NACM Oregon
Business Credit Journal October 2011
In This Issue
Double Dip Recession on the Table? Consider Credit Enhancements to Minimize Credit Risk by Scott Blakeley, Attorney, Blakeley & Blakeley, LLP
Double Dip............................1
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New Member Introductory......6
he US GDP for the first and second quarter has been revised downward. The stock market and credit markets have been extraordinarily volatile, raising whether investors are pricing in an economic downturn. Many economists are revising US GDP downward for Q3 and Q4, possibly carrying into 2012. For the credit and financial professional, the most recent economic data may be red flags to reevaluate credit risk, whether with existing customers or new applicants. Even with the prospects of heightened credit risk, the credit and financial professional is still working with sales and management to make the sale.
CFDD Portland Recipients.......8
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Chair’s Message.....................2 President’s Message...............2 International Corner...............3 Member Profile......................4
NOF Scholarship Funds..........9 Education Schedule................10 BCLC Webinars......................10 Credit Techniques..................11 Contacts...............................14
ome credit enhancement tools to add to the credit and collection policy may include a more refined credit application or supply contract, with terms and conditions that may better keep the customer focused on staying within terms by having penalty provisions in the application. Likewise, credit enhancements, ranging from standby LCs, to guarantees (personal and corporate), credit insurance and security interest in the vendor’s goods or the customer’s assets may achieve the reduction in credit risk to allow the customer receive the vendor’s product or serve on credit terms. Credit Enhancements Looking for a Guaranteed Payment from your Insolvent Customer Effect of Bankruptcy on Credit Enhancements/Alternative Payment Credit Enhancement or Payment Mechanism
Avoidance Action (Preference, turnover action, fraudulent, conveyance, strong arm powers)
Automatic Stay
Letter of Credit
No
No ...continue on page 12
7931 NE Halsey, Suite 200 • Portland, Oregon 97213 • Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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