November/December
NACM Oregon
Business Credit Journal
2012 7931 NE Halsey, Suite 200
Portland, Oregon 97213
Tel 503.257.0802
Fax 503.257.0247
www.nacmoregon.org
Are You Jeopardizing the Collectability of Your Accounts with a Stale Guaranty? by Johnny White, Esq.
I
n the era of multi-national conglomerates, the tangle of subsidiaries, divisions, affiliates, etc., under any given corporate umbrella is increasingly complex. There are usually sound motivations for this, including tax strategy and ring-fencing the potential liabilities of a problematic subsidiary. Most credit departments probably have a limited knowledge of the web of companies sitting underneath the corporate parent, and indeed the details are not something a credit department generally need concern itself with. Apart from being complex and not that interesting, the issue is one for your in-house legal department. Nonetheless every so often a diligent credit manager should ensure that the complexities of the corporate group will not impinge the department’s ability to continued on page 12
In This Issue Stale Guaranty........................ 1 Chair’s Message...................... 2 President’s Message................ 2 Open House........................... 3 Member Profile....................... 4 Legal Corner........................... 6 DSO Results........................... 7
Five Reasons to Offer Discount Terms
New Designee........................ 8
At their simplest, discount terms allow buyers to deduct a percentage of the full invoice price when they pay within a certain period. For example, terms of 1% 10 net 30 would give the buyer a 1% discount if they paid within 10 days. Should they choose to ignore the discount, the full amount would be due within 30 days.
International Corner................ 9 BCLC Webinars....................... 10 Contacts................................. 14
Such terms offer some fairly obvious benefits to buyers, chief among them the right to pay less than the agreed-upon price. But discount terms can also help the sellers offering them, allowing them to: continued on page 7
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