February Bankruptcy Filings: 3 More Reasons For Advanced Credit Monitoring
The first week of February brought 3 more bankruptcy filings -- and the 1st of the month isn’t even a distant memory!
- In the last week, the parent of discount chain Bob's Stores and outdoor retailer Eastern Mountain Sports filed for bankruptcy, and United Road Towing -- including 27 of its affiliates and subsidiaries -- also filed for Chapter 11 relief.
- And, for those keeping track of other recent 2017 bankruptcies, last month saw the Chapter 11 filings for vodka maker Roust, tech giant Avaya, apparel retailer Wet Seal and The Limited, as well as a rash of energy sector companies.
When big name retailers file for bankruptcy it makes headlines. After all, brick-and-mortar retailing is the media's current bankruptcy poster child. But when United Road Towing's 27 affiliates and subsidiaries became distressed, did their counterparties know in advance?
Fortunately, there are excellent tools to help you uncover hidden risk.
6 Credit Monitoring Solutions To Uncover Risk
Let’s review six basic credit monitoring solutions to manage credit risk:
Bankruptcy Risk Score: A reliable bankruptcy risk score is still the most effective way to learn the creditworthiness of a large customer at-a-glance, and give you the credit risk insight you need, fast. Predictive analytics based on crowd-sourcing, plus hundreds of other factors, make the FRISK® score 96% accurate.
Credit Risk Monitoring: A 24/7 credit monitoring service will notify you about credit risk changes for the companies you care about. Getting an alert in your inbox is still the best way to learn about deteriorating financial health, when you can still take steps to mitigate those risks.
Portfolio X-Ray: Remember the Pareto principle? The 80/20 rule is alive and well, which is why a portfolio x-ray that slices and dices dollar risk based on your trade files is indispensable. Check out our trade contributor program -- it’s free, and provides the dollar focus you need to manage risk.
Financial Database: Every day, you set credit limits for new customers and review existing ones. That’s why there’s a financial database at your fingertips, to help you get right to your analysis. Sequential quarters of financial results and pre-calculated ratios? Check. Latest 10Q? 8K? Agency ratings? Check. Remember, your special sauce is your experience and analytical firepower, not the time-consuming search for data. We’ve got that covered.
Business Bankruptcy Checklist: Whatever account you are analyzing today, you could benefit by running through a basic bankruptcy checklist first. Yes, it’s old school -- but the financial basics are always valid. Download The Ultimate Checklist to Detect Financial Distress and Business Bankruptcy -- it’s free.
Credit Analysis Help: Last but not least, when subscribers have a question about analyzing public company financial risk for one of their business counterparties, there’s a human at the other end of the phone. Facing a credit conundrum? Consider us your credit analysis wingman. Contact your CreditRiskMonitor customer service rep for help getting the answers you need.
Take these credit risk monitoring solutions for a test drive
Your financial risks aren’t always obvious, or relegated to a single sector.
And by the time you read about financial risk in the media, it's too late. That's the value of an early heads up. And with a toolkit of analytic data and advanced credit monitoring solutions, you can spot financial distress in time to mitigate your business counterparty risks.
Do you know all the risks in your credit portfolio or supply chain? Take our advanced credit monitoring solutions for a test drive, and find out.
Uncover your hidden risks. Get a free risk assessment, learn about our free trade contributor program, or schedule a demo.
CreditRiskMonitor is a financial news and analysis service designed to help professionals stay ahead of public company risk quickly, accurately and cost-effectively. More than 35% of the Fortune 1000, plus thousands more worldwide, rely on our commercial credit reporting and predictive risk analytics for assessing the financial stability of over 58,000 global public companies.
At the core of CreditRiskMonitor’s service is its 96% accurate FRISK® score, which is formulated to predict public company bankruptcy risk. One of four key components calculated in the FRISK® score is crowdsourced subscriber activity. This unique system tracks subscribers' patterns of research activity, capturing and aggregating the real-time concerns of what are essentially the key gatekeepers of corporate credit. Other features of CreditRiskMonitor’s service include timely news alerts, the Altman Z” score, agency ratings, financial ratios and trends. CreditRiskMonitor’s network of trade contributors provides more than $135 billion in trade data on their counterparties every month, giving them visibility into their biggest dollar risks.