Tag: Credit Risk

With Donald Trump’s victory in the 2024 U.S. presidential election, credit managers are facing a new political landscape that will directly influence the economy and credit risk management.

A personal guarantee, a legal commitment where an individual pledges to cover the business’s debts if the promise to pay an obligation is broken, has become a significant tool in the credit industry.

As year-end approaches, credit professionals face a familiar haunting: customers suspending payments and disappearing into the night, causing cash flow challenges just when stability is needed most. From dodging payments to “ghosting” invoices, slow-paying customers can turn the year-end into a horror story for credit teams.

The recent weather events remind us that natural disasters can have a significant impact on communities and businesses. In late September, Hurricane Helene touched down on northern Florida and caused major flooding in North Carolina and Georgia. It killed more than 230 people and resulted in roughly $225 billion in economic loss. Just last week, Hurricane Milton made landfall in Florida creating at least $160 billion in damage and economic loss.

As the chilly season of ghouls, ghosts and gore begins, we’re reminded of one of the scariest scenarios plaguing credit managers; the curse of cash flow problems. Whether the issue is seasonal for you or only pops up every once in a while, cash flow issues can trouble even the most experienced credit professionals, regardless of whether it is your company or your customer experiencing the slowdown.

Hurricane Helene, a Category 4 storm that tore through the Southeast of the United States last week, has left more than 160 people dead and is estimated to cost the country as much as $34 billion, according to Moody’s Analytics.

More than half of Argentina’s 46 million population is now living in poverty, new figures indicate. The poverty rate skyrocketed to 52.9% in the first half of 2024, surging from 40.1% one year earlier, according to the government’s INDEC statistics agency.

Letters of Credit (LCs) are one of the most versatile and secure payment instruments used in international sales. However, securing an LC is becoming increasingly challenging in today’s global business environment. Credit professionals seeking letters of credit must now invest more time and resources in ensuring they meet evolving criteria.

Steep losses for the stock market and a slump in FDI to the lowest level in decades has brought added urgency to efforts by officials in Beijing to shore up confidence that the CCP regime is prepared to take the steps required to stabilize an economy that has shown signs of wobbling amid mounting difficulties for the crucial property sector. However, neither the measures unveiled in mid-May nor the more recent proposal to permit local governments to fund home purchases through an existing “special bond” program previously reserved for financing infrastructure and environmental projects has …