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Webinar: Customer-Sponsored Credit Enhancement Programs (Consignment and PMSI) and Payment Programs (Supply Chain Finance)
May 24, 2018 @ 2:00 pm - 3:00 pm
Reducing Supplier A/R and Preference Risk, or Opening the Door for a Priority Fight?
A key supplier providing product to a high credit risk customer may negotiate a credit enhancement, such as consignment on purchase money security interest, to offset the increased A/R risk and potential preference risk. Many financially struggling customers now appreciate that a credit enhancement program they sponsor for their entire supply chain, rather than one-offs individually negotiated with a complaining supplier, can result in continued credit terms from the supply chain. However, do these customer-sponsored credit enhancement programs really reduce supplier A/R risk and preference risk, especially if the customer files Chapter 11? We will discuss recent customer sponsored programs in Chapter 11 and out of court.
Likewise, national customers routinely push out trade terms of the supply chain as a condition to maintain the trade relationship. Customer-sponsored payment programs, such as supply chain finance, are offered to suppliers to offset the payment delay from extended terms. However, do these customer-sponsored payment programs reduce A/R risk and preference risk?
In this webcast Jerry Bailey of NCS, Ron Clifford, Esq., and Scott Blakeley, Esq. will discuss customer-sponsored credit enhancements, and steps suppliers can take to reduce A/R risk and preference risk by complying with Article 9 of the UCC. We will also discuss customer-sponsored payment programs and risk shifting provisions a supplier may consider to reduce A/R and preference risk.
- May 24, 2018
2:00 pm - 3:00 pm
- Event Categories:
- Webinar, UCC Webinar