Most trade payments only become past due after a bankruptcy filing. Thus, unsecured creditors are given a false sense of security and after months - or years - of legal proceedings, they recover pennies on the dollar.
The FRISK® score cuts through the “Cloaking Effect” by identifying financially stressed companies with a differentiated and proprietary method that doesn't rely on payment history.
Public and private companies need to be proactively evaluated in distinct, different ways by risk management professionals - fortunately, with the FRISK® score and PAYCE® score, CreditRiskMonitor has world-class solutions for both subportfolios.
Retailers left and right exited stage left and into bankruptcy this summer. CreditRiskMonitor has the read on a few potential industry giants who might not survive to see 2021.
Unless there is a rapid economic recovery, more retailers are going to go the way of J. C. Penney, Pier 1 Imports, Neiman Marcus and J.Crew. That is: bankruptcy.
In a pandemic period when major public company bankruptcies are hitting hard daily, reliance on payment performance and/or financial statement analysis provides a whole new slew of dangers.