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  • I live in Toronto. I was bad with my credit cards and had so many racked up. I have three credit cards which the lowest credit line was $12,000. My wife and I were spendthrift shoppers, which made me have debt on all my credit cards. It ruined my credit score. We never thought that we would land into such an overwhelming situation. Then I came online to see if there any debt relief solutions and came to know about debt consolidation in Toronto. I'm thinking about applying for it. Has anyone has come across a similar situation like me and consolidated your debts? Did it really help you? If my application for debt consolidation is not approved, then what can I do? If it happens due to a bad credit score, then how can I improve it? Please share your thoughts and advise me on this.

  • Hi there,
    I'm wondering if people who have online services in Canada have to have business license in the USA if they sell to their services to Americans

  • Hey There,
    Recently, I have started a shoe business in Brampton. I am planning to insure my business under a commercial insurance policy. I have heard about this before but was not much aware of it. When I searched online, I saw many people were told it is good to insure the business as it may provide financial assistance in case any loss happens. I understood its importance when my friend Kenny who is a financial expert told me why to insure my business. I think he is right. So I researched online and about these commercial insurance coverages in Brampton. But I am confused whether to choose this company for purchasing a commercial business insurance policy or not. Had any bought policy from here? Can I proceed with this company? Please do share your experience with this company if you had. So that I can make the final decision.
    Thank you!

  • Profile image
    Shane Jon Knight, CCP
    March 17, 2020
    So who has some war stories or advice. I am already starting to see companies requesting skip payments

  • Hi All,

    I am living in Toronto. I am here to know your opinions about consumer proposals.
    I had started my business a few years before with a lot of expectations. Many of my friends and family members had helped me financially to start this new venture in my life. Everything was cool in the beginning. I had given my full effort to make my business operations smooth. I was using credit cards to finance my business and hadn't delayed making the payments. But things went wrong when I met with an accident. My business went down and I couldn't look up my business activities. It had affected everything badly and has put me in a difficult financial situation. I am not able to make payments to my creditors.

    As I was not well, my wife was looking after all these things. She had to buy debts from many. On one side, we are facing the harassing calls from the creditors and on the other side, we are struggling to make money for my treatment and business needs. These circumstances had increased our debts and we are struggling to get relief from this. When I discussed this with one of my friends, he told me to approach consumer proposal services in Toronto. But I am not sure about it. Had any tried this service? Did it take too long to get relief from debts? How did you manage your debts? Please share your opinions and suggestions from your experiences.


  • Fundbox is taking a swing at digitizing and disrupting the B2B trade credit space. Read some words of wisdom from their CEO Eyal Shinar as he discusses how Fundbox is looking to leverage API's and digitized payment history to improve the predictability of cash flow through the AR cycle. 

  • Profile image
    Are you Down Turn ready?
    November 29, 2019
    Brian Porter, CEO of Scotiabank has recently declared Scotia "Down Turn Ready".
    What are people out there doing to ensure they are also Down Turn Ready. Is anyone making significant changes in Credit policy to shore up their AR if things start to go south. 
    Is anyone increasing their allowance for impaired loans?
    Last reply on January 15, 2020 by Ruth Storms, CCP

  • Some companies lending in Small Business Credit lines are taking to bank statement cashflow analysis to approve lending limits. Kabbage and Ondeck in the US are prime examples, but here in Canada the trend is taking on with Ondeck moving north of the border and even Canadian companies like Merchant Growth and Thinking Capital partnering with the likes of FLINKS to leverage this bank statement data.

    As providing digital access to you bank accounts and cashflow becomes normalized as part of the underwriting process, and as Canada moves towards an Open Banking environment, is the opportunity ripe to now disrupt Trade Credit.

    Instead of taking on credit risk internally, is it starting to make more sense to offload that credit risk to a third party using this methodology to provide 24 hour funding on a credit line between 5-300k? If the process is seamless, the application completed on your smartphone, and customer gets the goods and your company the sale, could this be the future of the industry?

    What do you see as the roadblocks to making this work? Can technology be used in the trade space to replace the relationship managers that pervade it now? We are seeing this transformation in so many other spaces why not ours?

    Last reply on November 15, 2019 by Shane Jon Knight, CCP

  • "What was once one of the largest translation agencies in Canada says it's so deep in tax debt it can't pay hundreds of thousands of dollars owing to its freelance workers — but it is still soliciting them to take on new work." Copy and paste link to read more http://flip.it/dFgC7P.

    Please share your comments and insights about any early warning signs you'd have detected if this company was one of your customers.
    Last reply on January 30, 2020 by Ruth Storms, CCP

  • Working closely to help develop technology within the collection industry on the B2C side in Canada I am now starting to get more and more enquiries regarding commercial debt and the use of technology!  In the UK I ran similar projects for businesses and saw that approx. 1 in 4 small businesses preferred to pay online, wanted to do it from a smartphone device if possible and maybe surprisingly 33% approx liked SMS as a channel. 

    The key to effective digital collections is not having a great portal, or every communication tool in the box but knowing how to build a personalised and frictionless customer journey.   Many businesses think they have a  digital strategy but in many cases its disjointed and can cause more friction and frustration with a customer if it is neither simple or in their preferred channel of communication.  

    I am looking to run a series of pilots with a few innovative businesses between now and in 2020 to look at how many small ticket, low value debts will be made using an omni-channel self cure solution. This will consist of engaging customers proactively who have failed a PAD, failed a PTP and those that simply are in early arrears and persistent late payers and 'non-engagers'.   These pilots will be low cost but not free. 

    If your business is interested in participating in a pilot please let me know.  For more information on what the technology looks like and how its been effective in collections please see  https://www.illiondts.com/solutions/payments-and-collections/

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Posted December 16, 2019 by Courtney Wilkinson

Determining Vitamin C Deficiency: and An Important Question To Be Asked
By: Ken Young, CCP Emeritus

Those who have been trained in the art of credit management know very well the 5 C’s of credit that should be investigated prior to granting a line of credit.  TheseC’sconsist of the following:

1) Capacity measures the borrower’s ability to repay the funds by assessing the cash flow and financial capabilities of the company. Investigating the trade references of the firm gives insight into the past history and current status of repayment of amounts owing, and is a good method to help determine the probability of timely repayment.

2) Capital refers to the investment made into the company.  A large investment into the firm decreases the chance of default.  An element of excess capital provides a cushion for any unexpected financial setback.  The questions that need to be asked are: Who is investing more in the firm, the owner or the lender? And if the firm is losing money how long can it survive?

3) Collateral determines what security the firm has available, and what has already been pledged.  Has the firm granted the bank collateral on all of the assets?

Is it appropriate for you to consider an element of security from the firm or a personal guarantee? This gives the supplier a plan B if everything does not go well.

4) Conditions relate to a number of areas, such as interest rate or currency fluctuation and the life cycle or shelf life of the product.  If the firm is barely making ends meet could they withstand an increase in the interest rate?  Is there new technology that is going to make their product irrelevant soon?  Is the shelf life almost at the end?  If the firm exports and sells in adifferent currency what effect could that have?  Will a change in the overall economic conditions have an effect on the buying patterns of the customer?

5) Character gauges the trustworthiness of the owner(s).  Do you feel comfortable selling to them?  Do you perceive them to be honest, possess a sense of responsibility and believe that they will keep their word if they make a commitment?  This may be described as a “gut feel.”

I recall very clearly many years ago at an industry trade meeting, a fellow Credit Manager made a unique point about financial statements.  He said that when you are reviewing financial statements (which assists greatly in the assessment of the 5C’s) with a customer, the first thing you should do is to ask, “Is there anything you would like to tell me about these before I review them?”

This gives the client the golden opportunity to explain any weak areas and to let you know what they are doing to remedy them.  If they don’t disclose anything specific at the time and upon review of the statements you ultimately see some areas of concern, before you ask for an explanation from them about it, you may ask yourself are they even aware of this?  Is there a concern that the firm is suffering from a Vitamin C deficiency – namely, cash, credit and customers?  That’s a very simplified version of the 5C’s.

Over the years I’ve found that asking this question can get to the heart of concerns more quickly.  This allows for more time to be spent on questioning how the business will change and grow profitably in the future and on determining how your firm can assist in that.

Ken has been a credit management professional for over twenty-five years and has global experience in a broad range of industries including the food (aquaculture & beverage), chemical, manufacturing and transportation sectors.  Ken is honored to serve on the board of the Credit Institute of Canada representing the Ontario region.

He has been awarded the highly esteemed CCP Emeritus award from the Credit Institute of Canada for distinguished and meritorious service for the advancement of credit education and the credit profession.  
Consulting projects and speaking engagements have included Toronto, Brunei (S.E. Asia) and Jamaica.

Tell us how you have dealt with 'Vitamin C' deficiency in your assessment of customers' credit-worthiness.

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0 Replies
Posted May 16, 2019 by Nawshad Khadaroo, CCP
How has CIC added value to your career? Post your answer for a chance to win two tickets to the May 23rd Blue Jays v/s Red Sox game.
Last reply on May 18, 2019 by Divya Lakshminarasappa
1 Reply
Posted November 27, 2018 by Andre R. Brooker
Please reply to this post to ask a question or start your own discussion. 
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Last reply on August 13, 2020 by Marci Adams
3 Replies
Posted September 11, 2017 by Andre R. Brooker
As the retail landscape changes and bankruptcies of brink and mortar stores are becoming ever more present, what reforms would you like to see in place that would fairly protect both the interest of employees and creditors of companies that file for bankruptcy or protection?
pexels-photo-207489 x2.png
Last reply on September 11, 2017 by Nawshad Khadaroo, CCP
1 Reply
Posted June 30, 2017 by Andre R. Brooker

Being able to offer highly flexible payment terms can give you a competitive edge with your
international customers. But if your terms are too lenient, you may increase your risk of payment
problems that could undermine your cash flow. This paper examines how you can choose payment
strategies that will attract overseas buyers while keeping your financial risks under control.

Read the full whitepaper

0 Replies
Posted September 27, 2016 by Nawshad Khadaroo, CCP
Can a creditor take security on intellectual property?
Last reply on September 27, 2016 by Tony Lengua, CCP, CCE, CICP, CRM
1 Reply
Posted August 17, 2016 by Nawshad Khadaroo, CCP
Has anyone ever used a "negative pledge letter security? Banks' have used this in the past in the event that a customer won't sign over security. This letter essentially outlines what they agree to and should they fail to follow through, you can then put security in place. Seems a little odd.  Please share your thoughts on this.
Last reply on October 29, 2019 by Ruth Storms, CCP
4 Replies
Posted August 15, 2016 by Andre R. Brooker
A stock buyback affects a company's credit rating when it uses debt to repurchase its own shares.
Last reply on August 27, 2016 by Sean Raymond Monaghan, CCP,CPA,CMA
2 Replies

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