Written by: James Tiarks, Managing Director, Meridian Finance Group

Bankruptcy Trends

2023 has been a challenging year for many US businesses as they face the combined effects of rising interest rates, geopolitical tensions, inflation, fluctuating currencies, and changing consumer preferences. According to statistics released by the Administrative Office of the U.S. Courts, business bankruptcy filings rose 23.3 percent, from 12,748 to 15,724 in the year ending June 30, 2023.

Looking ahead to 2024 and beyond, many experts predict that the bankruptcy trend will continue as the effects of the Federal Reserve’s rate-hiking campaign and inflationary pressures continue to strain corporate balance sheets. Moody’s suggests that the bankruptcy trend is just getting started with defaults for companies with speculative-grade debt expected to increase to 4.9% by March 2024, up from 2.9% at the end of the first quarter of 2023.… Read the rest

Executive Summary

U.S. Economic and Regulatory Highlights

• August unemployment increased to 3.8% from 3.5% in July and is the highest since February 2022. (Source: Bureau of Labor Statistics)
• Low unemployment continued to drive wages up with August wages reaching $29 per hour. (Source: Bureau of Labor Statistics)
• The U.S. economy added 187K jobs in August, up from 157K in July. (Source: Bureau of Labor Statistics)
• The second estimate of Q2 GDP was 2.1%, adjusted down from the original 2.4% but still higher than the Q1 level of 2.0%. (Source: Bureau of Economic Analysis)
• August Consumer sentiment was 69.5, down from 71.6 in July but 19.4% higher than a year ago. (Source: University of Michigan)
• Small Business optimism was 91.9 in July, up 0.9 from June and the highest level since Nov 2022.

Getting Back on Track Through Exporting Spokane Seminar

Event Details: Live (In-Person) – There will be no virtual access or recording of the event.

Who should attend: Small and medium-sized businesses who currently export or are interested in learning about exporting

Date and Time: Tuesday, September 12, 2023 – From: 1:00 PM – To: 5:00 PM (Pacific Time)

Location: Spokane Public Library – Central, 906 W Main Avenue, Spokane, United States 99201

Register: https://web.greaterspokane.org/atlas/events/getting-back-on-track-through-exporting-3314/register

Event Sponsor: Greater Spokane Inc (GSI)

About: Getting Back on Track Through Exporting

Join us for a seminar specifically designed to provide valuable insights and practical strategies to new exporters, expanding exporters, and experienced exporters. Expert speakers from the Washington Export Outreach Team (WEOT) will share their vast knowledge and experience in developing an export plan, identify and validate international markets, how to find qualified buyers, agents & distributors, financing, and risk management.… Read the rest

Written By: Scott Blakeley, Esq. – Blakeley LLP

Recently The Wall Street Journal (WSJ) featured the article, “Bust-Out Swindlers Appear to Be Busting Out All Over.” The article states that bust-out schemes have risen by between 30% and 50% in five years, reaching all-time highs in the past year. The WSJ article also discusses how bust-outs are directed at all sizes of companies and cut across all industries. It sends the message that no supplier is immune from a bust-out.

THE BUST-OUT IN ACTION

A bust-out scheme is a device to defraud suppliers of their merchandise through the use of planned bankruptcies and business failures. Bust-out schemes are orchestrated in two stages. The first stage may be characterized as laying the groundwork for the bust-out, and the second stage as execution.… Read the rest

Article provided by our Preferred Partner Handle.com

Ever since COVID-19 disrupted the global economy, the construction industry has been grappling with the volatility of supply chains. Persistent challenges, such as inflation, high input costs, and rising interest rates, prevent prices for essential equipment and materials from stabilizing. These issues pose significant threats to small businesses and independent subcontractors.

So, how can construction professionals offset supply chain issues in these uncertain times? The following strategies may aid in mitigating financial risks and maintaining profitability.

Leveraging automation to ride the volatility

Managing highly unstable supply chains is an arduous task for humans. However, tech solutions can automate essential tasks, helping address issues relating to equipment, material shortages, labor challenges, and project delays.… Read the rest

Jamilex Gotay, editorial associate, NACM

Credit managers have a special skill that no other professional has—the ability to predict the future. But it’s not based on magic.

Credit professionals are involved in nearly every step of the order-to-cash process, which means they have a deep understanding of what is driving business and customer behavior. They are inherently forward-looking, as they are always concerned with the chances of getting paid in the future. It is up to the credit department to share this knowledge.

Since its inception in 2003, NACM’s Credit Manger’s Index (CMI) has been a leading indicator in the business cycle. The CMI, a monthly survey completed by credit and collections professionals in the U.S.,… Read the rest

Congratulations to the CFDD Portland Chapter for their award from the National Association of Credit Management at Credit Congress. They won CFDD Publicity Award and CFDD Program Award.