Blog Series on Credit Enhancements – 1st Installment – Personal and Corporate Guaranties

By |August 21st, 2011|Creditors Rights|0 Comments

Bill Gross’ statement on Friday that the decline in Treasury yields to 60-year lows “reflect a high probability of recession in the United States” is the latest edition to the increasing sentiment that the U.S. is heading back into a recession.  The reasons are many – from persistently high unemployment, the dismal housing market, the debt crisis (in both the U.S. and Europe), to concerns over a variety of bubbles in China – and pressure is now on the credit professional to prepare for the worst. This post is the first installment in our series on credit enhancements that aims to educate and inform the reader on what alternatives can be used to protect credit sales.  The series includes enhancements such as guaranties, credit insurance, consignments, letters of credit, bankruptcy swaps, certificates of deposit, credit cards, factoring arrangements, secured transactions, and alternative forms of credit arrangements. […]