eNews Archive

As technology continuously reshapes the business-to-business credit field, the risk landscape transforms as fraudsters manipulate newer technology to attack businesses. With artificial intelligence becoming more advanced, credit managers are raising their defenses against synthetic fraud as it takes on new forms each day.  Why it matters: Synthetic fraud is when fabricated credentials are used to mimic a person or business, employing a combination of AI-generated images, spoofed phone calls and falsified business information. Credit requests may come from seemingly legitimate busine…

Lien laws provide a means for subcontractors, general contractors and suppliers to protect their payment for the work they’ve furnished to job sites. Understanding each state’s unique laws for notice requirements and liens is the best way to secure payment and protect your business. The type of project dictates the procedures that must be followed, therefore the first step when working on a project is determining if you are working on a private or public project. A private job is controlled by private developers, private owners on buildings or even residential homes. A public job would b…

Extending credit is, in many ways, a calculated risk. You’re relying on your customer’s ability and willingness to pay on time, if at all. But smart credit professionals don’t move forward without clarity. By analyzing a customer’s financials, they get a clearer view of the hand they’re being dealt to make more informed credit decisions. But what happens if a customer refuses to share financials?  Why it matters: Granting credit without reviewing financials is a risky move. If financials are off the table, using alternative methods to assess a customer’s creditworthiness can help yo…

Certain credit practices are grounded in the roots of the profession, unchanging in a dynamic field where change is constant. Documentation is one of these habits, with thorough records of even the simplest day-to-day credit decisions protecting credit departments from risk down the line.   Why it matters: Proper documentation is vital in credit management. With customer information and terms changing at a moment’s notice, it is important to have a high standard of documentation within your credit department to ensure that there is a clear record of the decisions made each day.  &nb…

The Senate introduced an amendment to raise the debt limit for Subchapter V bankruptcy filings from $3 million to $7.5 million. Subchapter V of Chapter 11 of the U.S. Bankruptcy Code offers small businesses an alternative to filing for a traditional bankruptcy that is more expedited and cost-efficient but shifts some of these burdens onto credit managers.   The debt limit was initially $2.7 million when Subchapter V was created under the Small Business Reorganization Act (SBRA) of 2019, but it was raised to $7.5 million in 2020 in response to the COVID-19 pandemic. The heightened de…

Picture this: a scout leader perched at a mountaintop, shouting directions through a megaphone. The team reaches the summit quickly, but they’re exhausted, disoriented and less prepared for the next climb.    Now, picture another scout leader walking alongside their team on the mountain trail, clearing obstacles, sharing the map and helping each person reach the summit at their own pace. The team follows, growing stronger with each step, learning and adapting together. Now ask yourself, which leader would you rather follow?   Why it matters: Whether you’re leading a handful …

Every facet of a credit manager’s day-to-day work relates to risk mitigation, as they work tirelessly to protect their company through each transaction. When you are uncertain about a customer and their ability to pay within terms, it is time to consider new protective measures.  Why it matters: One way to shield your company from risk and prevent major losses due to nonpayment is through letters of credit (LC). An LC is a written understanding by a bank, acting on a request from a customer, to make payments to a third-party beneficiary. The bank agrees to accept and pay bills drawn…

The U.S. economy surpassed expectations after real (inflation adjusted) gross domestic product (GDP) increased by 3% at a seasonally adjusted annualized rate for the second quarter of 2025, reversing a 0.5% decline in the previous quarter, according to the U.S. Bureau of Economic Analysis. Contributing to the rise in real GDP, consumer spending grew by 1.4%, up from 0.5% in the prior period. Why it matters: Although the headline GDP growth rate and consumer spending data—what economists call hard data—support a promising outlook for the economy, some economists anticipate a downturn due …