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  • Hi Everyone, 
    Wondering if the community can advise of any experience they've had with Foodtastic Group (including Milestones, Freshii, Second Cup, Pita Pit, Quesada, etc), from a creditors standpoint. Maybe for privacy reasons, feel free to email me @ efisher@canterburycoffee.com.  
    On an aside, I was hoping one day to build a "rolodex" of us creditors that we can reach out to on the regular for credit references. I think it would be more helpful than ever given the current market .
    Thanks in advance!
    Last reply on March 14, 2024 by Pam Baile

  • Good morning, 

    Our company is going through a process of master data cleanse and we are looking at the best ways to standardize a multi-provincial customer database.

    In your experience, what is the best format for customer's legal names:

    - Proper format versus all upper cases 
    - Punctuation versus no punctuation within a name. For example, if the company is registered as : " John's Company Inc." - we will include the apostrophe, but not sure about the dot after "Inc." .  If we rule out all the ending dots in a name, would this have implications in Court in case of a default ( i.e could a Court dismiss our case claiming the defendant name not correct ?)
    - For Quebec customers whose legal names include accents,  is it advisable to use all upper case so there is no need for accent ? Would a Court dismiss our case if the defendant name does not include the accent ?   

    I appreciate any real life examples you may have, or at least pointing out to a reliable source to consult on the matter.

    Thank you for your help !

    Last reply on April 12, 2024 by Ishtiaz Mahmood, CCP

  • Good afternoon,

    It was difficult to outline the detailed question I have in the Q&A section of the Zoom meeting.
    I was hoping George could review it here.

    I was asking about getting authorization from the customer to charge their card repeatedly (month to month). Taking the card information over the phone was suggested by George, but this only gives you an opportunity to charge the card once. In 5 months when you are still charging that same card for the customers’ monthly invoices, they could challenge the charges. If you don’t have a signed document stating that you have permission to charge them every month you will receive a chargeback from your bank and have to pull all your back up and prove that the customer was provided products/services and hope the bank agrees with you.

    Our company has a monthly pre-authorized form that the cardholder signs authorizing us to take a deposit to ensure the card works and to charge their card every month. We don’t get chargebacks anymore because we have written authorization. When we could use DocuSign, the cardholder completed their information and returned it back to us. We entered it into the vault and we redacted the card number (except the last four digits) off of the form that was returned in DocuSign. That signed form with the card redacted (except the last four digits) was kept as our record that the customer authorized us to charge their card every month. Somebody else brought up in the seminar, how do you verify that the card information you are receiving over the phone is not fraudulent and that it belongs to the person giving it to you. This form is how we protect ourselves and lower that risk.

    Unfortunately, we were advised by our financial institution that we could no longer use DocuSign in the same way, so we have changed our form so that the customer only enters the last 4 digits of the card number on the form that they sign and submit. The remaining digits are obtained over the phone, we create the profile in our vault immediately and the form with the last four digits, is held as our backup that they authorized the monthly charges. Having the cardholders signature on our form reduces our risk of receiving fraudulent information.

    Is there an easier way to do this where we can get the card information and their authorization to charge every month in one step while being PCI compliant? We are hoping for a system where the customer can enter their own card information into the vault so we don’t have to worry about storing it or receiving it before it is entered in the vault. However, we need to ensure that we are provided with monthly authorization approval as well and I don’t know if such a system exists. Before my time, when our company took card information over the phone and did not receive authorization to continue charging, we received chargebacks regularly and complaints from customers. With our form, we have proof they authorized it and this issue went away.

    Thank you for your help!

    Last reply on February 4, 2024 by NawshadK KhadarooN

  • With increasing costs continuing to put pressure on borrowers disposable income its important to focus on a borrowers Debt to Income (DTI) ratio to ensure a borrower can afford the payments of a loan being offered. 
    The DTI is a financial metric that is used to evaluate a borrower's ability to repay a loan. It is a measure of how much of a borrower's gross income is needed to cover their monthly debt payments. The ratio is calculated by dividing the borrower's total monthly debt payments by their gross monthly income.

    For example, if a borrower has a monthly gross income of $5,000 and total monthly debt payments of $1,500, their DTI would be 30% (1,500/5,000 = 0.3). This means that 30% of the borrower's gross income is needed to cover their monthly debt payments. A lower DTI is considered more favorable, as it indicates that the borrower has a lower level of existing debt in relation to their income. Lenders usually have a maximum DTI ratio that they will accept for loan approvals. It varies from lender to lender and also depends on the type of loan. For example, a lender may require a DTI ratio of no more than 36% for a mortgage loan, but for a personal loan, it could be as high as 43%.

    DTI ratio is important for lenders to evaluate the creditworthiness of a borrower, especially when it comes to long-term loans such as a mortgage or a car loan. A high DTI ratio indicates that a borrower has a high level of existing debt and may have trouble making their loan payments in addition to their other monthly obligations. This can be a red flag for lenders, who may decide to deny the loan or charge a higher interest rate to compensate for the increased risk of default.

    To calculate the DTI ratio, lenders typically require borrowers to provide information about their income and debt. This includes:

    •        Gross monthly income, which is the total amount of income earned by the borrower before taxes and other deductions.

    •        Monthly debt payments, which includes all payments that the borrower is required to make on a regular basis, such as credit card payments, car loans, student loans, and rent or mortgage payments.

    It is important to note that lenders may also consider other factors when evaluating a borrower's ability to repay a loan, such as their credit score, employment history, and assets. However, the DTI ratio is an important indicator of a borrower's overall financial health, and it is typically used in conjunction with other metrics to make a lending decision.

    Moreover, borrowers can reduce their DTI ratio by either increasing their income or reducing their debt. Increasing income can be done by getting a raise, taking on a part-time job, or starting a side hustle. Reducing debt can be done by paying off outstanding credit card balances, consolidating loans, or negotiating a lower interest rate with creditors. By reducing their DTI ratio, borrowers can improve their chances of getting approved for a loan and qualify for a lower interest rate.


  • What a great time to be part of an association of credit professionals. We’ve seen unprecedented increases to interest rates by the Bank of Canada. Economists are telling us recessions looms. I have the feeling from the credit applications I am seeing that a lot of main stream lenders have put the breaks on originations.

    I saw this at the beginning of my Career in 2008. But really, I think it’s been pretty rosy since then (Covid aside). Which means there must be a lot of Credit Managers who have started in the last 10 years or so that just haven’t seen this. Being part of the CIC gives us all access to so much expertise. Are we maximizing it?

    Who’s seeing the End of Credit on the horizon? Where are you going for answers when trying to deal with situations that you may not have encountered before? And who is ready to step in and help those that do have questions?

    Shane, CCP, Vancouver

    #CIC23 #endofcredit #creditmentor


  • Hi friends,

    Can anyone please give me some advice as to how to deal with a large amalgamated corporation with over 2 dozens predecessor companies? Several of the predecessor companies would like to apply for their own individual credit account with us but they are under one legal entity now under the amalgamated company. In case one of the predecessor companies defaulted on payment or went bankrupt, who do we go after to? Is it the individual company or the amalgamated company? Another issue is that they can't share one credit account as they have their individual accounting department.
    Any information would be very much appreciated!
    Thank you for your time!
    Nancy Indita

    Last reply on May 29, 2023 by Maria Encarnacion Indita, CCP

  • Hi Credit Friends 
    I am in a fairly new role and a part of our client portfolio are film/production companies. The clients set up a new entity for each new production leaving the credit ref bare or non existent. Bank checks are taking forever. I have added a PG to our credit app but its hit and miss on if it gets signed. Our line of business is services. I am having a hard time justifying the 100,000 credit limits they require. Any tips or thoughts on how to properly analyze or secure payment for these clients.
    Last reply on May 31, 2023 by Bhavna Gandhi-Ketchen, CCP, CICP

  • Profile image
    cerb overpay letter
    Anne Bannon
    March 28, 2022
    Hi - i am not sure if anyone can give advise here. 
    i got cerb but can't show them that i made enough to get the money and now i am so stressed that i owe it all back now.
    i saw a post on facevbook from https://debt-experts.ca/cant-repay-cerb-breaking-news-25-03-2022/ that said if i have to go bankruptcy then i can get rid of this debt?  is this true?  anyone know if they are a good company?  thank you. 

  • Profile image
    Ashley Koester, CCP
    March 7, 2022
    Hello Credit & Collection Friends !
    Is anyone out there using D365 and up for some questions? I recently started with a company where the prior Manager left months ago, the PM of the new ERP left on my first day, the team is somewhat lost and I have questions. Thanks in advance ! 

  • Profile image
    Oracle ERP
    Liza Singh, CCP
    July 6, 2021
    Hello Credit and Collection professionals does anyone have experience with Oracle? Looking to get a short overview, pro and cons for collection purpose. Saving contact info, collection notes, reconciliation, adjustment entries etc. Please reach out here or via lizansingh@gmail.com if able to provide insight.  Thank you

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Posted July 31, 2023 by Shane Jon Knight, CCP
Default (GPT-3.5)
write me an outline for a 12m marketing blog post that highlights the 12 most important things to consider when preforming financial statement analysis. Posts will be 500 words long and should focus on prominent financial ratios. The target audience is students new to financial analysis and the tone of the posts should be up beat and fun

Title: 12 Financial Ratios Every Student Should Master for Awesome Financial Statement Analysis!

I. Introduction A. Welcome and Hook: Emphasize the importance of financial statement analysis for making informed decisions. B. Briefly introduce the concept of financial ratios as powerful tools for analysis. C. Set the tone: Tell readers they're about to embark on an exciting financial adventure!

II. Liquidity Ratios A. Quick Ratio: Explaining the ratio and its significance in assessing short-term liquidity. B. Current Ratio: How this ratio gives a broader picture of a company's short-term financial health.

III. Efficiency Ratios A. Inventory Turnover: Highlighting its relevance in evaluating how quickly a company sells its inventory. B. Accounts Receivable Turnover: Explaining how this ratio indicates the efficiency of collecting revenue.

IV. Profitability Ratios A. Gross Profit Margin: Illustrating how this ratio measures a company's ability to generate profits from sales. B. Net Profit Margin: Describing its role in assessing overall profitability after all expenses.

V. Solvency Ratios A. Debt-to-Equity Ratio: Analyzing the company's financial leverage and risk. B. Interest Coverage Ratio: Explaining how this ratio gauges a company's ability to pay interest on debt.

VI. Investment Ratios A. Price-to-Earnings (P/E) Ratio: Demonstrating how investors use this ratio to gauge a stock's value. B. Dividend Yield: Showing how this ratio measures the return on investment through dividends.

VII. DuPont Analysis A. Breaking down the three components: Profitability, Efficiency, and Leverage. B. How DuPont Analysis provides a comprehensive view of a company's financial performance.

VIII. Trend Analysis A. Highlighting the importance of comparing financial ratios over time. B. Encouraging readers to identify trends and make predictions.

IX. Benchmarking A. Emphasizing the significance of comparing ratios to industry peers or competitors. B. Explaining how benchmarking aids in understanding a company's position in the market.

X. Limitations of Financial Ratios A. Acknowledging that financial ratios have limitations and are not standalone indicators. B. Encouraging readers to consider other factors for a holistic analysis.

XI. Case Study: Analyzing a Company's Financial Statements A. Walk-through of a simplified financial analysis for practical understanding. B. Demonstrating the application of financial ratios to a real-world scenario.

XII. Conclusion A. Recapitulate the importance of financial statement analysis in decision-making. B. Encourage readers to use financial ratios confidently for an exciting financial future!

Note: Each section should be approximately 150-200 words, keeping in mind the upbeat and fun tone throughout the blog post. The outline covers a range of essential financial ratios, providing new students a well-rounded understanding of financial statement analysis and its practical application.

0 Replies
Posted July 31, 2023 by Shane Jon Knight, CCP

Some risks of lending to the transportation industry include:

  1. Economic Downturn: The transportation industry is highly sensitive to economic cycles. During a recession or economic downturn, demand for transportation services may decrease, leading to reduced revenues for companies in the sector. This can increase the likelihood of loan defaults.

  2. Fuel Price Volatility: Fluctuations in fuel prices can significantly impact transportation companies' operating costs and profitability. A sudden rise in fuel prices may strain companies' cash flow, making it harder for them to meet their debt obligations.

  3. Technological Disruptions: The transportation industry is undergoing significant technological changes, such as the rise of electric vehicles, autonomous vehicles, and advances in logistics and supply chain management. Companies that fail to adapt to these changes may face increased competition or operational challenges, affecting their ability to repay loans.

  4. Regulatory Changes: Transportation companies must comply with various regulations and environmental standards. Changes in regulations, such as emissions standards or safety requirements, can increase compliance costs and affect profitability.

  5. Competition and Pricing Pressures: The transportation industry is highly competitive, and companies may engage in aggressive pricing strategies to gain market share. This can lead to reduced profit margins and potentially impact their ability to service their debt.

  6. Geopolitical and Environmental Risks: Events like trade wars, political instability, natural disasters, or pandemics can disrupt supply chains and impact the transportation industry. Such events can lead to decreased revenues for transportation companies and increase the risk of loan defaults.

  7. Debt Levels and Leverage: Some companies in the transportation industry may have high levels of debt and leverage to finance their operations or expansion. High debt levels increase the risk of financial distress, making it harder for them to repay existing loans.

  8. Customer Concentration: If a transportation company relies heavily on a few major clients, the loss of one or more of those clients could significantly impact its revenue stream and ability to meet loan obligations.

0 Replies
Posted January 26, 2021 by Kristina Fixter
This month`s featured article focusses on some of the key pitfalls to avoid as a credit analyst. 
They are as follows:

#1 Overlooking warning signs of client insolvency

#2 Waiting too long to act on overdue accounts

#3 Gathering insufficient information about clients in the beginning

#4 Failing to provide an effective reference guide to credit personnel

#5 Giving authority to sales over the credit department to make decisions

Which one of these have worked or not worked for you and why is that?
Do you have any more gems to add to the list? 

#businesscredit #riskmitigation

0 Replies
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.

Please sign in or create an account to leave a reply.

0 Replies
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, MBA,ECCP,CCE,CICP
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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