The credit and finance publication guide

The best Canadian credit reference handbook

GET MORE THAN 300 pages of advice and references on credit policies and finance. Written by one of Canada’s most renowned Financial Consultant for Credit Managers, Accountants, Credit Professionals, ... An incredible price for a lifetime reference handbook! Discover all the secrets of credit analysis. Find thousands of hints that will help you to better negotiate, analyse and manage credit. It will save you THOUSANDS OF DOLLARS!!!

• Credit Analysis
• How to Avoid Losses
• Import / Export
• Small Claims Courts in Canada
• Movable Hypothec on Intellectual Property
• The Art of Credit Negotiations
• Business Strategies
• Varied Types of Businesses
• Bank's New Approach to Independent Business
• Special Analysis
• Venture Capital
• Working Climate
• Estate Planning for Business Owners
• Making Business with First Nation Communities
• My simplified Business Plan

View the table of contents

The "perfect" credit application

You benefit of the most necessary information and references on the “perfect” credit application. Find thousands of indispensable hints to analyse, allow and handle credit. Written by one of Canada's most renowned Financial Consultant for Credit Managers, Accountants, Credit Professionals,... An incredible price for a lifetime reference handbook!

You find subjects such as a sample of a credit application covering all the aspects that a 'perfect' credit application should include and suitable to your needs. The 10 rules of the Canada Personal Information Protection and Electronic Documents Act. Various texts and forms relating to the CREDIT APPLICATION and the authorization concerning the collection, disclosure and use of personal information, as well as the right of an unpaid vendor.

Credit agreement form

EVERYTHING you should know about the CREDIT AGREEMENT FORM

Get the information you need to include in your Credit Agreement Form, as well as legal references. Clearly understand the various clauses in a Credit Agreement Form, such as access to information, the company and its positive and negative covenants, and its rights and remedies in the event of default. Customized model of a Credit Agreement Form is also included. Written by one of Canada's most renowned Financial Consultant for Credit Managers, Accountants, Credit Professionals, ...

• Identification of the parties
• Credit line
• Repayment
• Interest rate
• Security
• Representation and warranties
• Conditions precedent to the set up of the credit line
• Positive and negative covenants
• Environmental obligations
• Events of default
• Rights and remedies of the company in the event of default
• Miscellaneous provisions
• Access to information
• Governing law
• Period for accepting the opening credit line
• Acceptance
• Guarantee / Suretyship

Data to decisions

The credit manager's Internet handbook

(english version available)

The easiest and most practical way to put the Internet to use within the Credit department!

Everything you wanted to know about the Internet for credit executives, but was afraid to ask ... especially after all that specialized 'Internet training' your company gave you. The ability to practically and efficiently use the Internet to aid in the administration of credit departments, and the extension and collection functions which are among the Credit Departments core duties, is not a nice to have skill for the likes of the Credit Professional, it's a MUST have skill.

• Company research - beyong trade references and credit reports
• A universal need to know-as-you-go
• Information know-nots are do-nots by default
• How to use this handbook
• Search essentials
• Researching companies from scratch - going local
• Researching a company using a business card
• Let's get creative - digging deeper on the web
• Public companies disclosed
• The art of researching companies - smart tactics
• It's the law
• People needing people
• One piece of the PIE - Political, Industrial and Economic forces at work
• Bits and bobbles
• Getting off your information assets - The 9 A's of informed Decision Making
• Information ecology - spheres, species and characteristics
• Shopping for business information - from farm to store
• Search basics - fundamental functions apply
• Strategy rules - conquering the wild, wild web
• Googling with and without Google
• Gray matters - connecting to cognitive dots
• Shopper's guide to news and business resources for credit professionals
• The last word... A word about the future of the credit profession

Table of contents

How to read financial statements from A to Z

(Available in French only)

This book will be useful to both the initiated and the uninitiated reader in understanding the financial statements from A to Z. Financial ratios are part of the financial analysis. You will be able to make credit decisions on the basis of criteria that have proven useful to those who have learned to use them wisely.

Here is a summary of the table of contents:

• With whom are you doing business?
• Can we rely on the data that appears in financial statements?
• Qu'What is a balance sheet?
• What is the income statement
• What is the retained earnings statement?
• What is the cash flow statement?
• What is the use of the notes to financial statements?
• Case study: Is it wise to renew or extend the line of credit of a company that availed itself of the Creditors Arrangement Act?
• Case study: Big sales but little profit!
• Case study: Should we grant credit to a company that shows repetitive losses?

Table of contents

Credit analysis

We cover all the aspects of credit analysis. We look at the importance that should be given to the assessment of a company's managers such as administrative effectiveness (known as the quality audit of a company's management); how to analyze the risk for the industry that the company operates in, the fundamental objective of which consists in understanding the changes that occur in the industry's performance over time; the most common and informative financial ratios by looking at the calculation method, the definition and purpose of the ratio, meaning of low and high ratios, general rules and red flags; hidden secrets of default risk ratings set by most financial institutions such as how to analyze financial, management, market and non-financial risks; how bankers can improve their credit decisions through an understanding of the life cycle of a business and its industry fundamentals; how lenders could minimize their risks through an understanding of the borrower's strategic planning.

We also cover an overview of the management of accounts receivable as analyses usually reveal an inadequate credit policy, the lack of customer credit checks and financial information analyses, the absence of financial ratio analyses, interpretation of changes in accounts receivables and ineffective control of accounts receivable.

You will be able to:

• Appropriately advise your client on how to effectively negotiate with a financial institution;
• Analyze your client's creditworthiness by assessing the company's managers;
• Identify the administrative strenghts and weaknesses that directly or indirectly affect your client's repayment capacity;
• Measure the abilities, experience and practices of the managers of the company you represent;
• Appropriately advise your client on how to present his file to the financial institution;
• Recommend measures to improve how the company is managed;
• Evaluate your client's administrative efficiency to assess his ability to manager a company over the long term;
• Analyze the risk for the industry in which your client operates;
• Identify financial ratios;
• Determine the company's strengths and weaknesses with regard to financial ratios;
• Demonstrate the company's strengths to the lender in order to enchance the sales aspects of your presentation of the file to the lender;
• Identify the corrective measures required to improve the presentation of the financing application;
• Assist your client in improving certain financial statement items that have a direct impact on financial ratios by recommending corrective measures tailored to the company's needs;
• Find new ways to increase revenue streams by identifying the company's weaknesses;
• Help your client to determine his financial needs through an understanding of the life cycle of the company in question and industry fundamentals; and
• Recommend measures on managing accounts receivable.

Table of contents

How to avoid losses

We present the immediate and underlying causes of businesses insolvency, how to detect the red flags precursor of financial difficulties and a line of tricks of the trade to present problem loans before they happen. We see what are the reasons behind the deviation from the basic principles of credit management by credit managers and the main responsibilities of the credit manager inside a sound credit management environment. We elaborate on how to ensure a successful corporate turnaround.

We explain the causes of real estate bankruptcies and specifically, the failure of newly-developed projects. We use three attributes from financial institutions to build financing models which enable you to better judge if lending opportunities fall within or outside the lender's norms. We identify nine warning signals that can be observed as early as one year before the borrower defaults on its obligations towards the lender. We see how to determine allowances for bad debts without using accounting methods and we discover the triangle of fraud.

You will be able to:

• Appropriately advise your client on how to effectively negotiate with a financial institution;
• Identify the immediate and underlying causes of businesses insolvency and to detect the red flags precursor of financial difficulties;
• Prevent problem loans before they happen by the knowledge of a line of tricks of the trade;
• Ensure a successful corporate turnaround or at least to know the main items;
• Know the causes of real estate bankruptcies and to help your clients to avoid them;
• Better judge if the financing application you are preparing fall within or outside the norms of the lender;
• Identify potential problem loans;
• Determine allowances for bad debts without using accounting methods;
• Identify potential frauds before they happen;
• Adequately appraise a proposed security inside a financing deal;
• Recommend measures to improve how the company is managed; and
• Find new ways to increase revenue streams by identifying the company's weaknesses.

Table of contents

Import / Export

You will become more familiar with the import/export transactions, which are part of the daily operations of a lot of businesses. We look at the features of the commercial letter of credit, the reasons related to foreign countries to respect their commitments, the other reasons for using letters of credit, losses on letters of credit and changes on the horizon. Also included a short glossary of products with definitions and application scenarios for who are not familiar witht he hedging strategies available for foreign exchanges rates.

You will be able to:

• Identify the circumstances indicating to a business to resort to the letter of credit for its import/export transactions and to suggest to your client to resort to the letter of credit with full knowledge of the facts;
• Know the characteristics of the commercial credit letter;
• Identify all the available strategies about exchange rate hedging;
• Know the language used by the money market specialists;
• Understand the differences between the transactions concluded in Canada and United States;
• Recommend to your clients the type of lending available in United States; and
• Find new ways to increase revenue streams.

Table of contents

Small claims courts in Canada

We will provide you with a list of tools that are indispensable for analyzing, granting and administering credit. These tools cannot be obtained on the market without paying exorbitant fees.

We explain how the Small Claims Court works in each of Canada's provinces and indicates the maximum claim that can be made as well as the rules to be respected when using this court.

Movable hypothec on intellectual property

You will demystify the incorporeal assets, such as patents, copyrights and trade-marks, which are notoriously hard to evaluate, and eliminate the confusion surrounding the taking of such property as security.

You will be able to:

• Identify all the forms of intellectual property;
• Recommend to your clients the appropriate caution measures for these intellectual properties;
• Appropriately advise your client on how effectively negotiate with a financial institution when offered securities are intellectual property; and
• Find new ways to increase revenue streams.

The art of credit negotiations

You will demystify the incorporeal assets, such as patents, copyrights and trade-marks, which are notoriously hard to evaluate, and eliminate the confusion surrounding the taking of such property as security.

You will be able to:

• Identify the most important elements in any negotiation between the credit manager and the customer;
• Have a successful business meeting and help your customers to do the same;
• Negotiate successfully your credit negotiations and those from your customers;
• Build a long-term 'win-win' relationship with your bankers and customers;
• Improve your knowledge about the process of negotiating and application for financing;
• Avoid to get bogged down in details, while identifying the essential information the lender needs to make a decision;
• Identify the lender's behaviour, when they analyse the credit application; and
• Find new ways to increase revenue streams by becoming an unparalleled negotiator.

Business strategies

We will help you to take some strategic decisions, for you and your clients, in view to put on some credit, financing and behaviour policies. We see if it is more worthwhile to make sales with no discount and receivables due in 30 days or with a 1% discount if the receivables are paid within 20 days of the sale. We examine the advantages and disadvantages related to factoring to finance its foreign receivables. We explain the three main types of comfort letters and their scope, the lender's policy to adopt on this matter and the prerequisites for obtaining comfort letters. We also propose the ideal system for calculating a line of credit and the four key parts of an efficient credit policy as well as the strategies to adopt with a view to setting up policies which will adequately protect the enterprise's managers and shareholders.

You will be able to:

• Adequately advice your client on how to effectively put in place sale conditions;
• Recommend to your client if he must adopt factoring to finance its foreign receivables;
• Adequately appraise the value of a comfort letter, often presented inside transactions between enterprises;
• Appropriately determine the amount of the credit margin that your client must grant or that he should obtain from a financial institution;
• Verify if the credit policy of your client is covering the main items of a good credit policy; and
• Find new ways to increase revenue streams by identifying the needs showed inside this module.

Varied types of businesses

You will become more familiar with the varied types of business in Quebec and Canada. We will look at their establishment and the tax, legal and administrative advantages and disadvantages related to the management of these types of business.

You will be able to:

• Identify the risks related to the management of some types of business;
• Recommend to your customers to change their types of business, if required;
• Identify the tax, legal and administrative advantages and disadvantages related to any types of business; and
• Find new ways to increase revenue streams by identifying the disadvantages related to the management of some types of business.
  

Bank's new approach
to independent business

We will look at the reasons why banks are interested in small and midsized businesses and businesses' expectations of the banks and the point scoring system for rating creditworthiness used by almost all the banks, which in fact constitutes the whole new approach banks are taking toward independent businesses.

You will be able to:

• Know the new analysis method used by almost all the banks to grand financing to independent business;
• Recommend to your customers the ideal approach for negotiating their loan requests;
• Improve your counselling role by the knowledge of the analysis process used by the banks; and
• Find new ways to increase revenue streams by identifying the independent businesses and banks' expectations.
  

Special analysis

We find some special analysis concerning fashion industry sectors, like franchises and particular approaches such as financing the growing companies. We see how franchises differ from other businesses, the importance to analyze the industry of the franchise, the primordial necessity of the study of the franchisor and the franchise agreement, the characteristics of the franchisee to appraise and the types of collateral to require when we are doing business with a franchise.

We explain characteristics that company must have to succeed, when it has to put a new product on the market, deal with the new product evaluation grid which will permit to better appraise the success of a new products.

We find 5 basic factors used to appraise the borrower's viability and which can also be used to analyze the creditworthiness of a residential building contractor. We illustrate the consequence of an increase in sales, which is not always a sign of success. We discover how to grant credit to retail chains, that the equipment appraisal is a good way to facilitate the credit decision which also must be based primarily on the quality of the retail chain's management and the stores it operates.

You will be able to:

• Appropriately advise your cient on how to effectively negotiate with a financial institution;
• Appraise a franchise, a franchisee and a franchisor and to appropriately advise them;
• Analyze all the characteristics that a company must have to succeed, when it has to put a new product on the market;
• Analyze the creditworthiness of a residential building contractor by the knowledge of the five C's;
• Stress your advisory role when dealing with a growing company;
• Adequately appraise the borrower's quality when he operates a retail chains;
• Ask for an equipment appraisal when it will be necessary; and
• Find new ways to increase revenue streams by identifying the company's weaknesses.

Table of contents

Venture capital

We will help you to identify the underlying reasons why do small and medium-sized enterprises have problems getting venture capital.

You will be able to:

• Advise your clients to resort or not to venture capital to finance a booming expansion;
• Appropriately advise your client on how to effectively negotiate with a financial institution;
• Find new ways to increase revenue streams by identifying venture capital needs.
  

Working climate

You will find a method of conflict resolution that will improve the working climate.

You will be able to:

• Help your client to resolve conflict situations by recommending the 'win-win' method; and
• Find new ways to increase revenue streams by identifying weakness inside the human resources management of your clients.
  

Estate planning for business owners

You will find everything you should know about estate planning for business owners.

You will be able to:

• Appropriately advise your client on how to prepare its business estate planning;
• Advise your client on the planning for ownership transition;
• Prepare for your clients a succession management planning with success; and
• Find new ways to increase revenue streams by identifying your client's estate planning needs.
  

Making business with
first nation communities

You will become more familiar with the procedure to follow when you make business with an Indian company or an Indian located on an Indian reserve. Doing business on an Indian reserve is a challenge for lenders because the land holding regime, the restrictions on access, the taking of security, the administrative regimes of bands with their different structures, powers and financing arrangements.

You will be able to:

• Identify the risks that might be encountered when doing business with an Indian company located on an Indian Reserve;
• Advise your client on how to do business with an Indian company;
• Advise your client on the precautions that he must take before the delivery of goods on an Indian reserve; and
• Find new ways to increase revenue streams by identifying the risks when your are doing business with an Indian company.

My simplified business plan

We will provide you with a list of tools that are indispensable for analyzing, granting and administering credit. These tools cannot be obtained on the market without paying exorbitant fees.

Also, you will find a simplified business plan which includes all the basic information needed to draft a business plan..