Thanks to CreditScape Spring Sponsors!

 

CMA wishes to recognize our event sponsors for CreditScape. Without their help, this event would not have been possible.

Thanks to these leading companies in the credit community.

 

AGA Adjustments
Contact: Sam Fensterstock
www.agaltd.com
888-496-1600
Services: Commercial Collections

Ansonia Credit Data
Contact: Bill Weiss, Kathleen Dasal
www.AnsoniaCreditData.com
855-ANSONIA (267-6642)
Services: Portfolio Monitoring, Credit Reports

Bectran
Contact: Eric Lee
www.bectran.com
888-791-6620
Services: Online Credit Applications, Document Management

Credit2B
Contact: Joe Chin
www.credit2b.com
212-279-3300
Services: Customer Onboarding, Risk Protection, Analytics, Benchmarks

CreditPoint Software
Contact: Charlie Pilkington
https://creditpointsoftware.com
918-376-9440
Services: Credit Risk Analysis Software, Online Credit Applications, Commercial Collections Software

Dade Systems
Contact: Bill Zayas
www.dadesystems.com
855-418-2786
Services: Virtual Payment Processing Solutions

Dun & Bradstreet
Contact: Bob O’Brien
www.dnb.com
973-921-6370
Services: Credit Reports

Esker
Contact: Dan Caple
www.esker.com
800-368-5283
Services: Accounts Receivable Software

HighRadius
Contact: Sally Huynh
www.highradius.com
281-968-4473
Services: Accounts Receivable Software

IAB
Contact: Diana Crowe
www.iabllc.com
630-537-0840
Services: Deduction Management Services

NCS
Contact: Jerry Bailey
www.ncscredit.com
800-826-5256
Services: UCC Filing Services

Skyminder
Contact: Mike Lindenmuth
www.skyminder.com
813-636-0981
Services: International Credit Reports

United TranzActions
Contact: Michael Williams, Dean Middleton
www.UnitedTranzActions.com
800-858-5256
Services: Payment Processing, Credit Card
Processing, Virtual Lockbox

Vantiv
Contact: Matt Fluegge
www.vantiv.com
608-834-2539
Services: Payment Services

Selling outside the U.S.? What risks should you look for?, by Mike Lindenmuth

Consider this scenario: your boss tells you, the credit manager, that he/she’s just sold a palletload of your company’s widgets to a customer in a foreign country, and that you need to just “make it work and collect the money.” Sound familiar? We hear examples like that one over and over from our clients. So what are the risks that you should look out for? There are three major country factors that we look for that determine foreign risk: economic, political and terrorism.

Economic Risk

In a global economy, some countries are connected in a virtual domino effect, some obviously and others not. For example, imagine that your boss asks you to do business with an Australian company. At the same time, you are aware of the political unrest in Greece. If Greece defaults, Germany would be impacted as they are a major economic trading partner and major debt holder. This could impact the company you’re doing business with, as Germany is a major trading partner with Australia. Therefore, if you’re doing business in Australia, you could be impacted by the situation in Greece, even though Greece isn’t a major trading partner with Australia.

Regional country risk could also be a factor. For instance, Venezuela literally has no cash available to pay its creditors, and this would impact your company’s ability to get paid.

Finally, you still need to assess the company risk, based on a number of factors including capacity and character. Some of this information can be obtained through reports and assessments from companies like Skyminder.

Political Risk

Imagine this scenario: You have an agreement in place with a foreign customer, and then a revolution breaks out in their country. Despite their best efforts and intentions, the deal is off, and they may not be able to ship out or pay for those products. Similarly, in other countries, governments have the ability to take over private companies, and there’s very little the owner can do to stop it.

Another political factor is the type and structure of the government. For instance, look at the current stock market in China. Dictatorship controls the market and valuation of yen. Which could be strong (or weaK) compared to U.S. dollars at the time of the transaction. Could your company be left holding the proverbial “bag?”

Finally, the U.S. government could be a factor. In the case of Russia invading Ukraine, will our Congress impose sanctions? If so, is your company prepared?

Terrorism

In a post 9/11 world, terrorism is a huge (and self-explanatory) factor.

How can you make an informed decision?

With all of the uncertainty I’ve been talking about in this blog post, how can you make an informed decision? There are a couple of resources that I can recommend.

  • FCIB is an excellent source for country reports, political risk and credit and collections surveys.
  • For company risk, no one should use a single source for business information reports. Effective risk management requires access to multiple sources. The preferred solution is to look to providers who can aggregate information from multiple sources. My company, SkyMinder, is able to provide freshly investigated reports for any company in any country in the world.

Mike Lindenmuth is Vice President of SkyMinder, a provider of global company and domestic credit reports. He can be reached at 813-636-0981 ext. 237, m.lindenmuth@c3bizinfo.com, or at www.c3bizinfo.com.