Business Credit articles from October 2008

Business Credit archives from October 2008

When the going gets tough ...(commentary)
October 1, 2008... What a summer we had! The stock market charts looked like silhouettes of mountain ranges, the price of gasoline seemed to move upwards at least twice a day and a nasty string of storms churned through the Atlantic. We're all still feeling the...

After the ball.(credit column)
October 1, 2008... At the end of the 19th Century, the United States was struggling through one of the worst economic epochs in its history. The later half of the 1880s had been primarily a boom time with almost unparalleled expansion and seemingly everybody...

E-discovery issues.(selected topic)
October 1, 2008... When your company intends to pursue a claim against a debtor that has filed for bankruptcy protection, your company should pay particular attention to retaining not only its paper trail relating to the claim, but also all of its electronic data...

Key words for leaders.(extra credit)
October 1, 2008... Successful Leaders Put Language to Work I've worked with many excellent leaders over the years and no two were exactly alike. Some had great technical knowledge, while others had great vision. Some were charismatic and inspirational, while...

Once a collection goes "legal": a short series for creditors.(extra credit)(Reprint)
October 1, 2008... Many collection or credit managers spend a great deal of time preventing collection problems, whether in the granting process or the in-house collection phase. More experienced personnel understand what happens when an account can't be...

Dear Andy.(credit @ work)
October 1, 2008... [ILLUSTRATION OMITTED] Dear Andy, From my recent performance appraisal, which incorporates feedback from staff members, I Learned that my direct reports feel I could do a better job of communicating with them. I realize that I get so...

The fraud textbook: the Whiteland and via distribution successes.(international)
October 1, 2008... If I wanted to become a fraud artist, I believe I could take any of your companies for quite a bit of money. Your credit department, collections department and lawyers would be spinning their wheels for weeks and months trying to figure out...

Hard times for honest folks: the American vision of the classic haunted house the large, vacant Victorian home with dark windows sitting on a unkempt lot can be traced back to the hardships of the 1890s. Unemployment was skyrocketing and average Americans lost their entire life savings as companies and banks collapsed. Homes, some in the midst of being built, were simply abandoned.
October 1, 2008... [ILLUSTRATION OMITTED] By no means are times nearly that dark. But there are plenty of trials to overcome. It is a difficult age for many subcontractors and those companies selling to the construction industry. Mechanic's lien filings...

The best defense can sometimes be a great offense: benefits of retaining financial advisors before the onset of a crisis.(selected topic)
October 1, 2008... Your nose is running, your throat is a little scratchy and you feel the signs of a slight fever. In response, your first instinct is to treat it yourself. Why go to a doctor? All he or she is going to do is tell you to get some rest, take an...

Three kinds of credit managers.(extra credit)
October 1, 2008... A wise man once remarked, "There are three kinds of people in all types of organizations: rowboat people, sailboat people and steamboat people. Rowboat people need to be pushed or shoved along. Sailboat people move when a favorable wind is...

What you should know about electronic document retention.(selected topic)
October 1, 2008... Business have experienced an explosion of electronic documents and data because of increasing use of electronic devices, decreasing cost of storage media and the expanding use of email. Added to the paper documents generated by the business,...

Blacking out.(TRADELINE)
October 1, 2008... The U.S. court system has been struggling with the need to share information on litigants, while at the same time trying to protect those individuals in an era of increasing identity theft. At one time, not too long ago, gobs of sensitive...

A unique opportunity: with thriving export sales and a weak dollar, there's never been a better time for domestic companies to get into exporting.(International feature)(Cover story)
October 1, 2008... [ILLUSTRATION OMITTED] While most or all credit professionals have probably heard at least something about the thriving export market, it's a fact that bears repeating: demand in the U.S. may be declining, and the housing market may be...

Correction.(Correction notice)
October 1, 2008... In the September issue, page 26, CMA Business Credit Services was incorrectly listed as being located in San Diego. CMA has offices in Burbank and San Leandro, CA and in Las Vegas, NV. San Diego Credit Association is the NACM Affiliate...

Release of state mechanic's and other lien law rights as a defense to preference claims? Yes and no!(credit column)
October 1, 2008... Suppliers of goods and services on construction projects enjoy the enhanced prospect for payment of their claims afforded by most states' mechanic's and other lien laws. While that is all well and good, can suppliers that have waived or...

Survey shows few companies started exporting in last three years.(TRADELINE)
October 1, 2008... Despite the current combination of high overseas demand and a cheap U.S. dollar, results from NACM's most recent monthly survey indicate that many NACM members are not taking advantage of exporting and the ones that are have been doing so for a...

Linens 'n Things bankruptcy implements Vendor Program: providing stronger creditor protection for suppliers.(extra credit)
October 1, 2008... The United States Bankruptcy Court for the District of Delaware recently approved a Trade Vendor Payment Program (the "Vendor Program" or "Program") in the Linens 'n Things ("Linens") bankruptcy (1). According to Linen's motion in support of...

Red flags, gray areas: are you compliant with new ID theft prevention laws?(selected topic)
October 1, 2008... Technically in place since January, the FTC's red flag rules designed to prevent identity theft become fully effective November 1. The regulations require businesses extending credit to customers to have comprehensive programs in place for...

Congratulations to our newest designees.
October 1, 2008... [ILLUSTRATION OMITTED] CBA Barbara Alexander Clorox Company Alpharetta, GA Eric Anderson Force America Burnsville, MN Jane Ashley Cary Oil Co. Cary, NC Diane Auchmutey Sherwood Food...

Credit scoring: why some do and some don't.(credit column)
October 1, 2008... In the beginning, when credit scoring first became part of the B2B credit lexicon, it was, in many circles, framed as the harbinger of doom for the traditionally fluid nature of the business. Fears arose that it would erode the "human element"...

Hot spots: Chile.(international)
October 1, 2008... Chile has had to struggle against strong economic and financial headwinds during the past year, but conditions have held up better than most expected and the outlook is quite bright. The country has been battered by soaring world market prices...

Paper statements--asset or liability?(extra credit)
October 1, 2008... Although the recent increase in postal rates may be driving organizations to step up the migration to electronic documents and delivery channels in place of paper statements, they may want to consider the full range of advantages that paper...

Preserving the "subjective prong" of your "ordinary course" defense.(selected topic)
October 1, 2008... The Bankruptcy Code provides various defenses that a creditor may assert to the recovery of preferential transfers. One such exception is the ordinary course of business exception of 11 U.S.C. 547(c)(2). Under section 547(c)(2), a creditor can...

Higher oil prices could lead to higher overall and core inflation rates: St. Louis fed analysis.(HEADLINE)
October 1, 2008... Although the price of petroleum has moderated recently, a permanent increase to $150 per barrel by the end of 2008 could have a significant negative effect on the rate of real gross domestic product (GDP), at least in the short run, based on an...

Technically sound.(extra credit)
October 1, 2008... Regardless of fluctuations in the global market, your responsibilities are constant: manage the risk, cash flow and financial solvency of your business. In the technology sector, credit managers embrace these universal duties while...

How companies are improving cash flow and reducing costs with credit and collections automation.(selected topic)
October 1, 2008... Effective management of trade receivables is a critical area to target for liquidity management and process improvements as it is a key driver of cash, cost containment and customer relationships. Companies that automate credit and...

NACM Credit Manager's Index: report for August 2008.(CMI)
October 1, 2008... The seasonally adjusted Credit Manager's Index has inched even closer to the neutral economic expansion/contraction point of 50%, creeping down 0.2% to hover at 50.7%. The manufacturing sector index slipped a full percentage point to 50.4%, as...