Skip to main content

Subchapter V: Essential Insights for Credit Professionals

With the Small Business Reorganization Act (SBRA) that went into effect on February 19, 2020, Congress amended the Bankruptcy Code to create a new subchapter to Chapter 11 for the reorganization of small business debtors. Unlike the existing small business provisions under Chapter 11, Subchapter V offers an alternative path that small businesses can elect to follow when filing for bankruptcy.

This new subchapter was designed to address the unique challenges that small businesses face in traditional Chapter 11 cases, such as high costs, lengthy timelines and stringent requirements that often make reorganization unattainable.

Despite its benefits, Subchapter V also raises concerns. While it has been praised for its success in streamlining the bankruptcy process, questions remain about whether it truly leads to successful reorganizations or merely postpones inevitable business failures—with unsecured trade creditors paying the price.

This white paper will explore these issues in depth, examining the practical implications of Subchapter V for B2B trade creditors, who must navigate this new landscape while managing the risks associated with small business bankruptcies.

April 2023

Beyond the Numbers: The Art of Measuring Modern Credit Department Performance

In the credit industry, there is rarely a clear right or wrong approach to any given situation. Credit professionals are tasked with using their best judgment to find solutions to complex problems. This makes measuring credit department performance both challenging and necessary. Download the NACM Expert Credit Brief, Beyond the Numbers: The Art of Measuring Modern Credit Department Performance, to explore the wide range of formulas that exist to measure the ever-expanding list of tasks that fall under the responsibility of credit managers. Key findings in this white paper p…
December 2022

Guidelines for Assigning Collector Workload

Every company’s success starts with its people. But as the economy tightens, collection activity naturally increases and staffing in the credit department rarely matches the demands of maintaining collection efforts. Give your existing collectors every opportunity for success by assigning workload in a way that allows your team to divide and conquer collection activity. Download the NACM Expert Credit Brief, Guidelines for Assigning Collector Workload, to learn more about the different types of automation and how to persuade upper management of the benefits. The white paper power…
October 2022

Build Your Case for Automation

Business-to-business (B2B) credit professionals are expected to do more with less in today’s world, but automation can bridge the gap. Yet, most credit departments use automation in only 25% or less of their processes, according to an eNews poll. One difference between those departments in the infancy stage of automation and those in the advanced stage is the credit department’s ability to build a solid argument that appeals to upper management. Download the NACM Expert Credit Brief, Build Your Case for Automation, to learn more about the different types of automation and how to per…
June 2022

Keep DSO in Its Place

Measuring days sales outstanding remains a long-standing benchmark for senior management because it measures the number of days it takes to turn sales into cash—despite many credit professionals not being a fan of it. However, there are several ways to measure DSO—some better than others. Download the NACM Expert Credit Brief, Managing DSO, to learn more about the different ways to measure DSO and the pros and cons of each. The white paper powered by NACM Thought Leaders covers: Standard or Average DSO Best Possible DSO True DSO Average Days Delinquent Sales Weighted DSO