Credit Management in Australia - January 2021

Volume 28, No 2 January 2021

The Publication for Credit and Financial Professionals

IN AUSTRALIA

Navigating 2021 requires a strategic approach.

This edition covers: l Insolvency reforms and what credit professionals need to know l How open banking will affect consumer credit decisioning l How to get the best from your team in challenging circumstances

71 Qld: Your councillors celebrate Queensland winning the President’s trophy.

78 SA: Networking evening at the Little Bang Brewery Company.

74 NSW: NSW Division celebrates with their Young Credit Professional.

80 Vic/Tas: Finally a Vic/Tas Council Face2face catchup.

Contents Volume 28, Number 2 – January 2021

Message From the President

Credit Management Where to from here for Credit Risk Management?

4

6 Nick Jenkins

9 Adrian Floate MICM

13 Jon Sutton

6

By Nick Jenkins

Strengthen your business systems now to prepare for the unknowns of 2021

9

18

By Adrian Floate MICM

Top of mind for SMEs in 2021: paying down debt and finding new ways to fund business

13

Patrick Coghlan MICM

22 Richard Atkinson

24 Ashley Clayton

By Jon Sutton

ATO’s disclosure of business tax debts to credit reporting bureaus

18

By Patrick Coghlan MICM

Consumer Credit ACCC misses opportunity to fine-tune open banking rules

22

By Richard Atkinson

Compelling conversations: Debt Collections Call Centres find value in speech analytics

28 Jodie Bedoya

31 Clare Venema MICM

34 Michael Pearse MICM

24

By Ashley Clayton

How to use collector behavioural profiling to get the best out of your collections team

28

By Jodie Bedoya

Open banking – Is it here to stay?

By Clare Venema MICM 2

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

31

38 Fiona Reynolds MICM

40 Tracy Rafferty

46 Andrew Spring MICM

85

ISSN 2207-6549

WA/NT: End of year Sundowner held at The Camfield, Perth.

Leadership and High Performance The golden rules of a great resume

34

By Michael Pearse MICM

Legal Recent court decisions provide greater clarity on how to deal with trust assets of a bankrupt estate

38

By Fiona Reynolds MICM

Harnessing the new anti-phoenixing laws to maximise recoveries

40

By Tracy Rafferty

Insolvency

42

Insolvency Reform 2021 – “the Good, the Bad and the Ugly”

46

By Andrew Spring MICM

Measuring collection efficiency

50

Training Which qualification is right for you?

Recent graduates Virtual classroom training calendar

CHIEF EXECUTIVE OFFICER Nick Pilavidis FICM CCE Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 PO Box 64, St Leonards NSW 1590 Tel: (02) 8317 5085, Fax: (02) 9906 5686 Email: nick@aicm.com.au PUBLISHER Nick Pilavidis FICM CCE | Email: nick@aicm.com.au

Insolvency reforms – what credit professionals need to know

Masterclass

DIRECTORS Trevor Goodwin LICM CCE – Australian President Lou Caldararo LICM CCE – Victoria/Tasmania & Australian VP Rowan McClarty MICM CCE – Western Australia/Northern Territory Gail Crowder MICM – South Australia Peter Morgan MICM CCE – New South Wales Debbie Leo MICM – Consumer Decia Guttormsen MICM CCE – Queensland

56 60 60

2020 Virtual Awards Night

61

2020 National Conference

65

Member Anniversaries

68

CONTRIBUTING EDITORS NSW – James Smith MICM CCE Qld – Stacey Woodward MICM SA – Clare Venema MICM WA/NT – Jeremy Coote MICM Vic/Tas – Michelle Carruthers MICM EDITOR/ADVERTISING Andrew Le Marchant LICM CCE Phone Direct 02 8317 5052 or Mob 0418 250 504 Email: andrew@aicm.com.au EDITING and PRODUCTION Anthea Vandertouw | Ferncliff Productions Tel: 0408 290 440 | Email: ferncliff1@bigpond.com THE EDITOR reserves the right to alter or omit any article or advertisement submitted and requires idemnity from the advertisers and contributors against damages or liabilities that may arise from material published. CREDIT MANAGEMENT IN AUSTRALIA is published by the Australian Institute of Credit Management, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of Australian Institute of Credit Management, which does not expect or invite any person to act or rely on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2021.

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aicm

From the President

Trevor Goodwin LICM CCE National President

O

n behalf of your AICM

online all to ensure making your team

Board and National Office

lockdown proof. Ensuring you leverage

team I welcome you to the

technology will enable businesses to

first addition of our Credit

move their credit teams to customer

Management magazine for 2021. I thank members and their colleagues for your

Importantly we must be aware COVID

support in 2020. I hope you all had an

isn’t going away. It’s going to continue for

enjoyable Christmas and New Year and

a while yet until the vaccination is readily

took advantage of some annual leave.

available. On top of that is the trade issues

2020 proved to be a difficult year for all of us with many challenges impacting

with China.

2021 will be a year where legislation

us. But it was also a year of growth. Faced

continues to change and evolve,

with hardship, we had to change the way

particularly the process of insolvency that

we go about daily life and re-evaluate

has been reviewed. Stay connected to

our priorities. In the process, we’ve

the AICM and make full value out of your

strengthened our values, held on tighter

membership utilising our service to stay

to the people we love and built a stronger

informed of the updates we will provide

sense of community.

throughout the year. Check out AICM’s

With a challenging start to the new

submissions page. We work hard for you

year it will be one of budget repair for

to ensure you’re represented and we’re

most businesses. The immediate focus

keen to hear your feedback.

has been on survival: cost-cutting and

Our website is a ready reference for

streamlining operations, implementing

you to not only stay aware of our policy

new health and safety measures. In 2021

submissions made on your behalf but a

it will be important to review how you do

source to check your CCE qualification

business, revisit customer relationships

points. 100 points is the minimum

and how you can support them for mutual

required to sit for your CCE while 30

benefit.

points over a 3 year period is required for

A huge number of businesses have seen their teams move to remote working, while

recertification.

Our Councils in each division are

surging e-commerce and social distancing

hopeful our social and educational events

restrictions have curbed foot traffic in

will return to normal in 2021 through face

many retail locations.

to face attendance. These have proven to

Businesses will need to ensure they

be the best way to broaden your networks,

have access to latest technology with

to connect and discuss credit and learn

developments such as automation of

and develop.

bank receipts, access to website for

4

facing roles.

Notwithstanding the desire for Face

payment and having your contract with

to Face events COVID-19 caused the

your customer digitised and available

need for holding webinars and zoom

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

From the President

aicm

“Businesses will need to ensure they have access to latest technology with developments such as automation of bank receipts, access to website for payment and having your contract with your customer digitised and available online all to ensure making your team lockdown proof.”

attendance in 2020 which worked well

seeing the expiration of the temporary

for the Institute under trying conditions.

moratoriums that had been put in place by

In 2021 our Institute will continue to

the government as a result of COVID-19.

present several new and very popular

From an Advocacy position AICM

online events via webinar for you with

will continue to follow through on

qualified speakers to keep you well

our doorknock to Canberra despite

informed. We have a number of 2020

the Parliamentary ban on visitors – all

webinars including financial hardship,

meetings with Ministers, Shadow Ministers,

diversity and mental health available for

Treasury and Attorney General officials

you to review if you haven’t already seen

will continue to be held via Zoom where

them.

needed.

I, like many members am looking

In 2020 the AICM Board developed

forward to a return to a “normal” National

a new three year strategic plan outlining

Conference in October and we will be

five strategic priorities and initiatives

planning a conference not to be missed!

to support their implementation. These

Ensure you include the conference in your

included to grow membership, enhance

2022 financial year budget.

learning and development, lift professional

In 2021 we will see consumer credit

standards, strengthen our voice and

reforms crossing into small business. The

recognition and to improve operations.

Australian Small Business and Family

The strategic plan explains who the

Ombudsman (ASBEFEO) is offering

AICM is and outlined our purpose, vision

assistance and a voice for small business.

and promise to members through eight

Access to capital is an ongoing problem

pillars including education, professional

for small business. Easier access to

standards, advocacy, promotion of credit

capital will help small business to survive

professionals, events, communication,

difficult trading periods. We support the

governance and stakeholders. You will hear

governments draft amendments to the

more from us on our initiatives as the year

consumer credit framework that relate to

progresses.

small businesses.

Already we have seen the new

I am confident 2021 will be a year when opportunity and innovation will

Payment Times Reporting coming

allow AICM members to reassess, regroup

into effect on 1 January requiring large

and rebuild. The Institute will continue

businesses with an annual income of

to be dynamic and at the forefront for

over $100 million to report on their

our members, providing education and

payment terms and practices for their

events ensuring a successful 2021 for the

small business suppliers. In addition, the

Institute.

commencement of 2021 has seen the introduction of the significant changes to

Trevor Goodwin LICM CCE

Australia’s insolvency reform, while also

National President

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Credit Management

Where to from here for Credit Risk Management?

By Nick Jenkins*

Nick Jenkins

6

Collection teams and risk managers face the prospect of challenges ahead as the COVID-19 pandemic continues to drive changes to the credit environment, customer behaviour and the global economy into 2021. The next six months are expected to bring continued economic uncertainty resulting in possible significant challenges with delinquencies and loan defaults.

In this ever-shifting landscape, real-time data and analytics are proving their value in helping organisations and customers find a quicker path to recovery. Dynamic, agile risk tools and machine learning techniques can be highly effective in delivering a closer profile of customer risk and vulnerability for informed decision making.

If COVID-19 has taught us anything, it’s the importance of acting on fact, not on assumptions.

For lending institutions, this means harnessing external data sets as a means for making timely, proactive decisions. Without the ability to

augment traditional financial data and conventional assumptions with newer high-frequency information and behavioural insights, credit risk management may become significantly harder in the challenging times that lie ahead.

From deferrals to?

As the home loan deferral period ends, customer communication strategies should be updated using real-time insights to enable tailored and fair outcomes. While many borrowers have transitioned back to normal contractual repayments, a substantial number are flagging vulnerability still needing payment deferral programs. As of late September 2020, 7.4% of total housing and 10.8% of SME loans remain on payment deferrals (Source: APRA) at a value of $168 billion.

For some customers, this might be the first time they have experienced financial insecurity, and they will be looking to their lender to understand their needs and provide personalised

“If COVID-19 has taught us anything, it’s the importance of acting on fact, not on assumptions. For lending institutions, this means harnessing external data sets as a means for making timely, proactive decisions.”

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Credit Management

debt restructuring solutions. Equifax analysis shows that borrowers aged between 36 to 45 years are among the most vulnerable, with the highest number of mortgages in deferral (as of May 2020). Borrowers from touristdependent Queensland regions and outer-Melbourne estates are also grappling with a higher proportion of deferrals compared to the national average.

Quite commonly in a period of crisis we see a direct correlation between borrowers with low credit scores who need longer deferrals than those with higher credit scores.

Borrowers in the lower score bands had the largest increase in the rate of deferral from May 2020. Accounts exiting deferrals have higher scores than those entering or remaining in deferrals experiencing lengthened credit stress.

Property market boom or bust The residential property market has defied expectation by

“The residential property market has defied expectation by showing resilience in the face of the pandemic.

Mortgage demand remained strong in the September 2020 quarter, and house prices in Australia/capital cities experienced a 0.4% rise in October.” showing resilience in the face of the pandemic. Mortgage demand remained strong in the September 2020 quarter, and house prices in Australia/capital cities experienced a 0.4% rise in October (source: CoreLogic). While refinancers initially drove demand, government stimulus measures have encouraged an increasing number of first home buyers into the property market.

The high-end of the residential market has grown substantially in major Australian cities and across regional areas. The pandemic has changed the perception of what

people need from their homes, with more people seeking a desirable environment from which they can live as well as work.

Increased use of digital channels Working from home dynamics are also changing the way customers communicate with financial institutions. There is a greater need for digital channel contact, executed in a way that respects borrower preferences and suitability. Applying digital technology to collections is crucial ➤

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Credit Management

in efficiently addressing the challenges of rising delinquencies.

Delivering on customer experience also requires an understanding of the mentality of consumers living through a crisis. Fear of the unknown can bring on a scarcity mindset, this means short-term decision-making overrides and sense of future impact.

Helping customers understand and manage their financial situations for the short-term and long-term, benefits everyone in the equation. Constant communication with customers can help borrowers to behave differently and not make uncharacteristically poor decisions.

With no end date to this pandemic, there is a considerable way to go before customers return to pre-COVID-19 information processing and decision making. Using factual

data for validation rather than relying on old norms will help identify these variances in borrower behaviour.

A future full of variables As 2021 unfolds the only constant will be change, and the credit industry may be susceptible to many different economic variables. The Government Stimulus has highly influenced outcomes so far for financial institutions giving a sense of security. As we move into a more targeted focus in Fiscal Policy and a high dependence on a Covid-19 vaccine, the underlying vulnerabilities will start to surface with challenges more evident.

There is no silver bullet to deal with these uncontrollable variables.

Collection teams and risk managers need to be flexible, prepared and agile

enough to move with their customers.

A robust well-thought-out approach to credit risk management and debt collection is essential.

Resilience to the ongoing disruptions of the COVID-19 crisis requires pertinent data and advanced analytics to replace assumptions and fill gaps in existing knowledge. The future of credit risk management is knowing your customer, keep communicating with them and knowing where to look to predict customer needs more efficiently and with greater empathy.

*Nick Jenkins Debt Services Solutions Consultant Equifax T: +61 427129852 E: nick.jenkins@equifax.com

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Credit Management

Strengthen your business systems now to prepare for the unknowns of 2021

By Adrian Floate MICM*

Adrian Floate MICM

The fiscal policy measures introduced by the State and Federal Governments to cushion the economic impacts of the COVID19 pandemic have provided some businesses with a much-needed lifeline.

While many businesses have been able to use these measures to keep creditors at bay while operating smoothly, taking the time now to strengthen your business systems will reduce risk and ensure your organisation is in a strong position to capitalise on opportunities in the year ahead.

Credit management and finance professionals should be using the time between now and when measures such as JobKeeper end to introduce better systems that will reduce debtors, unlock cash flow to strengthen cash reserves and open opportunities for further growth in 2021. Now is not the time to be complacent.

Digital technologies can drive change Restricted cash flow due to late payments and a downturn in revenue significantly affects a company’s stability. Payment problems impact a business’s finances and cash flow.

This has flow-on effects, including a reduced ability to invest in and grow the company and difficulties accessing finance in the future.

While regulators have intervened with measures aimed at addressing some of these issues, businesses need the tools and systems to get paid on time and unlock capital now.

In a year like 2020, where companies have seen the importance of investing in the right digital technologies, systems and processes, this should also be the focus for credit management and finance professionals, particularly those who work in industries that have been heavily affected by the pandemic. ➤

“While regulators have intervened with measures aimed at addressing some of these issues, businesses need the tools and systems to get paid on time and unlock capital now.”

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Credit Management

The competitive edge may be greatest in the retail, manufacturing and wholesale sectors According to illion’s Late Payments Australia September Quarter Analysis, late payments increased 1.6 per cent in September and 20.7 per cent year-on-year (YoY)1. Some of the biggest increases in late payment times occurred across the retail (13.9 days), manufacturing (13.1 days) and wholesale sectors (12.6 days)2. These payment times haven’t yet filtered through to an increase in insolvencies and external administration, which is likely due to the Federal Government’s changes to insolvency and bankruptcy laws. It is, however, a timely reminder to “get your house

in order” before these measures change. Strengthening your business systems should be the first step in this process.

Have a whole-of-business approach to improving systems Company-driven solutions and a move to better systems will help you to identify and address financial problems and risk across your businesses, allowing your organisation to be ready to capitalise on opportunities in 2021. These opportunities may include accessing capital to grow through acquisition or expanding to new markets, either geographically or with new products and services.

It’s also important to remember,

“Digitising data across your organisation and establishing systems that “talk” to each other should be your core objective as you strengthen your business’s systems.”

10

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

however, that fixing just one system will not provide a competitive edge. Implementing e-invoicing in an organisation, for example, has a payback period of six to 18 months.

This kind of project, while worthwhile, resolves issues in only one part of the business.

While targeted innovation may improve one area of your business, the biggest advantage is available to businesses who use one platform across a range of business functions.

How can your businesses strengthen its systems?

Digitising data across your organisation and establishing systems that “talk” to each other should be your core objective as you strengthen your business’s systems.

Look at digitising and integrating data in all areas of business operation to drive stronger, data-driven decision making. These areas may include warehousing and logistics, debt collection, payments, procurement,

Credit Management

“Sometimes the idea of new systems is daunting for professionals across a business, particularly if you’ll be interacting with the platform every day, and it significantly changes your workflow.” eCommerce and your point-of-sale system. The goal here is to eliminate siloed systems that are open to the risk of human error and the burden of manual data entry.

Use one platform across the business By using one platform amongst various functions in your organisation, you’ll have access to the real-time data you need to unlock capital and improve cash flow. This data allows you to identify the business’s strengths and areas that may be underperforming and increasing risk.

In underperforming areas, the data may reveal particular customers, products and industries that expose the business to unnecessary risk.

Over time, more robust data will

allow your organisation to become more proactive.

This may include the ability to use your data in negotiating more credit and new funding facilities when it’s needed.

On the other hand, you may use the data internally to make a case for why the business can’t take on any further debt. Your data will tell the story, and it provides you with an opportunity to be more strategic every day.

Drive a culture of implementing intent to pay frameworks and instant payments If your organisation doesn’t invoice until after goods and services are delivered, you are leaving the business open to further risk. As part of

improving your business’s systems, consider introducing the infrastructure to establish an intent to pay framework between your business and its suppliers, and your customers. This framework will reduce your trading days and improve cash flow, which ultimately improves the business’s ability to manage risk proactively.

An intent to pay framework allows customers to set a scheduled payment plan with their suppliers to settle overdue debt. Workflow payments are introduced early in the payments process, allowing a business to get paid for products and services at the point the job is complete, or a delivery made, using verified customer payment details.

With this infrastructure, friction is removed from the payment process and certainty is created in debt recovery for the seller.

Consider the long-term cost of inefficient systems and processes Sometimes the idea of new systems is daunting for professionals across a business, particularly if you’ll be ➤

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January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Credit Management

interacting with the platform every day, and it significantly changes your workflow.

What this year has shown like no other, however, is that the risk of not strengthening your business’s systems, especially its payment processes and data integration, grows the longer you leave it. Real-time data and business intelligence will give all areas of your business a competitive edge.

Not only do better data and systems make everyone’s lives easier especially when it comes to financial reporting and funding, but in today’s data-driven world, your decisions are only as good as the data you have available.

Go digital and unlock cash flow While regulatory measures in recent years have brought much-needed awareness to business finance and payment problems across Australia, these measures, understandably, can’t address the common cause of the issue – outdated business systems and processes.

To proactively manage risk, your business needs one platform with application across the business to get paid faster, make the payment process seamless for customers, integrate data for better reporting and decision making, and unlock capital to reduce your credit risk and increase borrowing capacity.

Many Australian businesses have

“What this year has shown like no other, however, is that the risk of not strengthening your business’s systems, especially its payment processes and data integration, grows the longer you leave it.”

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

adapted quickly this year, showing they’re well-equipped to continue driving productivity and growth.

Using technology to strengthen your systems and unlock capital will be no different. It’s the competitive edge businesses will need to capitalise on the opportunities that will arise from the unknowns in the year ahead.

*Adrian Floate MICM Managing Director, Cirralto E: Adrian.Floate@Cirralto.com.au T: 0412 377 877 Adrian Floate is the CEO of Cirralto and the Managing Director of Spenda, a product of Cirralto

FOOTNOTES: 1

illion, Late Payments Australia September Quarter Analysis 2020.

URL: https://www.illion.com.au/wpcontent/uploads/2020/11/ION_Late_ Payments_Sept_Quarter_AU.pdf

2

illion, Late Payments Australia September Quarter Analysis 2020.

Credit Management

Top of mind for SMEs in 2021:

paying down debt and finding new ways to fund business Small businesses have signalled they’ll be looking for different ways to fund their businesses in 2021. This, and other insights that should be on the radar of credit managers, from the latest ScotPac SME Growth Index.

By Jon Sutton*

Jon Sutton

Small businesses have named paying down debt as their top priority for 2021 and have flagged building on their 2020 efforts to find new ways to fund their businesses.

These are two key findings in the latest ScotPac SME Growth Index.

It has been a very challenging year for the small business sector: efforts to prevent the spread of COVID19 created hard internal borders, temporarily devastated certain industries and led to a government stimulus package of unprecedented size and scope.

Conditions were so challenging that at the time of the research (September and October 2020) one in three small businesses indicated

they may sell or close if conditions don’t significantly improve.

Since 2014, ScotPac has engaged East & Partners to undertake SME Growth Index research twice a year, interviewing more than 1200 small businesses in the $1-20m turnover range (a representative sample of metropolitan and regional businesses across all mainland states and major industries).

Given many of the federal stimulus measures which helped prop up the national economy were designed around businesses taking on more debt, it’s worth looking at the SME debt landscape.

The November 2020 Index records rising angst amongst small ➤

“Given many of the federal stimulus measures which helped prop up the national economy were designed around businesses taking on more debt, it’s worth looking at the SME debt landscape.”

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“We’d urge businesses not to wait until 2021 to make sure they have the right funding in place.

The businesses who will be best placed to take advantage of the recovery are those that are planning now.”

Closing, selling, looking beyond Job Keeper – impact on SMEs

SMEs looking to close or sell

2/3

1/3

planning to adjust business funding method to deal with pandemic aftermath

SMEs plan to sell or close their business if no significant improvement ER NG D DA EA AH CL O DOSIN W G N

C TO

LO

LE

T

S

E

D

Smaller SMEs hit hardest SMEs in $1-5m turnover range are almost double as likely to look to close or sell within 6 months than those in $5-20m range

business owners about debt levels.

SMEs told us the factors they were most positive about for 2021 were getting “back in the black” and its corresponding factor of reducing debt levels. The top challenges SMEs said they must overcome in 2021 were servicing excessive debt levels and diversifying their funding base/finding new sources of funding, along with avoiding insolvency.

Historic Index data shows a very large proportion of small businesses use easy access debt (such as personal credit cards or their own funds) to access working capital for their enterprises.

Credit managers would be aware the post-pandemic period offers an opportunity for SMEs to make tough decisions within their business.

This includes finding better funding options, to unlock capital and ease the cashflow issues that can be crippling even in good times let alone during a recession.

We’d urge businesses not to wait until 2021 to make sure they have the right funding in place. The

14

SMEs looking for new funding options

Source: scotpac.com.au

businesses who will be best placed to take advantage of the recovery are those that are planning now. The clear message is: don’t get caught short as the protection of government stimulus tapers off, take the time now to make sure you have the right finance in place.

Impact of the pandemic Only half (54%) of all the small businesses polled say they are not looking to sell or close due to the impact of the pandemic, with a further one in three SMEs considering those options if conditions don’t significantly improve.

This serves as a point-in-time indicator, given the research was undertaken when Victoria was still in lockdown. However it provides a stark indication of the precarious situation for the small business sector if there was another major state lockdown or significant border closures.

East & Partners extrapolates from the data that the one in three SMEs looking to sell or close their business

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

without significant improvement equates to approximately 88,000 businesses around Australia in the $1-20m annual revenue bracket, with about 50,000 of these businesses looking to sell and more than 37,000 looking to close.

The smaller the business, the more severe the impact of the pandemic on their long-term strategic objectives and solvency. Two out of every five smaller sized SMEs ($1-5m turnover) are looking to sell or close by April 2021 unless conditions markedly improve.

This is also the situation for almost one in four larger SMEs ($5-20m turnover).

Retail has been hardest hit, with only 9% of retailers definitely not making plans to close or sell.

For manufacturing SMEs, without significant improvement 17% would be looking to close; for transport 3%.

Nine out of 10 mining SMEs indicated they would continue in their business even if conditions did not significantly improve.

For Queensland SMEs, 8% were

Credit Management

Forecasting growth: Optimism varies by industry Mining the most resilient

Transport sector staying positive

88%

60%

forecast positive growth

expecting growth

“The critical message for small businesses, their advisors and for others with influence on the sector is: get ready.”

Retailers expect revenue decline

Manufacture and Wholesale SMEs are optimistic

39%

expect revenue decline compared to 33.5% expecting growth

saying they could close; in WA 6% were eying closure. Victoria was the only state where more than half of its SMEs (54%) were looking to sell or close – 29.5% listed closing, with 24% looking to sell, making Victoria also the only state with a higher sell than close percentage. NSW small businesses are much more confident – only 9% flagged closing.

SME borrowing sentiment More than half the SME sector (56%) experienced no significant change in borrowing demand during the COVID crisis. This figure was split evenly between those who said they relied on government stimulus and those who didn’t require the stimulus.

One in five SMEs reported their funding needs increased in the short-term, with a further one in 16 preparing for an indefinite increase in credit demand.

Only one in 10 SMEs had decreased borrowing demand as a direct result of the pandemic.

In the midst of the COVID crisis

37%

expecting growth

Source: Scotpac.com.au

business owners were looking for new answers to perennial funding problems, with one in 12 adding non-bank funding facilities to deal with the impact of supply chain and revenue issues created by the shutdown.

We asked SMEs what funding adjustments they’d make in response to stimulus measures ending by April 2021, and their responses point to a significant shakeup within Australia’s small business funding sector.

Nearly two thirds are planning to reassess the way they fund their business, with almost a quarter saying they will reassess their actual funding provider. This was more marked in the $5-20m SME category (32% looking to reassess provider) compared to the smaller $1-5m revenue SMEs (15%).

Many are more open than ever about using multiple funders, increasingly non-bank lenders. One in eight SMEs say they plan to add non-bank funding facilities to cope with their cash flow needs once all

the projected Federal Government stimulus initiatives end.

Other funding adjustments include decreasing their borrowings for 2021 (24% plan to pull back, ahead of 18% looking to increase their business borrowing).

SMEs with a clear strategy and appropriate funding will put themselves in the strongest position to face 2021 – so it is not ideal that 40% of smaller businesses (under $5m annual turnover) have no set idea how to fund their business in the short term.

The critical message for small businesses, their advisors and for others with influence on the sector is: get ready. Plan ahead to give yourselves the best chance of success and to ensure that your business is not at the whim of the markets.

With JobKeeper ending in late March 2021, and enforcement of ATO debt on the horizon, SMEs must have funding in place to unlock working capital and ensure continuity of business (download ASBFEO and ➤

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Credit Management

ScotPac’s Business Funding Guide for a detailed overview of the main small business funding options).

Small business funding trends SME Growth Index results show SMEs are actively diversifying their funding base to navigate the aftermath of COVID-19.

Small businesses are now almost twice as likely to fund their new investment using a non-bank rather than their main bank. Intention to fund new growth using a non-bank reached an all-time high of 27%, and main bank funding of new SME investment is now at its lowest (17%), down from 23% in H2 2018 and from the high of 38% in the first round of the Index in 2014.

Just over half the SMEs polled are looking to fund growth over the next six months (650 out of the 1252 businesses). The popularity of nonbank funding amongst these growth businesses has doubled since 2018 (then, 12% planned to fund growth using non-banks, now this figure is 23%).

Top funding frustrations More than nine in 10 SMEs reported funding frustrations, with perennial SME funding pain points remaining a bigger concern than COVIDspecific frustrations. The top three frustrations were loan conditions (84%), having to provide property security (80%) and lack of flexibility (74%).

In 2021 the uncertainty surrounding housing prices could mean many businesses owners will no longer be able to use their family home to fund their business.

It is important that business owners are aware of funding options that can provide them with the working capital they need by using the assets already in their business (for example, their outstanding invoices) so they don’t need to rely on the family home.

Of the COVID-specific response options, two thirds of SMEs were frustrated by the lack of a clear recovery path out of the pandemicinduced recession. Almost half encountered difficulty accessing

government guaranteed loans during COVID-19. Nearly a quarter were frustrated that online lenders were charging high rates.

The SME frustrations that recorded the biggest proportional increase this year was that funders were hard to deal with and not meeting all the needs of their borrowers.

SMEs with non-bank borrowing rather than bank finance reported far fewer frustrations than their bank borrowing peers about loan conditions, flexibility and funders being hard to deal with.

Good results for SMEs who turned to advisors With the Australian economy battling out of recession, as Victoria reopens and SMEs plan ahead for life beyond JobKeeper and other government stimulus offerings, the message to small business owners and those who work with them is: don’t panic, look for what you can do to improve your business.

Advisors play a key role in

“SMEs with nonbank borrowing rather than bank finance reported far fewer frustrations than their bank borrowing peers about loan conditions, flexibility and funders being hard to deal with.”

Most states expect positive growth in next 6 months

Source: scotpac.com.au

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Credit Management

SMEs reliance on trusted advisors grows in 2020

53%

63%

of SMEs relied more on their key advisor during the pandemic

of SMEs leaned on their key advisor for cutting costs

82%

said this had a positive impact on their business RREE SSEE RRVV EEBB AANN KK

37%

“Advisors play a key role in improving SMEs – just over half the businesses polled relied more on their key advisor, for example their accountant or broker, since the pandemic began.”

of SMEs sought advice on accessing government stimulus

Source: scotpac.com.au

improving SMEs – just over half the businesses polled relied more on their key advisor, for example their accountant or broker, since the pandemic began.

They approached their advisors three times more frequently than average, and of those SMEs who sought advice from trusted advisors, eight in 10 reported that this external business advice had a positive impact.

The top five positive impacts small businesses said their advisors had were: — Reducing costs (63%), to help improve their bottom line — Helping SMEs access government support and stimulus measures (37%) — Providing confidence about the direction the business was taking (28%) — Improving customer relationships (19%) — Helping them access funding (18%)

Rebounding in 2021 Despite the massive impact of the pandemic, SME revenue growth forecasts through to April 2021 did not dramatically decrease, although this round of research did record a lowest ever all-respondent positive growth average of +0.1%.

Australia is dealing with its first recession in 30 years, and against this backdrop a record low 47% of small businesses are expecting revenue growth, and around a quarter are forecasting a revenue drop through to April 2021.

In a positive, despite a significantly challenging six months for the small business sector the number of SMEs forecasting a revenue decline moved only one percentage point, to 23.8%, since March 2020.

When asked to name the top three factors needed for them to rebound from the recession, Australian small business owners named open borders as the top

response, by a significant margin.

The other key items on the small business wish list were legislated 30-day payment terms and insolvency reform. *Jon Sutton Chief Executive Officer E: suttonj@scotpac.com.au T: 1300 209 417

ScotPac is Australia and New Zealand’s largest non-bank SME lender, and for more than 30 years has helped thousands of business owners with the working capital they need to succeed. ScotPac prepared this article from excerpts of their twice a year SME Growth Index research. To download the latest Index or request previous Index research please visit www.scottishpacific.com/news/research.

For more information contact: Kathryn Britt, Director, Cicero Communications kathryn@cicero.net.au 0414 661 616

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Credit Management

ATO’s disclosure of business tax debts to credit reporting bureaus

By Patrick Coghlan MICM*

Businesses with significant tax debts will have their information reported to credit reporting bureaus; credit scores will be impacted.

1. Tax debt information disclosure

Patrick Coghlan MICM

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What is the Taxation Administration (Tax Debt Information Disclosure) Declaration?

In the future, businesses with significant overdue tax debt will have their information become public.

When the Taxation Administration (Tax Debt Information Disclosure) Declaration 2019 comes into effect the ATO will be releasing their tax debt information to registered credit reporting bureaus (CRBs), including CreditorWatch.

In the 2016-2017 Mid-Year Economic and Fiscal Outlook, the government announced its intention to allow the ATO to report tax debt information of certain entities to CRBs. On 19 December 2019, the declaration was made official and the legislation will come into effect later this year.

Currently, the ATO is not authorised to report any tax debt

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

information under the Confidentiality of Taxpayer Information provisions.

This means that credit reports currently do not factor in existing tax debt and provide a limited overview of an entity’s creditworthiness.

With this legislation, there will finally be transparency over businesses that have excessive tax debt and have not engaged with the ATO to manage their debts.

The default would be visible on a commercial credit report and could negatively affect an entity’s credit score.

2. Transparency of tax debt information

Problems with the lack of transparency The lack of transparency about significant tax debts is detrimental to: – Creditors – Employees – Wider community and industry – Government & economy

Credit Management

“When an entity is wound up due to its overwhelming tax debts, its employees often don’t receive their entitlements and/or end up losing their jobs suddenly.

While this can result in emotional and financial hardship, it could also have been avoided...”

Creditors When suppliers are unaware that an entity has significant tax debts, they enter into a situation without getting a full picture of that entity’s financial position. It can be detrimental for them to make decisions about providing credit while being oblivious to an entity’s staggering debts.

Currently, a creditor often only realises that their debtor has an overdue tax debt when the ATO takes legal action to recover it and ultimately winds up the debtor. This could result in a domino effect, where the creditor faces cash flow problems themselves as their debtor is forced to shut down leaving the creditor out of pocket.

Employees When an entity is wound up due to its overwhelming tax debts, its employees often don’t receive their entitlements and/or end up losing their jobs suddenly. While this can result in emotional and financial hardship, it could also have been avoided if there had been more warning signs or transparency regarding the tax debt.

Government & economy As of the 2018-2019 financial year, small businesses owe the ATO about $16.5 billion in debt. Tax evasion through illegal phoenix activity is estimated to have an annual direct impact between $2.85 billion and $5.13

billion. When an entity fails to pay their employees, this responsibility falls onto the government (via the Fair Entitlement Guarantee or FEG), which in turn affects all taxpayers.

The government and economy suffer when tax debts are unpaid.

Benefits of tax debt information disclosure Having more visibility over overdue tax debts will help address these issues.

Creditors Businesses, financial institutions and credit providers will be able to make more informed decisions about the entities they engage with and make more accurate assessments about their creditworthiness. This legislation will empower creditors to take more preventative measures instead of recovery actions and will help to reduce the risk of the domino effect.

Debtors The risk of being exposed places extra pressure on entities with excessive tax debt. They will have ➤

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Credit Management

to take appropriate actions to avoid being reported by the ATO. This will hopefully encourage entities to engage with the ATO earlier to manage their tax debts. (More on effective engagement in Section 4.)

Industry This legislation will create a fairer playing field between entities that do not comply with their tax obligations and those that do. Companies that ignore their tax obligations operate from a lower cost base and can therefore undercut competitors. Once reported, these companies will face sanctions beyond the ATO – loss of investors and suppliers, significantly reduced credit score, and more.

Economy & Government There will be greater transparency in the supply chain, making it harder for illegal phoenix activity or tax evasion to occur. Ultimately more tax revenue will be returned to the government and less public money paid out via FEG.

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3. Releasing tax debt information*

Who will receive this information?

In order to receive tax debt information, the CRB must: - Be registered with the ATO - Enter into an agreement with the ATO about reporting terms

Which entities will be reported?

The ATO can only disclose this information when the following criteria are met: - It has an ABN and is not an excluded entity (i.e. deductible gift recipient, registered charity, government entity, or complying superannuation entity) - It has one or more tax debts, of

which at least $100,000 is overdue by more than 90 days - It is not effectively engaging with the ATO to manage its tax debt - The Inspector-General of Taxation (IGT) is not considering an ongoing complaint about the proposed reporting of the entity’s tax debt information What information will be reported?

If the entity meets the above criteria, the ATO will report to CRBs the following information: - Unique identifiers like their ABN and legal name - Balance of overdue tax debts at the time of initial reporting - Regular updates on the balance

“Ultimately more tax revenue will be returned to the government and less public money paid out via FEG.”

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Credit Management

“If you have an active review with the Administrative Appeals Tribunal (AAT) or appeals to the Courts, you will not be reported by the ATO.” of the overdue tax debt until the entity no longer meets the reporting criteria - Notification when the entity no longer meets the reporting criteria When will this information be reported?

The ATO will give the entity a 21-day notice period before releasing their tax debt information. At the end of the 21 days, if no action has been taken by the entity, the ATO will attempt a final phone call to help the entity address their debt. If this is futile, their information will then be officially released to registered CRBs.

4. How to prevent your business from being reported – effective engagement with the ATO* If your business is facing a significant tax debt, as long as you effectively engage with the ATO, they won’t be allowed to disclose your tax debt information. To do this, you may either enter into a payment plan or dispute your tax debt.

To avoid or manage existing debt: - Enter a payment plan * The ATO will work with you to create a custom payment plan tailored to your individual circumstances, including your capacity to pay the proposed amounts. Together, you will agree on a plan which can be

managed sustainability and address ways to mitigate risks.

You must be compliant with this plan, otherwise you could still be eligible for reporting.

To stop a report from going through, consider one of the following: - Raise an objection and request a review or appeal * Dispute your taxation assessment, determination, notice or decision by lodging a Part IVC objection. * Then, if you are still dissatisfied with the objection outcome, request a review of that decision.

- If you have an active review with the Administrative Appeals Tribunal (AAT) or appeals to the Courts, you will not be reported by the ATO. - Lodge a complaint with the Inspector General of Taxation (IGT) about your tax debt and the fairness of the ATO’s approach in their dealings with you.

- Contact the ATO to claim and demonstrate exceptional circumstances * The ATO considers exceptional circumstances impacting your ability to pay your debts and you may be able to claim temporary reprieve. This includes family tragedy, serious illness, natural disaster impacts and other circumstances.

Did you know?

In 2018 – 2019… z The ATO received 19,826 complaints (inclusive of IGTO complaints) z The ATO resolved more than 26,000 objections (up from 24,350 objections the year before) z There were 441 applications for review or appeal to the AAT or other courts https://www.abc.net.au/news/201910-24/ato-debt-book-grows-to2445b-in-australia/11633312

CreditorWatch has been working with the ATO since 2014 to plan and design this legislation. We are proud to see it come into effect and are confident in its ability to assist companies to better assess credit risk and reduce bad debt. If you have any questions about how this legislation will affect your business, get in touch with us today on 1300 50 13 12 or at https://creditorwatch.com.au/ contact/.

*The ATO is currently in the design phase so the above information is subject to change.

CreditorWatch will continue to provide updates as it progresses.

*Patrick Coghlan MICM CEO CreditorWatch T: 1300 50 13 12 www.creditorwatch.com.au

“The ATO will work with you to create a custom payment plan tailored to your individual circumstances, including your capacity to pay the proposed amounts. Together, you will agree on a plan which can be managed sustainability and address ways to mitigate risks.

You must be compliant with this plan, otherwise you could still be eligible for reporting.”

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Consumer Credit

ACCC misses opportunity to fine-tune open banking rules

By Richard Atkinson*

Richard Atkinson

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The Australian Competition and Consumer Commission has recently published its third set of amendments of the Consumer Data Right (CDR) Rules which are required to underpin Australia’s emerging open banking system.

The amendments follow the release of a Consultation Paper by the ACCC in October 2020, where feedback was requested on the following proposed Rules changes: z Introduce new accreditation levels: creating new pathways for service providers to become accredited data recipients.

Proposals for new levels (‘tiers’) of accreditation are intended to lower barriers to entry and reduce compliance costs for service providers that do not require unrestricted access to CDR data.

They also recognise that supply chains for data services regularly involve multiple service providers, and that CDR participants can appropriately manage risk and liability through commercial arrangements. z Provide greater choices for consumers about who they share their data with: permitting accredited data recipients to disclose CDR data with a

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

consumer’s consent to third parties, including to their trusted professional advisors (such as accountants, tax agents and lawyers), and any third party on a limited ‘insights’ basis. z Increase consumer benefit: allowing business and corporate consumers to access their CDR data, and adding flexibility and functionality to improve consumer experience in relation to the management of consumer consents to collect and use CDR data, joint bank accounts and accounts that have additional card holders.

The latest Rules amendments have addressed the Increase consumer benefit component, and illion is strongly supportive of these changes. illion is concerned, however, that the amendments do not address the Introduction of new accreditation levels or the Provision of greater choices for customers about who they share their data with. illion has made several submissions to the ACCC’s CDR Rules drafting process, and has long advocated for a system that makes it easy for individuals to securely share their data while providing

Consumer Credit

“The goal of the CDR is to give customers a right to direct that their data be shared with others they trust, so that they can benefit from its value.” mechanisms for businesses to securely access CDR data, at the same time minimising barriers to entry.

We note that the latest amendments fail to meet the Government’s own recommendations for tiered access to data; Recommendation 4.8 in the Government Inquiry into the Future Directions for the Consumer Data Right.

The goal of the CDR is to give customers a right to direct that their data be shared with others they trust, so that they can benefit from its value.

To achieve this outcome, the Rules framework must balance security and cost of accreditation against facilitated data sharing.

We are six months away from all ADIs having to expose transactional data to the CDR, however the current rules still have a single model for

accreditation of organisations to receive CDR data.

Based on the fact that we don’t have a view on what the next stage looks like, it’s likely that other players in the market will not be able to participate until at least 2022.

In illion’s experience, the current model imposes a significant cost on an organisation to achieve accreditation. There is a clear and present danger that the benefit of CDR will not be realised as the barrier to access the data (in the form of accreditation) is too high, evidenced by the fact that there are only six data recipients accredited after six months – two of which are illion.

At this stage it is now not clear whether further amendments are planned to address these two critical areas. This is further complicated by

responsibility for the drafting of future Rules amendments passing from the ACCC directly to the Treasury in February 2021.

Where it all leads now is the big unknown. The ACCC has addressed the easy question, but what about the other, more difficult questions?

We know from the introduction of the UK’s open banking model that regulation was a big problem. The UK’s open banking system has been operational for two years now but the legislation and Rules haven’t provided a good foundation for it to be really successful.

Let’s make sure we learn from their issues and get it right in Australia – aligned to the original goals of the Consumer Data Right and the Future Direction that the Government has articulated.

To access illion’s full summary of the latest amendments, click here.

*Richard Atkinson General Manager Consumer Risk and AML illion M: +61 477 444 414 E: Richard.Atkinson@illion.com.au

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Consumer Credit

Compelling conversations: Debt Collections Call Centres find value in speech analytics

By Ashley Clayton*

Debt recovery is big business with one in three consumers having pastdue payments in collections totalling trillions of dollars for mortgages, car loans, credit cards and medical bills. With no end in sight and people carrying more debt each year, debt collections call centres and agencies have their work cut out for them.

Collections organisations must maintain a balancing act between increasing recovery rates and staying compliant with industry regulations to avoid hefty fines as well as improve the consumer experience. In recent years, many companies have turned to Speech Analytics help maximise recovery and regulatory compliance.

Speech Analytics Defined

Ashley Clayton

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Speech Analytics refers to the technology that transcribes speech into data. It offers a detailed examination of both recorded and live conversations. In the context of the collections call centre, these conversations happen between agents and customers, clients or patients.

It generates data on words used, sentiment and outcomes, and can uncover trends and identify issues so that companies can address them quickly. This becomes quite important to businesses, as 81% of companies

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say they compete solely based on customer experience.

It’s through conversations that companies can learn about customer preferences and attitudes, which can be useful in refining the overall customer experience. Speech Analytics can go even deeper to help determine the moment when an agent gets the promise to pay or resolves an issue, or when the customer loses interest. A simple review of the conversations that recover funds, turn an unhappy customer into a happy one, or lose a customer can lead to script changes or coaching moments that can improve future customer outcomes.

In addition, Speech Analytics provides a more holistic view of how customers are feeling. Through sentiment analysis, it can determine whether customers are happy, angry or indifferent. Sentiment analysis evaluates the language used, as well as voice inflections (volume), the rate of speech, the amount of stress in their voice, and any changes. This helps determines overall attitudes and opinions. By doing so, companies can quickly adapt to improve messaging, products, services and processes that can result in a better customer experience.

Consumer Credit

Reduce Compliance Risk and Improve the Consumer Experience Prior to speech analytics, call centre managers would typically select a number of calls at random to monitor quality. This time-intensive practice was inefficient and, although it may have identified some regulatory issues, it was impossible to know how pervasive these infractions were. Post-call Speech Analytics can monitor and analyse every interaction that debt collection agents have with consumers. It allows management to categorise conversations and monitor for specific language that could expose companies to compliance risk and potential litigation.

In addition to identifying specific agents with compliance issues, speech analytics provides trends information across agent populations

“Real-time Speech Analytics (RTSA) can monitor live interactions whilst they occur and provide immediate feedback based on what is happening on the call. It acts as a virtual coaching partner for each agent by triggering alerts when certain phrases are detected (or not detected).” so that training and coaching can be implemented quickly. It can also uncover successful techniques to ensure compelling conversations that help secure payments. These best practices can then be shared with all agents to improve debt recovery, overall agent performance and consumer satisfaction.

Real-time Speech Analytics (RTSA) can monitor live interactions whilst they occur and

provide immediate feedback based on what is happening on the call. It acts as a virtual coaching partner for each agent by triggering alerts when certain phrases are detected (or not detected). Reminders and suggestions are then pushed to the agent to provide next-best action guidance. RTSA can even notify managers so that they can intervene when an agent needs assistance. ➤

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Consumer Credit

Boost Recovery Rates and Expedite Dispute Settlements When collection agents work more efficiently, they can get more done each day. And when agents are more productive and processes are optimised, contact centres can reduce operating costs.

By automatically monitoring all calls, debt collections call centres can gain the insights necessary to deliver a positive consumer experience. Most consumers want to pay off their debt, they’ve just gotten themselves in a bind and don’t see a way out. By better understanding their situation and showing empathy, collections agents can help them chart a path to pay off what they owe. Both the consumers they collect from and the company they are collecting for benefit.

Another advantage of speech analytics for debt collections is that it provides data to expedite and settle disputes if there is a compliance hearing. Having the recording is helpful, but being able to leverage speech analytics to pinpoint the

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“Automated monitoring allows for fast identification of system and process gaps so that they can be fixed quickly.

Addressing issues promptly can help decrease the cost of each conversation by reducing silence, handle time, hold time, call transfers and escalations.” exact place in the conversation that supports the company’s position is even better.

Here are some other benefits of Speech Analytics in the Collections call centre: z Automated monitoring allows for fast identification of system and process gaps so that they can be fixed quickly. Addressing issues promptly can help decrease the cost of each conversation by reducing silence, handle time, hold time, call transfers and escalations. z Putting the right information in front of the right agent at the right time. This enables agents to reduce repeat calls and

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

unnecessary callbacks as well as increase first contact resolution rates so that they can move on to the next customer, faster. z Analysing 100% of calls takes a deep dive into all aspects of every call to improve quality assurance. It can monitor script compliance to ensure that agents are using the proper greeting, identifying and verifying the caller correctly, engaging with the customer and showing empathy, providing any required legal or disclosure information and using the right closing. Management can quickly conduct searches to uncover trends across groups and instances where specific

Consumer Credit

agents need more training and coaching. By automating this process, managers save hours and hours each week on manual QA of a subset on conversations, which can reduce QA staff costs and allow contact centres to redirect these employees into other, more strategic roles. z Reviewing what happens during every conversation helps companies identify the specific reasons customers may not be paying at a certain time. Looking at trend data can pinpoint the words commonly spoken and help determine strategies to address these reasons, create new payment options or programs, etc.

Improve Agent Performance Speech Analytics automates the monitoring and scoring of agents, groups and supervisors. KPIs are automatically tracked and reported to show progress and achievement.

Perpetual feedback leads to better trained agents that are motivated to continually improve their performance. They are also more highly engaged. According to Gallup, companies with engaged employees show a reduction in absenteeism of 41%, a 24% decrease in employee turnover, and an increase in productivity of 17%. Companies with a highly engaged workforce also achieve a 10% improvement in customer ratings and a 20% improvement in sales.

Speech Analytics also takes the subjectivity out of assessments by monitoring 100% of interactions.

Speech Analytics eliminates personal bias, and provides a more complete evaluation. Instead of judging performance on a handful of calls, it captures all the good and the bad, detecting whether a “bad” day or call is just an anomaly, or a pervasive problem that needs to be addressed.

“Agent turnover continues to be a critical challenge for collection centres. The average cost of hiring and training a new agent, including lost opportunity and low productive costs, is estimated at 20% of an agent’s annual salary. ” Here are some additional ways that insights from Speech Analytics can boost agent performance. z Gain a better understanding of what customers want before they are connected to an agent by gathering customer information with IVR. This helps route callers to the best agent and gives the agent the customer information they need to be more effective at addressing customer needs. z Monitor calls to uncover best practices that can be used in group training and coaching sessions. z Use insights from Speech Analytics to identify “most-asked” questions and develop FAQs or add to the IVR menu to eliminate these calls altogether.

Reduce Agent Churn Agent turnover continues to be a critical challenge for collection centres. The average cost of hiring and training a new agent, including lost opportunity and low productive costs, is estimated at 20% of an agent’s annual salary.

Speech Analytics can improve agent retention and lower new hire costs by identifying specific training and coaching opportunities.

With insights from conversations, contact centre management can identify pervasive issues and hold training sessions on such topics as: how to best handle irate customers, showing empathy when appropriate, effective dialogue for customer engagement and best practices for closing the sale.

Speech Analytics also improves agent confidence, makes them more successful, and helps them feel good about the work they do. Companies can also monitor agent attitude with Speech Analytics, to identify when agents are disengaged or frustrated.

Supervisors can coach these agents to further discuss their concerns and offer guidance to get them back on track.

Tap into Vital Business Intelligence There are many reasons why speech analytics has become an integral solution for debt collections call centres and debt recovery agencies. It can dramatically improve adherence to regulatory compliance rules, reducing and even virtually eliminating risk of litigation. It helps guide agents through challenging conversations, accelerates training and provides quick access to business intelligence that is vital for understanding how to improve agents’ performance and the consumer experience.

*Ashley Clayton Business Manager Noble Systems Australia T: +61 3 9008 1704 M: +61 427 303 870 E: aclayton@noblesystems.com

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Consumer Credit

How to use collector behavioural profiling to get the best out of your collections team

By Jodie Bedoya*

Jodie Bedoya

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More organisations are adopting behavioural profiling, often as part of their recruitment process but not much attention has been paid in the past to the behavioural traits of a good collector. And that is a missed opportunity. Now more than ever, in the COVID-19 recovery period debt needs to be everyone’s business.

Attention is increasingly focussed on all frontline staff capabilities, not just specialist collections and hardship teams, to ensure effective early intervention strategies and timely identification of any customer hardship or vulnerability. But are your staff’s behavioural traits helping or hindering these conversations?

To start to understand this better, let’s take a look at what behavioural

profiling actually is. According to psychologydictionary.org: “Although statistical and numerical, a behavioural profile can be very descriptive in that it reveals a subjects personality traits and behaviour patterns.”

Put simply, behavioural profiling is a survey that is undertaken that identifies subconscious behaviours that make up our preferences.

What is the Collector Behavioural Profile?

The Collector Behavioural Profile (CBP) has been adapted from previous modelling techniques and developed by eMatrix in collaboration with a clinical psychologist. On the back of 25 years’ experience within

“Attention is increasingly focussed on all frontline staff capabilities, not just specialist collections and hardship teams, to ensure effective early intervention strategies and timely identification of any customer hardship or vulnerability.”

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Consumer Credit

“The CBP consists of 48 self-scoring questions which are designed to measure the above six key success criteria. Each candidate’s results are compared against a normed population of successfully employed collectors, with over 800 collection staff having completed the survey to date, across both commercial and government organisations.” collections, listening to and analysing over a thousand calls, 6 key success criteria have been identified for high performing collectors as follows:

key success criteria identified for collectors: Assertiveness: The ability to communicate to customers in a clear and non-defensive manner particularly when things get tense.

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Empathy: the capacity to show 2 empathy for a customer’s point of view while maintaining the company’s position.

Resilience: An individual’s tendency to cope with stress on the job without losing motivation. It reflects their coping resources. This criterion is a good predictor of employee retention.

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Maintaining Composure: An 4 individual’s ability to remain calm during emotionally charged situations.

Problem Solving: The willingness to fully understand a customer’s situation and to explore creative solutions.

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Flexibility: A measure of a person’s perceived ability to be adaptable in dealing with others.

The CBP consists of 48 selfscoring questions which are designed to measure the above six key success criteria. Each candidate’s results are compared

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against a normed population of successfully employed collectors, with over 800 collection staff having completed the survey to date, across both commercial and government organisations.

Candidate’s mean scores are converted into scores which provide a simple measure for assessing their potential success in the role. To assist organisations in validating the results achieved, the profile also provides a list of behavioural based questions.

These questions appear together with the candidate’s score for each of the six success criteria.

More than 800 behavioural profiles specifically designed for collectors (and frontline staff that are involved with elements of collections conversations) have now been conducted and the results are in.

do effectively is highlight potential strengths that may be better suited to collector roles, and/or identify areas for training and development. In fact, there are several different ways in which behavioural profiling can be used in a collections context as outlined below.

How Behavioural Profiling can be used in a Collections Context l Recruitment – Pre-selection profiling surveys assist organisations employing collections or frontline staff by improving the quality of their hiring decisions. When the right people are selected the first time, increases in retention rates, job satisfaction, customer satisfaction and customer loyalty usually follow. A collector profile can achieve these outcomes.

Which traits are most important for high performers?

l Training and Coaching – Being

Prior to conducting the CBP surveys, the majority of leaders (57%) when questioned what they thought would be the most important trait identified for a top collector, named ‘assertiveness’. However, the results show different.

The two most important elements for success in a collector’s role were actually identified as ‘empathy’ and ‘problem solving’.

People that scored lower on the other key attributes still performed well as long as their scores in these two areas were high.

Of course, whilst undertaking the survey, it is important for staff to understand there is no right or wrong, pass or fail. But what it does

able to assess people’s strengths and weaknesses helps leaders to identify training and coaching opportunities.

As mentioned before, there is no right or wrong here and it doesn’t mean that if people score poorly on the key criteria that they will not perform well in their role. Instead, by understanding any areas in which their natural tendencies are weaker you can better align training and development programs suited to developing those traits. Whilst some people are naturally predisposed to being more resilient, empathetic, assertive etc. it doesn’t mean that these traits can’t be learned and developed. Conversational toolkits, soft skills workshops and role plays ➤

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Consumer Credit

can work wonders. For individuals, being more self-aware of their own behavioural patterns can help them to grow and develop confidence in ways they may never have thought of previously.

l Retention – By having a clearer view of your team’s strengths and also some of the challenges they may personally face in their daily role, you will have a better insight into what motivates them.

Additionally, being more aware of your teams predisposed ‘default settings’ can enable you to adapt your communication style accordingly to better engage with staff. The best leaders know that a one size fits all

communication approach doesn’t necessarily work when coaching, mentoring and providing feedback to individuals. Having an insight into their personality will allow you to communicate and connect with them more effectively. Motivated and connected staff means staff are happier, resulting in higher retention rates.

l Leadership Development – CBP can play an important part in identifying potential Leadership traits and decision-making styles in your staff which may help with succession planning for Collections Departments and developing aspiring leaders’ programs.

In conclusion, there are several ways in which an organisation can utilise CBP to get the best out of their collections team. Whether it is used for recruitment in isolation, to identify continuous development and improvement within current roles, or as part of a wider training or coaching program, the benefits are plenty.

Increased retention rates, higher productivity and improved customer outcomes are regularly observed.

How well do you know your collection staff? *Jodie Bedoya Director , eMatrix Training, Collections and Vulnerability Specialists T: 0438 391 500 E: jodieb@ematrixtraining.com.au

“By having a clearer view of your team’s strengths and also some of the challenges they may personally face in their daily role, you will have a better insight into what motivates them. Additionally, being more aware of your teams predisposed ‘default settings’ can enable you to adapt your communication style accordingly to better engage with staff.”

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Consumer Credit

Open banking Is it here to stay?

By Clare Venema MICM*

According to Investopedia, open banking is a banking practice that provides third-party financial service providers open access to consumer banking, transactions, and other financial data from banks and nonbank financial institutions through the use of application programming interfaces.

From July of this year, open bank data has been expanded to include transaction history for some credit cards, consumer information, and deposit and transaction accounts.

As open banking grows, the amount of data able to be shared will too expand.

A crash course in open banking a. What is an application programming interface?

This is a software intermediary that allows two applications to talk to each other.

For example, when you use an application on your mobile phone, the application connects to the Internet and sends data to a server. The server then retrieves that data, interprets it, performs the necessary actions, and sends it back to your phone. b. What is a third-party financial service provider?

Clare Venema MICM

A third party provider is an authorised online service provider that has been introduced as part of open banking. They exist outside of the consumer’s relationship with their bank but may be involved in the online transactions they carry out.

There are two types of thirdparty providers, being Payment Initiation Service Providers or Account Information Service Providers. z Payment Initiation Service Providers let consumers pay companies directly from their bank account rather than using their debit or credit card through a third-party such as Visa or MasterCard. z Account Information Service Providers are companies authorised to access an individual’s account data from their financial institutions with their explicit consent. For example, Money Dashboard, which is a free online personal financial management service in the United Kingdom.

This company provides users with the ability to view all of their online financial accounts in one place and categorises and analyses all of their transactions so they can understand how they use money. ➤

“From July of this year, open bank data has been expanded to include transaction history for some credit cards, consumer information, and deposit and transaction accounts.”

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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Consumer Credit

What does open banking do?

There are many ways a consumer may be able to use open banking. For example, if a consumer is looking to switch to a new bank for a savings account or sign up for a credit card, they would usually need to gather their banking documentation (such transaction history and identification documents) to then apply at that bank either online or over the phone.

However, with open banking, they can request to send this information from their existing bank to the new bank.

Consumers may also choose to use open banking to give authorised providers, such as a comparison service or budgeting application (like Money Dashboard), access to their data so they can provide product options, recommendations or services (such as alerts and budgeting tools) that are more tailored to the consumer’s specific financial situation.

As of 1 July 2020, customers of the big four banks were able to request

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“Consumers may also choose to use open banking to give authorised providers, such as a comparison service or budgeting application access to their data so they can provide product options, recommendations or services...” and share their transaction account, deposit account, credit card and debit card data with an accredited data recipient. Accredited data recipients are the authorised providers who receive a consumer’s data after they have given consent for it to be shared.

On 1 November 2020, customers of the big four were able to request and share data from their home loans, investment loans, personal loans, joint accounts, closed accounts, direct debits and scheduled payments, as well as payee data, with accredited data recipients.

Other smaller banks or authorised deposit-taking institutions, like credit

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

unions or building societies, will be able to opt into open banking over the next 12 months to July 2021 so their customers can also request and share data.

With open banking, a consumer’s banking data will be able to be sent and received by accredited businesses such as authorised banks, financial institutions, and organisations. Most banks are automatically included under open banking to receive and hold data. Non-authorised deposit taking institutions, such as fintech companies who wish to receive data through open banking, will need to become accredited data recipients.

Consumer Credit

They can apply for accreditation via the ACCC and will need to comply with strict requirements.

How did open banking come about?

In early 2017 the Productivity Commission released a report recommending the federal government introduce a Consumer Data Right (CDR) to “improve consumer control over the data which businesses hold about consumers’ use of their products and services”.

The CDR gives Australians the right to move their data around, making it easier to access their data – such as the financial information their bank has on them– and share this with other businesses. This open data environment is expected to ramp up competition and allow consumers to negotiate better deals and save money.

Australia’s banking sector will be the first application of the CDR. But where open data is accessible to anyone, open banking only lets businesses access consumer data once the consumer has authorised it. Open banking was phased in from 1 July 2019, with the energy and telecommunications sectors likely to follow in future.

“Australia’s banking sector will be the first application of the CDR. But where open data is accessible to anyone, open banking only lets businesses access consumer data once the consumer has authorised it.” situation and supporting consumers to have a more holistic view of their finances.

However, with open banking still in its infancy, it may take some time for consumers to recognise the full benefits of the scheme, and properly learn of its drawbacks.

Canstar finance expert Steve Mickenbecker said some borrowers who use open banking to share their data with a new provider may find it easier to prove that they can afford the loan or credit product they are applying for, saying, “Through open banking a new lender may be able to see your salary going into your account every fortnight and how much you spend of it, as well as whether you make your repayments on time for other credit products”.

Furthermore, Mr Mickenbecker said by gaining this insight into a consumer’s transaction history and account balances, the lender can better assess their credit risk.

What is the value of open banking?

Drawbacks of open banking

According to the Australian Banking Association and the Australian Government, key benefits of open banking may include helping consumers sign up more easily for certain financial products, saving time in switching providers, finding products more tailored and personalised to the consumer’s

Firstly, open banking will likely create more digitised experiences across online and mobile banking. Research into open banking has shown that people under 35 are demanding these new services, but “Baby Boomers” are generally less willing to use them.

With older generations not always as digitally adept as their younger

“...some borrowers who use open banking to share their data with a new provider may find it easier to prove that they can afford the loan or credit product they are applying for...”

counterparts, some may not fully reap the benefits of the new digitised banking services created by open banking.

Secondly, research has shown mistrust of consumers with respect to open banking and the risk of data security breaches. This mistrust among consumers around the responsible use of their personal data may result in slower uptake and as a result, banks may scale back investment in these new services.

Is open banking here to stay?

The founder of Open Data Australia, Jamie Leach, said the uses of the technology are still being worked out, but open banking is already getting customers to think differently.

Ms Leach has said, “The potential for people to move between brands, or the ease for people to be able to have products with multiple brands and still be able to track that through a single app, is real and that’s happening right now.”

It follows, that the days of customers putting all their eggs in one basket with respect to banking, is not going to be the way of the future. *Clare Venema MICM E: vene0010@outlook.com T: 0435 636 969 SOURCES: https://www2.deloitte.com/au/en/pages/ financial-services/articles/open-banking.html https://www.commbank.com.au/banking/ open-banking.html https://www.ausbanking.org.au/policy/thefuture/open-banking/ https://www.redhat.com/en/topics/api/whatare-application-programming-interfaces https://www.choice.com.au/money/banking/ everyday-banking/articles/open-banking-togive-consumers-control-of-their-data

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Leadership and High Performance

The golden rules of a great resume In a time of great change, as we head into 2021 the importance of a well-crafted resume is now critical whether you are a jobseeker or looking for your next career move.

By Michael Pearse MICM*

Michael Pearse MICM

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No doubt many of you haven’t had to worry about the need for a resume for some time; we’ve been safe and secure in our roles … until 2020 arrived. Throughout the past twelve months, many of you have had to dust off your resume and somehow make it shine and sparkle. The challenge is that from the last time you reviewed your resume till today, standards and trends have changed dramatically. Today, recruitment processes employ technology, and we have a job market that’s rich in candidates and poor in jobs.

As we see the deterioration of traditional markets and witness new and emerging industries, the job market has become more competitive and employers more selective. The days of a single resume and cover letter to apply for all the job opportunities are gone. Writing a bespoke resume for a particular job application will get you noticed

above those that simply spam their resume to every recruiter and on LinkedIn. Your resume is designed to get you the interview not the job. To do that you need to demonstrate via your resume and cover letter how ideally you would fit into a specific organisation, you will have a much better chance of scoring a job interview against the competition.

Over the years I’ve reviewed many resumes and consulted with numerous recruiters, as well as prepared an abundance of resumes for people. I’ve seen the shifting change on what a resume needs when I’m recruiting for a new employee as well as what is needed in a resume to help it stand out.

There are many tips and tricks to this process but here are my golden rules that I recommend you consider when reviewing and updating your resume for your next job application.

“Your resume is designed to get you the interview not the job. To do that you need to demonstrate via your resume and cover letter how ideally you would fit into a specific organisation...”

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Leadership and High Performance

“Don’t risk your resume being binned because it’s not “reader friendly”; full of long wordy paragraphs making it difficult to find specific sections or is more than 3 pages.”

Golden Rules 1.

2.

3.

4.

5.

6.

First Impressions Count Make Your Profile a Statement Share Your History Shine with Your Achievements LinkedIn is a Powerful Tool Keep it Current

Let me share with you some details on how these ‘6 Golden Rules’ can help.

First Impressions When it comes to recruiting, we all know first impressions count.

From the moment an employer or recruiter opens your resume it’s your first chance to make an impression, it’s important that you give the reader good vibes from the start.

Your resume needs to portray a professional appearance. Bear in mind in today’s job market recruiters are receiving 3 – 4 times the normal number of applicants, they simply don’t have time to scroll through every applicant’s resume. Don’t risk your resume being binned because it’s not “reader friendly”; full of long wordy paragraphs making it difficult to find specific sections or is more than 3 pages.

Keep your resume design simple, clear, and concise. You have roughly 7–10 seconds when your resume is opened by a recruiter to impress them. Make their job easy by using a structured layout with highlighted headings to make important sections

stand out. Bullet Points are good. You want your resume to be concise and easy to read, using bullets points can help you achieve that. Now here’s the BUT, too often when I’m reviewing resume’s I see people overusing bullet points and they become a distraction rather than a helpful tool. Take care to aim for between 6 – 8 points per job role.

There’s a lot of free templates available for download. Be mindful that your resume may be read by a robot before it lands on an employer’s desk. Web-based templates are often embedded with tables, objects and graphics which confuse the robots. If you’re hearing crickets after submitting your resume, then it’s likely to have been rejected by the robots into a black hole. Most Recruitment Agencies and Job Boards utilise automated computer software to pre-filter resumes. Referred to as Applicant Tracking Systems (ATS), a software that scans through resumes and filters in, or out, applicants based ➤

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

35

Leadership and High Performance

on predetermined filters. Modern technology is playing a major part in recruitment, and ATS can be often be the gate keeper before your resume gets to a real person.

Here’s some tips to help your resume get past the ATS robots and onto an employer’s desk.

DO: z Include keywords throughout your resume. z Use simple plain text. Stick to wellknown fonts. z Simple Headings work well i.e., Education, Qualifications, Experience, and References. z Spell out acronyms. z Include a Profile Statement rather than Career Objective.

DON’T: z Go overboard with keywords. z Use images, pictures, symbols, or shading. z Include Industry lingo and jargon. z Make spelling mistakes or typos.

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Profile Statement In any resume, the go-to section for any employer is your Profile Statement. This is your sales pitch to an employer and needs to summarise your experience, skills and achievements in a way that demonstrates your eligibility for a role. It needs to be real and authentic.

I see a lot of Resumes with profile statements that go something like… “a hard-working, detailorientated team player, that works well under pressure with excellent communications skills and a strong work ethic who is looking for a new career challenge.”

This doesn’t really tell me about you.

Your profile statement shouldn’t be

on what you want to achieve in your career. An Employer wants to read about what you can do for them.

A well-crafted profile statement is critical as it will determine whether the recruiter or employer will continue to read on. This can be one of the most difficult sections for most people to write. Take care to share how you can have a positive impact in the role you are applying for.

Career history Don’t bore people with every role you have ever had, the person recruiting you really won’t care. Focus on the here and now and keep it to the last 5 to 10 years. If you have over 10 years’ experience, and most of us do, then summarise your previous roles on the

“Don’t bore people with every role you have ever had, the person recruiting you really won’t care.

Focus on the here and now and keep it to the last 5 to 10 years.”

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Leadership and High Performance

last page listed by position, company and tenure. z A common mistake in this section is a lack of relevant details and the responsibilities read like a job description, for example, Credit control for a National Ledger z Cash flow and forecasting daily/ weekly z Management monthly reporting z Monthly invoicing.

Your resume shouldn’t read like a job description or a ‘daily task list’.

Make sure each point is relevant to the role. Boost your experience and achievements by enhancing each point with context, facts and figures.

I recommend employing the STAR (Situation, Task, Action and Result) or ARTA (Achieved, Result, Taking, Action) frameworks when writing your responsibilities and achievements.

Finance based roles work well with both frameworks as there’s plenty of data, facts and figures to quantify your skills. Give your responsibilities some life. This will enhance your experience and provide more relevance to future employers.

“It’s easy to become complacent with your resume when you are settled and in a secure role however in unpredictable times, ensuring your resume and LinkedIn profiles are current is your insurance policy...” during each role. Aim to include 2 – 3 relevant achievements for each role.

Your achievements are your best asset, don’t make the mistake of overlooking them in your resume.

LinkedIn There are 6,500,000 monthly active users of LinkedIn in Australia1. This statistic highlights the importance of having a LinkedIn profile, fortunately most people do. However, many people forget to make sure their LinkedIn profile is up to date. Your LinkedIn profile is a virtual version of you and is a great way for a new employer to meet you. It’s important that what they learn about you online corresponds with the same person they see on your resume. If they’re not synched, then you are sending mixed messages to a future employer and could put your eligibility for a role at risk.

Achievements If you want to really shine and impress your future employer, then include your career achievements in your resume. It’s a great way to promote yourself and demonstrate your experience and expertise. Here’s some examples for you to consider: Saved time and money.

Successfully completed a Project.

Reached a collections or sales target.

Fixed an AR process or credit procedure.

Identified a processing gap and found a solution.

Achievements give strength to your career experience so take some time to think about what you have achieved

MY TIP: Get your profile audited and bring it up to date. Check the following: Your profile picture should be current, friendly, and professional.

Check your contact information is correct.

Does your employment section match your resume?

Add any new skills that you may have acquired.

Include all relevant education and training.

Your LinkedIn Profile can play a very important role in your Job Search.

Remember, it’s not your resume, it’s your resume and a lot more.

Your profile should encourage an employer or recruiter to reach out

and ask for a copy of your resume.

Most people don’t realise LinkedIn is a very sophisticated platform that utilises complex algorithms to connect people with people, companies with clients and recruiters to applicants.

Optimising your profile correctly can activate the algorithms so they’ll work for you 24/7.

Keeping it current It’s easy to become complacent with your resume when you are settled and in a secure role however in unpredictable times, ensuring your resume and LinkedIn profiles are current is your insurance policy on your next role. When you are confronted with the need to seek new employment this can be an already stressful time. Reduce your stress by ensuring you have your resume up to date. In addition, be active on LinkedIn to help increase your professional network and enhance your jobhunting opportunities.

Seek out help by having a professional conduct a health check on your resume and an audit on your LinkedIn profile. By doing these simple things now you will feel more secure in the knowledge that you will be prepared for whatever your next opportunity may be.

*Michael Pearse MICM Creative Resume Solutions 0416 269 701 E: michael@creativeresume.com.au

FOOTNOTES: 1 h ttps://www.socialmedianews.com. au/social-media-statistics-australianovember-2020/

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

37

Legal

Recent court decisions provide greater clarity

on how to deal with trust assets of a bankrupt estate

By Fiona Reynolds MICM*

Fiona Reynolds MICM

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Key Takeaways

Brief Facts

Insolvency practitioners have long grappled with the challenge of how to deal with trust assets of a bankrupt estate. The recent High Court of Australia (“HCA”) decisions of Carter Holt Harvey Woodproducts Australia Pty Ltd v Commonwealth (Re Amerind) and Boensch v Pascoe (HCA 2019) (Boensch) have provided greater clarity but failed to completely resolve the uncertainty.

In the Federal Court of Australia Full Court (“FCAFC”) decision of Commissioner of Taxation v Lane (FCAFC 2020), this uncertainty is now resolved, and clarifies that: z The statutory priority regime under s108 and s109 of the Bankruptcy Act 1966 (Cth) (Act) applies to the proceeds of the exercise of the right of exoneration in relation to trust assets. z Trust creditors must account for (or bring into hotchpot) what they receive from the trust estate before participating in any distribution from the insolvent personal estate. z Proceeds recovered from a trust creditor as a result of an unfair preference can only be applied to discharge trust debts.

Mr Lee’s bankruptcy trustees sought directions from the Federal Court of Australia (“FCA”) regarding the distribution funds that they had realised in the administration of the bankrupt estate. Directions were required because part of Mr Lee’s estate concerned assets and liabilities that he had incurred in his capacity as the trustee of a family trust.

The Trustees asked the FCA three questions: 1. Does the priority regime in s108 and s109 of the Act apply to the distribution of the proceeds of the sale of the trust assets arising from the exercise of the insolvent trustee’s right to apply trust assets to pay trust debts (otherwise known as the right of exoneration)?

2. Are trust creditors required to take into account what they have received from the proceeds of sale of the trust assets before they can participate in any distribution of the personal estate of the bankrupt (otherwise known as the ‘hotchpot’ principle)?

3. Can proceeds from the recovery of an unfair preference from a

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Legal

trust creditor only be applied to discharge trust debts?

At first instance, the primary judge answered the first question in the negative and the second and third questions in the affirmative.

The Commissioner of Taxation (“DCT”), a trust creditor appealed to the FCAFC.

Judgment The FCAFC looked at these same three questions again.

Application of the Priority Provisions to the distribution of Proceeds of the Sale Assets The primary judge held that the statutory priority provisions did not apply because Mr Lee’s right of exoneration was merely a right to apply trust assets to pay trust debts and did not result in the realisation of ‘proceeds’ or funds for the benefit of creditors within the meaning of s108 and s109 of the Act. As all trust creditors have equal rights of subrogation to Mr Lee’s right of exoneration and supporting lien, the distribution of proceeds of the sale of trust assets must be distributed equally between them (or ‘parri passu’).

The FCAFC disagreed and held that the view of the primary judge could not stand in light of the HCA’s decisions in Re Amerind and Boensch which held that the statutory priority regime applies to trust property realised as part of an insolvent trustee’s right of exoneration. The FCAFC primarily adopted the approach taken by the ‘second plurality’ and by Gordon J in Re Amerind.

Application of the Hotchpot Principle The equitable principle ‘Hotchpot’ stems from the ’equality is equity’ maxim to ensure equality and fairness amongst parties who have a common interest in a fund.

At issue at first instance and on appeal was whether the hotchpot

principle can apply if there is more than one fund being administered.

The DCT argued that the hotchpot principle can only apply to a single fund.

The primary judge held the proper characterisation of the funds realised by the trustees is as one fund comprising of all of the assets of the bankrupt estate, irrespective of the existence of the trust or rules regarding how those assets are to be distributed.

The FCAFC agreed and said that the hotchpot principle is ‘called forth’ by the very fact that the trustees are dealing with trust property and unsecured creditors of the insolvent trust estate receive an advantage of access to certain assets of the estate which is not available to non-trust unsecured creditors.

Treatment of the proceeds of an unfair preference recovered from a trust creditor out of the proceeds of the exercise of the right of exoneration against trust assets The trustees recovered from the DCT the sum of $322,447.58 as an unfair preference. When Mr Lee originally made the payment to the DCT, he applied $150,788.58 of trust monies and met the balance of the payment from his personal funds.

At issue in the proceedings at first instance and on appeal was whether the recovery of the $150,788.58 could only be applied to discharge trust debts or whether it could be applied to discharge nontrust debts. The DCT argued that whilst the original funds received by the DCT were trust monies, the repaid monies to the trustees were not, so the funds should be available to all creditors of the insolvent estate.

The primary judge did not make an explicit direction concerning the characterisation of the payment but his final orders indicated that he had concluded that the sum

of $150,788.58 should be for the benefit of trust creditors only.

The FCAFC closely considered the underlying purpose and objectives of the Act (in particular s122) against the background of equitable principles and the operation of the law of trusts.

Against this background, it then focused on identifying whether the funds received by the DCT was trust property and which creditors were disadvantaged by the payment.

The FCAFC was satisfied that the payment made by Mr Lee to the DCT was trust property and that only trust creditors were disadvantaged by the payment as the effect of the payment on the non-trust creditors was neutral because they could never participate in the proceeds of the exercise of the right of exoneration.

To give effect to the underlying purpose of s122 of the Act, the Court held that the proceeds from the recovery of the preference should be applied to restore the proper order of equality as between trust creditors. To suggest otherwise would operate to the disadvantage of trust creditors.

Accordingly, the Court held that the balance of the returned funds in the sum of $150,788.58 were the funds for the benefit of trust creditors only.

Implications This decision gives insolvency practitioners much greater clarity and direction with regards to dealing with and distributing the proceeds of the right of exoneration of trust assets of insolvent administrations. Insolvency practitioners should now have greater comfort to deal with the trust assets of insolvent estates without seeking further directions from the court.

*Fiona Reynolds MICM Partner TurksLegal E: fiona.reynolds@turkslegal.com.au T: 0417 215 703

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

39

Legal

Harnessing the new anti-phoenixing laws to maximise recoveries

By Tracy Rafferty*

Anti-phoenixing laws, that were introduced earlier this year, have the potential to maximise recoveries for creditors. This is particularly important in circumstances where the prevalence of illegal phoenixing activity is likely to rise in the wake of the COVID-19 pandemic.

But be warned – the new laws have limited application (12 months from the relation back date) and only apply to transactions that occurred on or after 18 February 2020.

Interestingly, ASIC confirmed (in response to a Freedom of Information Request) that, as at 8 October 2020, no applications had been received

by ASIC, and ASIC had not yet had the opportunity to exercise their new discretionary powers under the new law.

The new law should therefore be considered in conjunction with all of the tools in your toolkit – you may need to rely on other provisions (such as sections 181-184 of the Corporations Act Cth 2001), or there may be other more appropriate proprietary or equitable relief available to meet your objectives.

The Act

Tracy Rafferty

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So what are the new laws?

The Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2020 (Cth) (Act) came into effect

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

on 18 February 2020, introducing various reforms to further protect creditors, prohibit illegal phoenixing activity, and make directors more accountable.

Key changes that can now be utilised to maximise recoveries to creditors are: (a) provisions that make ‘creditordefeating dispositions’ voidable transactions (discussed further below); (b) the presumption of insufficient consideration in respect of creditor-defeating dispositions; and (c) ASIC’s new powers to recover assets on behalf of creditors (which, as set out above, had not yet been exercised as at 8 October 2020).

Creditor-defeating dispositions The Act specifically targets the disposal of property: (a) which has the effect of preventing, hindering or significantly delaying that property becoming available for the benefit of the creditors in the winding-up of the company; and (b) where the money paid for the property was less than the lesser of: (i) the market value of the property; or

Legal

(ii) the best price that was reasonably obtainable for the property, having regard to the circumstances existing at the time.

These transactions are called ‘creditor-defeating dispositions’.

Importantly, the Act also covers situations where the company: (c) does something that results in another person becoming the owner of property that did not previously exist (for example, if company funds are used to construct a new building); or (d) makes a disposition of property and the money is paid to a third party.

Presumption The Act provides a helpful tool for creditors to utilise in situations where officers of a company attempt to conceal or destroy company records relating to certain transactions, including a presumption that money paid for any disposition is less than both the market value of the property and the best price reasonably obtainable where: (e) the company failed to maintain adequate records relating to the disposition; or (f) failed to retain financial records relating to the disposition for 7 years.

Rebutting the presumption However, this presumption is easily rebuttable by a person if: (g) the failure to retain records for 7 years was due solely to someone destroying, concealing or removing financial records of the company; and (h) the person was not involved in, and none of this was done by, the person in question.

In this situation, creditors may need to utilise the usual mechanisms (e.g. public examinations) to compel the production of financial records in the event that this defence is raised.

What can you do to maximise your recoveries?

Option one Creditors can report any concerns to the liquidator of the company (in the usual way). Liquidators will then have the option, should they wish to pursue any claim, to: (i) make a claim through the court (in the usual way); or alternatively (ii) utilise the law and make an application to ASIC (which should be a less burdensome and costly process).

Option two Creditors can report misconduct directly to ASIC by completing an online application. This should be a much less burdensome and more cost-effective avenue to make these claims – which in turn would maximise returns to creditors.

To that end, ASIC now has discretionary powers to make orders, on behalf of creditors: (k) compelling the return of the

property the subject of a creditor-defeating disposition; (l) requiring payment of an amount fairly representing the benefit the person received as a result of a creditor-defeating disposition; and/or (m) transferring to the company property that was purchased with the proceeds of sale of a creditor-defeating disposition.

Conclusion New anti-phoenixing laws will assist in maximising recoveries for creditors in a way that is less burdensome, timely and costly than before. However, remember that the new law has limited operation and as such, should be considered in conjunction with all of the tools in your toolkit.

If you would like to hear more about harnessing the new antiphoenixing laws, please get in touch with our team. *Tracy Rafferty Senior Associate, Results Legal E: trafferty@resultslegal.com.au T: +61 7 3234 3229

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

41

Insolvency

Insolvency reforms - what credit professionals need to know

What are the reforms The reforms passed on 10 December 2020 commenced on 1 January 2021 and include: z A new Debt Restructuring Process for small businesses; z Temporary restructuring relief; and z A new Simplified Liquidation Process for small businesses.

Why were these reforms implemented On 24 September the government announced its intention to implement these reforms and provided this fact sheet stating “The changes will enable more Australian small businesses to quickly restructure and to survive the economic impact of COVID-19. Where restructure is not possible, businesses will be able to wind up faster, enabling greater returns for creditors and employees.”

Significant to note: z There was no formal industry consultation on these initiatives prior to their announcement; z The reforms have been labelled the biggest reform to insolvency law in 30 years; and z Only 77 days elapsed between announcement and legislation being passed into law.

AICM’s involvement in these reforms AICM has been actively representing members with industry and government agitating for reform to the insolvency system for many years.

Specifically, the AICM championing the need for change to the unfair preference claim regime which has been recognised by the new Simplified Liquidation

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

process restricting circumstances a preference claim can be pursued. This is clear recognition that the pursuit of preference claims can take up time, money and resources, and have the potential to outweigh any benefit that might flow through to creditors.

AICM has provided 28 pages of commentary across 2 submissions on the reforms and engaged extensively with other industry bodies including the Australian Restructuring Insolvency and Turnaround Association (ARITA), Australian Finance Industry Association (AFIA) and Australian Chamber of Commerce and Industry (ACCI).

While we will continue to lobby for improvements to the reforms, this work means your AICM is positioned to help you navigate these changes.

1. A new Debt Restructuring Process for small businesses Executive summary This new process is designed to allow companies to restructure their debts and achieve a better outcome than from the current insolvency processes e.g. Administration or Liquidation.

Directors remain in control of the business and are able to continue trading.

Creditors can’t initiate legal action (including windup) during the restructuring period.

The company, with assistance of the Restructuring Practitioner (RP), prepares and sends a proposal to creditors 20 business days after commencement.

Once a plan is approved all unsecured creditors and some secured creditors of the company are bound by the plan.

Insolvency

High level steps of the new process for credit professionals 1. Commences when directors appoint an RP. The RP will notify as many creditors as reasonably possible and ASIC (notice on published notices website) within 1 business day of appointment.

To be eligible the company must: z Meet the $1M liability test (excluding employee entitlements); z Be insolvent or likely to become insolvent; z The company has not previously been subject to debt restructuring or simplified liquidation process within the last 7 years (exceptions apply) z No director (or former director in last 12 months) has previously used the debt restructuring or simplified liquidation process within the last 7 years (exceptions apply); and z Not already subject to an insolvency administration.

WHAT YOU NEED TO KNOW: Certain aspects of the process commence once the directors appoint an RP which may be prior to you being notified, this may expose you to additional risks without knowledge.

2. Like the existing voluntary administration process, once commenced: z Creditors cannot enforce against the company; z Creditors cannot enforce guarantees for a Director or their relations; z Creditors cannot enforce security interests (including PPSA) unless you have possession of the property (there are limited exemptions); z Goods subject to unperfected PPSR registrations will vest in the company; and z The company can deal with goods subject to PPSR registrations in the ordinary course of business.

WHAT YOU NEED TO KNOW: z Unlike in an Administration (where the administrator has personal liability) the RP is not liable for supplies made during this period. z Trade creditors should consider withdrawing

3. There is no requirement for meetings of creditors but creditors do have rights to request information, reports and documents as allowed in other insolvency processes. The RP may also choose to hold a meeting if they believe exceptional circumstances warrant one.

4. Creditors receive a plan 20 business days after the appointment of an RP (RP can extend this period by 10 business days) z Directors form a plan with the assistance of RP. z RP makes a declaration that it is reasonable to expect the company will meet obligations under the plan as and when falls due. z Within 20 business days of appointing RP, RP sends the plan to creditors (using electronic means if details are available). z Plan includes the proposal and your value of debt included. z Debts are valued as at the commencement of restructuring (appointment of the RP).

WHAT YOU NEED TO KNOW: z Once the proposal is sent to creditors the company is deemed insolvent. z This may be the first opportunity you will have to verify the value of your debt z The proposal is not required to include information such as: – The reason restructuring is needed, – Details of the company’s assets, – How restructuring will enable the business to continue trading, or – What factors will support the company meeting obligations under the plan.

5. Within 15 business days you are asked to: z Advise if you accept or reject the proposal z Verify the value of debt or dispute debt (you have 5 business days from receipt to dispute the value of your debt, after this period the RP has the right not to deal with your dispute) z The 15 business day period to respond may be extended by up to 5 business days when values change.

credit facilities and moving to cash before delivery or similar terms if continuing to supply.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

43

Insolvency

2. Temporary restructuring relief WHAT YOU NEED TO KNOW: z Secured Debts – the value of debt that is unsecured is included or you consent to the secured debt being included. z After the plan is made the process is not invalidated if the value of liabilities increases to >$1m (excl employee entitlements). z If your debt is not included in the proposal you should contact RP as soon as reasonably practicable.

6. As soon as practical of the RP being advised of the correct debt value or submitting a new debt they must: z Notify you of acceptance or rejection, including reasons, and z If there is significant variation in total claims all creditors must be notified

WHAT YOU NEED TO KNOW: z You are entitled to withdraw or recast your vote as many times as you like before acceptance period.

7. The proposal will be accepted if >50% of creditors (by value, not including excluded creditors) that respond to the plan are in favour.

8. Once accepted: z All unsecured creditors prior to commencement are bound and cannot enforce any part of the debt, including the amount compromised. z Company has 30 business days to rectify any breaches. z If terminated all amounts payable are due immediately.

As companies may be unable to appoint an RP and access the Debt Restructuring Process (due to the short time frame for RP’s to be registered and trained) the company can access protections from insolvent trading liabilities and statutory demands by declaring their intention to use the process. It’s important to note that any fully registered liquidator can act as an RP, however the legislation is bringing in a sub-category of liquidator registration which enables practitioners to ONLY do small business debt restructures.

Between 1 January 2021 and 31 March 2021, a company eligible to enter the Debt Restructuring process can declare its intention to access the debt restructuring process.

WHAT YOU NEED TO KNOW: z Notification: — Creditors will be able to identify companies accessing the relief as the notice will be publicly available on ASIC’s published notices website.

— However, creditors are not contacted directly and it will not be recorded on an ASIC company search.

— Credit Bureau’s are working to incorporate these notifications in credit reports and alerts.

You can search the notice board here.

— Creditors should consider further trading and preference claim risk as you are on notice the business is insolvent or likely to become insolvent.

are admitted after the plan is accepted and you

z The notice triggers: — Directors safe harbour protection from insolvent trading liabilities for 3 months from date the notice is published (if they have taken all reasonable steps to appoint an RP before the debt was incurred).

— During the 3 month period creditors statutory demands subject to: * $20,000 threshold * 6 months for debtor to respond

are still bound.

z Companies can obtain a further month if still

WHAT YOU NEED TO KNOW: z The return you receive may change when debts

unable to appoint a restructuring practitioner.

44

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Insolvency

3. A new Simplified Liquidation Process for small businesses This process is intended to free up value for creditors and employees, and allow assets to be quickly reallocated elsewhere in the economy, supporting productivity and growth.

The simplified liquidation process will retain the general framework of the existing creditors voluntary liquidation process, with modifications to reduce time and cost. A simplified process cannot be used in Court liquidations.

As currently occurs, the small business can appoint a liquidator who will take control of the company and realise the company’s remaining assets for distribution to creditors. The liquidator will also still investigate and report to creditors about the company’s affairs and enquire into the failure of the company, however the extent of these enquiries is limited The process restricts the circumstances where a liquidator can pursue an unfair preference claim. This change recognises that the pursuit of preference claims can take up time, money and resources, and have the potential to outweigh any benefit that might flow through to creditors.

What you need to know: 1. Simplified process is adopted when z Directors provide Liquidator notice of eligibility z Liquidator must make decision to adopt a simplified process within 20 business days of appointment 2. Creditors must be provided with 10 business days notice of the intention to adopt the simplified process.

The liquidator may adopt the simplified process any time after the 10 business days notice and within the 20 business day window from appointment, unless creditors object.

3. Creditors (at least 25% in value of unrelated creditors) can object to the use of the simplified process any time during the 10 business day notification period and up to the time of adoption. Any objection will be ineffective after adoption.

4. z z z

Companies are eligible for simplified process if: <$1 million in liabilities, and Tax lodgements are up to date Directors or company have not used Debt Restructuring Process or Simplified Liquidation in prior 7 years (20 business day exemption for related companies)

5. The Liquidator has reduced investigation and reporting requirements i.e. where there is reasonable grounds that dishonest or fraudulent behaviour has or likely to have material adverse effect on all creditors or subset of creditors.

6. No meetings of creditors can be called by the liquidator 7. Liquidator may only declare and distribute a dividend once 8. Proof of debts not admitted prior to dividend are excluded.

9. Preference claims not to be pursued against third party creditors if: a. >3 months prior to liquidation b. <$30,000 (includes a series of related payments) Note: No reduction in 3 year limit to bring a claim.

Where can I find out more The AICM will continue to work closely with the insolvency profession, legal profession, government, members and our extensive connections to bring you the information you need.

You are encouraged to ask any question via the member only Credit Network Forum (here) if our credit community can’t answer the AICM will escalate your query to government.

This page will be populated with updates and information from AICM’s partners and network.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

45

Insolvency

Insolvency Reform 2021 – “the Good, the Bad and the Ugly”

By Andrew Spring MICM*

Andrew Spring MICM

46

The arrival of the New Year, hailed as the turning of the page on what was a dramatically unique 12 months for most of us, was somewhat of an underwhelming rebirth. In Sydney, we were sitting at home, trying to motivate ourselves to stay awake to welcome in the year of our salvation, while being mindful of the fact that public health orders prevented us celebrating the arrival in anything resembling a traditional manner.

The normal jovial spirit and celebration had to be captured by emoji-filled text messages or posts and many of us were no doubt considering whether 2021 was a boon of hope or just another day in the ever increasing normalcy of pandemic life. With the likelihood that government support for business will not be extended, the arrival of some simply complex insolvency reform and further talk about band aid type legislative tweaks, 2021 may be the year that the insolvency profession is reshaped in the minds of the business community. But will the post pandemic insolvency profession, like our wider world, be better or worse for those engaged with it? In this article, we take a look at the insolvency reforms introduced on January 1, 2021, considering the

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

strengths, weaknesses and utility of each new process.

The Australian Restructuring, Insolvency and Turnaround Association (ARITA), when commenting on proposed law reform, reminded us that there are in excess of 20 insolvency procedures that debtors may avail themselves of in our current legislative framework.

Those processes are governed by the Corporations Act, Bankruptcy Act, the Insolvency Practice Rules, the Insolvency Practice Schedule and the Corporations Regulations – not to mention the interaction with numerous other pieces of legislation such as the Fair Work Act, various pieces of Commonwealth tax law, and the multitude of state-based pieces of legislation. Put simply, it is not simple to deal with an insolvent debtor in our modern world!

The Corporations (Corporate Insolvency Reforms) Act 2020 and the Corporations Amendment (Corporate Insolvency Reforms) Regulations 2020, was primarily incorporated to introduce the Small Business Restructuring Process and the Simplified Liquidation Process. So let’s consider each of these processes and the impact for the credit community.

Insolvency

Small Business Restructuring (“SBR”) As most will be aware, the SBR process has been touted as a Chapter 11, debtor-in-possession style process.

This is a significant shift from our established insolvency processes, which insert an independent third-party registered insolvency practitioner into control of the distressed debtor’s affairs. It is also worth noting that the SBR Practitioner is acting for the debtor company (with statutory obligations to creditors), which is a shift from the traditional role of acting for creditors.

“The Good” z Encourages earlier intervention — There is a requirement to have all statutory taxation reporting completed and employee entitlements paid before a SBR Plan can be presented to creditors.

— In addition, there will likely be a requirement to cash flow the business (without access to trade credit) to trade through the restructuring and proposal period (minimum 35 business days). This suggests that to successfully avail itself of this process, the business must engage with the process when cash reserves are sufficient to meet the cash flow gap that is likely to occur. This is a vast contrast to the majority of businesses with <$1M of liabilities that have historically entered Creditors Voluntary Liquidation.

— Creditors should be confident that any SBR Plan proposed will be more akin to a Deed of Company Arrangement (DOCA) in structure and provide for an increased return compared to a subsequent voluntary winding up.

— This should also give creditors some comfort that the balance

“Creditors should be confident that any SBR Plan proposed will be more akin to a Deed of Company Arrangement (DOCA) in structure and provide for an increased return compared to a subsequent voluntary winding up.” sheet of the debtor has been restructured in such a way as to enable the business to be sufficiently viable to complete the SBR Plan. (The Restructuring Practitioner is required to provide a statement to this effect when presenting the SBR Plan for creditor consideration). z Debtor remains in control — Communication channels are not disrupted by a third party – with normal ordering processes/authorisation to continue.

— Theoretically, new trading accounts do not need to be opened. z 7-year exclusion period — The SBR Process cannot be initiated if a director (or former director <12 months) has previously utilised the SBR Process or the Simplified Liquidation Process for this or any other company.

— A “one-strike and out” rule should provide some confidence to creditors that the directors believe in the longterm viability of the business and will provide the best SBR Plan to save the business.

“The Bad” z Lack of transparency — The SBR Practitioner is not required to provide a report to creditors setting out a recommendation for creditors.

— The creditors will only see

the assets and liabilities to be included in the SBR Plan – and not necessarily the full financial position.

— There is no comparison against any other outcome presented to creditors, and the SBR Practitioner’s statement is only in respect to the company’s ability to meet the requirements of the SBR Plan.

— This is deliberate, being one of the main cost savings anticipated of the SBR Process. z No creditors’ meetings — This is likely to make collaboration with fellow creditors more difficult.

— Also, makes communication with the SBR Practitioner more difficult. z If the SBR Plan Proposal fails, the company is returned to the director/s — Unlike in the Voluntary Administration Process, the creditors’ control is limited to approving the SBR Plan. Whilst, the presentation of the SBR Plan to creditors is a deemed point of insolvency, there is no automatic winding up or option to wind up the company should a SBR Plan be rejected by creditors.

— This may create more “Zombie” companies as the directors may have exhausted their cash resources during the SBR Process and be unable to voluntarily wind the company up.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

47

Insolvency

— This may create increased burden on the creditor group to initiate the winding up proceedings themselves.

“The Ugly” z Rushed drafting of Legislation, with limited consultation with industry — The drafting has encompassed four pieces of separate legislation making it very complex to follow. For example the ARITA checklist has more action items than a Creditors Voluntary Liquidation.

— The rushed nature of the drafting has created double-up requirements and anomalies for the SBR Practitioner.

— The complexity created will impede the ability to create a streamlined cost efficient outcome for the debtor company that may limit the effectiveness of the process.

Simplified Creditors Voluntary Liquidation (“SCVL”) Unlike the SBR Process, the SCVL is not overly different. As such, its utility is difficult to fathom, given there appears to be limited benefits in the process for either debtor, creditor or practitioner.

“The Good” z Still looking “The Bad” z Please see “The Ugly” “The Ugly” z Unfair Preference Payment criteria reduction is likely to be a “furphy” in practice — Even if a Liquidator had all the information to undertake a preference review before the 9th business day (being the last date notification adopting the SCVL process must be sent to creditors), it would seem that the adoption would only

48

“Even if a Liquidator had all the information to undertake a preference review before the 9th business day ..., it would seem that the adoption would only occur if that investigation had not identified any potential transactions that may be worthy of consideration as an unfair preference. ” occur if that investigation had not identified any potential transactions that may be worthy of consideration as an unfair preference. If there was any doubt, it is likely that the Liquidator would leave the company in CVL to avoid any potential criticism for minimising the potential realisations in the winding up process. If there were no transactions identified, then the reduced criteria is irrelevant.

— The creditors are unable to request the SCVL Process. z Creditors’ powers are diminished — The Insolvency Law Reform Act 2016, introduced among other changes, the rights for creditors to convene meetings.

And to replace an incumbent Liquidator. The SCVL process, effectively, removes that right by not allowing any meetings of creditors to be convened.

— In addition, the information provided to creditors as part of the 3-month statutory report is also reduced. z Investigations still required — The SCVL process still requires the Liquidator to undertake the necessary investigations to identify voidable transactions or insolvent trading.

— By virtue of the above, the SCVL process still requires the Liquidator to undertake the necessary investigations to identify misconduct or dishonesty.

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

— As such, it is hard to understand where the costs savings are likely to occur. z In order to initiate an SCVL, an extra layer of reporting to creditors must occur, thereby likely increasing the costs, particularly if that were to stimulate further interaction with creditors. z An SCVL process would preclude any of the directors from availing themselves of the SBR Process for a period of seven years and is unlikely to present a cost saving or increased return to the company’s creditors.

As this is very new legislation and as the operation of the SBR Process and the SCVL Process are undertaken, perhaps we shall see further practical refinement. However, perhaps it may also be hoped that in providing more framework options for financially distressed situations, the overriding benefit may be that the debtor, creditor and practitioner are pulled together in their mutual desire to “sort out the mess” and not leave it up to any further legislative intervention. So in 2021, once again, it is likely to be the active involvement of stakeholders and an effective undertaking of the most relevant insolvency procedure that produces positive outcomes for all parties.

*Andrew Spring MICM Partner Jirsch Sutherland

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aicm

Masterclass

Measuring collection efficiency M

easuring the effectiveness of credit operations poses a number of problems, simply because the objective of a credit function cannot be clearly separated from that of other departments of a business. Hence its net contribution to end results in terms of profits cannot be measured.

The main objective of a credit function is to maximise sales and minimise bad debt losses; however, maximising sales is also the primary objective of the sales department. Invariably departmental objectives are not clearly defined either by management or by the company’s credit policy, perhaps because to varying degrees most objectives are competing objectives.

Maximum sales cannot be obtained without additional exposure to bad debt losses, and yet minimum bad debt losses can be achieved by selling only to the safer risk accounts at the expense of maximum sales. Targets are thus difficult to set and subsequently measure against. Some of the most difficult measures include the contribution credit extension makes to sales results, the profitability of credit policy changes and the nature or manner in which collections are made. The effectiveness of the credit manager cannot be determined in precise terms because standards of measure are lacking and many other factors must be considered in a meaningful way to establish these standards. These factors include the credit manager’s attributes, the extent of their responsibility and factors concerning the work situation.

The main objective of a credit function is to maximise sales and minimise bad debt losses; however, maximising sales is also the primary objective of the sales department.

50

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

In the main, measures are made of figures closely correlated to the department’s operations and with this approach, the size and scope of the department is accommodated. Credit policies differ as widely as the size and organisational structure of some credit functions and these factors determine the extent of measure by way of adapted ratio analysis and use of various indices in the reporting of results.

Measuring the efficiency factor The most important measure used in credit management is the measure for determining the efficiency factor.

This is simply the rate at which remittances of credit sales are received over time; that is, the chronological patterns according to which the receivables created during a given interval are converted into cash. If a month is taken to be a standard unit of account, the issue is the liquidation rate for each month’s credit sales. The efficiency factor therefore refers to the rate of account conversion into cash. This is determined by dividing the selected collection period into the sales total for the same period to identify the actual daily sales volume. Depending on the method of computation chosen the daily sales figure is then divided into the total debtors’ balance at the end of the collection period, or alternatively, expressed as a percentage of thirty days, for each thirty-day period.

There are three approaches which are widely used in determining the efficiency factor, which, as an often-used misnomer, is referred to as the DSO or day’s sales outstanding. The unreliability of two of the methods will be seen in a review of the effects of given circumstances, the results of which reflect the shortcomings of these approaches within the efficiency factor. In all three methods of review the total sales for the four-month calendar period will be the same, with only their distribution differing in order to demonstrate the differing sales profile effects of steady sales, rising sales and falling sales. By stipulation the manner in

Masterclass aicm

The most important measure used in credit management is the measure for determining the efficiency factor. This is simply the rate at which remittances of credit sales are received over time; that is, the chronological patterns according to which the receivables created during a given interval are converted into cash. which collections are made shall be constant. This is often termed the ‘collection experience’. The ageings of outstandings as a percentage of the debtors’ total shall consistently reflect 10 per cent – ninety days; 20 per cent – sixty days; 50 per cent – thirty days; and 90 per cent – current sales.

The DSO (daily sales outstanding) method This method of computing the efficiency factor is determined by the selected collection period (usually thirty days, sixty days or ninety days) being divided into the sales total for the same period, to reduce sales to a daily total, and then dividing this sum into the debtors’ balance outstanding for that period. The figures are taken to one or two decimal places; rounding off to whole numbers may be misleading – for example 48.44 becomes 48 and 48.56, becomes 49, when in fact the

change is marginal. Table 1 shows the results obtained according to this method.

The schedule reveals the efficiency factor the credit manager would record at the end of each fourmonthly period. Within a steady sales profile the factor is constant at 51.0 days, as neither the sales profile nor the collection period chosen influences the factor in any way.

In the rising profile, the factor falls to 39.0 days, suggesting an improvement in collection efficiency, yet by stipulation the manner of collection is constant.

Furthermore, the choice of the collection period significantly changes the factor from 39.0 days, to 58.1 days, which in turn suggests a slowing down in collections.

In falling sales profile, the factor falls from 51.0 days to 72.0 days, which naturally would generate concern.

By lengthening the collection period, which as the ➤

Table 1: Schedule illustrating the DSO method Sales $’000s

Collection manner (per cent)

Debtors’ balance $’000s

DSO 30 Days

EF

DSO 60 days

EF

DSO 90 days

EF

4

51.0

4

51.0

5

51.0

7

39.0

5.5

49.6

4.7

58.1

2

72.0

2.5

57.6

3

48.0

Steady sales profile January

120

10

12

February

120

20

24

March

120

50

60

April

120

90

108

480

204

Rising sales profile May

60

10

6

June

90

20

18

July

120

50

60

August

210

90

189

480

273

Falling sales profile September

210

10

21

October

120

20

24

November

90

50

45

December

60

90

54

480

144

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

51

aicm

Masterclass effect of averaging monthly sales, the factor is reduced to 48.0 days.

Clearly the efficiency factor is sensitive not only to the sales profile, but to the effects of aggregation through the collection period chosen, given that the nature of collection is constant and unchanged from period to period. No collection period can be considered as a ‘happy medium’, because comparable ambiguities prevail for any period chosen. For example, should a ninety-day collection period be chosen, the efficiency factor in the rising profile would suggest a deterioration in collection efficiency, when in monetary terms, ninetyday outstandings have reduced from $12,000 to $6,000.

In the falling profile, although the factor at 48.0 days suggests an improvement in collections, in monetary value, 90 days’ arrears have increased from $6,000 to $21,000, at a time of declining sales when debtors cash flow would be critical. For objective analysis and particularly as a basis for forecasting from debtors, the signals as revealed are clearly misleading. It should be emphasised that milder increases and decreases in the sales volume merely moderate the discrepancies.

A variation of the DSO method is to divide outstanding debtors by annual sales and multiply by 360, annual sales being established from a moving total of the last twelve months’ sales. Even comparisons made at the same point in seasonal sales cycles contain permutations of the foregoing distortions unless all computations of the analysis period are identical. This condition of course is unlikely. Accordingly, a monitoring mechanism which transmits misleading signals about non-existent changes in collection efficiency may also fail to give the true warning when needed.

The ’thumb rule’ approach The popularity of the ‘thumb rule’ approach lies perhaps in its simplicity: the current and preceding months’ sales are deducted from a given debtors’ balance, and the number of days involved in each month are noted.

Any residual of the debtors’ balance is then expressed in terms of days of the respective month’s sales.

Summation of the days noted represents the number of days debtors take to pay their accounts. Table 2 illustrates this method.

Table 2: Schedule Illustrating the ‘Thumb Rule’ Aproach Steady sales profile Debtors balance 30/4

$204,000

Less April sales (30 days)

$120,000 $84,000

Less March sales (31 days, or part thereof) Residual summation

84,000 X 100 X 31 = 21.7 days 120,000 1 1

Efficiency Factor

= 20 days plus 21.76 days = 51.7 days

Rising sales profile Debtors balance 31/8

$273,000

Less August sales (31 days)

$210,000 $63,000

Less July sales (31 days) Residual summation

63,000 X 100 X 31 = 16.3 days 120,000 1 1

Plus August Efficiency Factor Falling sales profile

31 days = 47.3 days

Debtors balance 31/12

$144,000

Less December sales (31 days)

$60,000 $84,000

Less November sales (30 days) Residual summation

84,000 X 100 X 30 = 28.0 days 120,000 1 1

Plus December Efficiency factor

52

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

= 31 days = 59 days

Masterclass aicm

Table 3: Schedule showing the ‘relating to original sales’ approach Collection manner (per cent)

Sales $’000s

Debtors’ balance $’000s

Percentage of 30 days

Percentage of actual days

Steady profile January

(31)

120

10

12

3

3.1

February

(28)

120

20

24

6

7.1

March

(31)

120

50

60

15

16.1

April

(30)

120

90

108

27

27.0

204

51

53.3

480 Rising profile May

(31)

60

10

6

3

3.1

June

(30)

90

20

18

6

6.0

July

(31)

120

50

60

15

15.5

August

(31)

210

90

480

189

27

27.9

273

51

52.5

21

3

3.0

Falling profile September

(30)

210

10

October

(31)

120

20

24

6

6.2

November

(30)

90

50

45

15

15.0

December

(31)

60

90

54

27

27.9

144

51

52.1

480

Although by stipulation the nature of collections made is consistent, and although the efficiency factors calculated in this way suggest a reduced influence of the sales profile, the variance nevertheless is substantial. A further shortcoming of this approach is that generally the nature of collections is not accounted for and therefore is not reflected within the efficiency factor. It is possible to make substantial collections on current sales, particularly where large accounts are concerned, which may camouflage a deteriorating arrears situation.

By illustrating the aged balance as a percentage of thirty days of the respective original sales totals, customer payment rates are automatically traced to their source.

The ‘relating to original sales’ approach

and cumulative effects of aggregation. Furthermore, the nature of collections are highlighted, such as any substantial movement in current sales collected. A variation of this method is to relate to actual days of each respective month instead of a time constant of thirty days. In either consideration the manner of calculation is the same: the monthly sales figure is divided by the residual balance in each age factor and multiplied either by thirty days as a time constant, or, for February, by twenty-eight days; for June by thirty days; for August by thirty-one days; or as the case may be. A small variance will reflect in the efficiency factor attributable to the time variation between months.

As Table 3 illustrates, provided the collection manner remains unchanged, the same answers will prevail ➤

The common element of distortion of the two foregoing methods of computation is that either sales profiles or balances are aggregated in the calculations, making it impossible to detect changes in the various components of credit sales or aged balances outstanding. The approach discussed here analytically separates the components of a debtors’ balance by relating respective ageing groups back to the month of sales in which the balances were incurred. By illustrating the aged balance as a percentage of thirty days of the respective original sales totals, customer payment rates are automatically traced to their source. Appraisals of collections made readily follow, without the prejudices of sales profiles

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

53

aicm

Masterclass Table 4: Comparison of results in methods of efficiency factor determination DSO 90 days

Thumb rule

Relation back %30

Actual days

51

51

51.7

51

53.3

39

49.6

58.1

47.3

51

52.5

72

57.6

48

59

51

52.1

Sales profile

30 days

60 days

Steady

51

Rising Falling

regardless of the sales volume or profile. Accordingly, actual changes in collection efficiency will be detected immediately and not concealed by aggregation or other outside conditions.

For any forecasting exercise based on this approach, the projected debtors’ balance or efficiency factor is determined in the same manner, by restricting consideration to the respective ‘aged’ components.

The summation of these considerations represents the particular projections – a debtors’ balance, efficiency factor, or even a cash flow total. Mathematically the forecasting exercise is more involved; however, appraising variances in results subsequently obtained would more accurately reflect genuine circumstantial changes and accordingly enhance its value as a reliable tool for measuring collection performance.

In Table 4, the efficiency factors which result from calculations using each of these three approaches, are shown.

Other approaches The ‘ageing’ criterion Another common device for monitoring receivables is the ‘ageing’ criterion. When one examines the respective sales profiles using this method (Table 5), the schedule reveals that in the rising profile collections have improved, whereas in the falling profile a deterioration in collections is suggested. This is understandable when one recognises that the most recent month’s sales always dominate the calculations. Thus, the proportion of total receivables in accounts less than thirty days’ old will naturally be relatively high in a period of rising sales, and low in a period of falling sales, even when the payment profile is stable. The result will be a continual series of spurious warning signals being flashed to the credit manager, simply in response to normal sales fluctuations. Only during the unusual intervals when sales

are level from month to month will the indicator be of any potential use.

The ageing schedule suffers from another inherent deficiency. It is difficult to interpret meaningfully any figures that are contributed from differing sources but are constrained to add up to 100 per cent. The fact that, say, 37.5 per cent of a company’s receivables outstanding at a particular time are under thirty days’ old, while 62.5 per cent are over thirty days’ old, may not mean that there is an extraordinarily large number of overdue accounts and that receivables are out of control. It could merely be that an unusually, and desirably, high percentage of payments were made on the most recent month’s sales, leaving fewer of them outstanding and raising the apparent weight of older accounts.

The collection index Another commonly used index is the collection index, which is computed by taking the total of collections made during a given period and dividing this by the total of receivables outstanding at the beginning of the period. The weakness of this index is that it does not highlight the nature of the collections made.

A substantial collection could be made on current sales, still within terms, with overdues deteriorating further.

Because collections would be an aggregate of a period and considered as a sum total, the index would conceal the early warning of a deterioration in the collection of overdues. Some people prefer to amplify the index by multiplying by 10 or 100 for ease of subsequent graphical illustration or charting. There is not distortion in doing this as long as consideration of the index, in fact any index, is based on the same criteria or computation for all considerations over all relevant periods under review.

The bad debts loss index The bad debts loss index is used in most situations and is computed by dividing the total of bad debts for a

Another commonly used index is the collection index, which is computed by taking the total of collections made during a given period and dividing this by the total of receivables outstanding at the beginning of the period.

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Masterclass aicm

Table 5: Schedule illustrating the ‘ageing’ approach Sales $’000s

Debtors’ balance O/S

Collection manner (per cent)

Percentage of total

January

120

10

12

5.9

February

120

20

24

11.8

March

120

50

60

29.4

April

120

90

108

52.9

204

100.0

480 May

60

10

6

2.2

June

90

20

18

6.6

July

120

50

60

22.0

August

210

90

189

69.2

273

100.0

480 September

210

10

21

14.6

October

120

20

24

16.7

November

90

50

45

31.2

December

60

90

54

37.5

144

100.0

480

period (usually six months or one year) by the total of credit sales for the same period. It invariably reveals a small percentage loss of total credit sales, although these losses in themselves may be quite substantial. This ratio has appeal with some sections of top management as indisputable evidence of efficiency in credit administration. However, a low index can be achieved quite easily by accepting only the bet credit risks, and therefore this approach does not accurately reflect performance efficiency. By contrast, other sections of management, particularly sales oriented management, view a low bad debts loss index as evidence of conservative and constrictive credit policy costing the business certain sales opportunities.

The ’past due’ index The ‘past due’ index is determined by dividing the total ‘past due’ (that is, over thirty days) by the total outstandings (debtors’ balance) and multiplying by 100.

When computed for several successive e periods, the index serves as a barometer, indicating whether the trend of the slower paying accounts in a ledger is slowing, or collections are in fact being made more quickly. This index would help to offset the concealing effects of the collections index as to the nature of collections made.

Other indices There are a number of indices in use within certain areas of the credit vocation that may be commented

upon where the use, adaptation, or value of that index is peculiar to a particular function. The credit manager of a large retail store may use a credit application acceptance/rejection ratio that would allow the measurement of performance and standards of an interviewing or credit assessment panel both individually and collectively. The same ratio could also be used for evaluating credit policy.

A range of credit costs may be converted to ratios.

These include: 1. legal court costs; 2. bad debts written off less recoveries; 3. credit investigation costs; 4. mercantile agency costs; 5. training costs for credit staff; 6. doubtful debts to bad debts etc.

Traditionally, methods of measuring credit efficiency and performance have been based on past results and on statistics closely correlated to the credit functions operations. However, with the aid of technology, business standards and results are becoming increasingly demanding and exacting, with a greater emphasis on forward budgeting and planning. Setting forward goals allows for more exacting measurement of performances and contribution to overall objectives. Accordingly, credit management of the future will no doubt become more closely scrutinised and monitored so that the contribution by the function may be maximised for the overall benefit of the business.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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aicm Training News Which qualification is right for you?

Certificates and Diplomas can be excellent ways to further your education and development – but how can you decide which qualification will best suit you?

And what is the difference between them all?

Many factors should be considered in your decision.

These following key points may be of assistance in determining your decision.

Obtaining a qualification is advantageous for many reasons, including: z Updating your skill level: With constantly changing fields, information, and technology, it can be beneficial to your career to make sure your skills are up-to-date. z Credibility: Seeking a qualification will demonstrate your determination and hard work, making you a more credible employee. z Aptitude: A qualification can provide you with the skills and knowledge you will need when working in the credit industry.

Hours of Study It is important to be realistic about how many hours of study you can take on each week. Can you commit to something like 15-20 hours of study or do you only have room for 2-4 hours? If you are short on time, keep in mind that it may be more beneficial to choose a course/qualification that doesn’t demand too many hours per week.

Study Method While all qualifications are available online, it’s important that you determine which is the best for you, especially in terms of your commitments; both work and personal. It is essential you work out what’s the best study method for you, online or face to face classes as well as assess the blended course options.

Passion!

Just how passionate are you about your chosen area of study? If you are unsure if a certain field is right for you, it may be more beneficial to start with a single unit from a certificate qualification. This is a good way to determine if you enjoy the subject and want to continue with further studies.

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Future Employment Consider what job role you want to take on in future and what qualifications you will require. For instance, if you want to become a Credit Officer, you will need a Certificate IV at a minimum. If you want to get into Credit Management or a Senior Credit role, consider whether a Diploma might increase your chances of employment over a Certificate qualification.

If you are keen to move up in your credit career, studying an extra qualification can open up new opportunities. But how do you work out which course to invest in? Which qualification is the one that will really help you get ahead?

Follow this checklist to ensure the course you choose will give you the right skills, impress employers, and boost your credit career prospects.

1. Get advice First, speak to your manager and people in your credit professional network about the career pathways that are open to you. Then, get advice on qualifications from people in the know.

Anyone who is already working in a similar role is a great source for real-world insights. They can tell you which courses are highly regarded, and which ones truly teach you the skills for the job.

The best inside information can often come from the people who hire for these roles. If you can, get in touch with employers or recruiters and ask them which qualification will make you stand out from the crowd.

These conversations are the perfect excuse to reach out and introduce yourself to people who work in the area you have your sights set on.

While all qualifications are available online, it’s important that you determine which is the best for you, especially in terms of your commitments; both work and personal.

aicm Training News

2. Size up the career outcomes

What is the Australian Qualifications Framework (AQF)?

As you compare courses, look carefully for information on the career each one prepares you for. Does the course equip you for an entry-level position, or something more senior?

In some professions, you need a specific qualification to be eligible for industry accreditation.

For each course, check: z The specified career outcomes z The course units (they can give you an indication of the depth of skills and knowledge you will gain) z The roles that real graduates of the course are typically working in.

TIP: Find out about the job market and where the current skill shortages are. Training for a role that is in demand can mean better job prospects and more opportunities to progress your career.

3. Make sure it works for you You need to be sure you will really absorb what is taught in your course so you can draw on the knowledge in interviews and apply the skills in the workplace.

Set yourself up for success by studying a course that suits the way you want to learn and fits in with your lifestyle.

For instance, if you don’t want to cut back on your work hours, a self-paced online course that you can schedule around work may be the best fit.

Whichever course you choose, the one that’s delivered in a way that works for you will give you the best chance to get ahead in your credit career.

The Australian Government designed the Australian Qualifications Framework (AQF) to ensure that qualification titles across the country are consistent and represent the same high standards of education.

The AQF regulates all Australian qualifications and provides clear rules about the level of education each qualification title represents. Each qualification generally leads into the next qualification down the list (see below) in the education framework. Having a nationally standardised system means there is a clear pathway to follow, making it easier for students to pursue their education. It also makes transferring between different education providers much easier, as there is no confusion caused by differing qualification titles and education levels. In addition to these qualifications, the AQF issues a Statement of Attainment when a student completes only part of a qualification.

One of the key objectives of the AQF is to facilitate pathways to, and through, formal qualifications. It also complements national regulatory and quality assurance arrangements for education and training.

The AQF is split into 10 levels, ranging from Certificate I, all the way through to Doctoral degree, with higher education awards including levels 5-10.

For more information on the individual AQF levels, visit the AQF’s qualifications https://www.aqf.edu.au/ aqf-qualifications Certificates are available in 4 levels – I, II, III and IV. The higher level the Certificate, the more in-depth the content and workload. ➤

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

57

aicm Training News A brief example of each level of qualification is summarised below and shows what is represented in each level, and what is expected of a student upon the completion of each level.

Level

1

2

3

4

5

6

7

58

Qualification Type

Skills

Certificate I

Graduates of a Certificate I will have: z basic skills to participate in everyday life and further learning z cognitive and communication skills to receive, pass on and recall information in a narrow range of areas z technical skills involving the use of tools appropriate to the activity and use of basic communication technologies

Certificate II

Graduates of a Certificate II will have: z cognitive skills to access, record and act on a defined range of information from a range of sources z cognitive and communication skills to apply and communicate known solutions to a limited range of predictable problems z technical skills to use a limited range of equipment to complete tasks involving known routines and procedures with a limited range of options

Certificate III

Graduates of a Certificate III will have: z cognitive, technical and communication skills to interpret and act on available information z cognitive and communication skills to apply and communicate known solutions to a variety of predictable problems and to deal with unforeseen contingencies using known solutions z technical and communication skills to provide technical information to a variety of specialist and non-specialist audiences z technical skills to undertake routine and some non-routine tasks in a range of skilled operations

Certificate IV

Graduates of a Certificate IV will have: z cognitive skills to identify, analyse, compare and act on information from a range of sources z cognitive, technical and communication skills to apply and communicate technical solutions of a non-routine or contingency nature to a defined range of predictable and unpredictable problems z specialist technical skills to complete routine and no routine tasks and functions z communication skills to guide activities and provide technical advice in the area of work and learning

Diploma

Graduates of a Diploma will have: z cognitive and communication skills to identify, analyse, synthesise and act on information from a range of sources z cognitive, technical and communication skills to analyse, plan, design and evaluate approaches to unpredictable problems and/or management requirements z specialist technical and creative skills to express ideas and perspectives z communication skills to transfer knowledge and specialised skills to others and demonstrate understanding of knowledge

Advanced Diploma Associate Degree

Graduates of an Advanced Diploma will have: z cognitive and communication skills to identify, analyse, synthesise and act on information from a range of sources z cognitive and communication skills to transfer knowledge and skills to others and to demonstrate understanding of specialised knowledge with depth in some areas z cognitive and communication skills to formulate responses to complex problems z wide-ranging specialised technical, creative or conceptual skills to express ideas and perspectives

Bachelor Degree

Graduates of a Bachelor Degree will have: z cognitive skills to review critically, analyse, consolidate and synthesise knowledge z cognitive and technical skills to demonstrate a broad understanding of knowledge with depth in some areas z cognitive and creative skills to exercise critical thinking and judgement in identifying and solving problems with intellectual independence z communication skills to present a clear, coherent and independent exposition of knowledge and ideas

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

aicm Training News Level

8

Qualification Type

Skills

Bachelor Honours Degree Graduate Certificate Graduate Diploma

Graduates of a Bachelor Honours Degree will have: z cognitive skills to review, analyse, consolidate and synthesise knowledge to identify and provide solutions to complex problems with intellectual independence z cognitive and technical skills to demonstrate a broad understanding of a body of knowledge and theoretical concepts with advanced understanding in some areas z cognitive skills to exercise critical thinking and judgement in developing new understanding • technical skills to design and use research in a project z communication skills to present a clear and coherent exposition of knowledge and ideas to a variety of audiences Graduates of a Masters Degree (Coursework) will have:

9

10

Masters Degree

Doctoral Degree

z cognitive skills to demonstrate mastery of theoretical knowledge and to reflect critically on theory and professional practice or scholarship z cognitive, technical and creative skills to investigate, analyse and synthesise complex information, problems, concepts and theories and to apply established theories to different bodies of knowledge or practice z cognitive, technical and creative skills to generate and evaluate complex ideas and concepts at an abstract level z communication and technical research skills to justify and interpret theoretical propositions, methodologies, conclusions and professional decisions to specialist and non-specialist audiences z technical and communication skills to design, evaluate, implement, analyse and theorise about developments that contribute to professional practice or scholarship Graduates of a Doctoral Degree will have: z cognitive skills to demonstrate expert understanding of theoretical knowledge and to reflect critically on that theory and practice z cognitive skills and use of intellectual independence to think critically, evaluate existing knowledge and ideas, undertake systematic investigation and reflect on theory and practice to generate original knowledge z expert technical and creative skills applicable to the field of work or learning z communication skills to explain and critique theoretical propositions, methodologies and conclusions z communication skills to present cogently a complex investigation of originality or original research for external examination against international standards and to communicate results to peers and the community z expert skills to design, implement, analyse, theorise and communicate research that makes a significant and original contribution to knowledge and/or professional practice

: AICM offers the following qualifications:

FNS30415 Certificate III in Mercantile Agents The Certificate III in Mercantile Agents is specifically designed to address the skill and knowledge development needs of mercantile agents who undertake the recovery of debt and property.

FNS40120 Certificate IV in Credit Management The Certificate IV in Credit Management is specifically designed to address the skill and knowledge development needs of credit professionals who hold or are intending to seek a middle level position within the broad role of credit management.

FNS51520 Diploma of Credit Management The Diploma of Credit Management is specifically designed to address the skill and knowledge development needs of credit professionals who hold or are intending to seek a senior position within the broad role of credit management.

Please contact AICM should you need further information on AICM range of credit courses and qualifications.

➤

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

59

aicm Training News Recent graduates AICM would like to congratulate its recent graduates:

FNS51515 – Diploma in Credit Management: Kelly Dunlop

WA

Capricorn Society

Aaron Loader

VIC

EPH Enterprises

FNS40115– Certificate IV in Credit Management: Taylah Miller

NSW

Azim Muhammud

NSW

Manpower Services

FNS30415– Certificate III in Mercantile Agents: Lingtao Xu

VIC

Statement of Attainments: Jessica Burns

NSW

• BSBRSK501 – Manage risk • FNSORG502 – Develop and monitor policy and procedures

Acrow Formwork & Scaffolding Pty Ltd

Tina Schembri

SA

• FNSCNV506 – Establish and manage a trust account

AusHealth

Virtual classroom training calendar

60

Date

Type

Topic/event name

Tuesday, 9 & Wednesday, 10 February 2021

Diploma

Manage factoring & discounting

Tuesday, 16 & Wednesday, 17 February 2021

Certificate IV

Manage overdue customer accounts

Tuesday, 23 February 2021

Toolbox

Fundamentals of credit

Wednesday, 24 February 2021

Workshop

Understanding bankruptcy

Wednesday, 10 March 2021

Workshop

Understanding corporate insolvency

Monday, 15 March 2021

Toolbox

Understanding credit risk

Tuesday, 16 & Wednesday, 17 March 2021

Certificate IV

Assess credit applications

Thursday, 18 March 2021

Toolbox

Collect with confidence

Tuesday, 23 & Wednesday, 24 March 2021

Diploma

Develop and monitor policy and procedures

Thursday, 25 March 2021

Workshop

Understanding hardship

Tuesday, 13 & Wednesday, 14 April 2021

Certificate IV

Implement risk management strategies

Tuesday, 20 & Wednesday, 21 April 2021

Certificate IV

Manage bad and doubtful debts

Thursday, 22 April 2021

Workshop

Personal property securities

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Awards 2020 Virtual Awards Night

AICM 2020 Virtual Awards night

2020: How we communicated and ensured everyone was recognised. Hear about their achievements and their acceptance speeches.

AICM’s focus on recognising excellence and the depth of talent in our industry was undiminished in 2020. The COVID-19 pandemic and inability to meet face to face meant we used our webinar platform to allow all finalists, judges, members and councillors to meet and celebrate the high achievers of 2020.

Our night included recognition of the CCE Dux, President’s Trophy, Student of the Year, Credit Team of the Year and Young Credit Professional of the Year.

Congratulations to all involved in the awards and the AICM overall during 2020. We know that you obtain significant returns from your involvement with our awards and we welcome your activity, development and the outcomes we all achieve together!

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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2020 Virtual Awards Night

CCE Dux Mark Logue MICM CCE Managing Director AMPAC Congratulations to NSW’s Mark Logue on achieving CCE Dux of 2020. Mark’s achievement stems from his long term credit industry involvement and is a fantastic recognition of his deep skills and ability.

CCE Director Lou Caldararo announces CCE Dux.

AICM CCE Director Lou Caldararo presented Mark with his certificate in addition to announcing Mark as the winner.

Lou also advised that the following members attained their CCE during 2020 – NSW – Rachael Hurrell (Acquire Credit Risk Consulting), James Smith (Australian Recoveries & Mercantile Agents) Anthony Stevanja, Mark Logue, Bill Edmonds (all AMPAC Debt Recovery) and Hiten Vinchhi (Manpower Services)

Mark Logue accepts the 2020 CCE Dux award.

Qld – Alyson Tregear, Judith Riley, Karen Clarkson (all Iplex Pipelines), Carla Eldridge (Australian Liquor Marketers), Kirsty Gray (Stoddart Group), Carly Rae (Fisher & Paykel), Steven Staatz (Vincents Chartered Accountants) and Ashleigh Mason (National Collection Services) Vic/Tas – Malani Mason (Reece Group)

President’s Trophy Queensland The Presidents Trophy is awarded to the Division that exceeds all others on a number of metrics as selected by the President and Board.

Though a challenging year the Queensland Council worked tirelessly for their members to ensure that they received the information needed to perform their roles.

National President Trevor Goodwin presents the 2020 President’s Trophy.

Qld Division Vice President Stacey Woodward accepts the President’s award on behalf of the Qld Council.

National President Trevor Goodwin explained the process and the importance of the award to AICM as it is key in recognising the work that the council undertakes during a year.

Queensland Vice President Stacey Woodward accepted the award on behalf of the Council and was very excited to share the news with the team.

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

High Achievers 2020 Virtual Awards Night

Director Rowan McClarty introduced the High Achievers in recognised training for 2020. The process of obtaining a formal qualification is central to obtaining a strong base for your career in credit.

The high achievers for 2020 were: Rowan McClarty

FNS40115 Certificate IV in Credit Management

David Schilling MICM (NSW) QBE (Winner of 2020 Student of the Year) David was an online student for the duration of his qualification. His assessments displayed good knowledge of each unit and how this knowledge merges into the workplace environment. The clarity of explanations and the research performed highlight his commitment to the credit industry. David has met all the selection criteria and demonstrated a commitment to the pursuit of knowledge and to his professional development. Rowan stated “I have no doubt that David is an asset to his employer”.

David Schilling MICM

FNS30415 Certificate III Mercantile Agents

Garth Jackson (NSW) During the nine months that Garth took to achieve this qualification the work submitted consistently demonstrated an extremely high level of understanding. He was able to display clear evidence of good knowledge and understanding in his submissions, which portrayed the ability of research and discovery. All the criteria of the course have been met with the online program, which displayed dedication to his professional development. Garth undertook these studies to commence a new career and my best wishes to him as I am sure that he will do very well.

Garth Jackson

FNS51515 Diploma of Credit Management

Kirsty Gray MICM (Qld) Stoddarts During her studies of 16 months conducted both online and face to face, Kirsty demonstrated an exceptional level of understanding for each unit. Her research was evident and the interaction during face to face time ensured complete understanding of the subject. What was clearly demonstrated was the importance of using policy and procedures as a guideline for all actions within the tasks performed to maintain uniformity and compliance. Kirsty has met all the selected criteria. This included completing her online studies in less than half the allocated time which portrayed a great commitment to her professional development. Each assessment displayed good understanding and research along with the knowledge relevant to that unit and how it was instrumental in the workplace. Based on her commitment, I have no doubt that Kirsty is instrumental in driving the future of her organisation.

Kirsty Gray MICM

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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2020 Virtual Awards Night

Credit Team of the Year Woolworths Finance Shared Services Director Debbie Leo announced the Credit Team of the Year sponsored by Equifax. The judges for 2020 were Debbie, Michelle Kirkby (ERM Power) and Rhys Buzza (Reece).

Debbie Leo presents Credit Team of the Year Award.

Finalists in the award were Bunnings, recoveriescorp, Synergy and Woolworths.

As in past years the quality of the participants and the submissions continues to wow the judges with their innovations and the way they approach their roles and address the nuances of their businesses.

Teena Ryan was proud to accept the award on behalf of the team at Woolworths. The team received a $2,000 grant towards future AICM events.

Teena Ryan accepts the award on behalf of the team.

Young Credit Professional of the Year Rebecca Roberts MICM Senior Collection Specialist, Sensis (Victoria/Tasmania) 2019 National Young Credit Professional winner Ashleigh Mason hosted the announcement of the presentation of the YCP from Brisbane with each of the division representatives attending the awards virtually. The division finalists were: – Queensland – Maddison Graham MICM – New South Wales – Christopher Holden MICM – Victoria – Rebecca Roberts MICM – South Australia – Brianna Harris MICM Our winner for 2020 was the Vic/Tas finalist Rebecca Roberts. Rebecca was thrilled and appreciated the support from her employer Sensis, the team in the Vic/Tas Council who

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

supported her journey to the national awards, her family and partner.

The YCP is a fantastic base for all credit professionals starting out in their careers and gives the opportunity to build a network with other credit professionals who are embarking on their careers.

The 2020 Conference was held over 3 days – 20-22 October.

Access continued until 12 November with recordings of live sessions and on-demand content.

Highlights of the conference included: – 3 days of live content

2020 Virtual National Conference

2020 Virtual National Conference We thank the 13 exhibitors who shared with us solutions, information and reports (some released only to AICM Conference) and gave delegates opportunities to win prizes.

We brought together the largest gathering of speakers including the Assistant Treasurer, key government regulators, credit professionals and thought leaders – 69 in total – more than any previous conference.

– 3 days of networking access Topics covered current and future impacts of COVID, balancing customer support with organisational objectives, mental health, team and personal performance, insolvency, economic outlook, hardship and much more.

– 43 sessions – 23.5 CCE points on offer

we thank our exhibitors below and please see over for some highlights of the event.

PREMIUM SPONSOR

Trusted Insights. Responsible Decisions.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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2020 Virtual National Conference

Event highlights

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Event highlights

2020 Virtual National Conference

DIVISION REPORT

Member anniversaries On the following pages we recognise those members who achieved membership anniversaries between 1 January and 31 December 2020. Congratulations to these members on achieving such important milestones.

New South Wales 45 Years of Service William

Duncan

LICM

40 Years of Service Renato Cocchietto

MICM

David

LICM

Francis

Forbes Dowling Lawyers Pty Ltd

Francis Commercial Lawyers Pty Ltd

Nina

Durick

MICM

Minter Ellison

Anthony

Edmonds

MICM

Electrolux Pty Ltd

Martin

Ferrier

MICM

Thorn Australia Pty Ltd

Christopher Hayes

MICM

Elite Collection Services

Gaye

Holden

MICM

Angelica

Imbag

MICM

Bidfood Australia Ltd

Sev

Indrele

MICM CCE

Southern Steel Group

Loriza

Janeef

MICM CCE

Coates Hire

35 Years of Service Marcia Jolly

MICM

Christie

Kalamotas

MICM

Ecolab Pty Ltd

Michael

MICM

Denise

Kritikakis

MICM CCE

Coates Hire/Tru Blu Hire

Helen

Kulkarni

MICM CCE

Toshiba International Corp Pty Ltd

Carlisle Family Trust

Sharon

McGuire

MICM

Coates Hire Canon Medical Systems ANZ Pty Limited

Langford

30 Years of Service Stephen Carlisle

MICM

John

Field

FICM CCE

John Field

Timothy

Mico

MICM

Keith

Herzog

MICM

Cash Flow Support Australia

Peter

Morgan

MICM CCE

Byron Thomas Recruitment

Colin

Sephton

MICM

Mini-Tankers Australia Pty Ltd

Tanya

Nightingale

MICM CCE

Northern Beaches Council

Daikin Australia Pty Ltd

Mate

Pavicic

MICM CCE

Fuji Xerox

Sam

Pearlman

MICM

DWF Australia

Mini

Philip

MICM

Coates Hire

Nathalie

Pillai

MICM

Coates Hire

MICM

Simon

Robinson

MICM

Wise McGrath Pty Ltd

MICM CCE

Jalindar

Shete

MICM

Coates Hire

Fred

Tanos

MICM

Coates Hire

Kelly

Taylor

MICM

Yokogawa Australia Pty Ltd

Cale

Thurston

MICM

Australian Legal Support Services Pty Ltd

Anthony

Tran

MICM CCE

Coates Hire

MICM CCE

Shane

Vears

MICM

Coates Hire

MICM

Clarian Consulting Pty Ltd

Jacqueline Wilcock

MICM

Manildra Group of Companies

Retired

5 Years of Service Amelita Alfonso

MICM

JLG Industries (Australia)

Sheree

Averillo

MICM

Brickworks Limited

Analia

Baez

MICM

Vinidex Pty Ltd

Jeffrey

Brown

MICM

Matthews Folbigg Lawyers

Charlene

Cartes

MICM

Brickworks Limited

Simone

Conley

MICM

Voyages Indigenous Tourism Australia

Terence

Costa

MICM

The Anglican Schools Corporation

Leigh

Delaporte

MICM

SR Law

Indri

Dharma

MICM

Rexel Electrical Supplies Pty Ltd

Lee

Doel

MICM

Southern Sheet & Coil Pty Ltd

Julia

Fawcett

MICM CCE

Gerard Lighting Pty Ltd

Helen

Fenech

MICM CCE

Architectural Window Systems Pty Ltd

Kylie

Gomersall

MICM

Harvey Norman Commercial Division

Claudia

Harley

MICM

Scentre Group

Sazid

Hasan

MICM

Coates Hire

Hayley

Hitch

MICM

Matthews Folbigg Lawyers

Jacqueline Hutson

MICM

Revlon Inc

Frosina

Jovanova

MICM

GrainCorp Operations Limited

Laura

Kelly

MICM

Benedict Industries Pty Ltd

Deidre

Williams

25 Years of Service Christopher Clarke Neil Deryk Ian Glenn Pauline Grant Jodi Leila Ian

Cooke Ferdinands Greenwood Harris Heng Morris Sellick Sellwood Smallman

20 Years of Service Mohammad Alam Rachael Justeene Michael Suzanne

Hurrell Martin Murray Politis

MICM

MICM CCE MICM

MICM MICM LICM CCE MICM

MICM MICM CCE MICM MICM CCE MICM

WiseTech Global Limited Breville Group Pty Ltd LG Electronics Australia Pty Ltd Tech Data Advanced Solutions PH Legal Southern Steel Group Pty Ltd Bunnings Group Pty Ltd

Acquire Credit Risk Consulting Omnicom Media Group Electrolux Home Products Pty Ltd Seafolly Pty Ltd

15 Years of Service Sule Arnautovic

MICM

Domitila

Figueiredo

MICM CCE

Anthony

Gallagher

MICM

Comcol Services

Michael

Hardy

MICM

Macquarie Collections (NSW) Pty Ltd

Stephen

Mullette

MICM

Matthews Folbigg Lawyers

Christina

Safar

MICM

Rheem Australia Pty Ltd

Daniel

Turk

MICM

TurksLegal

Jirsch Sutherland

10 Years of Service Con Argyropolous MICM

Coates Hire

Tracey

Baleivalu

MICM

Rhino Rack

Georgia

Barbera

MICM CCE

Bingo Industries

Lynn

Blacklaw

MICM

Waterco Ltd

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Member anniversaries MICM

NetStrata

Marilyn

Parker

MICM

NSW Business Chamber

Debbie

Leo

MICM

Equifax

Reshma

Patel

MICM

Grant Thornton Australia Ltd

Felisima

Manalo

MICM

Sanofi-Aventis Australia Pty Ltd

Maria

Teodosio

MICM

Stoddart Group

Natalie

Monaghan

MICM

Harvey Norman Commercial Division

Nicole

Thompson

MICM

Northside Roofing Pty Ltd

Natalie

Moses

MICM

Louise

Thomson

MICM

Vinidex Pty Ltd

Shane

Northam

MICM

Bidfood Australia Ltd

Maria

Tisdell

MICM

NCI

Maria

Pacheco

MICM

Metcash Trading Limited

Kerryann

Turner

MICM

Heather

Pattullo

MICM

Equifax

Kayla

Woods

MICM

Rebecca

Pillai

MICM

Ecolab Pty Ltd

Roman

Wyrich

MICM

Manel

Pillai

MICM

Ecolab Pty Ltd

Ian

Renney

MICM

Brickworks Limited

Katrina

Sanders

MICM

GrainCorp Operations Limited

Miral

Sarvaiya

MICM

Ampac Debt Recovery

David

Schilling

MICM

icare

Sharon

Seaton

MICM

Brickworks Limited

Sofia

Singh

MICM

Brickworks Limited

Andrew

Smith

MICM

illion

Heather

Spring

MICM CCE

Bianca

Tayler

MICM

Brickworks Limited

Henrik

Valentin

MICM

NCI Surety and Finance Pty Ltd

Christopher Williams

MICM CCE

Kristin

MICM

DIVISION REPORT

Christopher Lagana

The Laminex Group

South Australia 50 Years of Service Michael Mount

LICM

Retired

40 Years of Service Vincenzo Forza

MICM

Chappell Builders Pty Ltd

35 Years of Service Rod Sims

MICM

NCI (Brokers) Pty Ltd

Knauf Group

30 Years of Service Andrew Begg

MICM

Macks Advisory

illion

Feryal

Daou

MICM

MC Chartered Accountants

Peter

Macks

MICM

Macks Advisory

Adrian

Pobke

MICM

Retired

Queensland

John

Smyth

MICM

Retired

35 Years of Service Gregory Young

25 Years of Service Kirk Cheesman

MICM

NCI (Brokers) Pty Ltd

George

MICM

SV Partners

20 Years of Service Andre Strazdins

MICM

BRI Ferrier

15 Years of Service Lisa Anderson

FICM CCE

Cooper’s Brewery

John

Antoniadis

MICM CCE

NCI (Brokers) Pty Ltd

Rachel

Coomblas

MICM CCE

Aspire 42 Services Pty Ltd

Nicholas

Cooper

MICM

Oracle Insolvency Services

Peter Reidpath Consulting

James

Devonish

FICM CCE

Oakbridge Lawyers Pty Ltd

Stephen

Prescott

MICM CCE

Samuel Smith & Son

10 Years of Service Alejandro Jaramillo

MICM CCE

NCI (Brokers) Pty Ltd

Peter

Mattiske

MICM

Brunswick Pty Ltd

Simon

Mortimer

MICM

Lynch Meyer Lawyers

Janelle

Muegge

MICM CCE

P & R Electrical Wholesalers Pty Ltd

Jacqueline Phillips

MICM

Kemps Credit Solutions

Luke

MICM

Charlton Rowley Pty Ltd

5 Years of Service Jacob Alexander

MICM

Credit Solutions Pty Ltd

Patrick

Aquino

MICM

NCI (Brokers) Pty Ltd

Dominic

Cantone

MICM

Oracle Insolvency Services

Emma

Clapp

MICM

National Credit Insurance (Brokers) Pty Ltd

Witt

LICM CCE

Australian Law Partners

25 Years of Service Jennifer Barclay-Smyth LICM CCE The Salvation Army – Moneycare Simon

Culotta

MICM

Lactalis Australia Pty Ltd

Gloria

Johnson

MICM

CBRE

Geraldine

Owens

MICM

Bradnam’s Windows & Doors Pty Ltd

20 Years of Service Dawn Boughton

MICM

Karen

Leggett

MICM

Peter

Reidpath

MICM

Morrison Geotechnic Pty Ltd Volvo Group Australia Pty Ltd

15 Years of Service Erica Barron

MICM CCE

National Masonry Pty Ltd

Emma

MICM

Langs Building Supplies Pty ltd

Beal

10 Years of Service Jane Hay

MICM

Sarah

Mizon

MICM CCE

Louise

Nightingale

MICM

Hanson Construction Materials Pty Ltd

John

Playfair

MICM

Playfair Consulting

Peter

Ryan

MICM

Peter Ryan Lawyers Pty Ltd

Brendan

Waghorn

MICM

Freedom Fuels Australia Pty Ltd

CNW Pty Ltd

5 Years of Service Ben Blake

MICM

Cleanaway

Kirsty

Gray

MICM CCE

Stoddart Group

Julie

Harper

MICM

Acrow Formwork & Scaffold Pty Ltd

Divitkos

Rowley

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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DIVISION REPORT

Member anniversaries Romeo

Iuliano

MICM

5 Years of Service Kate Baker

MICM

Urbis Pty Ltd

MICM

National Credit Insurance (Brokers) Pty Ltd Kemps Credit Solutions

Kerry

Pearce

White Cleland Lawyers

MICM

AMA Collection Services Pty Ltd

Barbone

MICM

Scacchitti

Ersilia

Maria Monika

Vucenovic

Berthelsen

Brickworks Limited

MICM

Kemps Credit Solutions

Shonna

MICM

Yip

Urbis Pty Ltd

MICM

NCI Commercial Collections

Blick

MICM

Quentin

Matthew

Rebecca

Young

Tim

DanielsonUpumoni Faulkner

Realestate.com.au Pty Ltd

MICM

Oracle Insolvency Services

Lorita

MICM

Catrina

Galanti

MICM CCE

Meghan

Gruber

MICM

National Credit Insurance (Brokers) Pty Ltd TaylorMade Golf Australia Pty Ltd

Timothy

Holden

MICM

Crouch Amirbeaggi

Malcolm

Howell

MICM

Jirsch Sutherland

David

Mackintosh

MICM

Shortcuts Software

Rikki-Lee

Madder

MICM

Reece Pty Ltd

Pirhana Collection Services P/L Ltd

Adrienne

Mills

MICM

Warrnambool Cheese & Butter Factory

Vince & Associates

Bianca

Mitchell

MICM

Reece Pty Ltd

Lee

Molinaro

MICM

Spicers Australia Pty Ltd

Lynne

Moynihan

MICM

Ridley Agriproducts Pty Ltd

Lily

Nguyen

MICM

Lander & Rogers

Eoin

O’Baoill

MICM

illion

Jan

Palmer

MICM

Work Wear Group

Michelle

Saavedra

MICM

Zdenka

Sare

MICM

Stefanie

Scardamaglia MICM

Reece Pty Ltd

Paul

Sharp

illion

Victoria 50 Years of Service Maurie Marchant 45 Years of Service Jeffrey Hurst 35 Years of Service Paul Pattison Peter

Vince

LICM

LICM CCE

MICM MICM

Retired Trade Bureaux Australia Pty Ltd

30 Years of Service Neil Birthisel

MICM CCE

BP Australia Pty Ltd

Cedric

Bywater

MICM

Sealed Air Australia Pty Ltd

Karen

Cockerell

MICM

Montlaur

Leigh

Cullen

MICM

Jaguar Roofing Services Pty Ltd

Chris

Klenkowski

MICM

Peter

Ligeti

MICM

Collections Australia

Jim

Minkou

MICM

Stramit Building Products

Kim

Radok

MICM CCE

Credit Matters

25 Years of Service Rick Dunham

MICM CCE

E B Mawson & Sons Pty Ltd

Fotios

Egglezos

MICM

NCI (Brokers) Pty Ltd

Natalie

Sherriff

MICM

NHP Electrical Engineering Pty Ltd

Ivan

To

MICM

20 Years of Service Ghislaine Chown

MICM

Andrew

Hawkes

MICM

Vaios

Kortikis

MICM CCE

MICM CCE

MICM

Peerless Holdings Pty Ltd

Western Australia

Fire Rescue Victoria

40 Years of Service Gerald Cavanagh

LICM CCE

Retired

BP Australia Pty Ltd

25 Years of Service Helen Nolan

MICM

Safeman

Louis

MICM

Health Corporate Network

15 Years of Service Troy Mulder

MICM CCE

Alinta Energy Keystart

Middendorp Electric Co Pty Ltd

Van Wyk

15 Years of Service Philip Carr

MICM

Melphi Consulting

Natalie

Walker

MICM

Geoffrey

Grecian

MICM

Effective Recoveries Pty Ltd

Jeff

Hoenig

MICM

Kanji Group

10 Years of Service Barbara Busby

MICM

Structerre Consulting Engineers

Rodney

Lamb

MICM

Orora Group

Stella

Hulm

MICM CCE

Credit Solutions Pty Ltd

Angela

Wanders

MICM

ASSA ABLOY Australia Pty Limited

Tracey

Paige

MICM

James

White

MICM

ENGIE Services ANZ

Giovanni

Panizza

MICM

Insight Mercantile Pty Ltd

MICM

Capricorn Society Ltd

10 Years of Service Claire Allison

MICM

New Balance Australia Pty Ltd

5 Years of Service Martin Bigg

Tania

Iliov

MICM

Integrated Recovery Services Pty Ltd

Daniel

Czaplinski

MICM

Emma

Kirley

MICM CCE

Kennedys Fresh Meat Specialists

Frank

O’Reilly

MICM

Cisco Systems Capital (Australia) P/L

Colette

Davies

MICM

National Credit Insurance (Brokers) Pty Ltd Hanson Heidelberg group

Robyn

Petz

MICM

Linda

Docherty

MICM

Laminex Group Pty Ltd

Shirley

Verbi

MICM

Cummins South Pacific Pty Ltd

Jean

Tholasse

MICM

Threat Protect Australia Ltd

Brilliant Lighting (Aust) Pty Ltd

Jane

West

MICM

Capricorn Society Ltd

Benjamin

70

Willoughby

MICM

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Queensland DIVISION REPORT

Your councillors celebrate Queensland Division winning the President’s trophy – Fiona Doherty, Julie McNamara, Steven Staatz, Toni Sawyer, Merv Mahoney, Roger Masamvu, Decia Guttormsen, Maria Schandl, Ashley Mason, Michelle Kirkby, Maddison Graham, Carly Rae and Stacey Woodward.

Nicole Neal (Results Legal), Lynn Grant (Pacific Petroleum), Lisa Silver (Results Legal),Kristy Staples (Pacific Petroleum), Marnie Woodhead (GPS Invest) and Gerrie Owens (Bradnams Windows & Doors).

Leona Adams (Results Legal), Jessica McKenzie (Fletchers Building), Anna Taylor (Results Legal), Teresa Lukasiak Brown (Chevron), Maria Schandl (Stoddarts), Karen Leggett (Volvo) and Hannah George (Results Legal).

President’s report

I would like to acknowledge the effort that the other state councils put into supporting their members. A big thank you and congratulations to the QLD council and Stacey for the acceptance speech. It must also never be forgotten the support we get from our sponsors Results Legal and Vincents as they are our go-to for a lot of support for events and facilities. I would also like to thank Nick and his team for all the support they provided especially this year as a lot of the heavy lifting was done by the Sydney team when we were unable to. Great job everyone!

The other thing we had since the last magazine was our annual WINC event at Cloudland. It was great to see all of you come out and support such a noble cause.

Also, this was our first face to face engagement since the relaxation of COVID safety measures. I think everyone was ready for the opportunity to re-connect with the wider AICM community and what better way to do so!

As things are winding down for 2020, we recently went through performance appraisals at work and it was a great time to reflect on everything that was 2020. I am grateful to be a part of such a supportive community of professionals as I think this year would have been significantly different if it were not for the AICM. I hope you all had similar experiences and if not, always happy to hear about how we can further support our members.

Since the last magazine, QLD was able to hit two milestones that were much reason for excitement. First up, we took home the President’s trophy! This is really a testament to the efforts of the entire council over the last year and really speaks of their commitment to the AICM. Just as a quick primer, the president’s trophy is awarded to the state council that best furthers the AICM’s objectives. I think we all had a very challenging year and

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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DIVISION REPORT

Queensland

Our inspirational speaker Monique Murphy tells her moving story.

Alison Beythien (Iplex), Jessica McKenzie (Fletcher Building) and Alyson Tregear (Iplex).

A great job to Maria Schandl on the fantastic job of hosting and to everyone else who helped make this another great event. Please keep an eye out for the next calendar for all our networking and educational opportunities we have lined up.

As we get closer to the holiday period, I hope that you are able to take time for self-care and for those that can, enjoy time with loved ones as we usher in the new year!

on ‘adaptive excellence’ and to help support mental health with all funds raised on the day going to Beyond Blue.

Big shout out to our Premium Sponsor Equifax, our supporting sponsors Results Legal and National Credit Insurance (Brokers) Pty Ltd and our amazing QLD Council, we appreciate and acknowledge the time and effort that goes into events like these.

A special mention to our fabulous host Maria Schandl who did a fantastic job on the day and also to everyone who contributed to the silent auction and raffle.

We cannot wait to see you all again in 2021!

– Roger Masamvu MICM CCE Qld Division President

President’s Trophy This year our wonderful QLD team was awarded the 2020 President’s trophy!

This trophy is awarded annually to the division that most advances the AICM’s objectives.

Our councillors devote a lot of their own personal and professional time to ensure that QLD hold quality events for our members. Although 2020 was a difficult year, our team came together to deliver amazing results and we will continue to do so through to 2021.

A big thank you to all our councillors from 2019-2020; Roger Masamvu, Julie McNamara, Stacey Woodward, Decia Guttormsen, Michelle Kirkby, Maria Schandl, Steven Staatz, Carly Rae, Merv Mahoney, Peter Mills, Ashleigh Mason.

Councillor Bio Fiona Doherty MICM CCE Qualifications: Diploma Current Position: Credit Manager Employer: Hanson Construction Materials Pty Ltd Commence with employer: 2018 Credit/professional background: My 1st role in credit was a builder’s merchants in the UK in 1982, I have stayed predominantly within the construction industry.

Fiona Doherty MICM CCE

WINC On Friday 20th November almost 180 guests attended the 2020 QLD AICM Women In Credit Luncheon at Cloudland.

It was so good to see many of our QLD members attend this event and be able to catch up with old friends and contacts.

It was a privilege to hear Monique Murphy’s story 72

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Portfolio: Signet Pty Ltd, Hume Doors, Neumann Steel Why I volunteer on the AICM council/Goals as Councillor: When I moved to Australia, I received so much support from the AICM. Toni Sawyer helped me through my diploma & introduced me to some amazing people. This is my chance to give a little back.

Queensland

Achievements with AICM: Joined council Oct 2019.

Still settling in.

Value I have gained through volunteering with AICM: Meeting an amazing bunch of professionals, some of whom are now close friends. The support network of so many incredible individuals Is priceless.

My passions aside from Credit/work: When I am not working I will be working out at F45 or walking, lots & lots of walking (running days are over due to injury). My remaining downtime is spent enjoying time with my family.

DIVISION REPORT

Qld Councillor Steven Staatz with Leona Adams (Results Legal), Ashley Leslie (Vincents), Josephine Decuyper (Vincents) and Hannah George (Results Legal).

Raffle winners! Stephanie Tranter (Volvo), Maria Schandl and Sabrina Austin (JHK).

The Australian Institute of Credit Management welcomes our Partners for 2021 National Partners

Trusted Insights. Responsible Decisions.

5 Year Membership Pin David Mackintosh What does the AICM mean to you?

The AICM has always been a great source of support and information.

But found the webinars and information provided during the middle of the year outstanding (COVID lockdown)

Divisional Partners

What have you learned this year with COVID19?

David Mackintosh I have learned and tried new methods of debt recovery and also increased my knowledge base with the various webinars that were offered by the AICM during the year. All very helpful and great to feel connected during the pandemic.

What are you looking forward to next year?

In the new year i am hoping for a more settled economy and hopefully with a vaccine coming to fruition a more settled customer base for the company i work for.

Official Division Supporting Sponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

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DIVISION REPORT

New South Wales

NSW Division celebrates with their Young Credit Professional: Michael Murray (Electrolux), Peter Morgan (NSW Division Director), Theresa Brown (NSW Vice President), Grant Morris (Southern Steel), Christopher Holden (NSW YCP winner) James Smith (ARMA) and Balveen Saini (NSW Division President).

President’s Report With the conclusion of 2020 and the beginning of 2021, I would like to extend a huge thank you to the NSW Council who work tirelessly in membership engagement, education and promoting the values of the AICM. As I reflect on the year that has passed, it has sure been challenging yet rewarding at the same time. It has been rewarding insofar that it has taught us resilience and the importance of communicating and changing the way we conduct business as we engage with our colleagues and peers.

This year the AICM hosted the Virtual National Conference in October 2020, which was a huge success.

Despite the change to the platform and format of the event, the quality of the speakers and the relevance of the topics resulted in notable membership engagement.

Well done to all those involved in the organisation and rollout of the Virtual National Conference.

With ‘virtual’ and ‘Zoom’ being the buzz words of 2020, we got together, via Zoom, and participated in the Virtual Awards Night. With divisional councils and members across the country hosting their own social distancing boardroom ‘Zoom Parties’ it was a fun way to let our hair down and celebrate the winners for 2020.

On 27 November 2020, we put the words ‘virtual’ and ‘Zoom’ to rest as we welcomed our members to the first face-to-face post COVID-19 lockdown event – 74

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Women in Credit (WINC). There was a buzz, laughter and excitement from the attendees as they were just as pleased as I to be leaving their home offices, active wear and Zoom call’s behind for the day.

WINC was a huge success, and with the added bonus of raising $4,619.23 for Beyond Blue, who was WINC’s chosen charity for 2020. All proceeds from the raffle, and auction, were donated to Beyond Blue so a very special thank you to those organisations and individuals who have made such generous donations to assist in raising the funds.

As life goes back to some form of normal, or as we adapt to our new ‘normal’, we have plenty to look forward to as we settle back into work in 2021. I look forward to sharing our plans for 2021 with you, when you return from a well-deserved break with your loved ones.

Wishing you a very happy and safe Christmas and New Year from all of us here in NSW. – Balveen Saini MICM CCE NSW President

AICM National Virtual Awards Night In late October, a small group of people were able to come together in person to celebrate excellence across a wide range of award categories. For many this was their first face-to-face AICM event in more than eight months.

New South Wales Student of the Year NSW member David Schilling was awarded Student of the Year.

We also spoke with David about his experiences.

Young Credit Professional of the Year NSW YCP Finalist Christopher Holden from Electrolux was clearly a strong contender – an ambitious credit professional with a thoughtful and engaging take on the industry. However, the YCP award for 2020 was taken home by Vic/Tas’ Rebecca Roberts from Sensis who impressed the judges with her knowledge and experience. Congratulations to Rebecca but also to Chris and the other state finalists for taking the time to participate in this highly rewarding process.

What motivated you to complete your CCE/further your education with the AICM? Completing the Cert IV in Credit Management provided me with a great opportunity to build on my knowledge of all things credit related, while gaining some valuable insights that could be applied across all aspects of my role within the collections space. What was also really appealing about completing this qualification through AICM was the opportunity engage with peers across our industry.

CCE Dux Where are you employed, and how long have you been working there?

I am employed by QBE Insurance as the Head of Payment Solutions. I have been working with QBE for just over 16 years.

NSW is proud that our member Mark Logue attained the CCE in 2020. We spoke to Mark about his experiences.

What motivated you to complete your CCE/further your education with the AICM? Having been actively involved with the AICM around Australia since 1987, (and with a little encouragement from Grant Morris), I thought it was finally about time that I sat the exam.

Where are you employed, and how long have you been working there?

I work at AMPAC Debt Recovery and was one of its founding employees back in 2010. I have spent almost all of my working life in the credit profession and it’s good to see that I have picked up a thing or two along the way!

How do you intend to utilise your new credentials in your current role?

Whilst it took me a while to get around to sitting the exam, I am pleased that I did, and I now intend to promote the CCE credentials widely and encourage others to also obtain their certification.

What are your passions aside from credit/work?

Pretty much anything with a motor in it.

An interesting fact about yourself: Nearly 18 years ago, I had the honour of delivering my baby son at home. He was in a hurry then, and 18 years later, he’s still in a hurry! I thought at the time, that if ever the debt recovery business went soft, at least I had done my practical work in midwifery.

How do you intend to utilise your new credentials in your current role?

Managing a team that is involved in collections activities across various business units within QBE, these credentials have helped solidify my own knowledge and understanding of the numerous important aspects of our role.

One of my goals was to take the learnings from the AICM qualification and apply these against our own existing processes. I found it valuable to take a step back and apply a different lens to our business based on what I had learnt. Given that we covered off key areas such as complaints management, the customer experience, and various regulatory obligations, I was keen to understand whether any gaps existed in our own processes. If so, we would then look to take steps to address these.

What are your passions aside from credit/work?

I am always keen to grab any opportunity to get outdoors and be as active as possible. From morning runs, to jumping on our paddleboard, to taking the kids on a bushwalk of a weekend.

Also, having three kids that are heavily involved in sport, I love seeing them in action either on the soccer field or netball court.

An interesting fact about yourself: I love competing in obstacle races. There’s no better way to get outside of your own comfort zone and really challenge yourself both physically and mentally.

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DIVISION REPORT

Fortunately, many more people across the country were able to “zoom in” to the inaugural AICM National Virtual Awards Night and join us remotely for the celebrations.

DIVISION REPORT

New South Wales

Your NSW WINC Committee: Theresa Brown, Beth Gray, Briony Akle (Guest Speaker), Balveen Saini, Kimberly Watts and Treacy Sheehan.

Patricia Kruse (ScotPac), Louisa Sijabat (Vincents) and Rosy Perabtani (ScotPac).

Successful auction bidders Grant Morris (Southern Steel), Odette Lafourcade (Byron Thomas) and Libby Simpson (New Balance).

Natalie Ledlin and Holly Jackson (both Ledlin Lawyers) and Britt Ekrol (Equifax).

Jade Zaprazny and Stella Lino (both Findex).

Susan Hawkins (Equifax), Allyson Colyvan (AMP), Kari Mastropasqua, Jillian Christie, Lisa Nelson, Clare McGill (all Equifax), Kimberly Ngo, Po-Ling Chiang (both HSBC) and Marina Harpur (AMP).

Women in Credit On 27 November the NSW WINC committee was excited to hold one of the few face to face events of 2020. Over 150 attendees met at the Dockside Darling Harbour – a giant venue that allowed us to socially distance while enjoying each other’s company.

The committee had organised a fantastic event MC’d by our President Balveen Saini.

2020 saw AICM select charity Beyond Blue as the worthy recipient of our fund raising. Representing the event’s supporting sponsor NCI, Sally Wilkinson, General Manager NSW/ACT introduced a video 76

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

produced by Beyond Blue and given the events of 2020, everyone appreciated the time taken by the presenter to tell her story and in addition consider the impact of the pandemic on people’s mental health.

Our keynote speaker was the head coach of the NSW Swifts Briony Akle. Attendees enjoyed Briony’s presentation that focused on the need to balance the demanding role she holds with the Swifts with that of her family and the challenges faced keeping the team motivated during the pandemic, moving her family to Queensland to continue training. Briony’s

New South Wales DIVISION REPORT

Balveen Saini (NSW President), Helen Stevens, Yasmin Sarkis, Luis Ormazabal (all BBW Lawyers), Jessica Campbell and Carlie (both Recoveries National).

Everyone was thrilled when recently retired industry stalwart Sharon French won a raffle prize with auctioneer Beth Gray.

The Australian Institute of Credit Management welcomes our Partners for 2021 National Partners

Trusted Insights. Responsible Decisions.

Natalie Hughes (NCI), Shalini Arora (Solgen), Corinne Stanley, Archana Chawla and Rebecca Bishop (all NCI).

Divisional Partners

CREDIT MANAGEMENT SOFTWARE

Official Division Supporting Sponsors

Julia Fawcett (Gerrard Lighting) asked one of the many questions of Briony.

candour and demonstrated sense of humour were well received.

Beth Gray then took to the lectern to auction 5 and present 43 raffle items from 27 donors, which combined with the raffle raised $4,620 for Beyond Blue. Thank you to everyone who contributed and donated.

A fantastic warm day to be out and about in Sydney and to meet with colleagues both new and old and we look forward to our WINC in 2021.

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

January 2021 • CREDIT MANAGEMENT IN AUSTRALIA

77

DIVISION REPORT

South Australia

President’s Report As I write, what is my first report for 2021, I reflect on what was a challenging, but still a rewarding 2020. I am sure that my optimism is not shared by all and that some still struggle to see what was rewarding in 2020!

While many of us had to adjust the way in which we worked and conducted our businesses, it allowed many of us to spend quality time with family and close friends.

Priorities have been realigned and I know that for me, I am now more focussed on those.

Adelaide has been particularly lucky throughout it all, with most of us back working from our offices by mid-way through the year. This has meant that our CBD businesses (in particular) have been able to rebuild and welcome back regular customers much sooner than our eastern state counterparts. It has also allowed our local businesses (across the board) to re employ staff. There is still a long way to go, and one of my remaining hopes is that our events industry will soon be able to resume some normality (whatever that means!)

Noting the fortunate position we found ourselves in at the end of last year, it meant that we were able to hold a fabulous end of year social function at Little Bang Brewery, a local, independent brewery and tap room located just on the outskirts of our CBD. The social function was well attended and it was wonderful to see so many longstanding and new members attending with us. It gave us all an opportunity to take a breath before, what was, a busy lead up to Christmas.

The Divisional Council is busy planning its 2021 calendar. We are hoping to bring you a diverse mix of professional development events, a national seminar series as well as a number of social and networking events.

As Adelaide gears up for what is traditionally our silly season, I look forward to seeing many of you at our events.

The commencement of the new year, has also seen the commencement of some very complex amendments to our corporate insolvency laws. Only in time will it be known if the amendments achieve the purpose they have been implemented for. I understand there are some further amendments to come, potentially in relation to personal insolvency, but I hope with those changes, there is more extensive consultation with our industry.

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CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Finally, I would also like to give a special shout out to our Divisional Sponsors, SV Partners, Credit Solutions and Lane Printing. Your ongoing support of the Institute and our Division is important and we thank you for that.

Here is to a better 2021!

– Alice Carter MICM CCE SA Division President

AICM end of year event Networking evening – Little Bang Brewery Company, 3rd December 2020

What a pleasant surprise was the Little Bang Brewing Company! Tucked away in the backstreets of Stepney, who would have known it existed until you are trying to park and realise the venue is full of people laughing, eating and drinking. Winner of the Eastside Business Awards for Best Pub/Bar 2018,2019 and 2020, this unique venue was launched in 2014. They have since grown their list of beers to over 50 – ranging from classic international styles to far out experimental tomfoolery – is what they say!

With a local producer, Gatch Wines, they share the brewing space and went on to make white wine, two reds, a rose and moscato. To finish off their dream, they went on to collaborate with Prohibition Liquor to create a series of small batch gins, with a Little Bang Twist !

This being our last event for the year, it was great to see how it brought together some of our senior credit managers as well as our younger YCP’s. A good cross section of age groups sharing in their last chance to network before 2020 was nearing an end.

We occupied a private function area upstairs which overlooked the distillery, bar, and where most of the people were eating and mingling. This added to the atmosphere as we could ‘people watch’ but also enjoy the designated area for our AICM event. Finger food was plentiful and scrumptious, offering some different tastings to our pallets!

The two hours flew by! The atmosphere was buzzing with all attendees mingling between their colleagues and friends and clearly enjoying themselves. What a way to finish the year.

Many went on to grab a coffee or continue into the night. It was a highly successful event and we will keep the venue in mind for future networking.

South Australia

The SA Division is very pleased to have a long-standing alumni of long-term members of the AICM. With the wealth of knowledge they offer, along with a standard of excellence in professional services, we think it is high time to celebrate their professional accomplishments and membership with the AICM.

Kerry’s interests outside of the credit profession Outside of her professional life, Kerry loves spending time with her family, and enjoys reading a good book.

Kerry Pearce Kerry is a Client Relationship Manager within the Local Government Team at Kemps Credit Solutions, has been a member of the AICM for 5 years.

Kerry specialises in debt recovery for Councils, and has been in her role for 6 years servicing several of South Australia’s large metropolitan Councils.

Communication has been a big component in supporting Kerry’s clients, along with the debtors affected. The importance of communication extends through to the team which she works with as well. Kerry advises that flexibility and the ability to be open to new ideas are key to being successful during times of uncertainty.

The Australian Institute of Credit Management welcomes our Partners for 2021 Kerry Pearce

National Partners

Prior experience in the credit industry Kerry started within the credit industry at the age of 16 where she was successful in gaining a role as an Office Junior. Her first employer was Procol Pty Ltd, where she worked for 10 years. Kerry learnt many aspects of the business including reception, finance and administration, and of course the role of an Account Manager.

Kerry left Procol Pty Ltd to start her family and spent 8 years caring for her children. Kerry then returned to the industry but this time, gained employment at NCML (National Credit Management Limited) on a part-time basis. Kerry spent 6 years working with NCML as an Account Manager within the Local Government Team.

Professional accomplishments Kerry cannot definite one exact accomplishment that she wishes to share, however within her time in this industry, she found great enjoyment in mentoring new staff and working with clients to create innovative processes from which the best benefits can be gained by both the client and the company.

How Kerry has managed her professional obligations during COVID-19 COVID-19 has been a very difficult time for all.

Trusted Insights. Responsible Decisions.

Divisional Partners

Official Division Supporting Sponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

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Meet a member

DIVISION REPORT

Victoria/Tasmania

Finally a Vic/Tas Council Face2face catchup – Brain Kay (Godfrey Hirst), Alan Izra (McMahon Fearnley Lawyers), Mary Petreski (Asahi), Michelle Carruthers (CreditorWatch), Catrina Galanti (NCI), Sherif Hussein (illion), Frank Gambera (recently retired from council) and Bridget Vaughan (guest) (both of McMahon Fearnley Lawyers) and Lou Caldararo (IMCD).

President’s report What a year 2020 has been for Australia, but more importantly Victoria! I’m proud to be part of such an amazing council team that banded together to support each other and all of our members during these times.

Catrina, Mary, Michelle, Ricky, Alan, Robyn, Farhan, Amaran, Lou, a huge thank you for keeping your spirits high and continuously going above and beyond your duties.

All these efforts did not go unnoticed as our division has won back the National Young Credit Professional trophy. Rebecca Roberts from Sensis was the icing on the cake to our year. She is our 2020 success story! Well done Rebecca!

While COVID-19 made it necessary for us to cancel most of our events this year the team and I are keen to make 2021 a year of reconnecting “face to face”.

We have a year jam packed with events, keep your eyes posted for the dates on our website and through the email updates.

I’m looking forward to seeing everybody next year.

– Sherif Hussein MICM CCE, VIC/TAS State President

National Young Credit Professional “Winner” Rebecca Roberts Victoria has had a tough year in 2020, but despite this Rebecca Roberts from Sensis brought back the YCP trophy to the Vic/Tas Division! It was a great victory and we are incredibly proud of her. We asked Rebecca to share her experience with us: “I entered into this process thinking “What have I got to lose?” (My mind came up with a number of responses to that question), now I am on the other side I can see that I only had things to gain. Taking part in the Young Credit Professional of the Year Award has been the most challenging yet rewarding experience of my career so far.

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Rebecca Roberts proudly displays her trophy.

After the Division Awards, I was able to make my presentation for the National Award on a credit topic of my choice. I spent a fair bit of time thinking about it and eventually decided to do a presentation on Hardship and Customer Vulnerability.

This is an area I am passionate about as I have seen first hand in a collections space how we can fail these customers when we do not have adaptable policies and procedures in place to support them. I wanted to express how evident it is that hardship is driven by Customer Vulnerability. I touched on how this is visible due to the current COVID climate but also at all times. Prior to my interview date, I was able to lean into the Vic/Tas Council for guidance and used them (along with my team at work) to practice my presentation.

Following the presentation, I had an interview with the three Judges and was asked to answer a number of

Victoria/Tasmania learnt that technology is a very useful adjunct to me being able to do my job effectively and efficiently.

Video meetings, remote working and the like are now commonplace and more accepted.

2021 will open with a population that has dealt with and continues to deal with COVID-19. It will bring with it hope and a clear understanding that business will survive.

With 2021 and the ability to travel within Australia, new opportunities will be encountered, and the disruption of 2020 will be a historical event that we can learn from.

It will be an opportunity for businesses to grow and develop.

Membership Anniversary celebrations!

Normally in December we would have celebrated our members that have reached a milestone membership at the Pinnacle awards. Unfortunately, due to COVID-19 our event was cancelled, however we would like to recognise these members here as we thought you might like to hear from them.

Natalie Sherriff MICM NHP Electrical Engineering Products 25 year of membership

The AICM has always provided a great support for Credit Management and the opportunity to meet and network with others in the same field.

This year has been one to forget but it has shown us all that Natalie Sherriff we need to be flexible and agile. In one way it has been amazing that in a space of a couple of weeks that the majority of the work force moved to home offices in March. I am looking forward to visiting my family in Adelaide for Christmas, who I haven’t seen since February, and in the New Year getting out and about visiting clients and networking once again.

Timothy Holden MICM Crouch Amirbeaggi 5 years of Membership

I see the AICM as the body that represents credit professionals in Australia. It educates its members so that they are better able to deal with not only customers but also insolvency practitioners. For me, it is this that is important.

When I am dealing with AICM Timothy Holden members in the context of insolvency, it is great to be able to interact with them as creditors who generally have a better understanding of insolvency-related issues than non-members.

COVID-19 has made this a year like no other. I have

Vaios Kortikis MICM CCE Middy’s 20 years membership

What does the AICM mean to you?

The AICM has been the gateway to my development and networking opportunities over the last 20 years. Since my first conference attendance in Canberra in 1999, I have built a number of relationships across the Vaios Kortikis country which has assisted in my growth and development as a credit professional. On a personal level, without the AICM I wouldn’t have met my wife who I met at a conference a few years ago.

What have you learned this year with COVID-19?

I’ve learnt that businesses can adapt quickly and decisively when faced with a pandemic like COVID-19. Despite the harsh lockdown, businesses were able to transition to a ‘working from home’ policy quickly to ensure their on-going viability. Not just businesses, families spent far more time together at home, children home-schooling with parents working from home where possible.

What are you looking forward to next year?

I’d like to say an overseas holiday, but not likely. My children moved to Victoria at the beginning of the year and shortly after went straight into lockdown, so I’m looking forward to taking them out and showing them more of what Victoria has to offer.

Rick Dunham MICM CCE Mawsons 25 years of Membership

AICM membership has been great, it has provided great professional industry support & certainly has promoted the role of credit managers and credit staff through business and the necessity for all business to take control of credit

Rick Dunham

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questions surrounding my presentation and different areas within the credit space.

The experience encouraged me to step out of my comfort zone and pushed me to challenge myself, it has boosted my confidence and supported me in my passion for credit. I encourage anyone working in the credit space that is passionate and wants to grow their career to take part. Regardless of the outcome, you will have pushed yourself and learned so much about yourself and the credit space in the process.”

DIVISION REPORT

Victoria/Tasmania issues. In my working life, I have seen the credit department change from being a behind the scenes, little regarded part of a business, to a prominent and well-regarded area of all business that is critical when making business decisions. This can be attributed to the prominent and professional image that the AICM portrays and promotes. Also, through the AICM I have established some great contacts and friendships.

COVID-19 has been a very interesting period of time for us out in the regional areas of Victoria & New South Wales. Our business is supplying and delivering concrete and quarry products to a full range of customers. Being aligned with the building and construction industry we have experienced an extremely busy period of time with increased production which has kept us ahead of annual budgets. We have certainly been one of the luckier industries. We have had to adapt to the contactless delivery of product & paperwork and hopefully can improve these processes moving into the new COVID normal.

Looking forward to the borders opening up to Queensland so that we can go on a well-deserved holiday!

Ben Willoughby MICM Brilliant lightning 10 years of membership.

What does the AICM mean to you?

This is a wonderful, well established organisation for over 50 years providing leading professional services and support to credit professionals all over the nation that I have a tremendous affiliation Ben Willoughby with. This brings a sense of pride, inclusion and acknowledgement that I share with many of its diverse and talented AICM members.

What have you learned this year with COVID-19?

A greater appreciation for my colleagues, friends and family with some mixed emotions and empathy for those Australians who have lost their business or job and are experiencing health challenges. 2020 has heightened my sense of humanity.

What are you looking forward to next year?

Further restrictions and borders easing. Travelling and reconnecting with everyone across Australia and abroad.

With a vaccine and unprecedented stimulus packages from the Federal and State governments 2021 and beyond has a positive economic outlook. Many people and companies such as Brilliant Lighting with whom I work for will perform strongly and are more adept in this pivotal time of our lives.

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Rikki-Lee Madder MICM Reece Group 5 years membership

What does the AICM mean to you?

I love the networking opportunities the AICM provides for young ambitious credit professionals. The ability to continue learn and grow our knowledge through webinars and courses is another great part of the AICM.

Rikki-Lee Madder

What have you learned this year with COVID-19?

The importance of working for a great organisation. This year has been an extremely difficult and challenging time for a lot of people from a personal and professional point of view. I’ve learnt if you have a great team behind you with leaders and mentors to guide you that you really can achieve amazing things even through a pandemic.

What are you looking forward to next year?

I’m looking forward to connecting with the team face to face and not over a computer screen. Being able to head back into the office so there is some separation from work/home life and also enjoying the things we took for granted such as holidays and spending time with family and friends.

Tim Faulkner MICM CCE CH2 5 years of membership

What does the AICM mean to you?

The AICM provides me with multiple benefits. First & foremost it is very member focused organisation which is very important. Secondly, it keeps all credit professionals up to date with the latest economic news, Tim Faulkner changes to laws etc. Thirdly, it’s a great way to further your knowledge of the credit industry by obtaining certification such as a CCE, but there are plenty of other options to look at also. The networking is also great and I feel the AICM has really grown as an organisation and gotten better and better over time.

What have you learned this year with COVID-19?

Goodness me, what a year. From a non-work perspective, COVID has certainly forced us to simplify our lives, particularly with the multiple lockdowns in Victoria. From a work perspective, it’s never been more important to ensure companies have a strong credit team. In times of economic stress, if you don’t get your invoices paid, it’s a slippery slope to oblivion. The flip side of course is to ensure we show compassion to our customers in acknowledgment of a very difficult year.

Victoria/Tasmania

What are you looking forward to next year?

I started at CH2 in July and met my collectors face to face just the once before we went into lockdown again so seeing everyone back in the office will be pretty special for me. Just having the freedom to go and visit customers will also be great.

From a holistic perspective, I’d love our economy to bounce back as quickly as possible so that our friends in travel and all the other industries that have suffered horribly can get their businesses back up and running.

Peter Ligeti MICM Collections Australia 30 years of membership

What the AICM means to me?

The AICM means many things to me which I will detail in point form: z It makes me very proud to be a member of a professional governing body which looks after its members in the credit Peter Ligeti industry. z When I started in credit 45 years ago, we, in the credit department were “those people” in the backroom who asked for money and companies were almost embarrassed and reluctant to acknowledge us – you had to be in “sales” to be recognised. z Over the years the AICM has taken “credit” from a backroom operation and helped highlight the fundamental importance of not just cash flow but CREDIT as a whole and that if any part of the credit process, including the people in the credit department, were not up to standard the negative impact it could have on any company or business. z In my opinion of the greatest changes has been to ensure that the “credit industry” is accepted as a professional institution along with Accountants, Solicitors etc. z Also, the many wonderful people that I have met through the AICM over the years and even though we may not be in touch on a regular basis, when we do catchup, it is as if there has never been a gap – it is as they say, a brother/sisterhood, we are a community that supports each other and if not for the AICM this would never have been possible.

What have I learned during this year with COVID? z I have learned that all past collection trends are completely useless z Due to a lack of debtors being able to spend their

money on entertainment, holidays etc, and along with so much government support, collections are up, and overdue accounts and bad debts are down. z That I have needed to change how I collect i.e. telephone calls need to have new conversations but still within the guidelines, correspondence including emails amended. z The government has used the pandemic to change insolvency laws – they have advised that they are only temporary but let’s wait and see if they go back to what they were before as there has been a push by some factions to help debtors avoid paying their debts.

What am I looking forward to next year? z The thing that I am most looking forward to next year is going back some semblance of normality z I think that once the government handouts to both business and consumer are either stopped or returned to the previous levels, this is where we see if business and the economy has truly bounced back z Further to my comment above, in my opinion Christmas spending will mask a lot of what the true economy is like and by April/May we may see a very sharp increase in debt in all areas z Getting my golf handicap back down

Meet your NEW council member Alan Izra MICM Lawyer, McMahon Fearnley Lawyers Pty Ltd

Alan’s major areas of legal practice involve commercial litigation and commercial law. Alan was recommended by his mentor to participate and attend AICM events.

When asked, Alan said he loved attending the events held by AICM Alan Izra and accordingly, expressed his interest to be a Councillor and has been on the Council ever since.

When asked about his aspirations when joining Council, Alan said that as a young professional, he knew that volunteering would provide him with the opportunity to build his professional network and be part of a community in the credit industry.

Alan joined the Council’s Regulation and Legislation Portfolio to provide legal insight into the latest insolvency regulations relevant to credit professionals. Regulation and Legislation is familiar topic for Alan and an area he could contribute to the credit industry. Since joining the Council, Alan has gained a great network and friends, and says that he has enjoyed every second of it.

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These points alone demonstrate the difficulty of being in credit. Having to balance the credit requirements with the commercial side of ensuring you keep your customers happy. Knowing your customer is the key!

DIVISION REPORT

Victoria/Tasmania A fun fact that not many people would know about Alan is that he is a car enthusiast. Next time you are at a VIC/TAS event, come and say hello to Alan and talk legal or cars with him. He would love to meet you.

Certified Credit Executive (CCE) – ARE YOU ONE OF THE 100?

Vic/Tas Division has over 100 members that are eligible for their Certified Credit Executive (CCE), this means that they have over 100 CCE points from attending AICM functions, events and the like. The CCE is an award recognising current knowledge and practice in the credit industry. This is great to have on your LinkedIn profile and resume to make you stand out for a new position, pay rise or even comfort in realising that you know more than you think. There are 2 options to sit the CCE: z Option 1 is an online exam and an essay z Option 2 is a 3 hour classroom style exam Let’s hear from

Malani Mason MICM CCE Group Credit Manager Reece Group Australia Malani selected Option 1 to achieve CCE status during 2020.

A little bit about Malani: I’ve been in collections most of my life. I worked at a collection agency very Malani Mason early on in my career and eventually branched out and opened up my own collection agency.

Reece had always been part of my collection portfolio so after many years I eventually transitioned over to work at the Reece Group and have been here for the last 5 years.

Why did you choose to sit the CCE? I was encouraged by my Manager Rhys Buzza to undertake the CCE, he had full confidence in me. I didn’t have the 100 points at the time, but I spoke with the AICM team and they asked if I filled out my previous experience when I re-joined, which I hadn’t. After doing so, I shot straight past the 100 points very easily.

How was the CCE process for the online exam?

The process was seamless, the questions were clear and concise, I knew exactly what I was doing. I received a log in to access the exam and I’ll be honest; I paused the exam mid-way through so I could do some work. It’s a great feature to not have to do the exam all at one time.

What did you learn?

That I knew more than I thought I knew. It was such a great reinforcement of my knowledge. The exam results came through the next day, so I didn’t have to stress too 84

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much or wait too long, and I was very pleased with the results.

How did you find the 3500 – 4000 word essay?

I had 5 months to submit the essay which I have since completed and submitted. I was able to choose from 3 topics given to me by the AICM or alternatively choose my own (but seek their approval of the topic). It was a little daunting to write an essay as I haven’t written one since school.

Advice to people thinking about doing the CCE? The CCE is well recognised and respected in the credit industry. If you know insolvency, legal and credit experience you honestly can’t fail it. Encourage your team to sit the exam together. Get in there and have a go, what’s the worst thing that could happen? *Don’t forget that prior industry knowledge counts towards your 100 points. This includes training sessions external to the AICM too! Reach out to the AICM to get this added to your points.

The Australian Institute of Credit Management welcomes our Partners for 2021 National Partners

Trusted Insights. Responsible Decisions.

Divisional Partners

CREDIT MANAGEMENT SOFTWARE

Official Division Supporting Sponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

Western Australia/Northern Territory DIVISION REPORT

Our end of year Sundowner was held at The Camfield, Perth on December 3rd.

Mikaela Lorentzon and Angelene Neville (both Synergy).

Gus Oliveira, Mariana Pereira, Nirav Shah and Elny Martin (all SV Partners) with Jeremy Coote (BGC).

President’s Report

turned into something of a godsend in the face of the pandemic, with the closure of our borders and strict controls all but eradicating community transmission early, meaning that our restrictions were eased relatively early and we could return to some form of normality, all whilst watching our east coast colleagues go through some very challenging times.

Whilst the pandemic put pause on many of our usual events and functions, we were able to welcome a full house (COVID restrictions in place) to our WinC event in September, where we raised over $800 for Beyond Blue and heard some very inspiration stories from Keynote speakers, Nadia Mitsopolous and Emma Missen.

The National Conference went ahead in October, albeit in a virtual format and by all accounts, was well received with good content and informative and engaging sessions and panels, of which I was fortunate

And just like that, there are but a few short weeks left in the year 2020 and what a year it has been! When our main concerns at this time last year would have been what to wear to the Christmas party, and whether we could get to ALL of those Christmas lunches, little did we know that corporate life was soon to be turned on its head.

Our year in the West started quietly, with only whispers of the ‘Rona on the horizon before we were faced with the panic, uncertainty and fear that became the worldwide COVID Pandemic. Normal life for all of us changed, with forced work from home conditions, the closure of borders, social distancing and panic buying (who could forget the great toilet paper shortage of 2020!). The often rued ‘Tyranny of distance’ that hinders us Western Australian’s in our dealings with the East

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Western Australia/Northern Territory

We’re so fortunate in the west to be able to come together in 2020.

Breakfast planned for early February. Speaking of Divisional Council, I need to take a moment to recognise the outstanding contributions these professionals make to the AICM, the WA Credit Community and their employers. A heartfelt thanks to Raff, Rowan, Byron, Kevin, Jeremy, Martin and outgoing Councillor, Melissa for all your efforts this year.

And to all of our West Coast members, colleagues, associates and friends, please have an enjoyable and relaxing holiday season. I look forward to seeing you all again next year, and I thank you for letting me serve you as your Divisional President.

Stay safe and be good to each other.

– Troy Mulder MICM CCE WA Divisional President Agus Halim, Steve Brooks and Emily Taplin (all Synergy).

WA end of year Sundowner to be able to participate on. I am sure that many of us will be hoping that we can return to some form of in-situ conference again next year, supplemented by virtual or stand alone State activities, as their effectiveness was well demonstrated during this year’s events.

And finally we were able to close out the year in the shadows of Optus Stadium, as we hosted our EOY event, where we farewelled 2020 and turned our sights to next year. This event also provided the perfect opportunity to recognise previous National and State President and Director, Frank Vredenbregt who has retired after many years of dedicated service to the credit industry both Nationally and here in WA. Thank you Frank, we are forever in your debt.

The Western Australian Divisional Council are now focusing on next year’s events, finalising our 2021 calendar with the first event, the Economic Update 86

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On Thursday the 3rd of December, the AICM held an end of year Sundowner event at The Camfield in Perth. The venue is nestled alongside Optus Stadium (the “Craypot” to locals) and offers a stunning 180 degree view of the Swan River from the eastern bank as well as the Matagarup Bridge that connects pedestrians to East Perth. The Camfield also provided a genial atmosphere and friendly staff along with excellent food and drink.

The WA chapter of the AICM took the opportunity to formally thank a local stalwart of the industry in Frank Vredenbregt LICM (CCE). You can read more about Frank’s career below.

The evening was enjoyable and a valuable chance to catch up for many of our members in attendance.

We look forward to hosting more events and providing value to you in 2021.

Western Australia/Northern Territory – celebration of an outstanding career!

WA Division Director Rowan McClarty presents life member Frank Vredenbregt with a certificate celebrating his career and his contribution to both AICM and our industry.

As if this year has not been tumultuous enough, after nearly 22 (21.99 to be exact!) years at AHG as Group Credit Manager, Francis (Frank) Vredenbregt has decided to hang up his credit gloves!

Frank has been an integral part of the WA, and indeed the National credit community, for the best part of 40 years. He joined the AICM in 1987 as an associate. Frank was employed in the finance industry at the time and a pre-requisite of his role was that he had to be a member of the AICM! After four years Frank decided he wanted to do more and joined the WA Council in 1992 and then in 1994 he became an associate senior.

The first Portfolio Chair he held was Education – there was no RTO at the time so the council used to run workshops and legal seminars and had to organise speakers, arrange a venue and run the seminar.

There was one per month in the evening, followed by fellowship (old-timers’ word for networking!). Frank also held the portfolio of Sponsorship, at a time when the council had to source sponsors for each event held.

During this time, the council set up the Basil Dunn award, an annual award in WA to recognise an individual who had made a significant contribution to the credit industry in that year. You did not have to be an AICM member to win the award and the award ran for several years. During Franks’ tenure on council the annual Young Credit Professional of the Year award was implemented in WA, which was the fore runner to the national event as we currently know it.

WA also used to hold an annual State Congress, which could not be held within 6 months of the National

Conference, which at that time was held every two years. All councillors took on a share of the workload across all the portfolios to ensure that the AICM succeeded in performing its charter – to educate members and the general community in all matters of credit!

Frank became division Treasurer and held this Frank – blast from the past. position until becoming WA President in July 2004, after which he was appointed to the WA Director position in November 2005 and joined the Board. Mike Murphy was National President at this time and Frank became National President after Mike and held the position from October 2009 to October 2012.

In December 2012 Frank was awarded life membership of the Institute and became a LICM. Enjoy your retirement Frank!

The Australian Institute of Credit Management welcomes our Partners for 2021 National Partners

Trusted Insights. Responsible Decisions.

Divisional Partners

Official Division Supporting Sponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

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Frank Vredenbregt

DIVISION REPORT

New members The Institute welcomes the following credit professionals who were recently admitted to membership.

New South Wales

Northern Territory

Marilyn Stewart

IMCD New Zealand Limited

Leon Cleal

Power and Water Corporation

Drew Beresford

Equifax

Kylene Endriga

Power Water Corporation

Ash Bhatia

Jeld-Wen Australia Pty Ltd

Kirsty List

Power Water Corporation

Suchitra Chittineni

Canon Finance Australia

Jillian Christie

Equifax

Lynette Coulter

Bob & Pete’s Pty Ltd

Queensland

Elias Danos

Suntory Coffee Australia Pty Ltd

Joseph Basson

Rostron Carlyle Rojas Lawyers

Jessica Marie Dusevic

Rostron Carlyle Rojas Lawyers

Gary Forrest

Equifax

Michael Finch

Rostron Carlyle Rojas Lawyers

Connor Hindom

Gimmie

Cherie Finn

Jeld-Wen Australia Pty Ltd

Charmaine Jackson

Bradnams Windows and Doors

Katrina Goncalves

Transurban

Rebecca Legge

Bidfood Australia Ltd

Cathy Gosling

illion Australia Pty Ltd

Mysa Mohannak

Rostron Carlyle Rojas Lawyers

Jose Greaver

Bob and Pete’s 100% Yum

Thomas Parker

Gimmie

James Hatzopoulos

Rostron Carlyle Rojas Lawyers

Donna Rose

Jeld-Wen Australia Pty Ltd

Catherine Higginson-Smith Equifax

Levi Smouha

Rostron Carlyle Rojas Lawyers

Briana Ibrahim

Bidfood Australia Ltd

Teisha Vanderwolf

Bradnams

Kate Jackowski

Bidfood Australia Ltd

Amy Webster

Rostron Carlyle Rojas Lawyers

Ashish Khanal

CreditReboot

Susan Withers

ERM Power

Kriti Khanna

Jaybro Group Pty Ltd

Klevis Kllogjri

Rostron Carlyle Rojas Lawyers

Jim Koukouras

Rostron Carlyle Rojas Lawyers

South Australia

Nicola Kyprianou

Optus

Robert Bak

Bridgestone Australia

Tze-Ming Low

Vodafone Australia Ltd

Krystal Baker

Group Management Services

Allison Marinos

Jeld-Wen Australia Pty Ltd

Dalia Kamal Basta

Northline Service Centre Pty Ltd

Susan Monaghan

Transurban

Peter D’Alfonso

Restore My Credit

Denis Murarotto

Jeld-Wen Australia Pty Ltd

Jane Fraser

Boral Australia – Boral Building

Lisa Nelson

Equifax

Products

Lisa Pardi

Transurban

Debra Lester

Fullerton Health Australia Pty Ltd

Lack Petrovsky

Bidfood Australia

Yousif Matti

Matti Lamb & Associates

Dimple Prasad

Jaybro Group Ltd

Debra McInerney

Cavpower Pty Ltd

Laileen Rao

Transurban

Pasha Mehr

Conatur Legal

Melissa Rooke

Jeld-Wen Australia Pty Ltd

Jennifer Park

Group Management Services

Kerrie Sala

Transurban

Daniel Tandler

Restore My Credit

Trudy Smoothy

Transurban

Maddie Taylor

Northline

Mel Suleyman

Fujitsu General (Aust) Pty Limited

Janice Zilm

Detmold Packaging

Roseann Tiqui

Bidfood Australia Ltd

Michelle Upton

Transurban

Grant Wong

Equifax

Tasmania

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Mark Gaetani

Coogans Tasmania

Chris Simmons

Tasmania Collection Service

New members DIVISION REPORT

AICM Membership

Victoria Kerstin Bateman

IMCD Australia Pty Ltd

Michelle Budziarksi

Jeld-Wen Australia Pty Ltd

Janice Carbone

Clifford Hallam Healthcare Pty Ltd

Melissa Cardamone

IMCD Australia Pty Ltd

Vic Caruso

Timberlink Australia Pty ltd

Dilshani Desilva

BSN Medical Pty Ltd

Phil Duxbury

Angle Finance

Sarsha East

Jeld-Wen Australia Pty Ltd

Joanne Edmonds

Angle Finance

Nick Edwards

Equifax

Andrei Gubin

mecwacare

Julie Hackett

IMCD Australia Pty Ltd

James Higgins

mecwacare

Grant Howells

Garrison Lending Operations

Simone Johnson

IMCD Australia Pty Ltd

Diana Lee

Heidelberg Australia

Mark Mansilla

mecwacare

Angela Marzella

IMCD Australia Pty Ltd

Chen Mi

mecwacare

Benjamin Sheridan

Urbis Pty Ltd

Individual Membership AICM members are entitled to use the post-nominals MICM and, after one year of membership, able to work towards the Certified Credit Executive qualification through CPD activities and assessment. Members are also eligible to be elected to their relevant Division Councils.

Employer-sponsored membership

Palghat Sivaramakrishnan Calendar Cheese Company Pty Ltd Dianne Sullivan

CH2

Ann Waycott

Jeld-Wen Australia Pty Ltd

Helen Webb

Jeld-Wen Australia Pty Ltd

Wincy Wood

Moula Money Pty Ltd

Kerry Furno

Zipform Digital

Stacey Garner

Zipform Digital

For the full benefits of membership at discounted rates, employers can sign up any number of their staff. Additional benefits for the employer include: z Significant savings on costs of membership z Improvement of the credit management maturity of the company z Incentives for staff retention z Simplified access to expert knowledge through AICM resources z Improved education of employees through discounted attendance of AICM meetings, seminar and formal training

Retired membership Retired membership allows AICM members who are no longer working full time to keep in touch with industry developments and continue to have access to AICM resources, events and training.

Student membership

International Bradley Twarowski

AICM is focused on improving the credit industry by providing useful, practical information and guidance to members, which helps them to meet the high professional standards that the AICM sets and upholds.

Members have access to a range of training and CPD events and resources that have been developed specifically for the credit industry, including the annual National Conference and a forum for networking with peers and sharing their expertise.

Student membership is available to full time students who are not employed. We encourage students who are interested in credit to become involved and understand the credit profession.

Snap-On Credit

Employer Sponsored (Group) Membership The program offers employers the opportunity to enrol multiple employees as members of the AICM at a discounted rate. The more members, the greater the discount from the standard cost of $415.00 for a new member.

To find out more about AICM Membership go to www.aicm.com.au

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AICM Marketplace Directory of services For information, options and pricing please contact Andrew Le Marchant on +61 2 8317 5052 or E: andrew@aicm.com.au ADVISORY AICM Divisional Partner

SV Partners Suite 7, Ground floor, 26 St Georges Terrace Perth WA 6000, GPO Box 2527, Perth WA 6001 Tel: 08 6277 0026 Fax: 07 3229 7285 Email: perth@svp.com.au SV Partners is a national specialist accounting and advisory firm, with offices in the metropolitan and regional areas of each state, across the eastern seaboard. Our expert accountants and advisors have the skills and experience to assist across a wide range of areas, including insolvency, turnaround and advisory services for accountants, financial institutions, corporations, financial and legal advisors, and their clients.

COLLECTIONS

COLLECTION SYSTEMS

DISTRIBUTION & PRINTING AICM Divisional Partner

AICM Divisional Partner

Esker Australia Pty Ltd Suite 1502, Level 15, 227 Elizabeth Street, Sydney NSW 2000 Tel: 02 8596 5126 Email: info@esker.com.au Web: www.esker.com.au Cash is the heartbeat of your business, so give your AR department the tool they deserve! Esker’s AR solution help companies reduce costs for invoice delivery, accelerate their cash collection process and automate the reconciliation of payments.

Contact us to easily achieve your cash collection goals, tackle root causes of payment delays and reduce collection disputes while improving customer relationships.

AICM Divisional Partner

Lane Communications Tel: 08 8179 9900 Web: www.laneprint.com.au Lane are widely regarded as one of the largest and most technologically advanced print production and distribution companies in Australia. We are an industry leader in digital and offset print, point of sale signs, complex embellishments and print finishing, storage, kitting and mailing. With innovation at our core, our services extend beyond transactional mail and promotional print production to include SMS, bulk email communications, and electronic billing solutions. Lane are your partner in print and multichannel communications.

INFORMATION

AICM Divisional Partner CREDIT MANAGEMENT SOFTWARE

CreditorWatch

OnGuard AMPAC Debt Recovery Level 5, 35 Clarence Street Sydney NSW 2000 Tel: 1300 426 722 Email: info@4ampac.com.au Web: www.4ampac.com.au Trust AMPAC, we guarantee to give you the right advice……

AMPAC provides a complete range of debt recovery and receivables management services to big business, government and thousands of SME’s nationally, so next time you are deciding how to deal with that difficult customer, pick up the phone and call us. We are ready to help you too.

Tel: 1800 123 613 Web: www.onguard.com OnGuard’s Credit management solution will help you hit your collection targets – each and every month.

By working smarter and providing better visibility, OnGuard will help you reduce your DSOs. Why not give your staff a friendly solution that will make their life so much easier.

Contact us to show you how OnGuard has made life a whole lot easier for our customers.

GPO Box 276 Sydney NSW 2001 Tel: 1300 501 312 Web: www.creditorwatch.com.au CreditorWatch is a leading commercial credit reporting bureau used by over 50,000 businesses across Australia. CreditorWatch offers a variety of products including customer monitoring/alerts, credit reporting, an indepth trade program and online credit applications to assist with customer onboarding and decisioning. Contact us today for more information or to organise a FREE TRIAL of any of products.

CONSULTANCY AICM National Partner

AICM Divisional Partner

Trusted Insights. Responsible Decisions.

Australian Recoveries and Mercantile Agents Tel: 1300 363 394 Email: info@armagroup.com.au Web: www.armagroup.com.au ARMA is a specialist provider of contingent debt recovery solutions, outsourced accounts receivables and litigation services. ARMA was started with the aim to have fewer customers and provide better service.

We provide big agency expertise with a boutique service. The ARMA team has a wealth of experience in the debt collection industry across a diverse range of markets that was gathered from working at some of the largest collection agencies in Australia.

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illion

Credit Solutions Unit 1/245 Fullarton Road Eastwood SA 5063 Tel: 08 8418 1450 Email: gcrowder@creditsolutions.net.au Web: www.creditsolutions.net.au Credit Solutions, a division of the Credit Clear Group. A debt collection partner you can trust.

Working with some of the country’s leading providers of information management and data intelligence solutions. Since 1965 Credit Solutions has set the benchmark for providing quality collection and recovery services to South Australian businesses and government.

CREDIT MANAGEMENT IN AUSTRALIA • January 2021

Tel: 13 23 33 Web: www.illion.com.au Dun & Bradstreet has changed. We are now illion.

Bringing data, analytics and insights to life is at the heart of what we do, and we will continue to break new ground in the product development and innovation space. Our commercial and consumer databases enable Australian businesses and consumers to make informed decisions, based on real time data drawn from an extensive range of sources. We remain a reliable and trusted partner to a wide range of global organisations, who use our solutions for credit reporting, risk management, sales and marketing and receivables management.

AICM MARKETPLACE

AICM Marketplace Directory of services For information, options and pricing please contact Andrew Le Marchant on +61 2 8317 5052 or E: andrew@aicm.com.au INFORMATION AICM National Partner

TECHNOLOGY

LEGAL AICM Divisional Partner

CreditSoft Solutions Equifax

Nova Legal

Tel: 13 83 32 Web: www.equifax.com.au

Level 2, 50 Kings Park Road West Perth 6005 Tel: 08 9466 3177 Web: www.novalegal.com.au

Equifax is a global information solutions company, providing data and insights that help organisations and individuals make more informed decisions. As a leading provider of credit information and analysis in Australia and New Zealand, Equifax serves key markets in risk management, marketing services and HR solutions.

Drawing from trusted sources to compile and process data, Equifax helps its customers see things and make connections that others can’t.

Nova Legal can assist with the recovery of problem debtors (large and small). Founding director Raffaele Di Renzo acts for creditors, debtors, directors, credit managers and insolvency practitioners in relation to solvency issues and dispute resolution.

AICM Divisional Partner

INSOLVENCY

Tel: 1300 720 164 Email: info@creditsoft.com.au Web: www.creditsoft.com.au CreditSoft specialises in providing credit managers with innovative products that will save your business significant operating costs and allow you to manage your time and resources more efficiently. We offer contact, tracing, payment, reporting and analytic solutions that redefine the way credit departments operate. Our goal is to ensure you achieve the best possible return on your investment.

TRADE CREDIT INSURANCE National Supporting Sponsor

AICM Divisional Partner

Results Legal

Vincents Level 34 Santos Place, 32 Turbot Street Brisbane QLD 4000 Tel: 1300 VINCENTS

(07) 3228 4000 Web: www.vincents.com.au We live in a world of increasing complexities; the need for true expert advice is now more evident than ever. Established for more than 25 years Vincents is an Australian firm of accounting experts and business advisers specialising in assurance and risk advisory, business advisory, corporate advisory, financial advisory, forensic services, and insolvency and reconstruction. Gain insight and take control with Vincents.

Level 4, 183 North Quay Brisbane QLD 4000 Tel: 1300 757 534 Web: www.resultslegal.com.au Results Legal is a national firm with a focus on promoting and protecting the rights of trade creditors.

Our clients are some of Australia’s largest trade credit companies who rely on our assistance for legal recovery, dispute resolution, preference claim defence and PPSA rights. Results Legal are the obvious first choice for companies seeking a national solution to resolve commercial disputes and pursue swift, successful and cost effective legal recovery action.

AICM National Partner

Tel: 1300 265 753 Web: www.insolvencyintel.com.au Email: answers@insolvencyintel.com.au Insolvency Intel: a subscription-only provider of insolvency and turnaround services for credit managers. Backed by national firm Jirsch Sutherland, our friendly team is just a phone call or email away, providing members with practical, strategic advice about corporate and personal insolvency. Free initial consultation; networking opportunities; training and presentations; knowledge database access; regular newsletters.

Register now for a free subscription.

Tel: 1800 882 820 (freecall) Email: info@nci.com.au Web: www.nci.com.au National Credit Insurance Brokers (NCI) has established itself as the premier trade credit insurance broker in Australia, New Zealand and Singapore. Trade credit insurance is a highly specialised area of insurance and, with its 30 years of experience, National Credit Insurance Brokers has developed an unmatched depth of expertise in arranging the right protection at the best price for your particular trading needs.

Trade Credit Risk Pty Ltd

TurksLegal Insolvency Intel

National Credit Insurance Brokers

Tel: 02 8257 5700 Web: www.turkslegal.com.au Contact: Daniel Turk

Tel: 03 9842 0986 Email: Siobhan@tradecreditrisk.com.au or

Sharon@tradecreditrisk.com.au Web: www.tradecreditrisk.com.au

TurksLegal is a specialist commercial law firm with 33 Partners and over 160 staff across our Sydney, Melbourne and Brisbane offices. We are proud to look after the interests of trade creditor suppliers and financial institutions in: l Portfolio debt recovery using our market-leading, real-time client interface, ‘TurksFocus’ l Resolution of complex debt disputes l PPSA recovery l Defence of unfair preference claims l Supply documentation and guarantees.

Trade Credit Risk (TCR) is a Boutique Specialist Broker for Trade Credit Insurance. TCR has a very experienced team to provide personal service on all aspects of credit management. We provide the following services: l Insurance against bad debts for domestic and export ledgers l Credit Checks l 24/7 Monitoring of debtors for adverse information l Credit Limit Opinions

AICM MARKETPLACE

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The Publication for Credit and Financial Professionals

IN AUSTRALIA

Level 3, Suite 303 1-9 Chandos Street St Leonards NSW 2065 PO Box 64 St Leonards NSW 1590 Tel: 1300 560 996 Fax: (02) 9906 5686 www.aicm.com.au