It’s hard to believe that 2018 is nearly half over. Time passes way too quickly!
At CMA, this has been one of the busiest years I’ve seen, as we are continuing to work on exciting new initiatives that will help your company’s credit and finance teams.
I love the opportunity to talk with members and customers; lately during these conversations we discuss cost savings and doing more with less. These issues are affecting every business. Utilizing cost-effective tools is one way to adhere to budget restrictions and bring efficiencies to the Credit Department. We’ve been looking at different solutions to help solve these issues and to that end I’m happy to tell you about the brand new CMA CREDIT REPORT. This report is a cost-efficient way to access data for small- to medium-sized companies that are not usually reported to the larger credit bureaus.
The CMA Credit Report, which is the result of a partnership with data provider Ansonia Credit Data, offers payment trends and experience on your customers so that you can make informed credit decisions. The report includes payment history, bankruptcies, risk score, balance, days beyond terms and more. Better yet, the report is available at an affordable price point: CMA members get 5 free reports to try during their membership calendar year, and then pay $12.95 per additional report. Members who contribute their data to CMA get an additional 5 free reports, and pay $10.95 per additional report.
The report is also integrated with anscersX, our multi-bureau reporting solution that allows users to get the most-used data elements from the major bureau reports with one click.
We are excited to hear from our members on your thoughts on the new report. We hope you enjoy this new benefit, and that it’s useful in your credit decision making process.
When you work with multiple accounts, staying on top of each and every one can seem impossible. When risky accounts slip through the cracks, your business could be affected. But by closely monitoring your accounts and being alerted to changes, you can make faster credit decisions and protect your business.
D&B Credit can help you manage and monitor your account risk with ease. User-friendly, smart and simplified, D&B Credit makes accessing the industry-leading relationship data and financial scoring models from Dun & Bradstreet easier and more effective than ever. Now you can keep a close eye on your key accounts and better monitor your entire portfolio.
D&B Credit is a modern, dynamic platform that allows you to:
Configure alert profiles to effectively monitor customer financial health and protect your business.
Consolidate alerts into a daily email, plus view them on your portfolio dashboard, homepage and credit reports.
Get a detailed history of alerts on any of the businesses you’re tracking.
Enhance corporate governance by ensuring that all accounts are monitored and meet corporate standards.
Talk to your CMA account rep to learn more about D&B Credit!
Now that the holidays are over, Credit Management Association is back with full steam ahead into projects that can help your company manage risk.
Here are a few of the projects we’re working on that you should be aware of:
– CMA recently announced our CreditScape Spring Summit, which will focus on process improvements in the credit department and cutting costs. The one-day event takes place April 12 in Garden Grove, CA. More info: www.creditscapeconference.com
– Future dates have been set for CMA’s new International Credit Best Practices Forum. For U.S. companies that sell abroad, this group can help you navigate some of the hurdles you might experience when selling overseas. More info is here.
– With all of the bankruptcies in the news last year from longtime strong companies, when is the last time you evaluated your credit information sources? CMA has a great resource who handles reports from all of the major bureaus and can get you the best solution for your company, not just the best solution from one bureau if you went direct. Learn more here.
– Several new advanced lien law webinars have been announced. If your company does construction-related business in Texas, California or Nevada, you should attend these sessions, which can be found on our education calendar. Details: http://www.creditmanagementassociation.org/events
Are you getting CMA’s updates, including news and updates from around the credit and collections profession? If not, subscribe to our newsletter here: http://conta.cc/1tA5pOE
If there are any other services you need to help your credit operations run smoother, we’d love to talk to you about ways we can help. You can reach us at 818-972-5300 or at www.creditmanagementassociation.org.
Greetings! I hope everyone is having a good month. I was at an Industry Credit group meeting recently where I was thinking, nowadays everyone is concerned with saving money, minimizing expenses, etc…, so I decided to write this month’s blog on “How you can be a hero to your company.” As credit managers, we have the responsibility of reviewing our credit reporting services periodically for better pricing and enhancements to the products, similar to you obtaining car insurance quotes in your personal life when your insurance comes up for renewal. Whether you decide to change services or not, it’s always a good idea to be aware of what’s available in the marketplace today.
Here are some questions to ask: Do the reports you currently use include the best information you need to make informed credit decisions? Is there additional data that you’d like to see on the reports you’re using?
CMA is here to help. I encourage you to contact Terry Campos at CMA to help guide you through the process. She is a brand-neutral resource, with 44 years of experience working with NACM and the three major commercial credit reporting bureaus. If you are not happy with the service you are currently using, she will work with you to find another solution so that you don’t have to do this on your own.
I also recommend you participate in CMA’s free webinar series on credit reporting, which begins June 9th. You’ll be able to hear from Terry and reps from the credit bureaus as they talk about what’s new and provide an overview of their products. Sign up at www.creditmanagementassociation.org/events, I believe it will be well worth your time.
You can be a hero by saving your company money and making your job easier by being able to access quality credit information that helps you make sound credit decisions.
I look forward to seeing you at Credit Congress in June!
Tracy Rosenbach, CCE, is the Financial Services Manager at Silgan Containers LLC and Chairperson of the CMA Board of Directors. She can be reached at 818-710-3729.
It’s been more than a year since the launch of the anscersX multibureau trade credit report, which offers credit managers a one-click look at credit scores of their customers from the three major credit reporting bureaus. Since the report was launched, we’ve listened to our users and are proud to announce some valuable additions to the report aimed at helping you make quick and well-informed credit decisions.
The improved report includes more flexibility for you to choose the data you need and the price you will pay. It is now up to you to select data from one, two, or all three of the bureaus included in the anscersX Report (Dun and Bradstreet, Equifax and Experian).
We have added valuable information from Equifax including:
The Ultimate Parent
Headquarters Site information
Alternate Company Names & DBA’s
An easy to read Average Days Beyond Terms graph
Additional Report Highlights (# of accounts, # of delinquencies, charge offs and more
We have added valuable information from Experian including:
Years in File
The Date of Incorporation
An Industry Risk Comparison
anscersX pricing, which ranges from $32.35 to $69.95 depending on the combination of bureaus you choose, is a truly unique product that paints a true picture of your customers to help you better manage risk.
For those who would like to learn more about anscersX, I invite you to participate in an upcoming webinar exploring the anscersX report citing specific examples from the report. You can register here.
To download a sample report, visit www.anscers.com or contact me directly if you have any questions at 818-972-5361.
Credit Reporting can be the lifeblood of a credit manager’s decisioning process, but not all credit reports are created equally. Different reports have different strengths, and it’s to your company’s advantage to use the right information to protect your company’s receivables.
To educate you on these strengths, CMA is offering several webinars to help members learn about the basics features of major credit reports.
We hope that these sessions will guide you to understand which reports are best for managing risk for small and large businesses; explain new features and upgrades you may not have been aware of; and help you assess whether you’re using the right credit reporting solutions for your needs.
Best of all, these sessions are free to CMA Members.
Senior Vice President, Government Affairs and Public Policy, Experian
In many cases, business lenders often rely on the commercial credit of the enterprise coupled with the personal credit of the business owner when making lending decisions. This is especially true for sole proprietorships and partnerships. To that end, regulatory action and public policy initiatives aimed at consumer credit often times can have a direct impact on commercial lenders. This blog takes a look at some of the top regulatory priorities for business lenders within the credit ecosystem.
Ensuring the accuracy of credit data
Over the past two years, the Consumer Financial Protection Bureau (CFPB) has taken several actions to make clear that it believes data furnishers — including lenders — are responsible for ensuring the accuracy of the credit data that they report to credit reporting agencies (CRAs).
The CFPB issued two bulletins — in September 2013 and February 2014 — reminding data furnishers of their responsibilities under the Fair Credit Reporting Act (FCRA) and the need to properly conduct investigations when a consumer disputes an inaccuracy.
The CFPB backed up these bulletins with an August 2014 enforcement action against a lender that it said failed to fix flaws in its software system that were causing it to report inaccurate credit data to the CRAs.
Debt collection practices remain in the spotlight
Another top focus of regulators that may overlap with small business lending is increased scrutiny of the debt collection market.
Within the collections industry, the CFPB has focused on problems related to how information about a debt is transferred from a first party to an outside agency or debt buyer, as well as the standards and timing of when a collections item goes onto a consumer’s credit report. To that end, in December 2014 the CFPB announced that it was requesting the national credit bureaus to provide regular accuracy reports that highlight key risk areas, including disputes, for consumers. The CFPB will use these reports to help prioritize their work on accuracy metrics, including: furnishers and industries with the most overall disputes; and furnishers with high disputes relative to their industry peers.
The CFPB also released an Advanced Notice of Proposed Rulemaking (ANPR) in November 2013, covering a wide array of complex issues within the debt collection market. It’s expected that they will release the first version of its proposed rule for the collection market in late 2015 – early 2016. Policies boosting financial inclusion are also critical for business lending
Commercial lenders should also pay attention to efforts by policymakers to improve financial access for the more than 60 million American consumers that either have a thin credit history or no credit data at all. In the case of an entrepreneur, a thin or no hit credit file would make it much more difficult to access affordable capital.
One way to improve the ability for unbanked individuals to access affordable credit is through the reporting of on-time payments made to utility, telecommunication and rental companies by consumers — often referred to as “alternative credit data.” While they have long made pricing decisions based upon the full-file credit data furnished by creditors, historically telecom and utility companies have only provided negative data — i.e. late payments or if an account is in collection.
Including both positive and negative data from these sources will enable tens of millions of thin-file consumers — and small business owners — with a proven record of meeting financial obligations to access fair and affordable credit. The CFPB weighed in on the importance of including alternative data in a 2013 report on financial empowerment. Bipartisan legislation has been introduced the past two sessions of Congress that would clarify federal law to encourage utilities and telecom providers to report positive credit data to the nation’s credit bureaus.
Coming soon: CFPB data collection on women and minority owned businesses
Small business lenders are also keeping a close eye on the development of the new data collection requirements under the Dodd-Frank Act. Despite the CFPB being primarily focused on consumer lending, the agency was tasked with implementing a provision of the Dodd-Frank Act that required lenders to ask small business applicants if the business was women or minority-owned.
The problem is that this question is currently prohibited under Equal Credit Opportunity Act (ECOA), as a creditor cannot inquiry about the race, color, religion, ethnicity or sex of an applicant. The CFPB will ultimately have to provide guidance to help resolve the conflict between these two laws.
While this new sweeping data collection mandate will not become effective until the CFPB adopts the necessary regulations, it’s easy to see how this could ultimately impact small business lenders.
As many have said before, small businesses are the lifeblood of our economy, but they need funds to grow. We’ll want to keep a close eye on each of these initiatives, as the regulatory impact can be huge for small business lenders, and the ability for small businesses to access capital.
Tony Hadley is Senior Vice President of Government Affairs and Public Policy for Experian. He leads the corporation’s legislative, regulatory and policy programs relating to consumer reporting, consumer finance, direct and digital marketing, e-commerce, financial education and data protection. Hadley leads Experian’s legislative and regulatory efforts with a number of trade groups and alliances, including the American Financial Services Association, the Direct Marketing Association, the Consumer Data Industry Association, the U.S. Chamber of Commerce and the Interactive Advertising Bureau. Hadley is Chairman of the National Business Coalition on E-commerce and Privacy. For information about reports available from Experian, contact Terry Campos at 818-972-5361.
With due respect to David Letterman and Sports Center’s nightly “Top 10” lists, there are some lists that you would be better off not being on. One that directly affects you and your company is “The Top 20 Creditors in a Bankruptcy Case,” a document that is easily obtainable by accessing Pacer. No company likes to see their losses published for all to see.
However, this document of doom will now be turned into an excellent prospect list for any industry credit group (ICG). Whenever you post an alert of a Chapter 11 in your industry, CMA will run a list of the top 20 creditors. These companies could be competitors of yours, or they are at least selling into the same market as you and have just taken what could be a major hit. A phone call from a group member informing them about the group, and mentioning that the group was aware of the problem and therefore had minimal exposure, could get the group a new member very easily.
Therefore, effective with the next Chapter 11 alert posted on anscers, the ICG department will forward this list of names to the group chairmen and group facilitator. There will probably be some banks, factors or lending companies that would not fit but you should be able to identify some HOT prospects. Tell them that the best way to avoid the next BK is through membership in your credit group.
Thank you for your support throughout 2014, and we wish you and your family a Happy and Healthy Holiday Season and a Prosperous 2015.
Lead Group Facilitator