|Terrorism and Business Credit
September 11 has changed our lives. On the commercial
credit front, credit professionals are experiencing greater risk
with their open account sales. Customers are warning of earnings
shortfalls. Bank financing, bond offerings and IPO's are significantly
down since Sept. 11, making it difficult for customers to borrow.
Customers are laying off workers in the face of fewer orders, delaying
product orders, merging with competitors because of the downturn
in business, facing extraordinary insurance premiums that may threaten
their survival, and those customers that do not have enough cash
or assets face a credit crunch, possibly resulting in bankruptcy
and going out of business. The bankruptcy of one customer may result
in the bankruptcy of one or more of its creditors, who may also
Douglas G Fox, GSCFM, CCE is a member of Mid-Atlantic NACM and is active in the Greater Delaware Valley Region and Philadelphia area.
Scott E. Blakeley is a principal of Blakeley & Blakeley LLP where he practices creditors' rights and bankruptcy law. He can be reached at firstname.lastname@example.org
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