Used as a training aid or as a refresher this material becomes an invaluable asset to the customer risk manager's library.
It is plain that under the broad term of insolvency there is a wide variation in this general condition applying to different debtors. Sometimes customers with an excellent reputation become temporarily insolvent though the customer would be hard pressed to admit it. In fact, many creditors rarely think of a debtor as insolvent until the situation becomes chronic and serious. Insolvency in its mildest form merely calls the collection department into activity. However, when the encumbrance increases in degree, the management of the customer risk requires the need for alternative ways to do business. The tools of the trade are discussed in this book as alternatives to open account. Credit enhancements, or substitutions for open account credit are a critical component of a credit professional's toolbox. Scott Blakeley has specifically and individually identified each tool and placed it in the context of its use pertaining to: bankruptcy risk, the automatic stay and various avoidance powers.