Comparison of Circuit City and Euler Hermes Aci,

Business Administration

Comparison of Circuit City and Euler Hermes ACI,

By: Curtney Vaughn

Circuit City did have credit insurance however over time so many consumers were behind on payments until the company insurance paid off debt. As Bernadette mentioned, credit insurance is vital for any company but just like Circuit City, it can depreciate over time. Circuit City realized its consumers payments were falling behind as time progressed and even tried several strategies to alleviate the problem but nothing seemed to work.

Many times businesses invest in credit insurance as a protection investment but in time that investment can be drained. Lawrence Sports, for example, has been faced with the dilemma of suppliers not making payments as they should even with various credit terms. To alleviate this from occurring, the company may think of sales events that can somehow bring in cash which in turn will assist with the accounts receivables maybe seeing an increase in cash flow.

Euler Hermes ACI management team and Circuit City’s management team should have met, prior to the company filing bankruptcy, and shared various ideas in reference to maintaining a steady cash flow and a positive balance in accounts receivables.

Linen ‘n Things and PECO

By: Curtney Vaughn

PECO is an energy based company in Philadelphia that has also experienced a dilemma with consumers paying bills on time. As time progressed, the company began thinking of various strategies needed in order to receive their monthly payments in a timely manner.

One strategy the company decided to use was the idea of sending consumers demand letters as a means of collecting payments. These letters assured customers that if their payments were not received on time, they would experience a termination in service. Another strategy the company used was an increase in energy prices. These increase in prices occurred after the company begin experiencing...