He said that if the customer is a private company, with less information about it publicly available, he will look into whether the construction job that customer is involved in is bondable and lienable before deciding on credit terms
Eddy Sumar, CCE, CICE, International Trade Financing Manager, Rain Bird International, Inc., said it is important not to over-react or to act too quickly to political developments in other countries, adding that it's important to first acquire as much information as possible before deciding on whether or not to change credit terms
on sales into that country.
Banks and securities firms have demanded more information and tightened their credit terms
, especially vis-a-vis highly leveraged institutions.
Universal, the leading manufacturer of treated lumber products, was also extending credit terms
based on 1 percent 10 days, net 30.
If credit customers require that they be given time to ensure that in fact they got what they wanted, and they require time to process the billing, credit terms
must be extended or a profitable sale is lost.
Credit executives, today--more than ever--need to know what can or cannot be done, what can or cannot be discussed, when and how credit terms
may be adjusted, and what is currently covered under the various antitrust statutes.
We believe the credit market works best when it is unencumbered and when consumers have the information they need to compare available credit terms
while granting another dealer credit terms
can support a price discrimination claim.
Although they seem to have stopped tightening credit terms
, a significant easing is not yet evident.
Alas, the trade creditor's dilemma--to sell on cash in advance or cash on delivery terms and risk losing its customer, or sell on credit terms
and incur the risk of a double loss on both the creditor's post-petition trade credit claim and pre-petition general unsecured claim if the Chapter 11 fails.
Its suppliers had also cut the credit terms
on which it trades, the company said.