As a credit manager, I am not sure there is any time of the year that is “slow”, especially not year end. There is always an account that needs attention, money to be collected, training that needs to occur, etc. However, as we roll into the holidays, I like to take the time to file the piles of paper on my desk and organize the never ending emails so I can be ready to go into the New Year. I also use the time to think about the year that has passed and what I should be doing in the next year to be more successful. This goes for both my personal and professional development.
I visit the website of my professional association to make sure I’m using the resources available to me, which I know I can usually do in about 30 minutes. With technology changing everything so fast these days, I’m sure I missed things that they offer throughout the year because I’ve been busy.
I take the time to look at the education that’s available and sign up for one or two classes to make sure I’m staying current in my job knowledge. I find it’s best to do it at this time of the year since it helps me set goals and objectives for the coming year. Using the same logic, this time of the year is a great time for you to think about 2018 and whether you were successful in achieving your credit goals, and was CMA helpful to you during this journey. Are you happy with the credit reporting solutions you’ve chosen? CMA’s friendly staff can help you evaluate your current solution to help you assess whether you’re using the best product for your company’s needs.
Professional development in a changing profession like credit is also extremely important. Have you checked out CMA’s education offerings lately? In 2018, CMA conducted more than 30 webinars and seminars at an affordable price point, and many of those are available on demand in topics such as credit card surcharging, terms and policies, lien laws, factoring, and my favorite around this time of the year, stress management. Year end is a great opportunity to review the offerings from the past year and the upcoming year at the same time.
It’s also a great opportunity to review anscers to see if any of your accounts have been reported as past due, slowing or NSF. Again, here’s a great opportunity to call CMA staff to help walk you through the site to make sure you’re using it to its full capability.
I also make a concerted effort to remind the CMA team and our customers about how important they are to me. This gives me a great segue to say that, on behalf of CMA and our team, we wish you the happiest of holidays and thank you from the bottom of our hearts for your continued support as we strive for a great 2019!
Happy New Year everyone! With the beginning of every new year, we like to think about the goals and objectives we set for ourselves in the coming year, to move forward both personally and professionally. A major goal of CMA’s this year is to expand the credit community, creating a better network for our members. Traditionally, we have looked at growing that community unilaterally within our own market (primarily California and Nevada). Now, we have the opportunity to expand the community by working with other credit associations to bring our respective communities together. By bringing credit professionals together through various networking activities, we can create a unique benefit through collaboration that our individual associations cannot achieve on our own. This is the true essence of what associations like CMA are designed to do – leverage the power of many individuals and organizations to create value that no one individual or company can create on its own, especially in the increasingly global nature of all of our businesses.
For the first time in its history, CMA is working with other credit associations to share educational and training resources, and to host customer account discussions among members of our common industry groups. CMA is collaborating with NACM Business Credit Services in Seattle and Southwest Business Credit Services in Phoenix to produce educational webinars and industry credit networks that our three associations can offer to our respective members – for FREE. Our goal is share our collective resources to add more value to our annual memberships. We all want our members to get more for their membership dues.
We are kicking off this collaboration with Bob Shultz’s Collections Negotiation Skills webinar on January 25 at Noon PST. Collectively, there are more than 150 credit professionals from all across the West registered to attend. In an environment where a credit professional’s time is at a premium, we are very encouraged to see members express interest in learning more skills and gaining more knowledge to improve performance. We hope that the members who participate in these new joint programs will see the untapped potential value that an expanded credit community has to offer. More information on this and other educational offerings is at www.creditmanagementassociation.org/events.
Along the lines with this is an expanded CreditScape program, which includes the hottest topics we’ve heard in nearly every conversation we’ve had with members: credit card chargebacks, companies changing their own terms, skills that credit professionals need to stay relevant, and overall dealing with change in your organization. I really hope to have your support and attendance to help “prove” that CMA is doing what’s best to help your company’s credit department.
We hope you have a great year and are able to reach your personal and professional credit goals, and we remind you that CMA is here to help.
We live in a global economy where many of the trading lines that used to go from state to state now stretch from country to country. Our businesses sell to places in the world where the political climate is volatile and it is the credit professional’s job to protect their company’s A/R and ensure they get paid on the deals they accept.
More and more, I have credit professionals asking me how CMA can help them assess the risk involved in selling to different countries, where they can find information and reports about companies in their particular country, and which resources they can access to help sell abroad. In our ongoing effort to help members with mitigating risk, we recently surveyed our members for input on the best ways for CMA to help members sell internationally.
Based on the results of the survey, I am pleased to announce the formation of a new International Credit Best Practices Group, a monthly virtual meeting for credit professionals from different industries to exchange best practices in international credit sales. Each meeting will feature an expert in one of the many areas of international credit, including credit reporting, credit insurance and international business consulting. Each meeting will allow time for participants to share their own knowledge, and get advice from the rest of the group to help address their own specific issues.
If you manage international credit sales for your company, please join us for the FREE inaugural meeting of the International Credit Best Practices Group on January 23, 2017 from 10 am – 11 am PST. We will be joined by several experts, including Gary Mendell and Robina Peanh of Meridian Finance, and Eddy Sumar of ERS Consulting, who will share expertise about getting started in international business and where to find information about assessing country risk. The event will be held via web conference, and you can sign up on the anscers.com Education page.
The Group is an excellent place for companies who sell internationally (or plan to in the future) to hear from experts who will share best practices, tips and tricks to help companies minimize the risk associated with selling overseas. During the initial meeting, your input will help the group determine topics for upcoming meetings, allowing CMA to build a series of agendas for topics that will help your business.
We hope that this new Group will provide you with the knowledge and tools you need to help your company compete in the global marketplace. I look forward to participating with you early next year.
All too often, our members tell us that they want to take advantage of all of CMA’s benefits but they say they do not have the budget to do so. For companies on a calendar fiscal year, here’s your opportunity to begin planning for those budget worthy benefits for 2017. Even if your next fiscal year extends well into 2017, it’s never too early to start your wish list.
If your company is one of the 600+ members that participate in one of CMA’s 51 Industry Credit Groups, then you know how valuable it can be to have unlimited access to anscers Credit Reports, RFIs, Credit Alerts, and the knowledge and experience of other credit professionals in your industry. In the past year, CMA group members have submitted more than 45,000 RFIs, warned other group members with more than 6,800 Credit Alerts (which included NSF and bankruptcy information), and shared countless stories about best practices in credit. Many credit group members have reported that they still find their credit groups and the shared trade payment experience the fastest and most economical way to conduct timely due diligence on prospective customers and effectively manage existing customer accounts. The unique combination of industry trade data, insider knowledge about common customers and industry best practices often recoups your dues many times over in helping group members minimize risk and grow revenue.
Before you budget, consider whether you are getting the best value possible for your credit information needs. Let CMA’s experts help you analyze your current credit reporting product mix – we might be able to save you money (and help you get better results) by suggesting a different report or mix of products that better meet your company’s risk assessment requirements while staying within budget. In addition to credit bureau contracts, CMA has several transactional credit report products priced to deliver maximum value at minimum cost. We have also seen usage for the NACM NTCR increase significantly over last year. Only CMA members have access to the millions of tradelines in the NACM National Trade Database (many of which are only available in this report), and at only $14.95 each, the NTCR reports are a great value for an initial credit check. CMA’s anscersX multi-bureau report combines proprietary scores and data elements from all three major credit bureaus (Dun & Bradstreet, Experian, Equifax) to give you a comprehensive look at the payment history of your customer or prospect ($69 per report). Be sure to budget for some anscersX reports to supplement your existing credit reports.
If you are a construction supplier, consider how using CMA’s Lien Filing Service can save you time and money. With more than 30 years of experience providing services ranging from preliminary notices to lien warning notices, mechanics liens, bond claims and stop notices, CMA has hundreds of clients across the United States who value the personalized, unlimited support from CMA’s caring and knowledgeable staff. You might be interested in CMA’s new Construction Credit Report, providing title data, public record data, active trade lines, credit analysis and scores, collection agency activity and links to state contractor information. The report, which is the only all-inclusive report of its type, runs $29.95 per report.
CMA’s collections partner, AG Adjustments, offers third-party collection services at competitive rates on a contingency basis.
If you’re looking for professional development help for your staff, CMA is again offering NACM Certification Courses for the CBA (Credit Business Associate) and CBF (Credit Business Fellow) designations starting in January. These will only be offered once next year, unless there is sufficient participation for additional classes. If you plan to get certified in 2017 or early 2018, you’ll need to register for the Certification Courses now and budget accordingly ($899-$995 per course). Information for all professional development events can be found on CMA’s website and on anscers.com under the Education tab.
CMA will continue to offer its standard webinar program, which includes several series on topics such as collections, advanced lien law and credit reporting. Our webinars typically cost $49 for CMA members and $69 for non-members, but some may be free to CMA members, depending on the topic.
We hope this list is helpful as you consider your needs for 2017.
Are there other credit-related services that you’re looking for that we currently don’t offer? Feel free to reach out to me by responding to this blog. Thank you for reading, and we look forward to your increased participation with CMA in 2017!
Every quarter the UCLA Anderson School of Management hosts the highly reputable (and influential) UCLA Anderson Forecast, an economic forecast for the U.S. and California. As an Advisory Board member of UCLA Extension’s Credit Analysis and Management Certificate Program, I was invited to attend the September 2016 Economic Outlook, a live presentation by the economists and economics professors who contribute to the UCLA Anderson Forecast. You can read more about the event on the official UCLA Anderson Forecast blog, but here are some highlights.
The theme this quarter was the impact of the economy on the Presidential Election. David Shulman, Senior Economist for UCLA Anderson Forecast, opened the session with a non-partisan breakdown of the major economic policies of both major party candidates for President. For me, it was nice to see policy differences in black and white without the political spin of the candidates and their campaigns. Bottom line, Shulman concluded that no matter who wins, Hillary Clinton’s approach (increased taxes and increased government spending) and Trump’s approach (massive tax cuts, changes in trade policy, less regulation, and yes, increased government spending) would BOTH increase the deficit. The reason – both plans assume a national GDP growth rate north of 2%, but Shulman argued that without improvement in productivity (maybe) and significant growth in innovation (unlikely), GDP will remain on a growth path of 2%.
Jerry Nickelsburg, Adjunct Professor of Economics at the Anderson Business School, gave his forecast for California. While still one of the fastest growing states in the U.S., growth of California’s $2.5 trillion economy is slowing because the state is close to reaching full employment. Declining manufacturing coupled with historically slow population growth will continue to restrain economic growth. Nickelsburg also warned that a trade war would have a greater negative impact on California than most states.
Nickelsburg also presented some interesting stats on small business. I didn’t realize that the proportion of small businesses (defined as enterprises with 10 or fewer employees) in Los Angeles County is much greater than the proportion in the U.S. and 26% of employment is L.A. County. To me, that means that small business is (and has been) a significant part of our local economy which CMA has not been able to reach. Perhaps CMA’s strategic partnership with the local SBA will provide more opportunities to reach those business owners who may not fully understand how to leverage business credit for the benefit of their businesses.
Shifting from local to global trade, I learned more about the controversy surrounding the broad-ranging free trade agreement known as the Trans-Pacific Partnership (TPP). Given that much of California’s economy is dependent upon international business flowing through the Ports of Los Angeles (L.A. is the #1 export district in the U.S.), Long Beach and San Francisco, why wouldn’t a free trade agreement that represents 40% of the global market be good for our local and national economy? The panel of experts argued that intense opposition to TPP is grounded in a retreat into protectionism, a general reaction to insecurity and uncertainty. Most interestingly, they claim that TPP is not as much about free trade as it is about anti-free trade because of all the exceptions in the agreement for goods like drugs, intellectual property, and dairy, just to name a few. I suppose that’s the fine print.
Economist William Yu concluded the morning session with a presentation of an economic model that puts a weight of 51% on each state’s real median household growth to predict the outcome of Presidential elections. A 10% weight is put on economic performance factors, GDP growth, Misery index, and state median income growth; demography, religion, and “other” factors such as candidates’ character, leadership, trustworthiness, campaign messages and strategies are weighted 13%, 3%, and 20% respectively. Since the election in 1972, the model has correctly predicted the outcome of 8 out of the last 11 Presidential elections. The model incorrectly predicted the elections of 1976 (Carter v. Ford), 2000 (Bush v. Gore), and 2012 (Obama v. Romney). Yu stated that the model currently gives Hillary Clinton a very slight edge over Donald Trump, but he was quick to say that it is within the margin of error and with 20% of the prediction weighted on factors like character, leadership, and trustworthiness, there is no predicting the public’s taste.
So why am I writing about this? There are several reasons. For one, it proves that economic data can be used to predict a lot of things, including the outcome of a presidential election (or how liberal your company might be in assigning trade credit). It also nicely demonstrated the whole “cash to cash” cycle that was discussed at length at CreditScape and in various blogs throughout the year. Finally, in the glut of credit-related content that we’ve been talking about all year here, I’m interested to gauge member interest in hearing more about topics like this. As we’re putting our education calendar together for 2017, I’d love to know what topics you’re interested in learning more about, including economic forecasts like this one. Feel free to leave comments below.
Thanks to all the credit practitioners, industry experts, and industry partners who participated in the many valuable conversations at CMA’s recent CreditScape Summit. Our goal was to create an interactive, collaborative learning environment, and I was so pleased with the high level of sharing among all participants throughout the two-day event.
I was equally pleased with the audience response to facilitator Bob Shultz’s approach to process improvements within what he calls the Cash-to-Cash cycle. Also known as the cash conversion cycle, Shultz emphasized that the role of credit management extends beyond basic credit and collections processes. There is the opportunity to impact the company’s liquidity through good inventory and accounts payable management, in addition to traditional accounts receivable management. Collections trainer Bart Frankel recommended that credit people take responsibility for helping to resolve issues that arise out of these “other” departments, as they ultimately impact the credit department’s effectiveness in granting credit and collecting receivables.
Experienced credit practitioners and other credit industry experts shared specific examples of how they successfully influenced and improved processes across the Cash-to-Cash cycle and created more cash flow from operations.
Another example of how CMA is advocating for the expansion of the traditional role of credit within the enterprise is the suggestion that credit can support procurement in evaluating the risk of critical suppliers. Recently, I had the unique opportunity to participate as a panelist in the fourth annual Global Supply Chain Management Conference at USC’s Marshall School of Business. As panel moderator, CMA Member Alvin Moreno, Director of Global Supply Chain Credit Risk with Nestle USA, made the case that the credit department is best positioned to help the procurement department assess the financial stability of a company’s suppliers. In the wake of shipper Hanjin’s bankruptcy, supply chain disruption has continued to grow as a concern for companies that rely on critical suppliers, which gives credit the opportunity to add new value to the business.
As a panelist, I told the audience of supply chain professionals about how CMA has worked with Alvin, his team at Nestle USA, and other CMA Members to create a special credit group in which credit managers collaborate on processes and best practices in supplier risk evaluations. More information about that collaboration is here.
Clearly, we at CMA are big fans of process improvement through collaborative learning. But as I mentioned in my opening remarks at CreditScape last week, credit managers need to step up and become credit leaders if they are to be successful in driving the organizational changes necessary to make those process improvements a reality.
How are you leading change in your organization? I welcome your feedback.
This morning, I delivered my quarterly webinar presentation, “Maximize Your CMA Membership,” which I present to our newest CMA members and credit professionals to help them learn about the myriad of resources a CMA membership has to offer. This morning, I started with an online poll, asking the participants, “What are the reasons you joined CMA?” As always, the two most popular reasons for joining are “networking” and “professional development.” And for good reason – there is a limit to what you can learn and information you can gather by electronic means alone. In keeping with this value we hold so dear at CMA, I attended Credit Congress last week, NACM’s premier educational and networking event. Based on our members’ feedback and my own participation in sessions, I learned that networking with your peers and professional development are alive and well and more vital than ever.
What continues to excite me about in-person conferences is what you learn when the audience engages with the presenters – people ask questions and share their own experiences, and the subject matter experts give practical advice to challenges and issues that are not part of the slide deck. I learned more about what our members are facing in their work environments (doing more with less, shrinking budgets, using more tools and technology) than about the credit topics themselves. Never underestimate the power of good catharsis – I can’t tell you how many people nodded their heads and grinned with relief when they heard someone talk about the same challenges that they face.
I also want to acknowledge the many credit vendors who supported the event with their own knowledge, expertise, and tools. I spent many hours talking with many vendors at the Expo, and I learned that many of these providers have played a vital role in helping the credit function and profession progress and evolve. If it weren’t for these companies (many of them small start-ups) investing their time, treasure and talent in the service of credit, our members would not have the tools and resources they need to compete in an ever-changing and risky business environment. We appreciate that many credit vendors have become as valuable an advocate for the credit profession as the credit associations!
By emphasizing the value of networking, peer-to-peer learning, and vendor support, I don’t want to minimize the contributions of the presenters and quality of their content at Credit Congress, which appeared consistently strong and on-topic. Thanks to NACM for continuing to provide a high quality, high value experience for our members.
A healthy turnout for Credit Congress and positive feedback from our members who attended has shown us that there continues to be good reason to offer these kinds of programs to our credit community. Now I am more excited than ever about CMA’s upcoming CreditScape Fall Summit (September 22-23 in Sonoma County) that will immerse all attendees in a learning environment designed to help them discover ways to improve their credit and collection processes.
So that’s what I learned at Credit Congress — what will you learn at our next event?
Here is a follow up from my column last month, when I mentioned a survey to determine which core skills members feel are the most important to credit managers. First, I want to thank all of the 133 members who took the time to respond to the survey. Second, I wanted to share the results and let you know how we will use the information to guide our development of skills training programs this year.
As a reminder, we asked members to rate 15 functional areas of the credit and collections cycle as “Very Important,” “Somewhat Important,” or “Not Important.” From the nearly 13% of CMA members who responded, “Communications Skills (verbal/written)” was rated most important (119 very important), followed by “Credit Basics” (116 very important), “Collection Techniques” (112 very important), “Customer Service Skills” (107 very important), and “Negotiation Skills” (105 very important). All other areas received ratings under 80 for very important (the complete list of results appears below).
To keep things interesting, the dozen in-depth interviews with CMA’s Board of Directors reflected some of the results above, also placing high value on Communications Skills, Collection Techniques, and Negotiation Skills. However, the group of CMA leaders rated Financial Skills (analysis and forecasting) much higher than the larger member sample, and appear to place a higher value on Leadership and Management Skills. Interestingly, Legal and Compliance issues received average ratings of importance, but we live in a nation of laws and operate in a business environment that is prone to legal risk and liability, so we’re going prescribe legal and compliance training anyway for the overall health of our members.
So what does this tell us about the training needs of our members’ credit operations? We believe that an online credit training program that initially addresses six core disciplines will benefit the vast majority of members who are charged with creating and conducting credit training programs without having the often significant time, resources, and expertise that are required to take on that responsibility. The CMA Credit Training Program will offer skills training in 1) written and verbal communications, 2) credit fundamentals (customer investigations, credit decisionmaking, setting credit lines), 3) collection techniques, 4) negotiations, 5) financial analysis, and 6) legal and compliance.
Look for more details later this summer, but in the meantime, I have a request. Part of the success of our recent CreditScape events was the contributions that experienced credit practitioners made to the workshop discussions. Sharing success stories and career-long best practices have added significant and unique value to our in person education sessions, and I would like to bring that same dynamic to our online credit training courses. If anyone reading this message feels that they have valuable experiences related to one of the core disciplines listed below, and you would be willing to work with me and other members to share those experiences and best practices with CMA members through this new program, please reach out to me so we can discuss a possible contribution.
I want to thank you again for your participation, as I look forward to helping evolve our education program into one that provides members with the topics they value most.
CMA is proud to host the CreditScape Spring Summit 2016 next week in Newport Beach, with a significant focus on how technology can be leveraged to improve the efficiency and effectiveness of credit operations. Regardless of whether you are attending the event, we’d like to get a baseline for how much automation is being utilized across our member base today.
Click here for a short survey that will ask you about your challenges, where you are with automation and where you’d like to be. We’ve also got several questions about the time spent and value of some of the most common activities in the credit department. By helping us to better understand your challenges regarding automation and technology, we’ll be better able to craft conferences, webinars and presentations, and even alliances with technology providers, throughout the year that help support your goals.
We’ll be asking these same questions on a periodic basis to see how quickly our membership is adopting technology. We’ll also want to understand how else we can support your needs in this area and how well our efforts result in concrete improvements and reduction of manual labor at the member level.
The results of this survey are only available to CreditScape attendees and those who complete it – so please take a few minutes to tell us about your process. We’ll discuss the results at CreditScape next week!
Like many of you, I made a number of New Year’s resolutions, and like many of you, I’ve already broken several (perhaps a 5-day-a-week commitment to go to the gym when it opens at 5 am was overly ambitious). At CMA, we have resolved to make mission and values a priority for this year and moving forward. Of course we have a mission and values, but we don’t spend enough time communicating them to our staff and to our members. Like many organizations, CMA revisits these mantras every few years at Board and staff retreats, but we don’t keep the spirit alive in the years between those manic word-smithing sessions. Many organizations and functional departments are guilty of this. Therefore, we at CMA resolve to make mission and values the reasons why we exist and why we do what we do.
Regardless of the actual words we will use to communicate our mission, it will stand for the idea that CMA is here to help credit professionals do their jobs more effectively and efficiently, which hopefully means making it easier to do more with less, and with greater speed and accuracy. There are many ways CMA can support credit professionals and credit operations – knowledge aggregated from the thousands of credit professionals who share their experiences through networking and publications, trade data from credit bureaus and credit group members, a variety of other third-party services, and professional education and training.
That last component of support, professional education and training, represents one of CMA’s deeply held values – a dedication to life-long learning. This is a value I wrote about before we launched our first CreditScape Summit last Fall. I am revisiting this value because we truly believe that continual education on basic and emerging credit topics, and regular training on skills related to day-to-day credit tasks, will keep credit operations sharp and well-oiled. Ultimately, any operating department within a company should focus on one thing, improving performance. How ever your company and department measures performance, you have to make changes to get better results (remember the definition of insanity?). We all know the reality of making change – it’s uncomfortable, it’s time consuming, it’s expensive – but if we are going to pay more than lip service to performance improvement, we have to take an honest look at our operations and determine where we can improve processes that will make a difference in performance.
We have designed the CreditScape Spring Summit and Annual Meeting, powered by UTA, to give our members an opportunity to get away from the daily distractions of the credit operation to focus on learning from other members who have successfully driven change within their credit operations that lead to improved performance. Many of the process improvements that will be discussed are related to technology solutions that have helped drive efficiency and accuracy by automating certain processes. During the opening address, attendees will hear from Michael Puccinelli, CCE, who has made a career out of process improvement by investing in his team (he requires that everyone be trained and NACM Certified) and investing in technology. At his last two companies, VeriSign and now Equinix, Michael has successfully leveraged a highly trained staff and technology to create what he refers to as systemic solutions to drive efficiencies and high performance throughout a global credit operation. It’s work like this that earned him the first annual NACM OD Glaus Credit Executive of Distinction Award and we know that he will have some valuable advice for CreditScape participants, regardless of company or credit department size or industry.
During the CMA Annual Meeting Luncheon on Day 2 of CreditScape, we will recognize and celebrate those credit professionals like Michael Puccinelli who have made significant contributions to their companies and to the credit profession through their dedication to process and performance improvement. To register, visit www.creditscapeconference.com. Hope to see you there.
The holidays are a time to reflect on the past year, and an opportunity to evaluate how successful CMA has been in accomplishing our goals this year. With Thanksgiving quickly approaching, your CMA staff has listed a number of things we can be thankful for.
First and foremost, we’re thankful for you, our members, who support the efforts of the credit management profession by actively participating. Whether it’s done through submitting your RFIs, submitting your full aging data, or even just attending Industry Credit Group meetings or events such as CreditScape, your contributions make the entire credit management profession better, and we’re grateful. Over the past year, we’ve taken steps to make it easier for members to participate by expanding the number of free educational events, anscers training sessions and opportunities for members (both new and returning) to learn how to maximize their membership with CMA. For those who have participated in any of these sessions, thank you!
We’re thankful for our partners in the credit information industry who have made it possible to provide our members with valuable, one-of-a-kind products. Thanks to our partners Bob Shultz, Keith Doyle, Dun & Bradstreet, Equifax, and Experian for helping us provide members with the “big picture” on any account with the anscersX multi-bureau trade credit report. Thanks also to our partners Ansonia and Southwest Business Credit for helping us solve the problem of gathering real-time title information with the most innovative credit report for the construction industry, The Construction Credit Report.
We’re thankful to our exclusive partner in third-party collections, AG Adjustments, which has recovered hundreds of thousands of dollars in unpaid debts for CMA members. We are thankful for all of our many other vendor member service providers for their assistance with international credit sales, UCCs, payment processing, and deductions management.
We’re thankful for Paul Beretz, CICE; David Osburn, MBA; Jim Menard, CCE; and a host of other dedicated instructors who have supported the professional development of so many of our credit professionals.
We’re thankful for our volunteers, those who have served on the CMA Board of Directors and on committees like Membership and Professional Development. Additionally, we thank those members who have provided CMA staff with lots of great feedback on topics of interest which have been used to create more relevant education and training programs.
2015 has been a really great year at CMA, and we have a lot to be thankful for. We’re looking forward to an even better 2016. Thanks again for your support, and Happy Thanksgiving to you and your families.
How can you play and get paid in the global marketplace? Over the last two years, CMA has been exploring how member companies can grow export sales using a variety of credit and trade finance resources to mitigate the risk of selling into other countries.
Today, I am attending Discover Global Markets, a two-day export conference hosted by the U.S. Commercial Service, the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration (http://export.gov/discoverglobalmarkets). I am looking for information and insights I can bring back to the CMA membership.
In the meantime, we have many other resources that can help you sell into the global marketplace. CMA established a strategic alliance with the U.S. DOC’s Commercial Services because its trade professionals in over 100 U.S. cities and in more than 75 countries help U.S. companies get started in exporting or increase sales to new global markets (http://www.trade.gov/cs). Regional Director Richard Swanson recently participated in a panel discussion on international collections at CMA’s Fall CreditScape Summit, and he has provided CMA members with guidance on how to access U.S. government export resources in many other countries. You can also find all the basics at www.export.gov.
When you conduct international credit investigations, CMA recommends long-time partner Skyminder which offers reliable, up-to date information on millions of public and private companies worldwide. Details on how to find them are here.
CMA has three upcoming webinars before the end of the year that will give you more tools for exporting your products and securing your receivables.
December 1, 2015: How to Achieve Procurement Using Foreign Trade Zones (Free Webinar) 9:00 AM PST
December 2, 2015: Financing Foreign Receivables (Free Webinar) 9:00 AM PST
December 3, 2015: Comparison of Credit Risk Mitigation Tools (Free Webinar) 9:00 AM PST
All too often our members tell us that they want to take advantage of benefits offered by CMA, but they are not in the budget. For companies on a calendar fiscal year, here’s your opportunity to begin thinking about those budgetworthy benefits for 2016. Even if your next fiscal year extends well into 2016, it’s never too early to start your wish list.
Above all, budget for CMA membership and if your company participates in a credit group, include group membership ($1665 total). Credit groups are still one of the best ways to maximize the value of your CMA membership because the unique combination of industry trade data, insider knowledge about common customers, and industry best practices often pays for your membership fees many times over in helping you grow revenue, reduce bad debt losses, and saves you valuable time in conducting due diligence. One of CMA’s newest groups focuses on developing processes to help the credit department evaluate supplier risk. If your company faces significant exposure from the risk of critical suppliers failing to perform on time (or at all if they go out of business), consider budgeting for membership in the Supplier Risk Credit Group ($1200).
CMA has already scheduled the next CreditScape Summit for March 24-25, 2016, and will soon schedule the Fall 2016 CreditScape, so be thinking about adding one or both events to your budget (CMA members pay $499 per person per event). CreditScape is a unique event focusing on process improvement for the credit department, providing the tools to allow you to act more proactively.
CMA will offer NACM Certification Courses for the CBA and CBF Designations starting in January. These will be offered once a year only, unless there is sufficient participation for additional classes, so if you plan to get certified in 2016 or early 2017, plan to register for the Certification Courses now and budget accordingly ($3000 for all courses per designation per person). Information for all professional development events can be found on CMA’s website and on anscers.com on the Education tab.
Before you budget for your credit information, consider whether you are getting the best value for your budget. Let CMA help you analyze your current credit reporting products– we might be able to save you money by suggesting a more cost-effective reporting strategy (pricing varies by report volume). CMA’s anscersX multi-bureau report combines proprietary scores and data elements from all three major credit bureaus (Dun & Bradstreet, Experian, Equifax) to give you a comprehensive look at the payment history of your customer or prospect ($65 (or less) per report). Budget for some anscersX reports to supplement your existing credit reports.
If you are a construction supplier, consider how using CMA’s Forms Filing Service can save you time and money. With services ranging from preliminary notices to lien warning notices, mechanics liens, bond claims and stop notices, CMA’s Form Filing Services often provide the lowest pricing and best service in the marketplace. You might also be interested in CMA’s new Construction Credit Report, providing title data, public record data, active trade lines, credit analysis and scores, collection agency activity and links to state contractor information, the only all-inclusive report of its type, at $29.95 per report.
Finally, CMA’s collections partner, AG Adjustments, offers third-party collection services at competitive rates on a contingency basis.
We hope this list is helpful as you consider your needs for 2016.
At CMA, we are so excited about the CreditScape program we’ve got planned for you, we wanted to give everyone a sneak peak at what you’ll be talking about. All next week, CMA will publish a series of briefs from thought leaders who will be featured at the Summit — Chris Rios, Bart Frankel, Scott Blakeley, Chris Ng, Eddy Sumar, Michael Dennis, and more.
When I spoke with Chris Rios, Director of Finance Operations for Dun & Bradstreet, about the whole collections process, he spoke about the importance of treating collections like sales, because you are “selling” customers on why they should pay their bills. The key to success is building and maintaining good relationships with your customers. He also stresses the importance of being “forward looking” and strategic in your approach to collections – using data and analytics to drive collection effectiveness.
Bart Frankel has been a member favorite with his “Phone Power” Collection Webinars over the years, and we’ve asked him to share the collection techniques he developed for the $7 Billion Order-to-Cash process for the Pratt & Whitney Division of United Technologies. Bart will be the first to tell you that collections starts with the sales call and he stresses the importance of getting the upfront process right the first time so you don’t have so many issues on the back end.
What if you are exporting and trying to collect from customers in foreign countries? Eddy Sumar, CCE, CICE, has plenty to share about his experiences collecting money from all over the globe, and he’ll be the first to tell you, collections starts with an understanding of the 6th C of Credit — Culture.
With another Annual Meeting behind us, I was encouraged to see such a great turnout at the event last week. It was a pleasure seeing all who attended CMA’s Annual Meeting at Disneyland, and what made it particularly exciting for me was seeing that more and more of you are coming out of your offices to engage with other members and learn IN PERSON. It was nice to see credit managers reconnecting or getting to know each other for the first time, and learning from one another as they asked questions and shared experiences during the education sessions, an advantage of meeting in person rather than participating in online learning.
I noticed something else at the Annual Meeting that was very encouraging: experienced, senior credit managers brought their staff members with them to share in the education and networking experiences. I applaud this effort of good old-fashioned staff development, knowledge transfer, and succession planning, something that we don’t often think about in our daily routines, but is critical for the long-term sustainability of a credit department and the credit profession.
For those of you who were unable to join us at the Annual Meeting, look for more opportunities this year, as there are more upcoming in-person seminars, learning lunches and conferences. Additionally, NACM Oregon is hosting the NACM Western Region Credit Conference October 14 – 16 in Portland, OR. More details will follow after NACM’s Credit Congress in St. Louis next month.
My experience at the Annual Meeting re-affirmed for me why CMA is here for its members, customers, and other stakeholders. We believe, as you do, that credit management is critical to the success of any B2B company that sells on open terms, and we are here to help you grow revenue and reduce risk by providing, first and foremost, a vibrant community of credit practitioners with whom you can exchange experiences, best practices, and new ideas.
We hope you’re finding the educational and networking opportunities CMA is offering as useful to your business. Looking to learn more about a topic that we’re not currently offering? Let me know and we’ll try to help.
We hope to meet you in person at one of these upcoming events.