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Big Company Red Flags You Can't Afford to Miss

Your Virtual Credit Manager

Here a sample of the news on this front: Commercial bankruptcy filings across all chapters increased 20% in the first 9 months of 2024 compared to 2023, with 22,550 filings versus 18,774 according to Epiq AACER. Meanwhile, commercial Chapter 11 filings increased 36% Allianze Trade forecasts bankruptcies in the US to increase by 12% in 2025.

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Lessons for Trade Creditors from Recent Bankruptcies

Your Virtual Credit Manager

Another thing trade creditors can study is companies that have defaulted or filed for bankruptcy. The company filed for Chapter 11 bankruptcy protection in September 2010 and gradually closed its remaining stores. Despite efforts to negotiate with creditors, Hertz filed for Chapter 11 bankruptcy protection in May 2020.

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The Imperative for Prioritizing Collections

Your Virtual Credit Manager

(Photo by Melinda Gimpel on Unsplash ) The American Bankruptcy Institute recently reported that, “The 6,067 total commercial chapter 11 bankruptcies filed during the first nine months of 2024 represented a 36 percent increase over the 4,561 filed during the same period in 2023.”

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Red Flags Revealed by Your Customers' Financial Statements

Your Virtual Credit Manager

Chapter 11 filings, used by businesses hoping to reorganize, have increased by 34 percent in the first six months of 2024 compared to last year. Chapter 7 commercial liquidation filings are up 28 percent and sub-chapter V small business elections are up a staggering 61 percent despite the filing threshold recently being cut in half.

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How to Get Merchant Cash Advance Debt Relief

Fundera

Collateralized loans are less risky to lenders, since they have a built-in safety net in case a borrower defaults. There are three options when filing for business bankruptcy: chapter 11, 7, or 13. There are many different kinds of collateral , including property, inventory, personal guarantees , and blanket liens.

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Are There Hidden Risks in Your AR Portfolio?

Your Virtual Credit Manager

In February, Epiq Bankruptcy reported that commercial Chapter 11 bankruptcy filings climbed 118 percent year-over-year. If the European parent company defaulted, the North American subsidiary would be pulled into bankruptcy even though its operations were profitable. There is also a sequel to this case study.