President’s Blog: CMA’s International Focus, by Mike Mitchell, CAE

CMA President and CEO Mike Mitchell
CMA President and CEO Mike Mitchell

As the Olympics wind down this week, I wonder if any of our CMA members did business with companies in Rio before or during the international games? Or more generally, how many members currently export to Brazil? This serves to remind us that international credit sales will continue to grow as global commerce continues to evolve. As the economy becomes more and more globally focused, I wanted to take this opportunity to let our members know about some international tools and resources that are now available or coming soon to a California venue near you:

International trade data now available on the NACM NTCR. Many NACM members report their international trade to the NACM National Trade Database, which is now available to CMA members in the enhanced version of the NTCR launched last week. Additional international trade data is available from Skyminder, Experian, Dun & Bradstreet, and Equifax Canadian.

International credit topics included in upcoming CreditScape Fall Summit. International credit guru Paul Beretz, CICE, will lead a panel discussion about “how to get to YES” which will include many international credit tools, resources, and remedies. If your company exports or is developing export markets for the future, you better call Paul.

Understanding International Credit. In October, Eddy Sumar, MBA, CCE, CICE, and CEW will take you on an exciting journey through the world of international credit. If your company engages in limited exports or none at all, Eddy’s boundless energy and expertise in export trade credit will make you wish it did. His popular and engaging seminar will highlight resources made available through CMA’s partnership with U.S. Department of Commerce and other government agencies.

West Coast Trade and Working Capital Conference. In November, the Global Trade Review (GTR) will host experts from various trade finance sectors to discuss how global markets have impacted trade for both corporations and banks, an update on current capital needs and availability. Gary Mendell, President of credit insurance broker Meridian Finance, and long-time supporter of CMA’s members, has recommended this conference in San Jose because he believes that it is one of the best international forums he attends each year.

Even though most CMA members do not engage in significant exporting, we believe it is important for CMA to remain committed to providing international credit resources to support the growing trend toward global sales.

What are your biggest challenges in international credit? I’d love to hear your feedback.

How CMA Can Help Members Navigate the Global Credit Landscape, by Mike Mitchell

Companies cannot ignore the fact that there is a whole world out there to sell to, and despite thct that current global economic conditions do not favor U.S. exports, there are tremendous opportunities for companies that can and have figured out how to sell to foreign markets on favorable terms. Global commerce is more than a trend – it is a certainty, and because export sales require the support of the credit operation, CMA will continue to include international credit in all education and training programs.

In an effort to determine how far CMA should go to support international credit sales, I have recently attended events that focused on the broader topic of exporting and events that addressed specific credit issues related to international sales. Here are a few things I’ve learned so far.

Most emerging markets are outside the U.S. Middle class growth and urbanization is taking place in China, India, and throughout Asia, not in the U.S. It is estimated that the global middle class will triple in size to 4.9 billion people by 2050, and they will spend an estimated $56 trillion by 2030. Two-thirds of that spending will come from emerging markets. This will create not only a huge opportunity for growth, but may put a demand on U.S. companies to sell into emerging markets just to stay competitive and not get left behind.

A surprising number of exporters are small and medium-sized enterprises (just like most of our members), and new free-trade agreements, like the Trans-Pacific Partnership (TTP), are giving SMEs greater access to emerging markets.

There are a surprising number of Federal and State agencies that provide free and low-cost assistance for exporters. U.S. Department of Commerce Commercial Services, Small Business Administration, Small Business Development Centers, Export Assistance Centers, the newly reauthorized EXIM Bank, and a vast network of partner programs are there to help your company export. The challenge is that there is overlap among these agencies and the overwhelming number of resources can be difficult to navigate. CMA has established strategic partnerships with the International Trade Administration (U.S. DOC), the SBA in Glendale, CA, and the EXIM Bank to better understand how to bring these resources to our members that currently export or plan to in the near future.

Due to the cost of Letters of Credit to foreign buyers, more international sales are shifting to open credit terms, which decreases barriers to sales but increases the risk. At CMA’s upcoming CreditScape Spring Summit and Annual Meeting, a panel of seasoned international credit managers will discuss why overseas customers are demanding more credit in 2016, tools for evaluating the creditworthiness of foreign companies, when to (or not to) extend higher credit limits or longer terms, what are the real risks today of giving payment terms abroad, and companywide credit strategies for growing international sales.

If your company already sells outside the U.S. and your credit department already has a solid process in place for managing trade risk, then much if not all of what I’ve said is not news to you. However, my guess is that many of you have little to no experience exporting, and chances are that if your company produces a product that is marketable to other countries, you will be asked to provide support for international sales. The question is, how can CMA help you find the knowledge, information, services, and professional training to ensure you are ready to take on the challenges of global commerce? As we continue to explore trends in international sales, let us know how CMA can offer assistance to your company to help you win in the global marketplace.

Rich Swanson, USFCS Pacific South Region, and Mike Mitchell, CAE, President & CEO, CMA (Credit Management Association) sign the MOA at the CreditScape Conference at the Palms Hotel, Las Vegas on Thursday, October 16, 2014.
Rich Swanson, USFCS Pacific South Region, and Mike Mitchell, CAE, President & CEO, CMA (Credit Management Association) sign the MOA at the CreditScape Conference at the Palms Hotel, Las Vegas on Thursday, October 16, 2014.

New International-Themed Webinar Series Announced to Help Members Think Global

Several international-themed webinars have been scheduled for early December in an effort to get CMA members to think globally.

The webinars, which will run 30 minutes each and are free for CMA members to attend, will take place December 1-3 at 9:00 AM PST. Descriptions for the webinars (and registration information) can be found at www.creditmanagementassociation.org/events.

  • December 1, 2015: How to Achieve Procurement From Using Foreign Trade Zones (Speaker: David Harlow, ITC-Diligence)
  • December 2, 2015: Financing Foreign Receivables (Speaker: Brent Hoots, NaviTrade)
  • December 3, 2015: Comparison of Credit Risk Mitigation Tools (Speaker: Buddy Baker, Global Trade Risk Management Strategies)

To echo the value of international education and resources to our members, CMA president and CEO Mike Mitchell dedicated his November blog to the topic.

For more information about these webinars or the CMA education program, contact Lisa Wong, CMA Member Relations Associate, at lwong@emailcma.org.

U.S. International Trade Administration to Offer Educational Resources to CMA Members

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 nationally and globally.

The agreement, which represents a relationship between CMA and the U.S. Department of Commerce, will promote international trade to CMA’s members by increasing awareness of the economic benefits of exporting, and educating them on trade activities as a job creation and growth strategy. As part of the agreement, CMA will work with the DOC to increase trade and business investment awareness among the U.S. business community, emphasizing the small- and medium-sized businesses that make up CMA.

Through this program, CMA and the DOC will jointly develop a series of educational webinars on topics such as the importance of trade and business investment and associated benefits to the economy, export and business investment opportunities, and ITA’s role in opening foreign markets to U.S. exporters. Additionally, this partnership creates the platform to engage in a dialog between CMA and the DOC. The program expands upon the resources of another CMA-sponsored service, the Global Trade Credit Consortium, which offers assistance for companies that sell internationally by providing access to letters of credit, international collections, banking resources, credit insurance, international credit reports and education and training.

“In this global economy, CMA is constantly evaluating which programs and services it offers that will help our members the most,” said CMA President Mike Mitchell. “Participation in this project furthers CMA’s programs such as the Global Trade Credit Consortium which encourages the economic growth of its members and other small and medium-sized businesses, and gives them access to some high-powered government resources on these topics. CMA is helping its members to better understand how to navigate and effectively compete in a global marketplace.”

“The function of the ITA is that it strengthens the competitiveness of U.S. industry, promotes trade and investment, and ensures fair trade through the rigorous enforcement of U.S. trade laws and agreements. ITA works to improve the global business environment and helps U.S. organizations compete at home and abroad,” said Eddy Sumar, CMA Director of Educational Services. “The goals of this U.S. Trade and Investment expansion partnership are to increase the economic benefits of trade; educate the public on trade activities as a job creation and growth strategy; to create general awareness of ITA and other government resources, and encourage U.S. businesses interested in exporting and foreign businesses interested in investing in the United States to seek the assistance of ITA. I can’t wait to announce some of the great training programs that we have planned.”

“In the coming months, CMA members will be reading more about these developments via CMA’s social media sites, blog, newsletter and other communications. I am very excited about the growth possibilities of this program,” Sumar added.

These educational sessions will complement the nearly 100 annual seminars, webinars, courses, conferences and training sessions that CMA offers. For details on other offerings, visit www.creditmanagementassociation.org/events.