equity firms? Beyond the inefficient or noncompliant collections practices we see at The Credit Department, portfolio companies are suffering due to poor operational, broker and hiring decisions. Read about these mistakes (and how to fix them) in the following articles. Read how we help equity investors.   5 Practices That… Continue reading>