The Twelve Days of Credit

Published on December 27, 2016 by in Credit News

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Though Christmas is now over, we thought you might want to see the imagination of credit professionals, as a group of them rewrote the holiday classic “12 Days of Christmas” to apply to credit. You can watch the video of them singing it at their recent holiday party here, or read the lyrics below. Happy […]

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Patrick Spargur

In my opinion, the credit management position is often overlooked and undervalued (and since I was a credit manager in the past, I speak from experience). After thinking about the many areas that a credit manager is involved with on a daily basis, I believe a good credit manager can directly impact the company’s bottom […]

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Buddy Baker

Note: this is one in a series of international blogs to help credit managers learn how to assess risk in foreign countries and expand their potential customer base. Most CMA members don’t know me. I don’t make it to many CMA activities because I live in Chicago. But about a year ago, I joined CMA […]

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With the NFL season officially underway, let’s take a moment to explore what Accounts Receivable departments can learn from coaches, especially when it comes to the season’s biggest game changer: analytics. As a credit and collections professional, take a look at the metrics you’re currently tracking. Throughout my years as a consultative resource for AR […]

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Let’s assume you have received and reviewed and rejected a request for open account terms from an applicant company. What would you do if that applicant called and demanded to know the specific reason for your decision? Would you: Ignore the request, or Might you offer a response such as this: “Your company does not […]

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‘Collections,’ ‘collectors,’ ‘collection agencies,’ ‘collection attorneys’: words that evoke strong emotions, sometimes even terror, in the hearts of uninformed debtors. Robocalls, automatic dialers, dialing for money, calling centers, SMS, texting, e-mailing, invoicing, phone calls, and personal visits—some of the avenues that companies pursue to collect their precious asset known as accounts receivable. When we look […]

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Larry Convoy, lead group facilitator

To change successful formulas or brands takes courage. Sometimes it works (Datsun becoming Nissan), sometimes it doesn’t (remember the “New Coca Cola”?). But in this current environment, where you can close or lose a multi-million dollar deal by touching an app on your phone, being passive will leave you behind the crowd. For that reason, […]

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Michael C. Dennis

Many companies are interested in concentrating on core competencies and looking for ways to outsource so-called “non-core functions” including certain credit and collection functions. The simple truth is that any function or department or position is a candidate for outsourcing if the third-party service provider can convince the company that: 1. The work can be […]

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Michael C. Dennis

In a recent post on LinkedIn, a question was asked about If, When and Why B2B creditors such as CMA members request or require Social Security Numbers from credit applicants. (https://www.linkedin.com/grp/post/2412088-6014193760244690945?trk=groups-post-b-title) At the time, I posted two responses in which I posed questions for CMA members in connection with the laws governing the use and […]

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What are the benefits of contributing your company’s full A/R to CMA?

  Are you looking for an additional incentive to get your slower-paying customers to pay faster? Here’s one more: by submitting your accounts receivable data to Credit Management Association, you can positively (or negatively) affect your customer’s payment history, as the information is aggregated safely and securely with all other participating NACM affiliate information into […]

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Michael C. Dennis

Collectors often make the mistake of talking to “Puppets,” those who are not authorized to make decisions, and are surprised and disappointed when a Puppeteer working at the customer company overrides, overrules or ignores the payment commitment provided by their Puppet. In a credit manager’s world where the norm is to deal with “puppets,” how […]

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CMA Has Solutions

Recently, a friend of mine told me that he joined a well-known national association. When I asked him why he joined, he told me he was really only interested in one of the benefits they offered, and that he would probably never explore the other benefits because that one thing was valuable enough to him […]

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Melissa Kobus, CCE, is the Credit Management Association Chair and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

The role of credit is ever changing.   What credit professionals handle on a daily, weekly, monthly basis is challenging and can sometimes feel overwhelming.  The requests from your customers, internally and externally, require you to reprioritize at any minute of the day.  What happens when the requests outweigh the resources available?  How do you handle […]

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Melissa Kobus, CCE, is the Credit Management Association Chair and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

I find that the more you give the more you get back.  Sometimes it’s obvious, sometimes it’s in smaller increments.  In the credit world however, sometimes it can be hard to give.  You never know if your customer will send the payment your way, if the sales rep will get that RA or credit issued.  […]

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CMA Industry Group Leader Larry Convoy

During my time in credit management, I’ve often heard the following: “We can survive if a customer goes bad, we cannot survive if one of our primary or secondary vendors has an interruption in delivering product, raw materials or services to us. For that reason, we invest an equal amount of resources investigating our vendors.” […]

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CMA Industry Group Leader Larry Convoy

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 […]

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Melissa Kobus, CCE, is the Credit Management Association Chair and Regional Credit Manager for Anixter Inc., based in Anaheim, CA. She can be reached at 714-695-2219, or melissa.kobus@anixter.com

It’s December, the last month of the fiscal calendar for most companies.  There is a lot of pressure to make sure your results are strong.  The sales team wants to have as many orders as possible go out the door. You need to have as much money as possible come in but your customers are […]

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Credit professionals will experience “A Credit Paradise” on April 9, 2015 at Credit Management Association’s Annual Meeting. Taking place at Disneyland’s Paradise Pier Hotel in Anaheim, California, the “A Credit Paradise” event includes a full day of training, education, awards and networking opportunities with other credit professionals. CMA is currently surveying its members about the […]

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In today’s metrics-driven business world, just as sales managers are accountable for their monthly quotas, credit departments need to have goals.  Credit managers should select goals for the credit department that are simple to measure and report, as well as easy to gather consistently and frequently.  Goals should focus on quality rather than on quantity, […]

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Credit managers manage risk. Therefore, I think credit managers need to actively seek out “bad news” from their collectors. Small problems can be used as opportunities for credit administrators and collectors to learn more about how to manage risk and collect past due balances more effectively and more efficiently. It’s clear that credit administrators are […]

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Michael C. Dennis

How many different types of customers do you have? The way I see it, the credit department has at least three customers:  (1) The Sales Department, (2) their Company’s Senior Management, and (3) The Customer.  Business gurus may differ in opinions and approaches to customer focus and customer orientation, but these truths about customers are […]

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cheryl lloyd

Congratulations to CMA senior accountant Cheryl Lloyd, who on Monday celebrated her 50th anniversary with Credit Management Association. Lloyd, who began working at the CMA headquarters (then located in the Koreatown area of Los Angeles) on Sept. 8, 1964, started as an Industry Credit Group clerk, moved over to maintaining membership records, then to accounting […]

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Credit Management Association® announced that it has entered into a strategic partnership with the International Trade Administration (ITA) of the U.S. Department of Commerce (DOC). The Memorandum of Agreement (MOA), titled the “U.S. Trade and Investment Expansion Partnership,” will help credit and risk management professionals gain access to educational resources needed to expand their businesses […]

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Michael C. Dennis

When I earned my MBA, I learned new skills and added them to my tool belt. Then, I got my first job as a collector and found I needed an entirely different set of tools. CMA offers a variety of educational options that will provide you with some new tools…new ways to think about how […]

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With the so-called “information age,” the business landscape is very different than it was 10-15 years ago. Lots of things are happening faster than ever before: speed to market, speed at which your customers demand information about your product, venues of where your products are sold, decreased budgets (read: do more with less resources) and […]

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Like many people, I’ve been watching the World Cup soccer matches (time permitting). For whatever reason, I’ve been trying to draw insights from the competitions that are applicable to the workplace. Here are a few I’ve come up with: It pays to be a winner Teamwork is critical to your success… …So is having a […]

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One of the most frequently asked questions AGA gets from our clients is “how do we capitalize on our ability to collect from our customers?” Our answer is always the same: to be successful in maximizing your cash flow and reducing write-offs you must have three critical policies in place: 1. A Defined Credit Policy – […]

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Your company’s pricing is predicated on certain assumptions about risk mitigation, payment delinquencies and bad debt write offs. Even with customer financial statements in hand, the credit decision can be complicated and the answer may be unclear. Without customer financial statements, you are truly in the dark about the amount of credit risk you are […]

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I don’t know about you, but I’m all about doing things as efficiently as possible.  Efficiency saves me time and money, and allows me to get more things accomplished. Sometimes I have to do an extra step or two at the beginning in order to implement the efficiency, but when I do, I know I’ll […]

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There are many benefits associated with joining an industry credit group. In my opinion, one of the best reasons to do so is to make certain that your company’s tolerance for credit risk is similar to other companies selling to common customers. I am all in favor of leading rather than following, and I fully […]

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A friend of mine was told by a headhunter that she was overqualified for a position.  What does it mean?  Usually, it is code for: (a) you are too expensive or (b) you are too old.  If we give the hiring company the benefit of the doubt, we are left only with (a). In my […]

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Credit managers, are you involuntarily contributing to this situation by lack of communication? With some customers, getting the purchase order is a long process that involves significant work by your salesperson.  It is easy to understand how frustrating it may be if at the end of a long process it turns out that the company […]

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A friend of mine recently added something new to the signature line on her emails.  They now read:  Dana Keating, LCP.  You know how some people [including me] are afraid to ask questions for fear of showing weakness and ignorance.  Well, I finally asked about her new LCP designation.  Dana told me I am also […]

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I recently sent a letter out to CMA’s group leaders and volunteers for the upcoming year talking about the biggest challenges we’ll face over that time period. I told them that this year holds many of the same challenges that commercial credit grantors faced previously with the added pressures to industries affected by the California […]

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I was just re-reading my recent blog post about career limiting mistakes, and thought I’d add this insight that applies to anyone who is a manager. Don’t delay difficult discussions with your subordinates relating to performance or behavior problems. Doing so tends to de-motivate and demoralize other members of your team who are usually watching […]

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Karen Schmidt has been named 2013-2014 CMA Mentor of the Year

Karen Schmidt, who has been named Credit Management Association’s 2013-2014 Mentor of the Year, has truly been an asset to the association and is the quintessential volunteer. Schmidt has served on the CMA Membership Committee, Service Committee, Honors and Awards Committee, Chair of her Industry Credit Group and the CMA Board of Directors.  Aside from […]

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My Favorite Payment Excuses The check signer is: …sick …dead …retired …suspended …on vacation …on maternity leave …not taking calls from creditors …away from his/ her/ its desk… or …Dying or Lying Payment is: …in the mail …lost in the mail …going to be mailed …Gone with the wind In order to issue payment to […]

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Many companies have faced the question of whether to centralize or decentralize the credit function.   It is a complicated decision. Here are my thoughts: The trends is overwhelmingly toward centralization. Centralization has the advantage of helping to create an environment in which consistent credit decisions can be made. Centralization enables rapid exchange of information among […]

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