Nov-Dec FREE Demand Service for NACM Members. More info
Nov 2 - Credit Boot Camp Basic training in collections, credit reports, applications & policy for credit and A/R
Nov 3 - The Changing Landscape of Credit What makes a great credit manager from a finance managers view and panel discussion of current issues and hot topics. Info and registration
Nov 8 - Mechanic's Lien & Lien Recovery Fund Seminar. Recent changes to Lien Recovery Fund rules. Info & registration
Nov 11 - ICEL "Let's Make a Deal" the Art of Negotiation. Speaker Tammi Russell, CCE, KSL. Info & registration
Dec 9 - ICEL Christmas Mtg & Candy Cane Corner Charity Drive
Mar 2 - Credit Boot Camp
Apr 22 - Stockholders Meeting & Dinner
May 22-25 Credit Congress & Expo Nashville, TN
Why should I submit potential members to NACM?"
Help gain information on your customers. As a member, their information could help build the database on your customers as well not just a one- way street. more Info
Checks ... the Good, the Bad & the Ugly
by Duane Barnett, Attorney at Law, For-Shor Company
Customers continue to struggle in significant numbers in this economy. This is manifesting itself in the issuance of checks that are not always negotiable. There are some who are quite deliberate in their use of insufficient funds checks. Not every check problem is the same, but let's touch on a few.
THE UNSIGNED CHECK.
It infrequently happens that you receive a check that the customer has left unsigned. Suspiciously minded credit professionals might wonder if this was an attempt to delay the payment while you contact them or return the check for signature. I recognize it for what it is, an oversight. In order to help expedite things, and in order not to embarrass the customer, I simply ... View full article
Give Me Some Credit!
by Larry Brooks, CPA, CCE, ARUP Laboratories
Perhaps, during a conversation, you've heard someone make the following statement, "Hey, give me some credit." The general idea being put across is, "Hey, I'm not stupid! Give me some credit for having a brain in my head. Okay?" In other words, don't assume that I haven't done or am not doing what a person in that situation would be expected to do.
When we are engaged in the process of collecting receivables, we are dealing with individuals or businesses that have been given some credit. This type of credit is usually in the form of delivered goods or performed services, with the expectation of payment at a future pre-determined date. View full article
A Pound of Flesh or a Fistful of Dollars
by Scott W. Lee, JD, CCE
Sometimes I hear creditors say they just want to make their customer's life miserable; I just want to get my "pound of flesh." (A figurative way of referring to a harsh demand or spiteful penalty. See Shakespeare, Merchant of Venice, Act IV, Scene I.) Sometimes creditors do this by sending a series of harshly worded demand letters. Sometimes it is done by making a lot of nasty phone calls. Other times, creditors take the debtor to small claims court to obtain a judgment. But is this what you really want? The debtor probably isn't much more miserable and if all you get is a judgment that you can't collect, you are probably feeling more miserable than the debtor.
This isn't to say you shouldn't send letters or make calls. You should. But your optimal credit policy should include a collection agency for a variety of reasons. Here are some lessons I have learned after many years of being a controller, dealing with trade credit, litigating claims for clients and serving as a pro tem judge. View full article
Questions About Retention
by Rebecca Knaak, Alder Sales Corporation
What is retention? Retention is a percentage of a contract which can be withheld by the owner or general contractor from each billing or pay request. This amount is withheld as insurance of prompt completion of the work by the subcontractor.
In Utah, retention is limited to 5% under state law. This means up to 5% of your pay request or invoice may be withheld by the general contractor or owner. According to Utah law, withholders of retention are required to place those funds into an interest bearing account, and they are to pay the interest to the subcontractor upon payment of the retention.
In regard to contracts and subcontracts, nothing contained in them can supersede the Utah retention law, meaning that in all cases, disputes over retention shall refer to the law as written by the Utah State Legislature.
This brings up a few traps about retention: View full article
Top 5 Credit Department Budget Tips
by Georgette Bevan, CCE, NACM, Director of Education
Create a Plan for Success
With a down economy we need to re-evaluate budgets and plan for the resources needed to achieve goals and survive.
1.Why are we in business?
The definition of business - a usually commercial or mercantile activity engaged in as a means of livelihood. In other words... in business for profit.
2.What are our goals?
Set clear and achievable goals.
· Utilize credit education to increase profitability
· Reduce DSO by ____ days in 2011
· Limit bad debt to ___% of sales in 2011
View Full Article