CREDIT & COLLECTIONS: THE BASICS!

Author/Lecturer

DAVID L. OSBURN

David is the founder and managing member of David L. Osburn & Associates LLC, a Las Vegas-based business training and contract CFO firm that provides seminar/keynote speeches for various groups including CPAs, bankers, attorneys, credit union employees, credit managers, trade groups, and businessowners. He also serves as a contract CFO for a large multi-state construction company and co-manages a bank educational program with the University of Nevada Las Vegas (UNLV).

His extensive professional background encompasses over 25 years in banking, finance, and marketing. His bank commercial lending credentials include comprehensive loan underwriting, management, customer development, and loan workout experience.

In addition, David is an Adjunct Professor for Regis University, an accredited MBA program and the College of Southern Nevada, a community college. He has taught college courses for over 24 years, covering Finance, Accounting, Economics, Marketing, Banking, Business Law, and Management.

He earned an MBA in Finance/Marketing from Utah State University and a BS in Finance from Brigham Young University. He is also a graduate of the University of Oklahoma National Commercial Lending School.

David L. Osburn & Associates, LLCA Business Training & Contract CFO Firm

David L. Osburn, MBAManaging Member7521 Enchanted Hills Ct.Las Vegas, Nevada 89129

Direct: (702) 655-1187 Fax: (702) 382-2298E-Mail: dlosburn@cox.net Web: dlosburn.com

CREDIT & COLLECTIONS: THE BASICS!

I. The Five “Cs” of Credit

II. The Credit Department, Legal Environment, Credit Policy, Credit Investigations, and Credit Fraud

III. Credit Decisions, Customer Visits, and The Sales Department

IV. Bankruptcy Proceedings

I.

I. The Five “Cs” of Credit

A. Capacity:

B. Capital:

C. Collateral:

D. Conditions:

E. Character:

II. The Credit Department:

II. The Credit Department:

A. Centralized vs. Decentralized

B. Management Responsibilities

C. Leadership

Legal Environment:

A. Antitrust Regulation

B. The Fair Credit Reporting Act

C. The Fair Debt Collection Practices Act

D. The Truth in Lending Act (Reg Z)

E. The Equal Credit Opportunity Act (Reg B)

Credit Policy:

A. Definition: A general course of “credit” action developed

for recurring situations and designed to achieve established objectives.

B. POLICIES

Purpose, Organizational Expectations, Level of Understanding, Investment, Corporate Goals,

Intentions, Established Ground Rules, and Stability

Credit Investigations:

A. Direct Investigations Ex. Bank Request for Information

B. Indirect Investigations Ex. NACM, D&B

Credit Fraud:

A. Unsolicited Orders

B. Unauthorized Use of Credit Reference

C. NSF Checks

D. F/S Irregularities

E. Skip Tracing

III. Credit Decisions:

A. Underwriting

B. Credit Scoring

C. F/S Analysis

D. Routine/Non-Routine Credit Decisions

Customer Visits:

A. Relationship Building

B. Facilities Observation

The Sales Department:

A. Credit As a Sales Tool

B. The Three “Cs” of the Credit/Sales Relationship:

1. Cooperation

2. Communication

3. Courtesy

IV. Bankruptcy:

A. Chapter 7

B. Chapter 9

C. Chapter 11

D. Chapter 12

E. Chapter 13