Credit Management Association

At a recent meeting of CMA’s Western Home Furnishings Credit Group, long-time member Sandberg Furniture informed the group that a tax auditor from the State of Texas was currently on site at Sandberg’s office requesting Texas Sales and Use Tax Exemption Certificates (aka Resale Certificates) for all of Sandberg’s Texas customers. According to Sandberg, this is the first time the furniture manufacturer has ever been audited by another state to produce proof of customers’ status as resellers. Texas requires that suppliers get certificates signed by resellers in Texas and must keep original signed certificates on file in order to prove exemption from paying state tax on purchases. Failure to produce signed certificates can result in possible liability for unpaid sales tax that could be billed to suppliers.

CMA is bringing this matter to the attention of all of our members because of its potential to affect any member with customers in the State of Texas. Also, this action suggests that other states may engage in similar audits in an effort to generate additional tax revenue.

I would like to extend CMA’s appreciation to Sandberg Furniture for alerting us to this potentially serious situation, and allowing us to share this information with all of our members so they can be prepared.

Respectfully,

Mike Mitchell, CAE
President and CEO

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For many years, CMA published a printed, glossy, multipage monthly newsletter. In order to offer information that was more timely, we transitioned to an online monthly newsletter, which eventually became a daily news feed. Currently, we are in our fourth year of offering this CMA Blog (formerly CMA Daily News), and CMA has been at the forefront of offering various ways to connect with the Association and other CMA members through social media like the CMA Community (now in its 9^th year!), LinkedIn, Facebook, and most recently, Twitter. You have a lot to say, we have much to tell you, and we try to use a variety of channels to promote communication that will accommodate the great diversity of member businesses and personal preferences. Although many of our members like (or at least are warming up to) these communications channels (which also include email announcements and website updates), many other members have told us that they don’t have the time or the interest to keep in touch with the Association through these newer electronic channels.

Yesterday, we re-introduced a monthly members-only newsletter that I hope will strike a good balance between keeping members informed and communicating with a frequency and format that is manageable. Named “Just the Fa(x)cts,” the mission of this newsletter is to provide members with a quick glance of the important information, events, and special promotions CMA is offering for the month ahead. Most sections of the newsletter will include links to sections of CMA’s websites www.creditmanagementassociation.org and www.anscers.com to get more information or take advantage of special programs and offers.

The format of the newsletter is purposely designed to look simple and clean for maximum readability on a fax page. Why a fax newsletter? Sometimes it’s just nice to have something you can pass around the office and let your coworkers know what’s happening at CMA. It’s new, it’s retro, it’s black & white, it’s brief, it’s only once a month, it’s only for members, and we hope you like it.

Respectfully,

Mike Mitchell, CAE
President & CEO

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 December 4, 2009 – Opinion Section, pg. 27

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The CMA Nominating Committee is now accepting nominations and applications for service on the 2010-2011 Board of Directors. If you are interested in applying for a Director position, or you would like to nominate a candidate for service, please complete a Candidate Application or Nomination form and return it to CMA by December 31, 2009. Click to download form: CMAdirectorap10. 

Board of Directors Qualifications and Responsibilities 

As provided by the Bylaws of CMA, the Board of Directors oversees the general operation and sets policy for the Association. It is, therefore, essential that members of the Board understand their responsibilities and be willing to commit the time and effort necessary to do justice to this great organization.

The responsibilities and qualifications of a member of the Board are as follows:

1.  Read and be familiar with the Bylaws of the Corporation.

2.  A Board member is required to be the authorized representative of his/her company to CMA.

3.  Attend the Annual Meeting and Installation of Officers and Directors (or a similar – Chapter Annual Meeting)

4.  Attend Board meetings, five times per year, typically held on the fourth Tuesday of the month.

5.  Attend the Annual Board Retreat (2 days usually in May or June).

6.  Review and accept financial and operating statements of the Association.

7.  Review and approve reports of committees, project teams and boards of governors.

8.  Serve on various committees of the Association as assigned by the Chairman of the Board.

9.  Show support for the Association and its programs by participating in CMA’s member services and by attending educational and social functions, and promote CMA’s services to other members and prospective members at every opportunity.

10.  When possible, attend the annual NACM Credit Congress held each May or June, and/or the Western Region Credit Conference in September or October, sponsored by the NACM affiliated associations of the Western Region.

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On Wednesday, President Obama announced that his administration will now focus efforts on giving small businesses greater access to loans from local banks.  This matters to CMA because most of our members would be categorized as small businesses under the definition used by the Obama Administration. Many CMA members have reported experiencing a combination of slow sales and slowing payments from current customers, which has created a greater need for working capital to maintain operations. In our Los Angeles Business Journal editorial this summer, CMA advocated that policy leaders in Sacramento and Washington, DC focus more attention on helping trade creditors (many of whom are small businesses) gain access to bank credit as a stop gap for their working capital needs. Wednesday’s pronouncement seems to support this plea, but yesterday on the KNX 1070 News Hour, I expressed concern that this new policy would not be enacted fast enough to help our members and their customers in time to keep their doors open and business credit flowing. My comments appear during the last five minutes of the hour long broadcast, go to KNX Business Hour 10.22.2009 and fast-forward to the end of the program.

Numerous news outlets have covered the story (Google search: Obama to help small businesses), but I have included links to stories/editorials from local papers in California and Nevada (see below). The Las Vegas Sun editorial offers the caveat: “As Congress considers the proposals, though, it should make sure the lending programs are as transparent as possible so the public can see evidence that small businesses are being helped.” I agree, and to that end, I will be following this story through the media and through members that directly benefit from this new program. If this program could help your company borrow needed working capital and you would like us to follow your efforts to secure loans from local banks under this program, please email me at mmitchell@emailcma.org.

Related articles/editorials:

Los Angeles Times: Community banks to get bailout money as Obama seeks to boost small business

San Francisco Examiner: Obama refocuses bailout on small businesses

Las Vegas Sun (editorial): Lending a helping hand

Mike Mitchell, CAE
President & CEO

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