Many businesses are still recovering from the COVID-19 pandemic, from contractors facing supply chain disruption to cinemas winning back audiences and department stores competing with online shopping. Business bankruptcy filings have been rising, pushed up by higher interest rates and inflation.
Whether a business is your customer, supplier or borrower, judging its financial health is key to the relationship. This 60-minute webinar sets out ten red flags of financial distress that help you spot ailing firms before they file for bankruptcy protection.
You'll see how the warning signs connect, such as a change in ownership and management, employee turnover, falling liquidity and slower trade payments, and what action to take to limit the impact of a possible failure.
WHY SHOULD YOU ATTEND?
Your organization's links with its own suppliers and customers expose it to losses from both directions. Ongoing economic volatility means creditors and lenders need to look at the depth and breadth of a borrower's supply chain, including substitutes, alternate suppliers, trade credit costs, transportation and delivery times.
The session suits credit managers, AR teams, finance directors and CFOs, sales and account managers, business owners, risk managers, commercial lenders, trade credit insurers, procurement leaders, investors and analysts.
AREA COVERED
- Red flag 1: an ailing industry
- Red flag 2: declining financial condition and operating performance, including falling sales, gross margins and net profits, and shrinking liquidity, rising leverage and eroding solvency
- Red flag 3: organizational volatility, such as management and director turnover and employee layoffs
- Red flag 4: changes in professional advisers, such as the law firm, accounting firm or insurance agent
- Red flag 5: asset disposition
- Red flag 6: change in ownership
- Red flag 7: credit deterioration, such as COD terms, judgments, liens, overdrafts, default and foreclosure
- Red flag 8: declining communication
- Red flag 9: major casualty loss from weather or climate events such as fire or flood
- Red flag 10: negative media coverage, including complaints, poor online reviews, lawsuits and arrests
- How the red flags interconnect
- Actions to reduce the impact of a potential failure
LEARNING OBJECTIVES
- Identify ten red flags for spotting, evaluating and monitoring financial distress
- Assess a firm's financial condition, operating performance and credit standing
- Recognize organizational, ownership and adviser changes that signal trouble
- Explain how the red flags interconnect
- Take appropriate action to reduce losses from a potential failure
WHO WILL BENEFIT?
- Credit Managers
- Accounts Receivable (AR) Teams
- Finance Directors and CFOs
- Sales Managers and Account Managers
- Business Owners and Entrepreneurs
- Risk Management Professionals
- Commercial Lenders and Bankers
- Trade Credit Insurers
- Procurement and Supply Chain Leaders
- Investors and Financial Analysts
Your organization's links with its own suppliers and customers expose it to losses from both directions. Ongoing economic volatility means creditors and lenders need to look at the depth and breadth of a borrower's supply chain, including substitutes, alternate suppliers, trade credit costs, transportation and delivery times.
The session suits credit managers, AR teams, finance directors and CFOs, sales and account managers, business owners, risk managers, commercial lenders, trade credit insurers, procurement leaders, investors and analysts.
- Red flag 1: an ailing industry
- Red flag 2: declining financial condition and operating performance, including falling sales, gross margins and net profits, and shrinking liquidity, rising leverage and eroding solvency
- Red flag 3: organizational volatility, such as management and director turnover and employee layoffs
- Red flag 4: changes in professional advisers, such as the law firm, accounting firm or insurance agent
- Red flag 5: asset disposition
- Red flag 6: change in ownership
- Red flag 7: credit deterioration, such as COD terms, judgments, liens, overdrafts, default and foreclosure
- Red flag 8: declining communication
- Red flag 9: major casualty loss from weather or climate events such as fire or flood
- Red flag 10: negative media coverage, including complaints, poor online reviews, lawsuits and arrests
- How the red flags interconnect
- Actions to reduce the impact of a potential failure
- Identify ten red flags for spotting, evaluating and monitoring financial distress
- Assess a firm's financial condition, operating performance and credit standing
- Recognize organizational, ownership and adviser changes that signal trouble
- Explain how the red flags interconnect
- Take appropriate action to reduce losses from a potential failure
- Credit Managers
- Accounts Receivable (AR) Teams
- Finance Directors and CFOs
- Sales Managers and Account Managers
- Business Owners and Entrepreneurs
- Risk Management Professionals
- Commercial Lenders and Bankers
- Trade Credit Insurers
- Procurement and Supply Chain Leaders
- Investors and Financial Analysts