Welcome to the CIC e-Newsletter - Spring 2009
Editor’s Message – Spring 2009
Let’s face it, no matter how bad a rap ‘credit’ has been subject to since the economic crisis started, it is unimaginable how the business wheel can keep on churning without it. At a time when things are looking so bleak even for one of the pioneers of credit in North America, Ford Motors, and for other flagship companies such as GM and Chrysler, the credit system is far from seeing its final days. Even less likely to happen is a return to the barter system. In other words, the work that credit professionals do is, by no means, threatened with extinction. As the French would exclaim, “au contraire!” Now is the time for you to reap some rewards, shine and further prove your worth for the sound credit management that you practice.
Quoting from an article written by Philip H. Etter, CCP, CCCE in 1965, “effective and efficient credit management is no sinecure, and the real credit executive who is worth his salt will earn every penny of the highest salary that he can sell his employers on giving him.” If you need to be convinced about that, then take a look at your own career in credit and you will find many concrete examples when you were successful in managing credit risk for your employer. Surely, you remember the instances when after a heated discussion with your salespeople, you were able to get a certified cheque from a risky customer and, a month later, you learned that the same customer had filed for bankruptcy. Phew!
Perhaps, you are still not convinced about your worth as a credit professional. Here is something else that I can offer to help in your self-promotion to your employer. In the first quarter of 2009, Robert Half, a recruitment firm of worldwide authority and recognition, published a top ten list of “the most prevalent roles” in today’s environment. Credit and collections specialist ranks first on the list. I’ll let you draw your own conclusion as to what importance companies are assigning to credit risk and cash flow management these days. Anyone to argue against the proverbial “cash is always king”?
Nawshad Khadaroo, CCP
Update your skills in credit management and you will stay on top of your game!
- Attend our 2009 Credit Conference to keep up to date with industry changes, best practices and management skills that could save your company money and make you stand out as an expert in delivering profits through effective credit management
- Sign up for our Certified Credit Professional (CCP) or Credit Basics courses
- Available soon exclusively to CCP and ACI designated members: short online modules to refresh your skills and earn 30 professional development points
Disclaimer
The views expressed in the articles are the opinions of the writers and contributors not those of the Credit Institute of Canada. Nothing in this publication is intended as legal advice, or tax or accounting advice. Nothing in this publication should be considered an alternative to seeking professional legal or professional advice. You are encouraged to use your judgment in deciding which of the ideas to accept or adopt, and which to reject and ignore.
In this Issue:
Association News:
Message from Canadian Credit Institute Educational Foundation
Members Forum:
Is it Business as Usual?
“The change has been two way for us...our vendors have been much faster to call us when we are late, and we have done the same with our customers. On the credit side, we are being stingier with credit, questioning the amounts requested and company particulars...we have turned down three of the last 10 credit applications, only doing business on a credit card or cash basis.A year ago we were quite liberal with credit...We are not so liberal any more.”
"When I am facing a new or unfamiliar situation at work, I turn to the CIC's community forum to ask for advice, and in all cases someone in the credit community has had the experience to provide me the advice I need. It is fast easy to use, and I think that it has brought the credit community together and strengthened our profession." Peter Smith, CCP, CA
Bankruptcy & Insolvency:
Latest Bankruptcy Statistics - March 2009
Credit & Collections Management:
Black Holes and Credit Management
This article was published originally in our fall 2007 newsletter. In March 2009, it won the best article award by the International Federation of Accountants (IFAC). We are republishing it for those who did not get the opportunity to read it the first time.
Credit Fraud:
Peek A Boo - Who's Calling?
Over the years, fraudsters have used different methods to defraud
consumers of their hard earned money. We have all heard of phishing,
skimming, spyware, and drive-by pharming. Just like the human cold
viruses that mutate and become more resilient with time, fraudsters, too,
are coming up with new sophisticated ways to commit frauds. Read on to
learn about the most recent trick in use…
Credit Law:
Trade contractors calling for Prompt Payment Legislation
If you supply materials to trade contractors, this may be a piece of good
news for you…One might ask, though, are general contractors that bad to
require ‘Prompt Payment Legislation’ to get them to pay?
Industry & Economic News:
Economic Outlook
The Credit Institute of Canada is very pleased to present the following economic outlook reports prepared by the underwriters at Atradius Credit Insurance. In this issue, there are reports on the current economic outlook for Canada, Mexico and the US. The information was extracted from four recent editions of the “Atradius Market Monitor,” and we would like to thank Wally Meneray, Senior Manager – Canada for making this information available to members of the Credit Institute of Canada. 2009 conference attendees will have an opportunity to meet Wally in person, as he is one of our featured panelists in the Thursday afternoon session: “Credit Practices for the Future”
Financial Analysis:
Intangible Assets
As a credit professional, do you usually pay attention to goodwill when
assessing your customers’ financials? If no, then this article will change
your perspective on how you look at this balance sheet item. Investors and
creditors alike are well advised to not let themselves duped by this so-called
intangible asset.
Professional Development:
Food for the Spirit
“Do you react to events in your life or respond to challenges? Here are some simple strategies that can help you live a deeper, happier and more successful life.”
