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Unformatted text preview: area went up the line to get approval. Credit sales were being used to finance growth but there was not a good system in place to approve and monitor the vendor financing. When credit customers did not repay, it led to liquidity problems and extended use of debt. 2. What steps did the new treasurer take to fix the vendor finance problem? When the new treasurer, Martina Hund-Mejan, took over, she had to first fix the short-term financing problems by negotiating new financing with banks. She then had Bank of America conduct a review of the credit approval and monitoring operations at Lucent. The review resulted in several new policies and controls being put in place. With the changes and added controls, Lucent has reduced its exposure to vendor financing by 32%. The company has become more disciplined and the finance department has become an integral component of the company....
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- Fall '09