Trade Credit Analysis Bootcamp

Learn how credit managers guard accounts receivable, reduce bad debt under 1 percent through benchmarking against peers, and balance tight credit with sales, using Pareto insights.

Learn to gather and analyze credit information from applications, D&B reports, trade and bank references, and online sources to assess a company's risk and repayment prospects.

Analyze public company financials from the company site, the SEC EDGAR, and Yahoo Finance, then apply a four-dimension liquidity framework using current and quick ratios and net working capital.

Compute EBITDA and assess profitability, evaluate bankruptcy risk with the Altman Z score, and assess liquidity via the cash conversion cycle and debt service coverage ratio to guide credit decisions.

Develop a practical framework to assess creditworthiness, set terms (net 15/30/60, cash in advance, or LC), and use guarantees and PMSI to collect.

Enforce credit terms by charging a reasonable interest rate on past-due invoices using written amendments; consider net 15 vs net 60 and the Supreme Court's example of 1.5% per month.

Learn how to handle defaulters through third-party collection agencies, litigation, and bankruptcy claims, weighing costs, assets, and UCC liens to maximize recovery.

Learn the ethical and legal duties creditors owe debtors, including the Equal Credit Opportunity Act, automatic stay, and bankruptcy rules like Chapter 7 and Chapter 11.