The Importance of Conducting Credit Investigations on Existing Accounts

Dec 14, 2015

Posted by & filed under Credit.

Credit investigations on a customer don’t end once an application is approved and an account is established. Every company’s credit policy should include procedures for updating customer credit applications periodically, keeping in mind that certain specific events should trigger an immediate reevaluation.

When to Investigate an Account

It is recommended that credit applications be updated whenever there is a change in the credit grantor’s policies or credit terms or at certain timeframes such as annually or every three or five years. In the process of verifying information, the credit professional should take the opportunity to review the contents of the file and archive or destroy outdated or irrelevant materials. This will prevent duplication and oversight and make it easier to find items when they are needed.… Read the rest

Ten Habits of Highly Effective Managers

Dec 15, 2015

Posted by & filed under Credit, Leadership.

By Wes Friesen, CCE, Portland General Electric

“Sow a thought and you reap an act; sow an act and you reap a habit; sow a habit and you reap a character; sow a character and you reap a destiny.”

Right in the middle of the quotation above is the importance of our habits.  A habit is “an acquired mode of behavior that has become our common practice.” Our habits mold our character and ultimately determine our destiny in the world. Want to further develop your character and develop into a highly effective manager? Intentionally pursuing and building worthwhile habits is the key.

Following are ten of the habits of highly effective managers. This is not an exhaustive list – but these will build a strong foundation on your road to increased management effectiveness:

  • Habit #1: “Expanding Self-Awareness.”
… Read the rest

The Efficacy Of Online/Electronic Credit Applications

Dec 15, 2015

Posted by & filed under Credit, Electronic Signatures, Technology.

By: Wanda Borges, Esq., Borges & Associates, LLC

The diligent credit executive must be ever mindful of the multiple functions that can be performed by a well-drafted credit application. A credit application is not only a useful source of information for evaluating the prospect’s credit, but also provides a wealth of information that can be used to collect your company’s claim from a customer that later hits dire financial straits. Under the right circumstances, a credit application can also become a binding contract.

With many companies now utilizing an online or electronic credit application, credit grantors need to determine the intended purpose of the online or electronic credit application, and whether that online/electronic credit application can be enforceable in court.… Read the rest

Doing Business in the Middle East and Northern Africa

Dec 14, 2015

Posted by & filed under Credit, International Business.

The Middle East and North Africa (MENA) region is notorious for its instability, yet this should not automatically eliminate the consideration of doing business there. In fact, opportunities for growth exist in these markets, if you and your company go in prepared.

Assessments
Take time to gather and assess available information about the prospective customer(s) and the country and region in which it operates to get an estimate of the level of risk. Information includes financial statements and country-based risk assessments that cover such things as the current political environment, corruption, and terrorism. You may find, on one hand, that a company has a sterling payment record, but government instability (potential for rebellion, civil war), frequent destruction of property/sabotage, or an inability to get money out of the country are too concerning to ignore.… Read the rest

Go Ahead and Work Late: Your Phone Can Manage Your Life

Dec 14, 2015

Posted by & filed under Technology.

By Beth Ziesenis, Your Nerdy Best Friend

At the Western Region & CFDD National Conference in October, author Beth Ziesenis, will share secret tech weapons to increase productivity and organization at the office, but busy credit management professionals can start nerding out now to help manage the day-to-day tasks of home.

This January, Beth, also known as Your Nerdy Best Friend, attended the 2015 International Consumer Electronics Show in Las Vegas and discovered new gadgets that are slowly eliminating the need for us to rush home after work to take care of life’s annoying tasks. Here’s her report on the best home automation tools for busy, tech-savvy people.

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When you’re busy, you don’t have time to take care of every task.… Read the rest

Points to Consider When Doing Business in Brazil

Dec 14, 2015

Posted by & filed under Bankruptcy, Credit, International Business.

Brazil’s rise as one of the two or three most prolific emerging economies in the world at the beginning of the decade is nothing short of impressive. However, within five years it faltered despite being positioned as host of the World Cup 2014 and the Olympic Games in 2016. Brazil has always been a bit of a roller coaster: sinking right after a hot run and surprising when the business world seems ready to give up on it for a while.

Still, much potential exists there because of a growing middle class and deep natural resource holdings, among other factors. To wit, a 2015 poll of NACM members identified Brazil as one of the top five places where companies were extending the most credit.… Read the rest

Embrace Technology, But Know it is Not a Cure-All

Dec 14, 2015

Posted by & filed under Credit, Technology.

By Chris Ring, NACM’s Secured Transaction Services

There’s a poignant article written by Vivek Wadhwa in MIT Technology Review titled, “Laws and Ethics Can’t Keep Pace with Technology,” that is well worth reading for anyone in the business-to-business credit industry. The last part of the article read as follows:

“Thomas Jefferson said in 1816, ‘Laws and institutions must go hand in hand with the progress of the human mind. As that becomes more developed, more enlightened, as new discoveries are made, new truths disclosed, and manners and opinions change with the change of circumstances, institutions must advance also, and keep pace with the times.’ The problem is that the human mind itself can’t keep pace with the advances that computers are enabling.”… Read the rest