Credit Management in Australia - July 2022

Volume 29, No 3 July 202

The Publication for Credit and Financial Professionals

IN AUSTRALIA

Technology and customer engagement

Our experts share how technology can empower your team

Our 2022 supporters National partners

Trusted Insights. Responsible Decisions.

Divisional partners

CREDIT MANAGEMENT SOFTWARE

Divisional supporting sponsors

2 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Contents Volume 29, Number 3 – July 2022

Message from the President

6

Pathways Digital and collaboration technology in the credit industry Recent graduates Training calendar

10 12 12

13 Malcolm Poslinsky MICM CCE

13 Andrew McLellan MICM

PPSR How to stay on the money trail if you supply to the construction sector

13

Malcolm Poslinsky MICM CCE and Andrew McLellan MICM

Annual PPSR Housekeeping

16

16 Xander van der Merwe

20 Stirling Streeter

Xander van der Merwe

Technology and Customer Engagement How fintechs can manage credit risk

20

Stirling Streeter

The rise of the digital finance function. How to build a resilient and agile finance function

22

22 Eric Maisonhaute MICM

28 Steve Ferhad

Eric Maisonhaute MICM

Credit and innovation: What we have learned working with credit professionals over the years

28

Intertview with Steve Ferhad and Chris Hadley MICM

Five big benefits for automating your credit management business processes

32

28 Chris Hadley MICM

32 Miriana Lowrie

Miriana Lowrie

How is AI technology changing the face of customer engagement in credit management?

36

Nikki Dennis MICM

Incorporating customer engagement and credit reporting.

David Johnson MICM

42

36 Nikki Dennis MICM

42 David Johnson MICM

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 3

ISSN 2207-6549

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 Julie McNamara MICM CCE – Queensland 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

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52

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56

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Allan Kawalsky MICM

Caleb Delaney MICM

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62

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Jodie Bedoya

Harika Mamidi

Jaco Veldsman

Briana Harris MICM

PUBLISHER Nick Pilavidis FICM CCE | Email: nick@aicm.com.au CONTRIBUTING EDITORS NSW – Gary Poslinsky MICM Qld – Stacey Woodward MICM SA – Clare Venema MICM CCE WA/NT – Jeremy Coote MICM Vic/Tas – Michelle Carruthers MICM EDITOR/ADVERTISING Claire Kasses, General Manager Tel Direct: 02 9174 5727 or Mob: 0499 975 303 Email: claire@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, 2022.

JOIN US ON LINKEDIN

James Neate LICM CCE

Georgia Gray

The psychology of choice: How to engage positively with your customers – so they choose to pay you first!

46

Jodie Bedoya

Autonomous finance: The new era of finance function

52

Harika Mamidi

Cash flow management in an app-fatigued world

54

Jaco Veldsman

Legal Are the security terms in standard form supply contracts really all that secure?

56

Allan Kawalsky MICM and Caleb Delaney MICM

Phoenix falls flat – IntelliComms sale not intelligent!

60

Briana Harris MICM

Click Here EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO: The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or email: aicm@aicm.com.au

Court confirms guarantees are fully enforceable!

Member Anniversaries 4 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

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James Neate LICM CCE and Georgia Gray

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Contents

Volume 29, Number 3 – July 2022

68 Qld: Madison Ryan MICM (Dynamic Supplies) and Mackenzie Gunn (Agility Law Group) at the Oche event.

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NSW: Julia Fawcett MICM CCE (Noumi Limited), Tony Pilimon MICM CCE

(Rexel Australia), Bruce Bills MICM CCE (Metcash) and Stewart Free MICM (Jirsch Sutherland) at the Risk Seminar.

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SA: Jenny Paradiso – Women in Credit keynote speaker.

Vic/Tas: Rachel Burdett (Cor Cordis) responding to audience questions at the Risk & Insolvency Seminar.

Division Reports

New members

68 73 78 82 89 92

Marketplace

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Queensland New South Wales South Australia Victoria/Tasmania Western Australia/Northern Territory

89 WA/NT: Jan Cooper OAM (West Coast Eagles) at the Women in Credit event.

For advertising opportunities in Credit Management In Australia Contact: Claire Kasses, General Manager Ph: 1300 560 996 E: claire@aicm.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 5

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From the President

Trevor Goodwin LICM CCE National President

W

elcome to the latest edition of the AICM Credit Management magazine which focusses on best practice approaches to harness people and technology under the theme of ‘Customer Engagement and Technology’. Artificial intelligence, digital marketing, CRM, big data and machine learning are some of the new tools of a customer engagement revolution. What does it all mean for the credit profession? In this edition you will learn from experts in this field while also reading interesting general credit subjects and regulation updates which will help members enhance their skills and credit knowledge.

The AICM’s new website implemented a few months ago is already providing members and the national office team significant efficiencies proving to be a worthy investment to assist in the customer relationship management of our operations. It has enabled our members and team to be more engaged and involved in the Institute’s activities and with each other.

Economically, we are seeing a raft of factors such as inflationary pressures, rising interest rates, negative real wage growth, labour shortages, supply chain disruptions, high fuel prices and extreme weather conditions dampening growth and our economic road to recovery with company insolvencies continuing to rise, particularly in the construction industry.

The AICM have a proud history of excellence and professionalism, and we have an energetic, supportive and loyal community of members. We also have a fantastic group of professionals in our board and councillor volunteers, supported by an enthusiastic national office team who are passionate about supporting our members in their careers and professional development.

Over recent years, under the strategic leadership of the board and management team, AICM has made important progress in the credit services space delivering education which is an essential pillar of every professional body. It is vital that AICM continues to grow its role in this area and expand its suite of education and delivery options to build on the work already achieved over many years.

We are seeing record attendance at our courses

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including the webinars which enables attendees to tune in without leaving the office. Over coming months, you will continue to see us deliver more relevant and timely events on contemporary issues relevant to our members in every discipline within credit services.

AICM will also continue to focus on our role as an impactful and proactive voice for our community of members with government and regulators, advocating for reforms that help to create a stronger AICM community and profession.

We have recently received the results of your feedback through our members survey which show the Institute is delivering on members needs and is an important organisation for credit professionals to be a part of. It is important for the board and management team to hear about how you believe AICM can be more relevant to your role as a credit professional.

We are in for a busy and exciting second half of 2022 including the National Conference which is being held in Brisbane. Registrations are open and it is pleasing to have received an excellent number of registrations already. The conference is a great opportunity for members and their colleagues to engage and connect while learning the latest updates on credit, technology, legislation and the economy.

I encourage members to register for the National Conference as it will be an insightful program for both commercial and consumer credit professionals.

A recent policy approval by the board is an enhancement to the criteria for Fellow status. The previous criteria stated an applicant for FICM must be a member of the AICM for 10 years, held CCE for 3 years, and served on the board/division Council.

The board has approved a further option of service to the Institute and profession for CCE’s with 10 years or more membership as a mentor or ambassador contributing to the development of individuals, the institute, or the profession through writing articles, presenting at conference and seminars as an alternative to serving on Council or Board. Divisional Councils are encouraged to nominate candidates they think will be suitable under the new criteria. We look forward to recognising more people that have contributed through sharing their experience.

From the President

The AICM’s Education Foundation continues to develop and help suitable candidates advance their career. Recently nominees were interviewed for the Education Foundation scholarships which are on offer this year. These scholarships assist successful applicants with corporate financial support to progress their careers in credit management via AICM Toolboxes and Workshops.

I am delighted with the Institute’s growing membership base. In June we reached a milestone of 2,800 members which is the highest number of members since 2004. Credit professionals are seeing the benefits of what the AICM has to offer with training and connections. Other notable achievements since the last edition of the magazine was the record participation at the Women in Credit events, including 200+ attendees at the Victorian event, strong attendance in other divisions including 95 at the WA function. The functions provided a fabulous fund-raising opportunity for this year’s charity partner “Dress for Success”.

In June members received their copy of the annual Risk Report which gave an informative insight to current risks being faced by businesses and by credit professionals. It was a detailed report and I thank those people who contributed articles including CCEs, Partners, Sponsors, and Members.

In July divisions are holding their interviews of the Young Credit Professional Award which is sponsored

by ARMA (a Creditclear company) and CreditorWatch.

I congratulate the 39 finalists and wish them well with their application and interview process. State winners will be announced at their divisional Awards Dinners which are always enjoyable evenings, and the winners will then go through the national judging process at the Gold Coast conference in October.

Credit Team of the Year applications are closing at the end of July, and we anticipate a number of excellent entries in this award which is sponsored by Equifax. The National Credit Team of the Year Award is an opportunity for credit teams to be recognised for the outstanding work, results, culture and learning they undertake throughout the year. Nominating your credit team has many personal and professional benefits including the chance to demonstrate best

practices in credit management. The award provides opportunity to gain both team and individual recognition within the credit industry and internally within your company while also developing personal presentation skills and building of team spirit.

July is also the time of the year where each division holds its AGM and elects Council members for the next 12 months. Any financial member can nominate to serve on their State Council and serve for a period of 3 years. After which they can nominate for a second term of 3 years. I encourage members to consider nominating for divisional council as it very rewarding and can assist with career development, while working with likewise credit professionals in a friendly team environment.

As the credit profession’s largest member organisation, the AICM continues to take the leadership role in driving sustainably and progressive contributions to all credit related matters and training.

With all this in mind it is important to stay involved in the AICM through professional development, the national conference, credit management magazine and our networking functions. The board, supported by the divisional councils and National Office team look forward to working diligently in the new financial year and implementing strategic plans to assist in the ongoing growth and success of the Institute. This includes helping our members and their organisations rethink their credit management services in an era of technology, automation, globalisation and rapidly changing customer expectations.

Thank you for being part of our AICM community.

I am optimistic and excited about AICM’s future as an innovative and forward-looking membership body for professionals in the credit services industry. AICM can help advance your career, encourage members to get involved at events, councils and awards program and become active members of a thriving community of credit professionals.

Until next time, stay safe and involved with the Institute. I hope to see of you in Brisbane in October at our first face to face National Conference since 2019.

– Trevor Goodwin LICM CCE National President

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 7

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“I am delighted with the Institute’s growing membership base.

In June we reached a milestone of 2,800 members which is the highest number of members since 2004. Credit professionals are seeing the benefits of what the AICM has to offer with training and connections.”

AICM Qualifications Have you considered a career in credit management?

Credit management is the provision of credit and related services to individuals (consumer credit) and business (commercial credit).

This may include:

` Evaluating applications for a credit facility(s) using tools such as credit scoring, evaluation techniques ` Monitoring and managing these facilities ` Collections and the recovery of monies owed through legal and non legal remedies ` Management of cashflow and financial reporting.

Credit professionals are also involved with bankruptcy and corporate insolvency.

Risk management and compliance management underpin the role of a credit professional.

Credit professionals have a wide range of career opportunities ranging from roles related to accounts receivable through to managing billion-dollar ledgers with national and international responsibilities.

Who employs credit professionals ` ` ` ` ` ` `

Banks Credit unions Financial institutions Providers of credit card services Companies across all industry sectors Government organisations Insurance companies

AICM Learning Services As a National registered training organisation AICM is able to offer nationally recognised qualifications through a variety of pathways.

Currently, we offer the Certificate III in Mercantile Agents, Certificate IV in Credit Management and the Diploma of Credit Management. ` Our programs are available in trainer led workshops and distance education formats. ` Streamline your qualification training by receiving recognition for your current skills. ` We offer training to suit all levels within the credit profession.

Career pathways Qualification

Content

Common job titles

FNS30420 Certificate III in Mercantile Agents

Beneficial to individuals who are working for a mercantile agent and/or collections role in companies and financial institutions.

` ` ` ` ` `

Mercantile Agent Accounts Receivable Clerk/Officer Collections Officer Customer Service Officer Recovery Clerk/Officer

FNS40120 Certificate IV in Credit Management

Ideal for individuals who have experience in credit and need to enhance their skill to contribute more to an organisation. This qualification addresses issues relating to credit applications and securitisation, compliance, managing bad and doubtful debt and customer service.

` ` ` ` ` ` ` `

Credit Officer Credit Controller Credit Analyst Recoveries Officer Reconciliations Officer Credit Services Officer Credit/Lending Officer Credit Team Leader

FNS51520 Diploma of Credit Management

Provides the opportunity to deal with key credit issues such as personal and corporate insolvency, developing credit policies and compliance. Learners are then able to select from a range of electives which address consumer credit, factoring and discounting, managing customer service, managing individuals and managing change.

` ` ` ` ` ` ` ` ` ` `

Credit Manager Senior Credit Officer Senior Decision Manager Debt Manager Credit Executive Credit Analyst Credit Operations Manager Senior Credit/Loans Officer Chief Credit Officer Group Credit Manager Credit Risk Manager

The AICM is the leading provider of financial services training specialising in credit in Australia.

For more information about training or membership, contact:

1300 560 996 or aicm@aicm.com.au

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Pathways

Digital and collaboration technology in the credit industry Since the onset of the pandemic, digital technologies have come to the forefront of our lives changing the way we work and educate. It has provided both convenience and comfort to our work/life balance but has also imposed its own set of challenges for the sector.

As with other with other industries, the credit sector has taken new direction, thanks to the emergence of modern technology. Technology already allows you to get an online loan with just a few taps on your mobile device. Companies now have their commercial credit application forms on their web sites for online procedures. This is very different to even a decade ago when options were somewhat limited to getting access to credit.

This is only one scenario that shows that credit has become much more flexible and responsive to all types and needs of customers. Let’s delve into this further.

Digital technologies The credit industry recognises the importance of digital technologies as a powerful lever to improve their profits, improve regulatory compliance, and transform their customer experience. The latter imperative has taken on heightened importance in the COVID-19 crisis, as remote and mobile access have shifted from conveniences to necessities for

“The credit industry recognises the importance of digital technologies as a powerful lever to improve their profits, improve regulatory compliance, and transform their customer experience.”

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many millions of customers. Going forward, expect digitisation to play an even more central role, as the industry finds innovative ways to serve their customers during and after the crisis.

Digital proficiency involves a range of capabilities including advanced analytics, intelligent process automation, and digitisation. While customerfacing products and touchpoints have become more digitised (e.g., online interactivity with customers and mobile payments), business processes are less so. Embedding digital collaboration into business process workflows promises to open up steep improvements in employee productivity, leading to significant value creation for the industry.

Collaboration technology has quickly become a necessity for businesses in every industry.

The ability to streamline communication and collaboration efforts between in-house and remote teams provides companies with multiple benefits that equate to greater success. Collaboration technology enables teams to work together in realtime – despite their locations – to solve problems and perform vital tasks. Let’s examine some of the benefits collaboration tech provides businesses.

Flexibility In today’s globalised marketplace, both employees and clients demand flexibility. The number of remote workers is on the rise, and with the help of collaboration technology, these remote workers are now able to perform the vital tasks of their jobs from wherever they are. Collaboration technology enables employees to communicate and share ideas whenever – and wherever – their best ideas come to them.

Increased productivity Increasing employee productivity leads to greater profits and more improved business functions

Pathways aicm

from top to bottom. Collaboration technology – when used correctly – decreases the feeling of isolation among workers and improves employee productivity. Implementing collaboration technology correctly gives employees the tools necessary to feel more engaged with tasks, and increases productivity among both in-house and remote workers. In fact, remote teams using collaboration technology often outperform co-located teams. How? Collaboration technology provides the backbone for efficient and effective communication, which leads to greater engagement and increased productivity.

Reduces costs Collaboration technology allows businesses to forgo the expense of travel by implementing visual communication tools. For example, video conferencing is a great example of the type of collaboration technology that allows companies to cut back on travel costs. Video conferencing allows real-time, face-to-face conversations to take place anywhere.

Increased accessibility of documents and resources One of the most critical components of success is the accessibility of documents and resources.

Collaboration technology simplifies sharing and accessing documents. Various collaboration technologies offer simple and user-friendly sharing

capabilities that make file sharing a breeze.

Collaboration technology also allows companies to record and save various training videos for future use. Knowledge transfer is critical to the success and longevity of a business, and collaboration tech increases the accessibility of documents and resources.

Competitive edge Globalisation in the marketplace has led to greater competition, not only for new clients, but also for talent acquisition. Collaboration tech will give companies the edge they need to stay competitive. Recruiting high-talent employees, finding new clients, and retaining existing clients are all made possible with the use of collaboration tech. Collaboration technologies have the ability to make distance disappear and can foster better relationships with business partners.

Want to learn more?

Undertake a distance education course in collaboration technology and receive a nationally recognised statement of attainment for BSBTEC404 Use digital technologies to collaborate in a work environment which forms part of the FNS30420 Certificate III in Mercantile Agents qualification.

Click below for further information Distance education courses ➤ July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 11

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Pathways AICM recent graduates AICM would like to congratulate its recent graduates:

FNS51520 – Diploma in Credit Management Jessica Mills

Queensland

Acrow Formwork and Scaffolding Pty Ltd

Jennifer Newby

Western Australia

Refuel Australia

Caroline Janji

New South Wales

Qantas

FNS40120 – Certificate IV in Credit Management Jennifer Newby

Western Australia

Refuel Australia

Deonne Jankowski

New South Wales

Kingspan Insulated Panels

FNS30420 – Certificate III in Mercantile Agents Ainsley McKenzie

Queensland

Collection House Group

Statement of Attainments Stacy Ridge

NSW FNSCRD403 – Manage and recover bad and doubtful debts Smeg Australia

Moira Dutton

QLD

FNSCRD401 – Assess credit applications

Natasha Morris NSW FNSORG512 – Develop, implement and monitor policy and procedures

Endeavour Foundation Snap-on Tools

Virtual classroom training calendar Date

Type

Topic/event name

Tuesday 9 August

Core unit – Cert IV

FNSRSK411 – Apply risk management strategies to own work

Thursday 11 August

Toolbox

Collect with confidence

Tuesday 16 August and Wednesday 17 August

Core unit – Certificate III

Identify and manage individuals experiencing hardship

Thursday 18 August

Workshop

Personal Property Securities

Tuesday 23 August

Core Unit – Cert IV

FNSCRD405 – Manage overdue customer accounts

Thursday 25 August

Masterclass

How to trade with trusts

Tuesday 6 September

Core unit – Cert IV

FNSCRD404 – Utilise the legal process to recover outstanding debts

Thursday 8 September

Toolbox

Understanding credit risk

Tuesday 13 September and Wednesday 14 September

Core unit – Diploma

FNSORG512 – Develop, implement and monitor policy and procedures

Thursday 15 September

Workshop

Understanding corporate insolvency

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PPSR

How to stay on the money trail if you supply to the construction sector

By Malcolm Poslinsky MICM CCE and Andrew McLellan MICM*

Malcolm Poslinsky MICM CCE

Andrew McLellan MICM

Many people in the construction industry believe that the Personal Property Securities Act (PPSA) has no benefit for their business. The argument is that even if they have a registered retention of title clause, their goods are fixed to land or buildings and therefore cannot be repossessed.

While this argument is valid, most businesses do not want their goods back anyway – they would prefer to get paid. In this article, we provide case studies to show how the PPSA has been benefiting suppliers in the construction industry since it came into effect in 2012.

Follow the money Suppose you supplied materials to a building contractor and the contractor on-sells your goods in the ordinary course of their business. This arrangement creates ‘proceeds’, and under the PPSA, you can register a security interest on the Personal Property Securities Register (PPSR) in those proceeds.

Most commonly, proceeds take the form of a book debt due from the building owner to the insolvent contractor.

One of our customers was a steel supplier who needed help recovering money from an insolvent roofing contractor. The supplier ➤

“Suppose you supplied materials to a building contractor and the contractor on-sells your goods in the ordinary course of their business. This arrangement creates ‘proceeds’, and under the PPSA, you can register a security interest on the Personal Property Securities Register (PPSR) in those proceeds.”

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 13

PPSR

“The supplier knew which contracts its materials had been used for because it had either delivered materials directly to the site or had a contract reference on its invoices to support its security interests in the debts on the PPSR.” knew which contracts its materials had been used for because it had either delivered materials directly to the site or had a contract reference on its invoices to support its security interests in the debts on the PPSR. With the benefit of the registered interests, the supplier approached the roofing contractor’s receiver with a list of contracts matched to unpaid invoices, claiming security in book debts. There were a small number of contracts where the building owner had paid out, and the money had been spent.

In these instances, the supplier lost out on those. However, for

the remainder, the result was a complete success. z Where the contract was complete, the registered interest allowed the receiver to collect the book debt. In turn, the receiver undertook to account for the value of the steel when collected from the supplier. z Where the contract wasn’t concluded, but the receiver was proposing to complete it, the registered interest allowed them to use the supplier’s materials on their undertaking to account for the value of the steel in the contract when the contract was completed and the money collected.

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The steel supplier recovered about two-thirds of its money and was the only supplier to receive any payment from the receivership because of its registered security interests.

Protect the money Another supplier we helped had been supplying wall coverings to a contractor installing the coverings in schools and council buildings. The supplier knew where its materials had gone since it had contract references in its documentation and had registered corresponding security interests on the PPSR. The contractor had not become

PPSR

insolvent, but it was a slow payer and had been placed on ‘stop credit’. Relations between the parties were poor, as the supplier was concerned that the wall coverings installer would collect the proceeds from its contracts and use the money to pay other creditors.

The supplier claimed security in the proceeds and threatened to bypass the installer and approach its customers directly, demanding payment. This action would have inevitably started rumours in the industry that the installer was in financial difficulty.

The supplier entered a deal that allowed the installer to collect the debts – on the undertaking that proceeds would be paid into a solicitor’s trust account. In turn, the solicitor undertook to pay the supplier for the value of the materials in debt.

The supplier recovered all their money.

Hold on to the money Another of our customers was in the habit of accepting lumpsum payments from contractors.

In the pre-PPSA world, this left the customer open to claims from liquidators for unfair preferences if one of their contractors became insolvent.

When this occurred, our customer found the PPSA to be a game-changer, because their registered security interests meant that they became a

“There’s often confusion about the benefits of the PPSR. Business owners who don’t realise how important it is to register their security interests on the PPSR miss out on a valuable opportunity to protect against the financial loss that could occur when a customer goes bust.” secured creditor of the insolvent contractor and could resist claims from liquidators on the grounds that its preferences only arose from payments to unsecured creditors.

insisted on the vendor obtaining a discharge of the security. This discharge meant the vendor had no choice but to approach our customer and settle the outstanding debt – a simple but effective result.

Put a stop to your debtors Another of our customers had more than 60,000 debtor accounts and a real problem with the ‘long tail’ of low-value debtors.

These debtors would often sell their business and ‘shoot through’ without paying their creditors.

Even if our customer knew where the former business owner was, in most cases, the cost of pursuing them would be greater than the likely benefit.

The PPSA really helped this customer’s position. It has now become standard practice for solicitors engaged to advise the purchaser of a business to conduct a Personal Property Security Register (PPSR) search to ensure the assets were unencumbered.

On seeing our customer’s registered security, the solicitor

“Another of our customers was in the habit of accepting lump-sum payments from contractors. In the pre-PPSA world, this left the customer open to claims from liquidators for unfair preferences if one of their contractors became insolvent.”

Summary There’s often confusion about the benefits of the PPSR. Business owners who don’t realise how important it is to register their security interests on the PPSR miss out on a valuable opportunity to protect against the financial loss that could occur when a customer goes bust. With an increasing volume of business failures expected this year, particularly in construction, it’s time to act now to seek this protection before it’s too late.

All experienced credit managers know there is no such thing as a silver bullet that will work in all situations. The PPSA doesn’t change this, but it introduces new techniques that can be used to great effect.

*Malcolm Poslinsky MICM CCE EDX T: 0401 911 817 E: malcolm@edxppsr.com.au *Andrew McLellan MICM EDX T: 0417 009 924 E: andrewm@edxppsr.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 15

PPSR

Annual PPSR Housekeeping

By Xander van der Merwe*

With EOFY now behind us, it’s a great time to focus on some annual PPSR housekeeping.

Everyone focuses on the act of registration and whilst it is critical, the ongoing management of your PPSR registrations is just as important but often overlooked.

Remember, registration takes a minute, management is for life.

This is particularly relevant if you’re still using the government’s PPSR registration platform, rather than a third-party software provider.

Reconciliation Reconciling your PPSR registrations to your customer and your equipment lists (if applicable) is important to ensure all customers are registered. This task is a lot easier if the Giving Of Notice Identifiers you’ve used are customer related i.e. their client/debtor number. It’s also a lot easier if your software reports your registrations in a clear, easy-to-understand format. Many do not.

Renewals As the Government site does not warn of impending registration expirations, you’ll have to manage this task yourself. Maintaining a list of renewal dates is very important

Xander van der Merwe

and a constant task as time goes by. We’ve seen the results from unintentional registration expiry and they’re not good.

As part of your annual PPSR housekeeping, identify when registrations are due to expire over the coming 12 months and plan quarterly renewal dates. It’s fiddly if you don’t have the right software to do it for you, but it’s better than missing a renewal date.

Even better, if your registration software allows for automatic renewals, switch it on. Then all you need to worry about is discharging registrations when a customer leaves, much simpler and safer.

Grantor details Unless your software monitors changes to your Grantors you should, at the very least, run an ABN check to ensure your Grantor identifiers are current and are appropriate for the Grantor’s entity type.

Check to ensure your Grantor’s ACN or ABN is current. Cancellation might be an indicator of operational issues.

If your software doesn’t stop you from using your Grantor’s ABN when an ACN exists, you should make sure all your ABN

“Reconciling your PPSR registrations to your customer and your equipment lists (if applicable) is important to ensure all customers are registered.”

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PPSR

“As part of your annual PPSR housekeeping, identify when registrations are due to expire over the coming 12 months and plan quarterly renewal dates.” registrations are in line with the requirements of the PPSA. Remember, using an ABN identifier where the Grantor has an ACN will invalidate your registration.

Similarly, your registration software should be alerting you when you use an ABN for a sole trader. You must use their full name and date of birth, if not, the registration is invalid.

Registrations against you An often-overlooked housekeeping matter is to review the PPSR registrations performed against your business. Only the most sophisticated registration software will monitor and alert you when someone performs a PPSR registration against you.

Accordingly, it’s up to you to perform a PPSR search of your own business and review the registrations and the secured parties performing them. ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 17

PPSR

Make sure you agree with the level of security being claimed by secured parties, particularly any All Present and After Acquired Property registrations.

If you have any concerns over the nature of any registration, you can challenge the Secured Party and request further details and evidence of their security. A formal process for requesting a discharge of any PPSR registration exists and should be used if you disagree with a Secured Creditor’s claimed security.

Registration details should also be reviewed to ensure they comply with the PPSA. You should check the usual culprits: z Has PMSI been correctly elected? z Are Proceeds claimed? z Is your Collateral Description appropriate? z Are your Controlled and Subordinated elections correct? z What about Inventory?

There is also an unusual culprit which should be addressed, Transitional registrations.

At the commencement of the PPSA, Transitional registrations could be performed, essentially enabling security interests created under security agreements existing prior to the PPSA (2012) to be registered.

Transitional registrations were very popular and as they were free, many were performed for terms of more than 25 years and are still in place and being relied upon.

Technically, the registrations remain valid, but are they effective? As Transitional registrations, they represent security interests created under terms and conditions of trade that existed prior to the commencement of the PPSA. What if you’ve issued new terms since then, changed or enhanced your security? Is the correct security being registered?

An argument for the lawyers

See you at AICM’s

I’m sure, but not one you want to participate in.

Once you’ve completed your housekeeping and identified the changes/amendments required you’ll appreciate the capabilities of advanced registration software, enabling multiple and bulk amendments, discharges, and renewals to be performed.

Far better for us to identify an issue than an insolvency practitioner rejecting your security due to an issue in your registration. It would thus be prudent to ensure that your PPSR software platform provides features to assist in identifying and managing such issues.

*Xander van der Merwe Founder MH Interactive E:xander.vandermerwe@ppsrcloud.com T: +64 21 862 555 www.mhinteractive.net MH Interactive are the software developers behind PPSR registration software, including the most advanced PPSR Cloud platform.

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CONFERENCE B R I S B A N E 19 - 21 October 2022 | Sofitel Brisbane Central

go to www.aicm.com.au for more details 18 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

The AICM has held WINC luncheons nationally since 2015 and has created motivational occasions for credit professionals to connect, be inspired and elevate women in the industry. Our 2022 WINC luncheon and webinar theme is ‘walking together through 2022’ and is focused on the growth opportunities of leading through uncertain times.

The AICM is passionate and committed to providing continuous support to help women achieve their potential and thrive in their personal and professional lives.

SAVE THE DATE QLD Friday, 19 August 2022 TAS Friday, 9 September 2022 VIEW PHOTOS HERE

The 2022 WINC events will support Dress for Success Australia Dress for Success is a not-for-profit organisation that empowers women to achieve economic independence by providing a network of support, professional attire and the development tools to help women thrive in work and in life.

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Technology and Customer Engagement

How fintechs can manage credit risk

By Stirling Streeter*

Fintech, short for ‘Financial Technology,’ was only added to the Merriam-Webster dictionary in 2018. In that short amount of time fintech has streamlined and simplified common financial processes, spreading to countless industries and all corners of the globe.

Some of fintech’s important innovations include enabling instant international transfers and offering fast, easy access to short and longterm loans. This lack of regulation means quicker, less convoluted processes and more control in the hands of businesses and individuals.

This streamlined process often results in greater credit risk to the fintech company.

In this article, we’ll outline some of the risks involved and share strategies to help you protect your business while enjoying the benefits of the fintech explosion.

What is fintech?

Stirling Streeter

Fintech is an umbrella term covering any number of technologies that help businesses, institutions, and individuals to better manage financial processes. This includes integrated financial and data management systems, the technology used by banks and traders to facilitate instant money transfers, and AI-powered services like robo-advising and digital lending.

Fintech also covers tools that allow individuals and businesses to independently perform transactions

20 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

that would usually require approval from a financial institution, like getting a personal loan. Another major area of the fintech field is the ever-expanding cryptocurrency and blockchain marketplace.

Credit risk challenges for fintechs Fintech’s use of automated processes, open networks, and decentralised financial systems means that lots of transactions can be made without the involvement of intermediaries and centralised organisations. This gives you, the account holder, greater control over your funds and allows you to respond to market forces with speed and agility.

But all that extra freedom comes with a catch. Operating outside of conventional systems with minimal official oversight means you have to account for a lack of financial controls. One example of these would be the checks and balances banks perform before authorising a large transfer – exactly the kind of pesky red tape the fintech industry is eager to sidestep. As a result, many fintech platforms and processes are subject to increased credit and compliance risk.

The risk-benefit ratio of fintech Extending credit without any assurance of your debtor’s trustworthiness or financial viability is a sure fire way to drive your business into insolvency.

By the same token, no company

Technology and Customer Engagement

ever succeeded by avoiding risk altogether. So, are the risks of fintech worth the potential benefits?

The fintech industry is quickly gaining mainstream acceptance.

In 2021, investments in the global fintech industry totalled $121.5 billion USD; all the world’s major banks rely on the latest fintech innovations to perform countless tasks and transactions with efficiency and accuracy; even some world governments are moving to legalise the use of cryptocurrencies like Bitcoin for everyday transactions. None of this would be happening if there weren’t substantial benefits to balance out the risks.

How fintechs can mitigate credit risk The key to succeeding in volatile markets is to take calculated risks based on reliable information and expert analysis. The problem with many fintech tools and businesses is that, while they might be highly

innovative, they don’t have access to the kinds of information or resources that allow traditional financial institutions to reliably calculate and avoid risk.

CreditorWatch offers a suite of AI-supported fintech tools that take the place of the checks and balances used in traditional systems.

As Australia’s largest commercial credit bureau, we draw information from a customer base of over 55,000 registered businesses and over 11 million tradelines, helping provide comprehensive due diligence and compliance without taking on unacceptable risk.

Our unique, extensive database is constantly being updated, with realtime reporting to provide accurate insights into the financial health of markets and companies across the country. By pairing fintech innovation with Australia’s largest commercial credit database, we give businesses the competitive advantage they need to make strategic decisions in unpredictable markets.

Fintech tools for different stages of the debt journey CreditorWatch helps you assess and mitigate credit risk at every stage of the debt journey, from the onboarding process to proactive debtor management, ongoing collections and financial health checks.

Your Future in fintech <H2> New opportunities are emerging in the fintech space all the time; those who benefit from them will demonstrate a willingness to take risks paired with the tools and business acumen needed to manage those risks effectively.

Contact CreditorWatch today to find out how we can give your fintech business the advantage.

*Stirling Streeter Enterprise Account Director – Fintech CreditorWatch T: 0413 007 764 E: stirling.streeter@creditorwatch.com.au www.creditorwatch.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 21

Technology and Customer Engagement

The rise of the digital finance function

How to build a resilient and agile finance function

By Eric Maisonhaute MICM*

“It is not the strongest or the most intelligent who will survive but those who can best manage change.”

– Charles Darwin

Eric Maisonhaute MICM

The era of digital acceleration is here, and finance’s role in this seismic shift is beginning to become clearer. In just the last five years, the number of finance leaders responsible for their companies’ digital activities has more than tripled1.

However, digital adoption alone is not a silver bullet. COVID’s initial shock forced many organisations to expedite or even improvise their digital initiatives without a clear vision or strategy beyond shortterm survival.

Now, as we emerge from this period of significant disruption and transformation, it is time for finance leaders to not only rethink the viability, sustainability and ROI of existing digital investments, but to create a stronger, more strategic financial roadmap and a resilient and agile finance function.

If the last two years are any indication, the future is something that is impossible to predict – but we can prepare for it. It is therefore incumbent on finance

22 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

teams to identify and embrace their newly expanding roles within the enterprise. They must go beyond the balance sheet and reassert themselves as the architects of value, change and resilience their companies need to sustain longterm growth.

In this article, we will look at the role digital transformation plays in future-proofing finance departments such as Accounts Payable, Credit Management and Accounts Receivable.

Evolution of the finance function Google is no longer just a search tool. Netflix has long outgrown its DVD rental roots. And what used to be everyone’s go-to online book seller (Amazon) is now the go-to everything seller and beyond.

The willingness to evolve is paramount to success. The more open modern-day finance teams are to change, the more doors of opportunity they will open.

Technology and Customer Engagement

69% of CEOs described their CFOs as being “Enterprise Value Creators”2 From bookkeepers and number crunchers …

The demands placed upon a finance function of a company are rapidly changing. Traditionally, finance departments would provide data and numbers that senior leaders used to make important business decisions, but they would not necessarily make those decisions themselves.

To digital catalysts and value-drivers Today’s finance function has a much broader and diverse set of responsibilities that are often global in scale. What was once considered a primarily back-office support and number crunching function has now taken on a more strategic role with an emphasis

on driving value through digital technology and critical thinking.

It has become more critical than ever for finance departments to act as digital catalysts to drive business improvement initiatives and support real-time, data-enabled decision making across an organisation.

Prospects and priorities The wallop of COVID-19 has had a two-pronged effect on finance: accelerating pre-existing financial trends while simultaneously throwing open a Pandora’s Box of new economic and political unknowns that will linger for years to come. Thus, this is a “make or break” opportunity for finance teams to parlay their established financial acumen and increasing

obligations into building a business foundation of substantive, longterm value. If they can successfully navigate the obstacles standing in their way, that is.

What’s keeping CFOs up at night? z Retention, retention, retention It’s hard to stay competitive while top talent flees for greener pastures. What’s more, 3 in 4 CFOs say compensation changes are impacting their forecasting3. z Supply chain logjams Fewer than 10% of CFOs believe supply chain troubles will be resolved by year’s end4. Yet another serving of complexity added to the CFO’s already-full plate. z Digital pains and pressures The pressure to accelerate digital finance investments and competencies is only growing. No biggie, CFOs have more than enough bandwidth…

“Yeah right” … ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 23

Technology and Customer Engagement

“In my experience, team morale significantly improves when they’re able to focus on more advanced processes and tasks. This requires CFOs to broaden their strategy of adding value across finance and the company.”

– Michelle Demarco, CFO, Envista Resourcing challenges A deeper dive into the financial implications According to the CFO survey 2021, 74% of CFOs voted “labour quality/ availability” as their most pressing challenge5.

It’s easy to see why: When a valued member of the team leaves, the implications go beyond the cost of replacing that individual. Talent loss also means: z Months of effort and resources expended on recruiting and onboarding replacement z Added expenses such as training costs, admin. costs, compensation increases, etc. z Lower productivity, engagement and morale for remaining team members z Negative impact on customer service and overall business reputation.

Building a resilient finance function A 3-step roadmap Do not let unexpected events – such as COVID-19 – catch you off guard. Resilience is all about ensuring it is business as usual when the unexpected happens.

What is needed is a framework to build a resilient finance function to construct a more futureproof organisation. There are many ways to get there, but you cannot go wrong with these three objectives:

higher wages. According to Deloitte research, modern workers want a job that is “meaningful, fulfilling and contributes to something bigger than themselves6.” Organisations that can empower their finance teams in this way will enrich their business for years to come.

2. Be digital-first Digital is taking over. Recent Gartner research shows that 82% of CFOs report their investments in digital are accelerating7. This means finance leaders going beyond further developing their own digital prowess and rather restructuring finance to support future digital initiatives.

3. Build a foundation of resiliency Think COVID was simply a one-off bump in the road? Not so fast. A 2021 Deloitte survey found that a whopping 60% of global leaders see “occasional or regular” disruptions of this scale moving forward8.

In other words, the architectural groundwork being laid by finance leaders now will have a lasting impact when the headwinds of uncertainty return in full force.

Financial transformation Why automation is a finance function’s best friend The evolution of document process automation perfectly aligns with the evolution of the modern

1. Empower finance professionals The expectations of today’s top talent – particularly the Gen Z/ Millennial varietal – go beyond

24 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

finance department – going from a transactional-heavy business focus to now having a much broader, more strategic influence.

Now is the time to pursue financial transformation through a single automated platform.

This type of technology enables organisations to address the wide range of both immediate and future priorities: z Improve cashflow and revenue streams z Optimise cost control and operating margins z Reduce fraud risks impacting financial health z Boost profit margins via better asset utilisation z Reinforce employees with more productive, purposeful jobs z Enhance customer experience and future business opportunities z Leverage advanced data analytics and cognitive technologies z Attract new talent while simplifying training/onboarding.

Designing your digital approach Given the increasing pressure on finance teams to deliver more value, it’s no surprise that the adoption rate of digital transformation is accelerating. Digital technologies are helping finance reach its true potential.

By 2023, 50% of large finance organisations will use AI to create short-term financial forecasts9.

Technology and Customer Engagement

Is RPA enough?

The use of RPA has seemingly become the de facto choice for finance teams thanks to its proven results in delivering efficiencies to tedious, easily repeatable processes.

However, what RPA cannot do is fill in those pesky manual gaps that require more complex judgement and prevent a finance function from achieving widespread digital transformation.

How AI fills the gaps What is recommended is combining RPA with AI tools such as machine learning to maximise results, often referred to as “hyperautomation.”

Not only do automation solutions play nice with ERP systems, the AI technology that powers them picks up where RPA leaves off – further freeing up staff while enabling finance function to capitalise on more strategic activities.

Solutions as smart as they are simple Best-in-class automation solutions are not meant to replace the people and processes that create value for your company. Instead, think of them as a digital assistant that never takes a day off, freeing up your finance teams to do what they do best.

Accounts payable automation Bringing strategic value to how and when you pay Over two-thirds of finance departments are still typing in their accounts payable (AP) invoices10.

Manual data entry means errors, errors mean delays, and delays often mean a more stressed-out staff and damaged relationships with vendors and suppliers.

Thanks to AI-driven data capture and other digital technologies, AP automation eliminates manual pains to deliver benefits across the AP spectrum such as:

“One significant change since implementing a cash automation solution is that the banking team is under much less pressure to complete payment allocations each day. They have more time to focus on their other duties and learn new tasks. They enjoy the benefits it has provided.”

– Pamela Rochester Operational Team Leader, Laminex z Greater efficiency via automated invoice approval z Improved access and collaboration around AP data z Enhanced control to reduce fraud risk and stay compliant z Increased savings by capitalising on discounts z Satisfied suppliers through timely, accurate payments.

Credit management and accounts receivable automaton The key to a healthy invoice-tocash cycle On average, companies that rely on manual accounts receivable (AR) processes take 67% more time to

follow up on overdue payments11.

To a CFO, this translates to higher operating costs and DSO, difficulty in managing credit risks, and a harder time staying competitive when times are tight.

Many companies continue to rely on manual approaches to manage credit, leaving the credit control teams with little time to focus on strategic high-value tasks.

By automating credit management, companies can avoid extending credit limits to highrisk customers and lower the rate of late payments. Automation of credit management and AR optimises the invoice-to-cash ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 25

Technology and Customer Engagement

process and removes the obstacles preventing timely cash collection, resulting in: z Faster collections via automated tasks and predictive analytics z Improved decisions with better cash collection forecasting z Faster allocation through AI-powered efficiencies z Instant visibility into all customer actions and performance z Happier customers thanks to more strategic relationships.

Benefits that align with the pace of change The benefits of an organisation’s digital investment need to align with the pace of change. That is what makes automation so appealing – the results are as transformational as its ambitions.

Cashflow position that is healthier and more stable Automation’s real financial impact is how it bolsters a company’s cash and credit health by allowing you to: z Capture early pay discounts z Remove bottlenecks that slow down collection and allocation z Avoid late fees and other unnecessary expenses z Reduce fraud and other risks.

Employees who feel fulfilled and appreciated Employees will always be the straw that stirs the organisational drink.

Automation keeps them happy by enhancing their jobs with: z More dignified, meaningful and impactful work z Less stress and more autonomy z Increased well-being and careerpathing.

Decision making that is guided by “good” data Digital transformation requires all hands-on deck – especially when it comes to aligning and integrating data. Automation simplifies the struggle by equipping finance teams with custom dashboards for: z Real-time data tracking z Predictive forecasting z Performance monitoring.

Business growth and continuity in any circumstance Have a generalised feeling of pessimism about the future? You are not alone. Fortunately, automation is a great tool to adopt a more “glass is half full” mindset by helping businesses: z Improve cash position z Attract and retain staff z Scale and adapt quicker.

transform and build for the future.

There is a clear mandate for finance departments to become more agile, and more accurate in their dayto-day tasks. What is required is a careful orchestration across finance functions and leaning heavily on data to accelerate the scale and pace of decision-making.

It may even mean rethinking old business models and adopting new ones.

Will it be easy? Hardly. But that is what being a future-ready finance function is all about.

*Eric Maisonhaute MICM Director – Accounts Receivable Solutions Esker Australia Pty Ltd T: +61 2 8596 5126 E: eric.maisonhaute@esker.com.au www.esker.com.au

FOOTNOTES: 1

Mastering change: The new CFO mandate. October 7, 2021. McKinsey and Company.

2

The Future of Office Finance: How to adapt to new trends and shifts in the industry to optimize for success

3.

Most CFOs face high turnover rate, labor shortages. September 3, 2021. CFO Dive, Dive Brief (based on PwC research).

4

Data and Results – Q3 2021: Cost Pressures Mount Amid Widespread Supply Disruption and Labor Shortages, October 14, 2021. The CFO Survey.

5.

Data and Results – Q3 2021: Cost Pressures Mount Amid Widespread Supply Disruption and Labor Shortages, October 14, 2021. The CFO Survey.

6

Elevating the workforce experience: The work relationship. Langsett, Melanie.

Deloitte. March 9, 2021.

7

Top Priorities for Finance Leaders in 2022: The Path to Autonomous Finance, 2022. Gartner for Finance.

8

2021 Deloitte Global Resilience Report: Coping with the unexpected challenges, Deloitte Insight. 2021.

9

Top Priorities for Finance Leaders in 2022: The Path to Autonomous Finance, 2022. Gartner for Finance.

Conclusion Don’t wait around to manage change – create it The onset of the recent pandemic has created an unprecedented shock to businesses globally, but it has also presented finance functions with the opportunity to

“Automation has changed our lives in terms of cash allocation. We wanted a simple tool to provide automation for a manual process and stop getting up at 5:00 am at month end to process payments.

We were successful in this transformation.”

– Mozima Mohammed, Credit Manager, Fletcher Steel 26 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

10 Accounts Payable: Automation Trends 2022: The Speed of Change, 2022.

Institute of Financial Operations and Leadership (IFOL).

11

B2B Payments Innovation Readiness Playbook: Adapting to Cash Flow Challenges Posed By The Pandemic, December 2020. A PYMNTS and American Express collaboration.

AUTOMATED COLLECTIONS MANAGEMENT DOES THE HEAVY LIFTING TO SIMPLIFY AR CHALLENGES Traditional industry procedures do not work in the 21st century Based in Sydney, Whale Logistics is an international freight forwarding company that provides supply chain services for importers and exporters worldwide. Freight forwarding companies have clung to paper-based processes much longer than other industries. In 2018, Whale Logistics decided to fully embrace digitalisation and use artificial intelligence (AI) to not only improve its customer experience but the backend processes as well. An organisation that is heavily dependent on cashflow control, overcoming challenges such as inefficient paper-based processes, lack of visibility over Accounts Receivable (AR) processes and performance, and poor workload management became a high-priority for the business.

SOLUTION Collections management becomes the focal point for optimisation The company set out to find an automation solution that would yield visibility with strong reporting features to assist in understanding and reducing business costs while also accommodating rapid growth. Esker’s Collections Management was the perfect fit to remove friction caused by the manual AR. With Esker’s guidance and professionalism, Whale Logistics managed a seamless transition to automating its collections management. The removal of manual, paper-based tasks has brought clarity and calm to the workday. The AR Officer can now see exactly how many collection calls need to be made every day and is able to work through that list quickly and efficiently due to the prioritised call list based on predefined rules and AI-driven customer risk analysis. Esker’s customer portal makes all pertinent information available 24/7 to Whale Logistics customers.

What’s more, improved communications has reduced both response times and payment friction.

RESULTS Esker’s Collections Management solution outperforms Whale Logistics’ expectations § Collection Effectiveness Index (CEI) and Days Sales Outstanding (DSO) improved by 30% § Overdue ratio reduced by 35% § Customer issues resolved within 24 hours § Over 90% accuracy in collections forecast § 100% customer satisfaction

The Esker dashboards provide an executive summary with vital information for all stakeholders to understand our AR performance as well as workflows.”

Elaine Huang Financial Controller, Whale Logistics

Esker’s solution provides our staff with a sense of achievement; they are also now able to connect with customers on a human scale rather than just discussing tasks.”

Elaine Huang Financial Controller, Whale Logistics

Technology and Customer Engagement

Credit and innovation: What we have learned working with credit professionals over the years

A nerd, a lawyer and marketer go for coffee… sounds like the intro to a bad joke (and maybe it is) – but this week, Holman Webb’s Marketing and Business Development Manager sat down with the firm’s Head of Innovation and Growth, Steve Ferhad and Chris Hadley MICM – Partner within the firm’s Commercial Recovery and Insolvency Group, for a discussion on how converging technologies are set to impact the credit profession.

STEVE FERHAD Steve is Holman Webb’s Head of Innovation and Growth. He has worked with the world’s largest software companies, consulting to a range of organisations and spent part of his career implementing ERP and collections software solutions.

We thought it would be useful to highlight the perspectives of a selfconfessed super-nerd, and a Lawyer, both of whom have witnessed the evolution of modern businesses – and have continued to work with countless finance and collections professionals throughout Australia.

Steve, what do you think credit leaders make of these “converging technologies?”

Steve: I would say that, as in any industry, there are a variety of perspectives. If you are a cynic, you are probably wondering when all the hype will die down. If you are a pessimist, you may be waiting for the robots to attack...

But, if you are a forward-thinking credit professional – you are probably already looking at how you can exploit all these converging technologies to

28 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

CHRISTOPHER HADLEY MICM Chris is a Partner in Holman Webb’s Sydney office, and predominately practices in the areas of insolvency and civil litigation. Chris draws on highlevel experience gained across a range of industries; his clients include financiers, building supply companies, real estate investors, property developers, and insolvency practitioners.

add value, reduce waste and increase both the effectiveness and efficiency of your collections processes.

Chris, from what you’ve seen, where do Holman Webb’s clients fall in respect of their attitudes towards harnessing technology?

Chris: I have some clients who are more traditional in their approach and are happy to continue with ‘tried and true’ collection processes – so I don’t think those clients will be radically altering their operations

Technology and Customer Engagement

“Anecdotally, the majority of our clients are looking to exploit technology to enhance their commercial output – as we all are.” by implementing significant technological changes at this stage.

On the flip side, there are other clients who are focused on a strategic level to implement bestpractice, which includes a big focus on new technologies and innovations.

Anecdotally, the majority of our clients are looking to exploit technology to enhance their commercial output – as we all are.

Chris, how have you seen the legal landscape change with these technological advancements?

Chris: The way lawyers practice on a day-to-day basis has definitely changed in recent times. When I started, it was paper everywhere, and we were in the office full time every day.

As a law firm operating in 2022, we use technology to streamline our workflow, communicate with third parties (including courts and other lawyers), and to inform and report to our clients. We also use technology to collaborate and bring in expertise from our national team – and even globally.

The onset of COVID-19 certainly sped up the embrace of technology within the legal sector. We saw this when many of the courts implemented, for the first time ever, processes whereby appearances and trials could be conducted remotely with a heavy reliance on electronic documents.

Steve, are you seeing this same attention to customer engagement with Holman Webb’s clients?

Steve: It’s all about the customer

experience. Before CX was ‘a thing’ (even before the days of the internet), if you were to spend a few minutes around the Accounts Receivable team water cooler, you would likely pick up some peals of insight regarding customer satisfaction.

In those days (and as is often the case now), an AR team would usually be across sentiment with major clients, and internally, most operational bottlenecks within the business – especially those big enough to affect payments.

Personally, every Credit Manager I have met seems to know more about customer sentiment than just about anyone else in a business.

Often, those working within an organisation’s credit team can tell you more about customer satisfaction than an NPS score ever will.

If you ask them about the science behind customer engagement, you may see their eyes glaze over – but don’t be fooled: their constant interaction with customers means they have their fingers placed squarely on the pulse of what their customers think, and how satisfied they are, especially when it’s time to square away the bill!

On that note, what do you think will be next with Credit Professionals with respect to CX? Steve: Almost everyone has faced large-scale change. As our businesses change (and with such an emphasis on the customer experience), all parts of the organisation are being asked to

evolve, accurately measure, and to make feedback a part of a healthy performance culture.

Those working within a credit function (and indeed, all sharedservices departments) have an obligation to provide a customer experience that matches the (hopefully) high-level experience enjoyed by the organisation’s clients more generally.

Forward thinking leaders are using the same measurement of experience and applying it to their teams in the pursuit of continuous improvement.

What tools are you seeing your more forward-thinking clients using?

Chris: I’ve seen a wide array, from complex spreadsheets to enterprise resource planning software and add-on collections tools.

More clients are using Customer Relationship Management (CRM) software, automated reporting and outreach (email reminders, automated statements etc).

We have also seen a shift in the way credit teams utilise some of the tools and techniques often used in digital marketing fields, to maximise the timing and effectiveness of their outreach in the same ways marketers measure the cut-through of their outreach emails.

Credit professionals are starting to pay closer attention to factors like email bounces, open rates and time and click through – and where consideration of these factors results in faster payment, I see them being used more and more each day.

Steve: Data Analysis and Business Intelligence.

We saw a huge boom about 5 years ago with a large uptake of data analysis and visualisation tools like PowerBI and Tableau, which allow credit leaders to ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 29

Technology and Customer Engagement

analyse their data without having to run reports and analyse, or engage with IT to have something custom-built.

Now, every leader has access to cost-effective solutions that allow greater analysis of their data – meaning they can make better decisions backed by data.

Some of the more sophisticated clients are using advanced analytics and predictive modelling to build liquidity modelling, which leverages the types of solutions designed for big data on smaller sets of data housed within the organisation.

Process automation, bots and beyond. For years, organisations used things like humble macro to take repetitive tasks and automate them. The goal was to reduce risk through human error and to give teams the ability to spend more time on value added tasks.

We have seen this take off

– with more clients adopting technology platforms to quickly deploy workflow automation and augmentation.

Chris: Customer Relationship Management software.

These days, we see credit professionals using CRM-type technology to aid in the relationship management, and to help with general administration (for example: reminders, records and reports) – all in the one place.

I have clients whose systems can connect with Holman Webb’s practice groups. This integration means that our legal team can be as tightly integrated as their own employees, which promotes efficiencies and saves time and money.

Technology has enabled these types of relationships to form.

For example, the way we use

technology to collaborate, seek instructions, inform our clients’ business, and to streamline reporting with a focus on data analytics has increased substantially over the last 2-3 years.

Steve: Machine Learning I think wholesale use of machine learning in the industries we operate within is a few years off. With that said, thinking back, all of the credit leaders I have worked with were quick to adopt efficiency-creating tools.

I can’t think of an AR team member I have worked with who wasn’t a gun with Excel, wasn’t able to create some pretty awesome macro’s – or who couldn’t mail merge the heck out of anything!

I think that ingenuity will continue, especially as things like machine learning solutions become more widely used.

“I think business leaders are recognising that the credit function of a business not only has an impact in a competitive landscape, but that it also provides the business with an opportunity to develop a relationship with their customer early in their commercial journey, and to look at ways to build engagement. ” 30 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Technology and Customer Engagement

“I think that ingenuity will continue, especially as things like machine learning solutions become more widely used.”

Chris, how are you seeing the role of the Credit Professional change?

Chris: We are starting to see organisations blending their collections and credit processes into their overall client relationship management systems.

Largely, I think business leaders are recognising that the credit function of a business not only has an impact in a competitive landscape, but that it also provides the business with an opportunity to develop a relationship with their customer early in their commercial journey, and to look at ways to build engagement.

Looking for these early opportunities to understand your client will mean that issues can be easier to smooth over if they pop up further down the track – rather than waiting until the customer is late on payment before calling in the big guns.

Credit teams should keep in mind that ‘a stitch in time saves nine’, especially in respect of your overall understanding of, and engagement with, client organisations.

Steve, do you have any advice for Credit professionals looking to exploit some of the more recent technologies?

Steve: Start Small. Too often, when teams want to innovate or leverage technology, they use a ‘big-bang’ approach, which can make things difficult if you are looking to automate quickly.

I’m a strong believer in proof of concepts and pilot programs – as they provide opportunities to test, learn and shape solutions with small investments, build some momentum – and then extend the solution.

With one client, we ran a simple report on our debtors, then for each debtor, began recording in a spreadsheet the date that the first credit outreach occurred. The client found that they were almost twice as likely to collect on due date when they called the customer 7 days before due date.

From this point, it was easy to get funding for further investment to automate workflow tasks and reminders because we had actual data supporting our hunch that we could improve collection efficiency.

Find the right technology partners. Build relationships with your IT teams, and find technology partners that understand the area of your operations you are looking to invest in.

Once you have technology partners that understand the business problems you are looking to solve with technology, you can eliminate a large amount of wasted time in your pursuit for innovation.

Chris, what would you say to credit professionals who are slightly overwhelmed by all of this technology stuff?

Chris: Much like previous technological advancements, it will take some time for businesses and credit teams to become comfortable and familiar with new technology. There was a time not too long ago when the use of facsimiles, cheques and manual spreadsheet reconciliations were commonplace.

I don’t know of any sophisticated business that use any of those things in 2022, because those businesses have embraced technology advancements to better

service their customers and create efficiencies within their business.

Even if credit professionals are not themselves comfortable with the embracing of new technology, and are otherwise overwhelmed by the changes occurring, the simple fact of the matter is that your customers, and other stakeholders have expectations set by best practices and current technologies.

At the end of the day, if a business does not evolve by adopting suitable technologies, it runs the risk of being left behind.

Holman Webb’s Commercial Recovery and Insolvency Group has decades of experience in the credit industry. We act for a diverse range of clients including the credit departments of major corporations, banks, insolvency practitioners and other financial institutions nationally.

Chris Hadley (Partner) and Andrew Tanna (Special Counsel) are on call for AICM members requiring assistance with any aspect of trade credit.

Our team assists with reviewing terms and conditions of sale and enforcing credit agreements – including retention of title and charging clauses, and associated guarantees and securities. We also develop recovery procedures and/ or quality control measures – and provide advice in respect of trade credit insurance.

If you have any questions regarding the content of this article, please don’t hesitate to get in touch today.

Christopher Hadley MICM, Partner E: Christopher.Hadley@holmanwebb.com.au NSW: 02 9390 8303 VIC: 03 9691 1206 M: 0417 491 041 Andrew Tanna MICM, Special Counsel E: Andrew.Tanna@holmanwebb.com.au NSW: 02 9390 8309 Holman Webb Lawyers Level 25, 56 Pitt Street, Sydney NSW 2000 www.holmanwebb.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 31

Technology and Customer Engagement

Five big benefits for automating your credit management business processes

By Miriana Lowrie*

Process automation – helping humans solve problems Software has been around for decades. And is still used to help humans solve problems by automating a specific task. As software advances so too can the problems it handles.

Business Process Automation automates those everyday repetitive manual processes, using technology.

Credit management is a perfect candidate for process automation Miriana Lowrie

Map out your own process, from where the customer can find you, to creating them in your systems and ongoing monitoring – all you need is a pack of post-it notes!

Imagine every step of your credit management process. Draw a visual representation in your head. Include all stakeholders involved, all staff, all customers. Now imagine that all being 90% faster, easier and more compliant – congratulations, you have imagined automation!

Pop a dot on those steps that take the longest and/or cost the most.

Now, wherever you have dots, look for automation to help you solve that.

32 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Automation streamlines all the dots. And of course, groups of dots may be joined by different technologies – generally through an Application Process Interface, or as we commonly know it, an API.

Big Benefit 1: Adherence to compliance & regulatory requirements As credit professionals here are a few items in this category that spring to mind for me: z Terms & Conditions (T&C’s) are up to date and compliant; z The person/s signing are who they say they are; z Using automation – that the e-signature is compliant with the laws of that region; z The data you’re using to make decisions is up-to-date and accurate;

Technology and Customer Engagement

z Finance/Credit Teams are up-todate with your company’s credit policy.

Process automation software can help businesses achieve regulatory compliance with ease, reducing data quality issues, version control, human error and poor service to name a few.

In order of the above list, here’s some tips on technology that exists today to help you solve these problems: z Ensure when you need to update your T&C’s in whatever customer onboarding software you use, this happens immediately – so no build requirements – and any applications in flight will be served the latest T&C’s. This manages version control and keeps costs and time delays at bay. z Technology these days will have facial recognition built in, if you require this. This is particularly helpful if you have issues with online fraud, and this tech should enable you to tailor who you need to double check. z E-Signatures are as common as any other these days, to be sure check out your local legislation or ask your legal team too. z Check out the API’s your software of choice has – does

this solve the key problems in your business around data quality and accuracy. z Does your system allow you to automate decisioning? And if it does or doesn’t, how do you ensure your teams have the right tools and resources to support the decisioning process – this includes ‘Pricing Approvals’. Technology enables you to curate real time workflow processes, choose that solution!

Big Benefit 2: Reduce human error We all make mistakes whether we want to admit it or not.

Think of all the opportunities for human error in your end-to-end onboarding, credit approval, and relationship cycle. How many times have you shook your head at an incomplete or incorrect application?

Bad data, dubious identity, time delays, frustrated stakeholders, the list goes on.

Almost all paper-based technical tasks can be automated. Business process automation uses software to automate repetitive tasks that require manual labour.

With automation you will see error rates decrease substantially.

This means less re-working, reviewing, and following up.

It will help your business reduce costs and increase profitability, especially in areas that require manual paperwork.

Because process automation speeds up internal operations, it’s easy to save time and money on the resources required to complete these processes, and you can reassign previously assigned employees to manually perform more important tasks. ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 33

Technology and Customer Engagement

Big Benefit 3: Reduce inconsistencies and rework And reduce conflict with everyone following a standardised process When conflicts arise between finance and sales, it is rarely about the people involved and almost always about the processes, systems, and data. Sales and finance are essentially focused on the same goals which are to drive revenue and to win and keep customers. Often these teams are not collaborating to achieve these goals because they are working on different systems and not seeing what the other has in front of them to onboard new customers.

Imagine achieving >30% growth without having to invest in additional resources. This can be achieved by implementing the right

systems and processes to capitalise on prospect traffic you may not be seeing, by automating repeatable processes, and by helping the sales teams convert more of what they’re already getting.

Modern cloud technology is advancing faster than ever before, so exploring and implementing standardised systems will enable you to scale without (necessarily) investing in additional resources as your business grows.

Big Benefit 4: Safe document control and storage The headache you didn’t know that you have Keeping your company’s customer records secure is as important as maintaining secure passwords, firewalls and restricted access on your IT system. Secure offsite

34 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

record storage not only eliminates the headache of developing and maintaining your own document management system, but also allows for immediate retrieval and lowers internal risks.

For example, documents in folders on a computer or a network drive are only marginally better than documents in a filing cabinet. If we look at documents on a computer they are only really available to the person who has access. Worse yet, most computers aren’t really backed up. If the hard drive fails, the document is lost.

In fairness, who hasn’t lost documents on their own computer?

You store them one way, maybe months ago, and then forget where you stored them or what you called them.

With a true online document

Technology and Customer Engagement

management system, backup and recovery of the data and documents is automated. So even in the case of natural disasters or man-made disasters, the documents are still safe and secure with electronic/ encrypted document storage. This means that even in the face of a catastrophe a business can still function and you have a disaster recovery plan in place.

You may also want to ask customers to provide their personal information including identification.

If you do, you must meet privacy obligations when collecting, using, storing or disclosing this information.

Automation will ensure that you keep the documents you are legally required to and will store them safely.

Big Benefit 5: Speed – get to sales faster Side benefits: Happier sales team and happier stakeholders Automation allows you to complete tasks more quickly and accurately than you could by hand. This can save you time and money.

Let’s go back to that process map you’ve drawn on your whiteboard. Include all stakeholders involved, all staff, all customers. Not only will automation speed up every single step, it will also remove a bunch of unnecessary steps.

Here’s an example: Auto decisioning speeds up approvals by making micro decisions for you.

You can create digital decisioning workflow automations that ensure the right algorithm (the rules, predictions, constraints, and logic that determine how a micro-decision is made) is applied to every unique application. And, if an application is not approved, then what? Again, technology will allow you to curate decisioning

How many days does it take your business to approve trade credit applications?

Many Credit Managers will think of their best case when answering this question.

If it is currently taking you 2 weeks to get the ‘perfect application’ processed, double that when considering incomplete applications, or those where rework is required.

Two to four weeks is TOO LONG to process an application.

Compared to paper-based environments, trade-credit automation will make credit approvals 90% faster.

workflows whether automated or through a hierarchy or approvers.

This stands as a primary benefit.

Automation will help Finance & Credit Teams approve and onboard more trade customers in a shorter time frame, through multiple sales channels providing exceptional customer experience. It helps you monetise your customers more efficiently.

In conclusion: Banking a healthy return on your investment in Business Process Automation So when it comes down to it, how much should you spend on BPA

to ensure you achieve a healthy return and what should you measure? So let’s take a look at your options.

Whichever way you cut it, automating credit management processes will help you speed up approvals, improve compliance, improve communication, and reduce costs.

Now, look around you and think, “what can I automate first?”.

*Miriana Lowrie CEO 1Centre.com Connect with Miriana Lowrie

Quantitative ROI

Qualitative ROI

1. Time saved per task

1. Brand reputation

2. Overall cost saving per function

2. User experience

3. Conversion rates

3. Improved visibility

4. Productivity and output

4. Qualified data

5. Internal operational costs

5. Internal policy compliance

6. # of application resends

6. U nified workflows across entire org

7. Fraud related cost savings

7. Better supplier/buyer relationships

8. Labour reduction (eg: data entry)

8. T eam cohesion between sales and finance

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 35

Technology and Customer Engagement

How is AI technology changing the face of customer engagement in credit management?

By Nikki Dennis MICM*

Nikki Dennis MICM

I took my youngest son out for a Japanese lunch recently. We scanned the QR code on the table, and then proceeded to get our food served by robots!

We watched fascinated as they negotiated rows of tables and chairs, eyes blinking, a big smile on their faces uttering polite greetings, ‘thank you’s’ and ‘Bye’s’ as they delivered steaming hot dishes of dumplings and noodles to our table. Clearly the technology around us is evolving at an astronomical pace and like at our lunch experience, it’s unpredictable and unprecedented. As the World Economic Forum acknowledged in its Future of Jobs report, we’re entering a fourth industrial revolution: “Developments in previously disjointed fields such as artificial intelligence and machine learning, robotics, nanotechnology, 3D (and 4D) printing and genetics and biotechnology are all building on and amplifying one another – the key to surviving this new industrial revolution is leading it.”

That requires two key focuses for Credit Managers: an awareness of the disruptive technology that is out there, and a plan to develop talent that can make the most of it.

36 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

In this article, we’ll be concentrating on the technology part, raising awareness around what current and emerging AI driven technologies are available to us in collections by talking with the CEO’s of some leading Australian tech businesses. We will touch on the benefits and limitations of AI technology, it’s appropriateness for vulnerable customers, and consult the Director of a leading Credit Risk Consultancy on the social considerations when increasing AI use in collections. Finally, we’ll consult our experts for some future considerations on AI and the credit management industry.

AI driven digital customer engagement Credit Clear Limited (ASX – CCR) is a publicly listed Australian fintech founded in 2015, providing AI driven digital engagement for customers.

Winners of the 2021 Fintech Awards for the best use of AI by a Fintech, their highly advanced customer accounts receivables platform harnesses artificial intelligence and machine learning to improve customer experience and collection performance.

Andrew Smith is CEO of the Credit Clear Group. In his 15 years

Technology and Customer Engagement

of experience within the Collections industry he has always been on the lookout for new ways to maximise results for clients and achieve better outcomes for their customers.

He is excited at the technological advancements taking place within the credit industry and believes we are are teetering on the brink of only just discovering what is possible.

“Many businesses have already accepted and embraced digital engagement as an integral part of their collection strategies. The important thing now is that we continue to push forward with the AI element of smarter digital engagement.

“The real magic happens when you can start to do intelligent things in terms of the way you are proactively communicating with customers, so that you’re solving their problems and making it as easy as possible for them to pay.”

Modern credit management can now incorporate AI driven digital platforms utilising sms,

whatsapp, and email. These advanced platforms provide real time feedback and help Credit Managers really understand what’s working and what’s not which then determines the next communication with the customer.

Put simply, AI-driven workflows can be utilised at any stage of the billing collections process, can be fully white labelled, programmed to the language set on the customers device, and choose the best times, methods, and messages to prompt fast payment resolutions.

As Andrew explains; “Adaptive workflow and behavioural analytics SaaS platforms are customisable and self-learning, recommending the next best strategy to engage your customers. Sophisticated workflows can be developed that understand the situation with that individual customer and respond appropriately.

Providing relevant options improves collection performance and the customer experience.”

How does AI digital improve customer engagement?

The ability to measure results and champion challenge different customer engagement strategies is a key feature of AI driven digital platforms. According to CCR analysis: — 80% of customer payments are made within a day of engaging with the app — 55% of customers engage via the app on the first message — 59,000 various digital treatments across multiple industry sectors have been deployed since inception — All optimiser experiments have yielded an average of 20% uplift so far* *Optimiser experiments are champion challenging current client workflows that incorporate current digital SMS and email strategies and measuring the results against AI driven digital workflows. ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 37

Technology and Customer Engagement

Measuring the customer experience So how have customers reacted to this smarter technology?

Last year, CCR introduced Net Promoter Scoring (NPS) to measure customer satisfaction with the app.

For those who are unfamiliar with this, NPS stands for Net Promotor Score and is an Internationally used scoring standard for customer experience.

Essentially, the customer is asked on a scale of 1-10 how likely they would be to recommend the services to someone. The scoring goes from -100 to +100. Any NPS score above 0 is arguably “good”. It means that your audience is more loyal than not. Anything above 20 is considered “favourable”.

To give further context, according to What is a good Net Promoter Score (NPS)? (customermonitor.com) industry benchmark NPS scores for the Financial Services industry is +20, Power is at +16 and Real estate at +7 with Apple being above +50.

Andrew explains; “We are currently measuring an NPS of +44.3 across all portfolio’s with well over 120,000 customers

$80,000,000

Baseline collections (50% recovery rate) Increased collections (23% uplift)

$70,000,000 $60,000,000

Total Collected ($)

The graph (right) shows the uplift in collections a metro waterboard experienced when using the optimised digital solution in comparison to a more traditional collections strategy.

They experienced a 23% increase in collections and payments made in the first seven days increased by 36%.

$50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0

$5,000,000

$25,000,000

$45,000,000

$65,000,000

$85,000,000

$105,000,000 $125,000,000

Portfolio size ($)

having responded. Some individual portfolio’s have seen an NPS as high as 65%. Considering that we are asking people how likely they would be to recommend us when we have just asked them to settle their outstanding bill, I think this talks to how much customers appreciate being given the opportunity to resolve their accounts at a time of their choosing and in the method they prefer.”

Hardship considerations As we are all acutely aware, the sensitivity required around financial hardship considerations for both consumers and small business has certainly increased within the current environment. So, I asked Andrew how these new AI driven technologies stack up when dealing with potential hardship?

“We have the capability to design, build and implement a fully customised hardship management

“As we are all acutely aware, the sensitivity required around financial hardship considerations for both consumers and small business has certainly increased within the current environment.”

38 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

solution within our digital platform that uses logical decision making to present customers with personalised options relating to their situation.

“AI technology can identify and protect customers experiencing genuine hardship and manage their individual circumstances to achieve an agreed resolution.

Communicating digitally about their circumstance can sometimes be less intimidating for customers.

However, it is important to provide customers the opportunity to go through to dedicated hardship support at any stage of the process if that is their preference.”

Conversational AI Another tech company potentially disrupting the collections scene currently is Curious Thing, offering advanced conversational AI within Australia.

Founded in 2018, Curious Thing is a next generation voice AI startup for customers and businesses to communicate together, apart. Their core team is an agile group of data scientists, engineers, designers, business development and productgrowth specialists, with extensive experience in machine learning,

Technology and Customer Engagement

natural language processing and product development.

CEO and Co-Founder Sam Zheng is a serial tech entrepreneur, and self-taught engineer. Before Curious Thing, Sam founded an AI for business intelligence startup acquired by a US listed tech company. Sam explains how this exciting development on traditional diallers and Integrated voice recording works; “Our AI is unique – it can hold and maintain the context of human conversation, respond to pauses, ask clarifying questions, and contextualise emotion. Since we started, we’ve conducted more than 3 million minutes of AI-human conversations for the Health, Financial Services, and Customer Experience industries to support our clients. We’re in this to shape new frontiers for communication, between businesses, their customers, and the world at large.”

Unlocking the value of Conversational AI The first way Conversational AI unlocks value for credit professionals and their customers relates to convenience. For many people, it’s not ideal to take calls

“Much like collections through any other channel – including human agents – the successful contact rates vary greatly as debt ages.” during business hours – even in work from home or hybrid environments. Voice AI allows for customers to call back in their own time and actually complete the conversation with the AI that would have happened if they’d picked up in the first place.

As Sam explains; “We see unusual return call patterns – some customers just miss the call and ring back straight away, but there is a cohort of people – perhaps shift workers, perhaps those concerned about debt related calls – who call back after midnight.

AI allows you to be there when the customer is ready to talk.

“We also find customer willingness to engage with an AI around sensitive subjects is quite high – we’re hearing from partners that this seems to be because of the lack of judgment customers feel from an AI. We can still capture reasons preventing payment and use that information to inform

Engagement rate by collection type Expiring card advance notice Payment reminder Broken Payment arrangements Aged debt (first party) Aged debt (3rd party) 0%

20%

40% Engagement rate

60%

80%

next steps like a human would, and it’s easier for a human to be open sometimes with the AI. The conversational UX challenge is crafting the conversations to inspire open responses from customers, and there are lots of different approaches we can employ to solve that.”

What results have conversational AI achieved in the debt space?

Much like collections through any other channel – including human agents – the successful contact rates vary greatly as debt ages. Sam explains; “As an example, we see enormous success when we’re proactively notifying customers that their payment details are about to fail, something that is usually notified by a passive email and can get missed.

As we start to deal with older debt or third-party referrals, we tend to see our clients using the AI for lower probability debt, so the engagement rates are expected to be lower than premium/high collection likelihood debts.

Something Curious Thing see as critical to improving connections is letting customers know they’ll be calling them, by pre-call SMS or Whatsapp message (depending on the market). When a message is sent, the pick-up of the outbound calls can be 50% higher, but the pay-off is in customers returning the call when it suits them, because they know what it’s about. That combination of pre-notifying customers, and letting them ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 39

Technology and Customer Engagement

With a pre-call SMS and Without an SMS 60%

40%

20%

0% With a pre-call SMS

control the timing of the conversation, drives a massive increase in success of a campaign.

“I think we have this preconception that for debt, customers will avoid the call if they know what it’s about, but most people don’t want to fall behind, so being transparent about what’s happening really has an impact. We want them to trust us, so we have to trust them.”

The chart above reflects nonaged debt collection calls, including broken payment arrangements. It shows the callback/inbound success rate is significantly higher with a pre-call SMS.

Measuring the customer experience At Curious Thing, customer engagement is usually measured through the successful contact outcomes – how many people are connected with, and then as

Without an SMS

a subset, how many of these are verified as the right party.

“These engagement rates vary, but generally the response rate is higher than just SMS or email, and on par with outbound call centre rates.”

“For those who choose to speak with the AI, sentiment is overwhelmingly positive – more than 80% are comfortable or happy to speak with an AI, across a range of different conversation types.”

Can Conversational AI assist in Hardship cases?

“The nice thing about Voice AI is that it bears some resemblance to training a call centre agent. We can train the AI to be sensitive, not just to customers self-identifying by saying the word, “hardship”; but also, to the scenarios they share that indicate hardship risks – advising of job loss, as an obvious example.”

AI is extremely consistent, so it

“As we are all acutely aware, the sensitivity required around financial hardship considerations for both consumers and small business has certainly increased within the current environment.”

40 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

will identify a variety of cues and respond the same every time. And the follow-on action – immediately getting customers to a hardship officer, or linking them to their next best option, whatever the policy is for an organisation – is not at the AI’s discretion; its rule based, once it identfied.

Sam adds; “There is also often talk about customers being more comfortable talking with an AI about things that can be perceived as embarrassing or sensitive. We see this in the health sector as well as in debt.”

But the importance of having the option of speaking to a skilled operator throughout all stages of communication cannot be underestimated. As Sam concludes; “In debt in particular, the AI shouldn’t be standing in the way of customers getting to a person. It should be in service of getting the customer to a resolution, however they want to do that. That’s the position we take into each build.”

So, what are some considerations of AI from a credit risk perspective?

Offering another perspective, Thushare Dissanayake (otherwise known as ‘T’), is a Director of specialised Credit Risk and Data Science Consultancy, Kadre. Over the last decade, T has developed numerous predictive models and machine-learning solutions that prominent credit bureaus, banks, lenders, utilities and fintechs rely upon.

T is passionate about solving problems and decision-making, as well as applying analytics, data science and Machine Learning, to answer questions that may result in a positive social and/or environmental impact.

Given his extensive experience within machine learning and his

Technology and Customer Engagement

focus on the social impacts of AI, I was keen to get his thoughts on the future state of AI in credit. T had the following to share; “There are certainly some savvy applications of AI appearing throughout the credit lifecycle – allowing to better understand behaviour and improve each interaction of the customer experience.

“Evidently, data is the most available and models are more prevalent and impressive than ever before. Technological advancement as well as regulatory change such as Open Banking will only spur this on.

“As the future of AI progresses towards foundational models and Artificial Generalised Intelligence, ethical usage of models by companies will become paramount.”

“As custodians of data, models and their decisions, companies need to mind the underlying, perhaps unseen, biases that flow through their AI decision-making workflows – conjured from data abstraction, or a true representation of history.

“For those who choose to speak with the AI, sentiment is overwhelmingly positive – more than 80% are comfortable or happy to speak with an AI, across a range of different conversation types.”

“Especially against the backdrop of worsening global conditions, when such biases may directly affect a customer interaction, their exploration, testing, treatment, and monitoring over time should be prioritised.”

In conclusion, there’s no doubt that the latest AI technology is making huge strides within customer engagement with strong benefits for credit management and collections.

But whilst AI technology holds exciting possibilities, and as we’ve seen can get some amazing outcomes. Now more than ever, there is the need for highly skilled and specialised teams to take the customer experience to the

next level for those who need (and choose) the human touch.

The common theme, and a given when exploring the use of these AI solutions within the credit management industry is, that there always needs to be an option to talk to a human throughout the process.

What such technology advances mean for lunching out in the future I can only imagine. Maybe we will get chauffeured there by our driverless cars and our cuisine of choice will be 4D printed at our tables!

*Nikki Dennis MICM Managing Partner/Co-Founder of SalesCRED (specialists in credit management solutions) T: 0437 652 562 E: nikki@salescred.com.au Follow on linkedin.com/in/nikki-dennis

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 41

Technology and Customer Engagement

Incorporating customer engagement and credit reporting Using comprehensive data and technology to successfully engage customers

By David Johnson MICM*

Overview Traditionally the preference of credit providers has been to engage credit reporting agencies only on the basis that they are sharing information among themselves to weed out the bad customers, excluding the consumer in the information exchange.

With comprehensive credit reporting, we can begin to engage with the consumer to encourage positive repayment behaviours and demonstrate that we are helping them support their creditworthiness.

Further, through this engagement we can reliably increase conversion rates allowing your business to accept a larger pool of applicants.

A slow start Australia was one of the last developed countries to implement

David Johnson MICM

comprehensive credit reporting.

The implementation of CCR internationally has seen positive changes to their respective credit industries, consumers have felt more involved in their credit journey and credit professionals have seen an increase in returns to their businesses through lower arrears and better consumer engagement.

Unfortunately, the complexity of implementing CCR in Australia, both the supply and use of comprehensive reporting, has resulted in a low uptake of the practice. These challenges have allowed for the propensity of the status quo, whereby assumptions and negative information builds the foundation of credit reporting.

A study performed in 2000 using US data, compared the findings of a simulated negative-

“With comprehensive credit reporting, we can begin to engage with the consumer to encourage positive repayment behaviours and demonstrate that we are helping them support their creditworthiness.”

42 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Technology and Customer Engagement

only reporting system with a full-file, comprehensive system. Assuming 100% engagement from the whole industry, it found that for a target 3% default rate, a negative only reporting system accepts 39.8% of the applicant pool for a loan, whereas a full-file system would allow 74.8% of the pool to obtain a loan.1 Further, they concluded that with comprehensive reporting: z Credit becomes more available (particularly for lower socioeconomic groups) z Risk becomes lower z Credit Providers reduce loan losses z And it makes consumers more economically mobile While Americans are generally more engaged with their credit report than Australians, this study was performed without full recognition of the value of consumer engagement in the

“The implementation of CCR internationally has seen positive changes to their respective credit industries, consumers have felt more involved in their credit journey and credit professionals have seen an increase in returns to their businesses through lower arrears and better consumer engagement.” process. This leads us to the opportunity at hand.

Hurdles From a credit providers perspective, the same concerns typically emerge in relation to engaging with comprehensive credit reporting: 1. The complexity of providing positive information is often seen as significant issue. There is at least one less well-known credit reporting agency that has placed significant focus on minimising this pain. Utilising technology to

simplify providing data and the interpretation of the data itself.

2. Adding to the complexity is the Principles of Data Reciprocity (PRDE), which you are required to sign and adhere to for most bureaux in Australia. What you may not know is that it is not mandatory to be a signatory to engage with comprehensive data. The PRDE was developed to help the credit reporting industry to transition from negative to positive reporting.

There is at least one bureau ➤

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 43

Technology and Customer Engagement

in Australia that started as a positive bureau and does not need to make that transition.

3. Often larger participants in a particular vertical believe that they are disadvantaged in the information exchange because they believe that they are giving up more data. The reality is that they will receive more data to help increase their conversion rate to more than justify their investment of data.

4. Sometimes they also believe that their data will be “published” or “broadcast” to a wider audience. This is also a fallacy, as the data provided will be disclosed to third parties only in instances where the consumer has provided consent. The real term market wide insight consequences for the data provider are negligible.

5. Time and Cost is often a major issue in relation to engaging with comprehensive information, however, the data clearly demonstrates the business advantage of engaging – as discussed below.

Customer engagement around CCR is good for your business Aside from the inherent benefits to the credit industry of engaging with comprehensive credit reporting, as described above, it also provides a new and better way to engage with your customers. The opportunity lies in two key areas: 1. By providing greater transparency your customer about what data is being shared

“With the rapid advances in technology, new financial products and ever-growing competition, credit providers are looking for the edge that enhances the experience that credit providers can present.” with the industry at the time of onboarding, you help the consumer to understand how the system works, and the behaviours they need to exhibit to make the system work for them a. Further you can suggest to the consumer that they gain access to and monitor their credit reports so that they can see the information shared.

By providing messages of encouragement each month when reporting comprehensive information, you can provide additional value to your customer, above and beyond the credit itself.

Some credit providers are already prosecuting on the opportunity to demonstrate that they are helping their customers with positive information on their credit report.

They do so for two reasons: 1. It further lowers their arrears rate and demonstrates to the consumer the value of paying their obligations on time.

2. And it builds loyalty to their brand because they are demonstrating additional value to their customers.

“Time and Cost is often a major issue in relation to engaging with comprehensive information, however, the data clearly demonstrates the business advantage of engaging...”

44 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Finally With the rapid advances in technology, new financial products and ever-growing competition, credit providers are looking for the edge that enhances the experience that credit providers can present. Done correctly, consumer engagement through CCR is a tool that facilitates better conversion rates and lower arrears, while growing the overall credit market and lowering risk for credit providers.

The advantages of CCR speak for themselves, the time taken, and costs involved are almost negligible if you partner with a credit reporting agency that practices comprehensive reporting. There is at least one such agency, so the real question that remains is “what’s holding you back?”.

It’s time to redefine credit worthiness with a partner that is innovating financial data insights.

*David Johnson MICM CEO Talefin T: 1300 284 193 https://www.talefin.com/

FOOTNOTE: 1

Barron, John M. and Michael Staten. “The Value of Comprehensive Credit Reports: Lessons from the U.S. Experience,” in Margaret M. Miller ed., Credit Reporting Systems and the International Economy. Cambridge, MA and London, England. The MIT Press.

2003.

2022

National Credit Team of the Year

Recognising credit excellence in 2022

The National Credit Team of the Year Award is an opportunity for credit teams to be recognised for the outstanding work, results, culture and learning they undertake.

PAST WINNERS

Nominating your credit team has many personal and professional benefits including the chance to: l Demonstrate best practices in credit management l Gain team and individual recognition within the credit industry and internally within your company l Develop personal presentation skills l Build team spirit.

Past participants rate this process as one of the most rewarding and fulfilling times in their careers when they take the time to reflect on their team’s achievements.

2021: Synergy

2020: Woolworths

Applications close 31 July 2022.

Equifax has been sponsor of Credit Team of the Year since its inception in 2008.

For more information and entry requirements CLICK HERE or phone 1300 560 996

2019: AGL

PROUDLY SPONSORED BY

2018: Recoveriescorp

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Technology and Customer Engagement

The psychology of choice:

How to engage positively with your customers – so they choose to pay you first!

By Jodie Bedoya*

Jodie Bedoya

Choice in its simplest form is ‘an act of choosing between 2 or more possibilities’ (Oxford Dictionary).

Customers always have a choice. To pay or not to pay.

Each day there are countless choices and decisions to be made.

Along with the more routine choices such as getting out of bed in a morning, getting dressed and deciding what to eat for breakfast customers also have options to choose who they pay and how they prioritise their bills. And it’s not always about who charges the most interest, who might cut the customer’s services, or who is likely to take legal action. Customers often choose which organisation to pay, by how they have been treated, and how they are made to feel.

As Maya Angelou, popular American poet and civil rights activist said: “people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

The psychology of choice is about understanding what subconsciously influences the choices our customers make so we can have more productive conversations with them that make them feel like they have been treated well and with respect.

Since 2010, eMatrix have trained thousands of staff in collections and frontline teams across Australia to have more genuine, positive, and effective conversations with customers. And – collecting respectfully – as in using the right language, applying empathy, removing judgement and bias, and building trust with the customer – gets the best results for companies hands down every time. Our continued success is measured through 5 key metrics: improved collections, reduced bad debt, reduced AHT, improved customer experience and reduced complaints.

Leaving no doubt that it’s easier to collect when you’re genuine and respectful about it.

“Customers often choose which organisation to pay, by how they have been treated, and how they are made to feel.”

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Technology and Customer Engagement

In this article we will look at the psychology behind the choices our customers make and discuss why taking a positive approach to collections works. We’ll raise awareness around some of the common blockers to having genuine conversations, before taking you through our 5-step human call flow model designed to get collections teams engaging more positively with customers.

But first, how do you collect respectfully without being a pushover?

The art of collections is no different than sales, just a harder form, as you are selling something the customer would prefer not to buy! It is about building trust, positioning, navigating objections and asking the right discovery questions at the right time to find the best solution that the customer buys into.

What is likely to be happening in our customer’s brain?

So, let’s look at what is likely to be happening in the customer’s brain when the collection call begins.

“The art of collections is no different than sales, just a harder form, as you are selling something the customer would prefer not to buy!”

More often than not, the customer is ‘ready for battle’. With the poor customer service experiences many of us are dealing with now, due to staff shortages and limited training time, many of us are conditioned for a bad interaction. It’s likely therefore that our customers are full of expectation of long wait times, being talked over, communication issues, and general apathy.

Add to that the sensitive nature of a collections call, and the customer vulnerabilities that are being experienced in 2022, and a customer’s ‘fight or flight’ part of the brain is easily triggered. When that part of the brain is triggered, this is the like the ‘bodyguard’. It will protect us from threat and means the logical part of our brain is reduced and we start operating from emotion – usually in the form of anger. Or if freeze kicks in, we zone

out, nod our head, and say nothing.

When a customer is operating out of this part of the brain, the likelihood of them ‘making the choice’ to pay their account is zero.

Remember, as an organisation, you hold the power and control. You provided the product or service, you have all the repercussions up your sleeve, you are armed with staff who have the smooth corporate language, and the customer can be left feeling vulnerable and exposed.

So, if their ‘bodyguard’ is activated, for many, the only place left for them to go is yell or escalate their language. What else does their ‘fight and flight’ have to beat you with? And most importantly, staff may think they have the win in the verbal stoush, but if the customer doesn’t pay, no-one wins.

What is critical therefore, in the training of collections staff is ➤

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Technology and Customer Engagement

knowing what triggers this part of a customer’s brain. Most of the time it is a subconscious reaction from the customer as result of the following: z Poor tone eg. condescending, indifferent, apathetic, passiveaggressive z Judgement eg. ‘Well you used the services so why didn’t you pay?’ z Trying to control a call by steam rolling a customer with over complicated processes and jargon z Negative language z Telling a customer what they have to do z Blame And blame is one we will focus on here, as it is the biggest killer for any negotiation, yet staff use it daily and constantly and even worse, it is peppered throughout collections letters. This is what blame looks like: z We’ve sent you letters z We’ve made numerous attempts to contact you z You didn’t pay, you didn’t call z I can’t proceed with the call because you haven’t passed the security test

z You didn’t meet the criteria z You missed the cut off time And we know what many of you will be thinking ‘But they didn’t pay or call, and they need to be accountable!’ And yes, we know, and they know, but using this as leverage, will only trigger the ‘bodyguard’ in their brain and the battle begins.

We don’t hold people accountable through blame, we hold them accountable by working with them on their actionable item in the negotiation and repayment plan. And that is key for positive customer engagement – to work with them.

Be on the customer’s side. And they will be much more likely to pay you.

Often a collection call can be perceived like it is either the Organisation and the debt versus the customer, or the Organisation versus the customer and ‘their’ debt. This automatically creates a negative starting point. A preparation for battle. A shift in mindset needs to take place.

Instead, a call should always be

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approached as the Organisation and the Customer ‘working together’ to solve the debt.

In this instance, there is a show of solidarity, support, and commitment from both parties to solve the debt, and to reach an improved outcome, for all. Both parties have essentially the same goal: provide the customer with an amount they can commit to that considers their financial situation, reduces the debt, and empowers the customer to reach an improved financial position.

Consider this sentence as an example: “Despite previous attempts to contact you, your account remains unpaid. If you don’t pay immediately then we will {put your account on hold/refer to our collection agent or solicitors/take legal action/issue a credit default}.

This will incur further costs and could affect your credit rating.”

Now consider this: “If you make payment today that will protect the account from {being put on hold/referred to

Technology and Customer Engagement

“Often a collection call can be perceived like it is either the Organisation and the debt versus the customer, or the Organisation versus the customer and ‘their’ debt. This automatically creates a negative starting point...” a collection agent/taking legal action/issuing a credit default}. If you are having difficulties making payment, we can work together to find a solution.”

One triggers the fight and flight in the brain, as it sets us up to make the customer feel told off, belittled, judged, threatened and defensive.

The other, sends the message that you’re on their side to try and resolve the debt.

Key blockers to improving customer relationships Good intentions – no practical application follow through Many companies invest a lot of money into customer relationship management but often miss the basics of how to have a genuine conversation. Something we hear a lot of these days is ‘customer journey mapping’. Everyone’s doing it – investing big on such projects that are packaged up all nicely in a bow, but all too often then put on a shelf with little to no translation into practical application.

Others invest a lot in big digital transformations centred around the customer. But too many customer relationship management initiatives fail because they focus on siloed, internal strategies within marketing, sales, or other support areas with little consideration of the practicalities of customer conversations within collections and frontline teams. Debt should now be everyone’s business, not just the domain of the credit team. People skills training coupled with a real understanding of collections and customer psychology is an integral

(and often missed) step in any customer relationship management initiative.

Attitude and Culture – In-Group/ Out-Group thinking A key blocker to improving customer collections conversations can be the attitude and culture of the team. Sometimes there can be a group mentality of judgement and bias towards customers and this is aired within the office. Jokes about customers, sharing negative stories and training our brains to a ‘them and us’ mentality.

This is a known phenomenon playing out, made popular by Henri Tajfel, a Polish social psychologist – it’s called the in-group and out-group bias. In this case, the customer is the out-group – they all don’t pay, they all lie, they all should have paid their bills. And we are the smart ones, the corporate collections people, the in-group.

We then bond as a team in ‘putting down customers’. This sets us all up for an adversarial relationship.

Without the right training to guide leaders how to manage these behaviours within the team, this judgement and bias will absolutely translate into the collections conversation with customers. And of course, awareness training and empathy is the key to addressing this.

Overbearing Compliance – Transactional conversations Overbearing compliance can be another big blocker to successful customer engagement as it results in overly transactional

conversations. Collections teams work within a highly regulated environment and a strong focus on compliance is obviously required both to protect the customer and the organisation.

However, compliance requirements taken to extremes can stifle genuine conversation; to adopt an overly scripted response is counter intuitive to getting good results for both the customer and your organisation. So many frontline conversations are governed by back office legal and compliance departments who are often removed from the daily interactions with customers. This linear thinking is a classic case of the tail wagging the dog and this is often how it plays out…..

Overly scripted responses become too transactional and are counterproductive to having a genuine conversation and improved customer engagement. Many of you will be familiar with the comedy sketch from Little Britain “Computer says no”! Unfortunately, real life examples of this are everywhere: “The policy says……” “The system won’t allow it….” “They are the rules….” This language is hard to hear as a customer, it’s dismissive and impersonal and results in a poor customer experience.

If staff aren’t empowered and upskilled to take ownership of the conversation within a flexible call model, then their hands are tied trying to reach a better outcome for the customer.

Despite good intentions, they will miss key moments that matter to customers. ➤

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Technology and Customer Engagement

Human Call Flow

steps to adopting a human call flow Most call quality models follow a prescriptive linear model. Yet, we all know, a call never goes in a straight line.

Instead, empower your staff to go with a human call flow; a conversational framework that recognises that the duration of a call will go through 5 key stages and often go back and forth between each stage several times within a conversation. You can build on this framework by including examples of language and statements that may be used effectively in each stage for staff to refer to: Building Trust: Encourage staff to be authentic and engaged. Thank a customer for calling before jumping into transactional identification and date-of-birth checks. Use empathy to acknowledge what the customer is telling you and demonstrate understanding; “sounds like you’re juggling a lot at the moment”, “that would be frustrating for you – lets explore some ways to alleviate some of the stress for you.”

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Active listening: Stop looking at compliance checklists and start listening to your customer. Use verbal nods such as ‘ums’ and ‘ahs’,

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acknowledge you have heard your customer by repeating things back to them in your own words. Share the air-time.

Language that matters: Keep it simple. Importantly, avoid jargon and negative language. Refer to ‘the’ account instead of ‘your’ account, stop it from being personal. Provide examples of power words and phrases staff can use such as ‘Critical’ ‘Essential’ and ‘To prevent..’ along with more seasoned language; ‘take that stress away’, ‘protect your account’, ‘reach a solution’ and ‘work together’.

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Ask the right questions: Have intuitive conversations. Ask the right questions to match the right solution to the right customer. Know the difference between willingness and capacity to pay. It’s okay to ask questions as long as it is done respectfully and after earning a level of trust with the customer, it is often the quickest way to finding a solution for them.

Whilst overly scripted responses are definitely detrimental to having intuitive conversations, it can be really useful to have conversational toolkits available to help support staff at different stages of the call.

Provide staff with ideas of questions to ask to respectfully understand a customer’s position;

4

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‘What is the reason that prevented you from making payment?’, ‘What lump sum can you pay?’, ‘What’s your plan to get on top of this account?’

Demonstrate ways in which staff can frame questions to provide context eg.

‘So I can best support you, talk me through what’s happening’.

Solution: Staff need guidance to wrap the call up and bring together the solution without ‘over servicing’. Give customers time to think and they will often come up with the solution themselves. We call this ‘anchoring’ as it is the best method of getting customers to adhere to proposed payment arrangements.

Sell the benefits of sticking to arrangements – ‘by making those payments of $20 a week that will protect the account from further action’.

Don’t set customers up for failure by giving a psychological out such as ‘if you have any issues with keeping to the arrangement please give me a call back’.

Instead, have confidence in the sustainability of the arrangement and they will too.

By utilising a conversational framework, staff are encouraged to take ownership of their calls. As a result, they can inject some of

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Technology and Customer Engagement

“Coach-the-coach programs can be really effective to support team leaders with any cultural change required for improved customer engagement.” their own personality, allowing for more genuine conversations and improved customer engagement whilst still maintaining call control.

Invest in your leaders and those doing your call quality Last but certainly not least. Leaders need to coach to the human call flow model. Ensure Team Leaders are adequately trained to support cultural change and to assist in making the ‘new’ the norm.

Consider this stat: 60% of team leaders are new (within 12 months) yet manage 80% of your staff. Is that true in your company? If it is, it’s a sobering thought.

Coach-the-coach programs can be really effective to support team leaders with any cultural change required for improved customer engagement.

If a staff member complains about or puts down a customer post conversation, this can be used as an effective coaching opportunity for Team Leaders. At times, collectors may justify their approach, when they have reacted to the customer’s anger or emotion by blame shifting. For example; ‘the customer is an idiot’, ‘the customer just lost it’ ‘they are so rude’, and so forth. This may be construed by some as just letting off steam.

However, the problem is that when that is voiced throughout the team it can become toxic and create a culture of everyone doing it. To shift behaviours from an ‘us’ and ‘them’ mentality creeping in, there is nothing like a coaching on the fly moment. Try pulling up a chair next to that operator (or to call quick zoom meeting if virtual), and ask;

z What was the trigger for the call escalating? z How did you respond? z What might be happening for that customer for them to react that way? z What do you think might be happening for that customer that they can’t pay? z What were you thinking when you said XX? It’s important to remind leaders and staff that whenever a customer blames us, they have an underlying reason to blame. And if we react negatively, we’ve lost the battle. One of our favourite training sessions is the ‘window of tolerance’, which everyone can relate to, as it is not usually about that account, or that debt, it is always about the build-up of events and what is happening for that customer. We’ve all been there – losing it over someone at home leaving dirty dishes in the sink…it is always about so much more than that.

And of course, always linking coaching feedback and operator approach back to your values and brand is essential. This takes the operator away from the ‘that’s the way I am’ thinking to the bigger picture, which is that every

interaction they have is representing your brand.

Supporting your team leaders to deliver ongoing training and coaching not only improves their skillset and confidence but ensures that their team are embedding the practices and techniques they have learned into every conversation with customers. What’s more, it enables them to better support their staff with effective debriefing strategies following challenging calls. And looking after your staff wellbeing is just as important as looking after your customers.

In summary, there is always a choice. Customers ultimately choose whether to pay us or not.

But we can influence their decision by the way we engage with them.

An awareness of psychology and taking some time to understand why your customer may react in a certain way, plays a big part in getting improved outcomes.

Adopt a more human flow.

Use positive language. Change your mindset. Be aware of potential blockers and know how to overcome them. Then, you’ll be building stronger customer relationships and having more effective collections conversations in no time. And ultimately – when it comes to paying their bills, they’ll choose you! *Jodie Bedoya Director, eMatrix Training Collections & Vulnerability Training Specialists T: 0438 391 500 E: jodieb@ematrixtraining.com.au

“Supporting your team leaders to deliver ongoing training and coaching not only improves their skillset and confidence but ensures that their team are embedding the practices and techniques they have learned into every conversation with customers.”

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Technology and Customer Engagement

Autonomous finance: The new era of finance function

By Harika Mamidi*

Harika Mamidi

Gone are the days when the finance function was just seen as an accounting unit in the organisation responsible for taking care of the company’s financial health. The unprecedented last few years have forced financial leaders across the globe to rethink their strategies as the finance function’s role in an organisation is evolving to a data-driven strategic decision-making unit responsible for creating a tangible impact on the organisation. The finance function is now moving from a “cost-saving” to a “value creation” model, where investments in digital transformation are laying the foundation for change.

As per Workday’s latest CFO indicator survey, 57% of CFOs report they are now searching for AI and ML skills, and 40% of CFOs now prioritising analytics and data storytelling skills to enrich finance’s ability to act as a strategic business partner to the organisation. Hence, digital transformation in the finance function is now being governed by intelligent automation tools to scale services, take strategic decisions, and achieve operational excellence.

The drift is evident as companies overhaul ERP systems, automate processes and encourage the adoption of Artificial Intelligence (AI), Robotic Process Automation (RPA), and Machine Learning (ML) to achieve ‘more with less’ through their operations.

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Paradigm shift: From automation to autonomous software However, simply put, automation in finance means easy, machine repetition, wherein finance executives instruct the software to perform certain tasks, reducing manual labor. But the entire automation process leaves behind a couple of tasks to be done by an executive to keep the whole process working. This process ensures low technology independence and low human independence, leaving less scope for resources to make time for strategic business tasks.

Although automation has been a partner for the finance backoffice for a long time, the current technology landscape is insufficient to serve the priorities of growthminded finance leaders in 2022 and beyond. It’s time to change the way enterprises use the software in finance by adopting the modernday, self-learning autonomous software powered by deep learning and artificial intelligence (AI).

Autonomous finance software allows independence for both humans and technology to increase total productivity with functionalities like predictive analytics and process-specific actionable insights. With real-time visibility into KPIs and AI-led data predictions, autonomous software is carving a critical space for itself in the finance function. Moreover,

Technology and Customer Engagement

“The finance function is now moving from a “cost-saving” to a “value creation” model, where investments in digital transformation are laying the foundation for change.”

Gartner’s “2022 Top Priorities for Finance Leaders Report” clearly mentions that companies learning how to apply AI to their business objectives today will pull ahead of their competitors, carving out a performance gap that laggards may never be able to fill. Not only this it suggests that by 2023, 50% of large finance organisations will use AI to create short-term financial forecasts, ensuring they are not becoming technologically obsolete.

Value drivers with autonomous finance The shift toward autonomous finance is already in progress owing to the pandemic era, which changed customer expectations and forced finance leaders to readjust their priorities. Moreover, advancements in AI and ML aided leaders to leverage the best in technology to consider autonomous operations.

Autonomous finance transforms workforce productivity by automating processes and giving teams the time and space

needed to offer ideas, insights, and strategies rather than having to spend countless hours conducting repetitive tasks like data entry or reconciliations. By implementing autonomous finance, CFOs are significantly improving organisations’ spending strategies and finance management. Moreover, AI also allows finance teams to better understand customer behavior and improve customer experience, ensuring retention.

Financial leaders can leverage this new-age technology to streamline workflows, eliminate human error, and reduce costs while boosting productivity.

Autonomous receivable: AIpowered accounts receivable solution Most finance teams are now focusing on becoming more agile by mitigating credit risk on new orders, monitoring risk on receivables, accelerating cash flow from collections, managing cash flow, and optimising working

capital management to navigate their businesses through turbulent times. HighRadius’s Autonomous Receivables software is one such software that consists of software solutions for Credit, Electronic Invoice Presentment & Payment, Cash Applications, Deductions, and Collections. The platform offers over 1000+ out-of-box RPA bots, and 13+ AI-use-cases. It is suited for large teams to transform order to cash processes through end-to-end automation. It is accessible, scalable, and customisable across multiple geo-locations. The platform helps to reduce DSO and bad debt and connects credit, billing & invoicing, cash application, deductions, and collections into a single business process. It also helps to build a highperformance culture for your O2C teams, by delivering on 60+ finance KPIs.

Conclusion Innovations in technology in the last few years have enabled the finance function to emerge on the top, moving from hindsight to insight. This has also changed the role CFOs are supposed to play as they are emerging as strategic leaders who are investing heavily in technology to provide data-driven insight and solutions to aid the company’s growth and influence the roadmap of where it is headed. With autonomous finance spearheading the finance department, enterprises are sure to witness massive changes as it is going to act as a catalyst to make real-time decisions that help create a best-in-class customer experience while enhancing company culture and employee productivity.

*Harika Mamidi Associate Director, Solution Engineering HighRadius E: harika.mamidi@highradius.com T: +61 404224256 www.highradius.com

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Technology and Customer Engagement

Cash flow management in an app-fatigued world

By Jaco Veldsman*

Jaco Veldsman

Australian businesses have had a tough time since 2020, with a global pandemic, bushfires, and the war in Ukraine impacting fuel prices, all contributing to soaring inflation. It’s now more important than ever for businesses to evaluate their tech stack and trim the app fat to save costs. Paytron co-founder, Jaco Veldsman, talks about starting the SME payments platform at the beginning of COVID and how it shaped the foundations for them to become one of Australia’s leading FinTech’s.

App fatigue it’s real.

Between business payments, accounts payable, receivable, international payments, payroll and employee business spending, it’s not uncommon for SMEs to have at least six different apps to plug into their accounting system. There are many costs involved, not only for app subscriptions but also with time lost to repetitive manual work just to get data across every app up to date. Additionally, businesses must

remember every separate login or share login details with colleagues, leaving them vulnerable to a potential security breach.

Starting Paytron at the beginning of COVID made us focused on solving the problem of businesses using too many apps. COVID also highlighted the disconnect in how teams work on the same task.

When Australia went into lockdown, traditional workplaces were thrust into remote working, highlighting the incapability of systems that weren’t built for remote work. For instance, businesses are always sharing highly confidential payment information in Excel attachments via email, which should be integrated via APIs to minimise data breach risk. So, our whole approach at Paytron has been to integrate via APIs with built-in approvals workflows powering clear team communication.

As Australian businesses grapple with the current economic environment, cash flow

“Between business payments, accounts payable, receivable, international payments, payroll and employee business spending, it’s not uncommon for SMEs to have at least six different apps to plug into their accounting system.”

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Technology and Customer Engagement

management is the biggest issue for SMEs for the next 12 months.

Companies struggle to make ends meet, and inflation is rampant worldwide, so people hang on to their cash longer. It’s going to be increasingly important to understand and control cash flow even better.

One major cash flow problem faced by businesses is the lack of visibility over the expected forecast of payments coming and going out. The reason businesses don’t have this because finance teams are making payments either weekly, fortnightly, or monthly. It’s therefore an enormous effort to get a holistic view of your business spending. Even if everything is dutifully compiled via spreadsheets or bank statements, you’re working with post spend cash flow position and not real-time information.

We’re seeing a massive influx of businesses and accountants joining Paytron because their

“One major cash flow problem faced by businesses is the lack of visibility over the expected forecast of payments coming and going out.” clients can schedule all their future payments for subsequent pay runs weeks or even months in advance, and still be able to get a real-time view of their expected cash flow.

You suddenly get greater insight by connecting Paytron to your ERP or accounting system, like Xero or NetSuite. Another key feature we’ve rolled out to help businesses better manage their cash flow is offering the ability to pay any bill with a credit card, regardless of the supplier’s stipulated payment method.

As an extension of cash flow management, businesses need control over employee expense management. It’s impossible to have effective cash flow management

if your employee expense system is not connected to your overall finance function, which is why Paytron launched virtual corporate cards. This gives the finance function ultimate control of employee budgets and spending, with a real-time overview of exactly where they are spending into.

What’s exciting is piecing together all the different components of a business’ finance function to simplify the process for businesses, nipping app fatigue in the bud.”

*Jaco Veldsman Co-Founder Paytron www.paytron.com

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Legal

Are the security terms in standard form supply contracts really all that secure?

By Allan Kawalsky MICM and Caleb Delaney MICM*

Key Takeaways

Allan Kawalsky MICM

Caleb Delaney MICM

A recent decision in the Federal Court of Australia has considered whether terms and conditions in a standard form supply agreement to a small business are unfair and cannot be relied upon by the Supplier.

The Court considered that a number of terms were unfair.

Significantly a general charging clause was struck out for reasons which included that it was not expressed in plain English.

Fortunately for the supplier in this case the Court upheld a security clause which entitled it to an order returning possession of the tank that it had supplied to the customer.

This was significant as it was established during the trial that the customer was experiencing financial difficulty, so an order for a bare monetary judgment would have been an unsatisfactory remedy.

We think suppliers may not appreciate the risk of failing to review and update standard form contracts.

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Lobux Pty Ltd v Willshaun Pty Ltd [2022] FCA 204 Brief Facts Lobux was engaged by Willshaun to manufacture a custom “Hooklift Backdoor Vacuum Tank”. Prior to the completion of the manufacture of the tank, Willshaun removed the tank from the possession of Lobux, with permission, on the premise that it would have additions to the tank completed elsewhere before the tank was returned to Lobux to complete manufacture.

Willshaun failed to return the tank and failed to pay the balance of the purchase price, before it commenced using the tank in its business operations.

Lobux registered a security interest over the tank pursuant to the Personal Property and Securities Act 2009 (Cth) (PPSA) and brought proceedings, inter alia, for recovery of the tank.

Willshaun defended the proceeding and brought a crossclaim. It alleged that the tank was not fit for purpose, and sought orders to the effect that it was

Legal

not required to pay the balance of the purchase price. It also sought orders that a number of Lobux’s terms and conditions were unfair contract terms within the meaning of section 24 of the Australian Consumer Law (being schedule 2 to the Competition and Consumer Act 2010 (Cth)) (the ACL).

What is an unfair term?

The ACL states in section 23: 1. A term of a consumer contract or small business contract is void if: (b) the term is unfair; and (c) the contract is a standard form contract A contract is a consumer contract if the contract is for the supply of goods or services, or a sale or grant of an interest in land, and is wholly or predominantly for personal, domestic or household use or consumption.

A contract is a small business contract if the contract is for a supply of goods or services, or a

“A term of a contract is presumed not to be reasonably necessary in order to protect the legitimate interests of a party seeking to rely on the term, unless the party seeking to rely on the term proves otherwise.” sale or grant of interest in land; at the time the contract is entered into, at least one party to contract employs less than 20 persons; and either the upfront price payable under the contract does not exceed $300,000.00 or the contract has a duration of more than 12 months and the contract does not exceed $1,000,000.00.

Section 24 outlines when a term of a contract is unfair. For a term to be unfair, each of the following must apply: z it would cause a significant imbalance in the parties’ rights and obligations arising under the contract; and z it is not reasonably necessary in

order to protect the legitimate interests of the party who would be advantaged by the term; and z it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.

A term of a contract is presumed not to be reasonably necessary in order to protect the legitimate interests of a party seeking to rely on the term, unless the party seeking to rely on the term proves otherwise.

When considering if a term is unfair, a Court must consider the extent to which the term is transparent and the contract as a whole. ➤

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Legal

“Most suppliers rely on standard form contracts when conducting business.

Suppliers may not appreciate the risk of dealing with small businesses because it means that the Act applies and some of the terms can be struck out as unfair.”

Judgment The Court looked at a number of the standard terms and conditions in the agreement and considered whether the terms were unfair.

Unilateral Variation of Price The contract contained a clause that the Price would be either: (a) the price as indicated on any invoice from Lobux to Willshaun; or (b) the price as at the date of delivery of the Goods according to Lobux’s price list.

This term permitted Lobux to vary the price payable under the agreement without giving comparative rights to Willshaun.

The terms did not provide Willshaun any right to challenge a variation of price, a qualification as to the circumstances in which the price may change or a right to terminate the contract if the price increased.

It was held that this clause gave rise to a significant imbalance in the parties’ rights under the agreement and would cause detriment to Willshaun if relied upon. As such, for the clause to be considered fair, Lobux needed to demonstrate the clause was reasonably necessary to protect its legitimate interests.

It was unable to do so and the Court found the clause was unfair and hence Lobux could not rely on it.

Set-Off The agreement contained a set-off clause that stated: “Willshaun shall not be entitled to set off against, or deduct from the price, any sums owed or claimed to be owed to Willshaun by Lobux nor to withhold payment of any invoice

because part of that invoice is in dispute.”

Lobux submitted that it did not create a significant imbalance in the rights of the parties, as, if the agreement did not contain such a clause Willshaun could avoid paying for the price of the tank by making a spurious claim against the Lobux for damages by raising any form of dispute, which would leave Lobux bearing the burden of those costs until the dispute was resolved. It submitted that this also made it necessary to protect its legitimate interests.

The Court agreed with Lobux and found that, while the clause shifted the risk of a dispute away from Lobux it did not “tilt the parties’ rights and obligations under the contract significantly in its favour”.

Accordingly the term was not unfair.

Limitation of liability The agreement contained a limitation of liability clause which stated that Lobux will not be liable for any loss or damage incurred as a result of Willshaun being late.

Willshaun submitted that this clause was unfair because it limited the rights of Lobux to be sued by Willshaun where the delivery is late.

The Court found that, in circumstances where the product was a custom manufactured tank, and the delivery date in the contract was expressed to be an estimate only, that the clause was necessary to protect the legitimate interest of Lobux in excluding liability for loss as a result of a delivery being later than quoted.

Accordingly, the term was not unfair.

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PPSA The contract contained a clause similar to those found in many supplier agreements granting Lobux rights under the PPSA and providing for Wishaun to provide certain undertakings in connection with the PPSA. Willshaun submitted that the clause, when considered with the rest of the agreement provided Lobux ‘an overabundance of security in light of the reciprocal obligations of Willshaun and the relative risk of non-payment’ and that it is therefore not reasonably necessary.

The PPSA clause was not found to be an unfair term as it was expressed in plain language, and presented clearly and readily available to Willshaun. It provided Lobux a form of legal protection of its ownership rights, available pursuant to legislation, and was found to be reasonably necessary to protect its rights.

Security and Charge The agreement contained a charging clause that read: “In consideration of Lobux agreeing to supply the Goods, the Customer charges all of its rights, title and interest (whether joint or several) in any land, realty or other assets capable of being charged, owned by the Customer either now or in the future, to secure the performance by the Customer of its obligations under these terms and conditions” Willshaun made submissions that clause 12 provided Lobux with ‘an overabundance of security’ as it also submitted in respect of the PPSA clause above. This was particularly so, it submitted, when read in

Legal

conjunction with other clauses relating to the PPSA and rights to enter property for possession of goods.

Lobux submitted that the term was reasonably necessary to protect its legitimate interest where it was exposed to incurring significant manufacture costs in production prior to being paid.

The Court held that the security clause was not transparent as it was not expressed in reasonably plain language. Particular reference was made to the phrase ‘any land, realty or other assets capable of being charged’, and it was stated that phrase would likely leave a customer in a position of uncertainty as to the meaning and effect of this clause. Further, it was held that, considering the entirety of the contract and the other security clauses in the contract, the charging clause was excessive and created a significant imbalance in the rights of the parties.

The clause was found to be unfair and struck from the contract.

Implications z Most suppliers rely on standard form contracts when conducting business. Suppliers may not appreciate the risk of dealing with small businesses because it means that the Act applies and some of the terms can be struck out as unfair. z Despite there being a risk that the Court will strike out clauses that may be considered unfair, it will only strike out the particular clauses considered to be unfair, not the entire agreement. As such, it may be sensible to retain all security clauses in standard form contracts even though there is ‘an abundance of security’.

While there is a risk that some clauses may be struck out the remaining clauses may be sufficient to provide the necessary protection. z It is significant that a charging clause that we have seen in thousands of standard form contracts was struck out

because it was not transparent and was not expressed in plain English. Suppliers should review standard form contracts and credit agreements to ensure they are expressed in plain language, are legible and are presented clearly and readily available to any party affected by the term. z Neither party was insolvent here, but it is important to remember that the same principles will apply when considering the validity of clauses under the PPSA when an administrator or liquidator is appointed.

*Allan Kawalsky MICM Partner Turks T: 03 8600 5022 E: Allan.Kawalsky@turkslegal.com.au *Caleb Delaney MICM Associate Turks T: 03 8600 5048 www.turkslegal.com.au

Trusted Insights. Responsible Decisions.

JOIN US AT THE

2022 National Conference

President’s Dinner

on Thursday 20 October 2022 Sponsored by illion | More information to follow soon July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 59

Legal

Phoenix falls flat – IntelliComms sale not intelligent!

By Briana Harris MICM*

Illegal phoenixing involves the stripping and transferring of a company’s assets, thereby denying creditors access to those assets to meet unpaid debts.

On 18 February 2020, the Treasury Laws Amendment (Combating Illegal Phoenixing) Act 2019 (Cth) (the Phoenixing Act) was passed by the Commonwealth Parliament. The Phoenixing Act introduced laws designed to “prohibit creditor-defeating dispositions of company property, penalise those who engage in or facilitate such dispositions, and allow liquidators and ASIC to recover such property” 1.

The first real test of the legislation occurred in May 2022, when the Supreme Court of Victoria, in IntelliComms Pty Ltd (in liq) [2022] VSC 228 (the IntelliComms Case), handed down its decision setting aside a transaction as a “creditor defeating disposition” under 588FDB(1) and 588FE(6B) of the Corporations Act 2001 (Cth) (Corporations Act).

Creditor defeating dispositions and “illegal phoenixing”

Briana Harris MICM

The creditor defeating disposition provisions in 588FDB(1) and 588FE(6B) of the Corporations Act were established via the introduction of the Phoenixing Act. The provisions under the Corporations Act establish that

60 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

for a disposition of property to be deemed to be a creditor defeating disposition: 1. The consideration payable to the company for the property must be less than the lesser of the following at the time the relevant agreement for the disposition was made or, if there was no such agreement, at the time of the disposition: (a) the market value; (b) the best price that was reasonably obtainable for the property, having regard to the circumstances existing at that time.

2. The disposition must have had the effect of preventing, hindering or delaying the property from becoming available for the benefit of creditors in the winding up of the company.

IntelliComms Case The IntelliComms Case related to a sale of business agreement entered into minutes before the company, IntelliComms Pty Ltd (IntelliComms), held a shareholder meeting to pass a resolution that it be wound up. The sale of business agreement shockingly assigned all of IntelliComm’s assets to another entity under the control of the sole director’s sister for the net purchase price of approximately $20,000.00.

Legal

One of IntelliComms’ creditors and shareholders, Callscan Australia Pty Ltd trading as QPC (QPC), had recently served IntelliComms with a creditor’s statutory demand in the sum of $923,310.18 for unpaid invoices and had voted in favour of the resolution to wind up IntelliComms at the shareholder meeting, unaware of the business sale agreement that had just taken place.

Upon learning of the business sale agreement, QPC approached the liquidators of IntelliComms and agreed to fund an application to set it aside as a creditor defeating disposition. QPC held the view that the indicative value of IntelliComms was between $500,000.00 and $1,000,000.00. The liquidators made an application in the Supreme Court of Victoria under section 588FE of the Corporations Act. It was admitted by the company that purchased IntelliComms’ assets, that the business sale

agreement had the effect of preventing the property from being available for the benefit of creditors and was entered into at the time IntelliComms was insolvent. Accordingly, the question to be determined by the Court was whether the requirements set out in section 588FDB (1) of the Corporations Act had been met.

Under 588FDB (1) of the Corporations Act, it must be established that the consideration paid for the assets must be less than the market value or the best price that was reasonably obtainable for the property at that time.

Having considered all of the circumstances surrounding the entry into the sale of business agreement, particularly the timing upon which it was entered (i.e. minutes prior to the passing of a resolution to wind up IntelliComms), the Court held that the liquidators had established both limbs of section 588FDB (1) of the

Corporation Act, specifically that the consideration payable under the business sale agreement was less than both the ‘market value’ and ‘best price reasonably obtainable’.

As a result, the Court made orders declaring that the transaction was void as a creditor defeating disposition.

Conclusion The Phoenixing Act has given liquidators a further tool to address illegal phoenix activity and has created an important additional deterrent to directors considering such activity. *Briana Harris MICM Associate Oakbridge Lawyers T: Direct (08) 7078 0396 M: 0449 990 985 oakbridgelawyers.com.au

FOOTNOTE: 1

Explanatory Memorandum – Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

EDUCATION

FOUNDATION ABOUT THE FOUNDATION In late 2018, the Board of Directors of the Australian Institute of Credit Management (AICM) proudly approved the establishment of the AICM Education Foundation.

The AICM Education Foundation has been established to provide financial assistance to credit professionals and students striving to continue their education. Funds are gathered from generous donations from the AICM and Credit Community, as well as fundraising activities and events of the AICM and it’s supporters throughout the year including but not limited to the annual AICM Conference.

The Education Foundation will also bolster the vision of the AICM to be the primary learning, knowledge and information source for credit professionals and support the AICM’s objective of providing opportunities for growth throughout their careers.

For more information on the foundation, make contributions or interest in supporting the Management Committee contact the AICM National office (aicm@aicm.com.au, 1300 560 996 or click here).

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 61

Legal

Court confirms guarantees are fully enforceable!

By James Neate LICM CCE and Georgia Gray*

James Neate LICM CCE

Georgia Gray

In a recent Supreme Court NSW, Full Court case, the Court confirmed that pro-forma credit application form guarantees, are fully enforceable.

Personal guarantees remain a useful tool in credit to assist the collection of debts, but they are not without controversy and technicalities. The enforceability of a personal guarantee is often contested, and many guarantors will raise creative disputes in an attempt to avoid personal liability.

On the 11th of July 2022, the New South Wales Court of Appeal again considered the operation and enforceability of personal guarantees and importantly confirmed that proforma guarantees, that are not negotiated, are enforceable. Hardy v Coates Hire Operations Pty Ltd [2022] NSWCA 122.

Mr Hardy was one of two directors of a mining and civil construction company. As part of a credit arrangement with

Coates Hire, Mr Hardy executed a personal guarantee (together with the other director). The company failed to make payment of its credit account and so Coates commenced proceedings against the company and the guarantors.

The company was ultimately placed into liquidation (prior to the proceedings resolving) and so the guarantors were the only remaining parties that could be pursued by Coates Hire.

In the original proceedings in the District Court, Mr Hardy unsuccessfully defended the claim on the basis that, amongst other things, he lacked mental capacity when he signed the guarantee, and, pursuant to the Contracts Review Act 1980 (NSW), it was unjust to enforce the guarantee. The District Court did not accept Mr Hardy’s defence, and judgment was entered against him.

Mr Hardy appealed the decision on the basis that: 1. the form of and language used

“On the 11th of July 2022, the New South Wales Court of Appeal again considered the operation and enforceability of personal guarantees and importantly confirmed that pro-forma guarantees, that are not negotiated, are enforceable.”

62 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Legal

in the guarantee made it difficult to understand the practical effect of the document, so that Mr Hardy should not have been found to be liable; and 2. the District Court was wrong by not finding that Mr Hardy was not reasonably able to protect his interests due to his physical and mental capacity at the time he executed the guarantee.

The Court dismissed those arguments, observing that while the guarantee contained “a significant level of detail,” the overall intention and effect of the guarantee was clear. Importantly for credit managers, the Court also noted that: z there was an acknowledgement in the guarantee that Mr Hardy had either actually obtained legal advice, or had the opportunity to do so; and z Mr Hardy’s position, knowledge, and experience as a director of

“Guarantees remain one of the tried, tested and now again, Court confirmed tools of managing risk of bad debts.” a company that ran a substantial construction business, meant that he could access advice as saw fit when entering contractual relationships The Court also found there was no evidence to suggest that Mr Hardy was suffering cognitive difficulties when he signed the guarantee.

Mr Hardy was found personally liable under the guarantee. The decision is a timely reminder of the importance of having clear documents in their format and as to their terms. The case reinforces the need to engage with and understand your customers, their background, and their experience.

Guarantees remain one of the tried, tested and now again, Court confirmed tools of managing risk of bad debts. A valid guarantee, ideally with a charge clause, can position a creditor to be the key stakeholder, to secure the debt and achieve that repayment. Review your guarantees and charge clause now! The Court has said “Go for it Credit Manager!”

*James Neate LICM CCE Partner Lynch Meyer Lawyers E: jneate@lynchmeyer.com.au *Georgia Gray Senior Associate Lynch Meyer Lawyers E: ggray@lynchmeyer.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 63

DIVISION REPORT

Member anniversaries We recognise those members who achieved membership anniversaries between April and June 2022. Congratulations to these members on achieving such important milestones.

Name

Designation

State

Company

Years of Service

Edgardo

Amador

MICM

NSW

Mitsubishi Electric Australia Pty Ltd

5 years

Joel

Ambrey

MICM

NSW

Snap-On Tools (Australia) Pty Ltd

5 years

Marianne

Andrejas

MICM

NSW

Mitsubishi Electric Australia Pty Ltd

5 years

Mark

Austria

MICM

NSW

Sixt

5 years

Benjamin

Bronzon

MICM

NSW

Gadens

5 years

Deborah

Carroll

MICM

NSW

Jaybro

5 years

Ray

Chartres

MICM

NSW

CMS Pty Ltd

5 years

David

Creais

MICM

NSW

Bartier Perry

5 years

Lalitha

Devineni

MICM

NSW

Australia On A Plate

5 years

Nicholas

Donaldson

MICM

NSW

Nutrien Ag Solutions Limited

5 years

Keryn

Drew

MICM

NSW

Veritas Recruitment

5 years

Andrea

Fulton

MICM

NSW

Manassen Foods Australia

5 years

Bruce

Gleeson

MICM

NSW

Jones Partners Insolvency & Business Recovery Chartered Accountants

5 years

Rachel

Jones

MICM

NSW

RJE Pty Ltd

5 years

Delos

Joselito

MICM

NSW

Sixt

5 years

Katharine Lambert

MICM

NSW

Shield Mercantile Pty Ltd

5 years

Michelle

McRae

MICM

NSW

Brad

Scoble

MICM

NSW

TPG Telecom

5 years

Meloney

Thompson

MICM

NSW

Mitsubishi Electric Australia Pty Ltd

5 years

Hiten

Vinchhi

MICM CCE

NSW

Manpower Services Pty Ltd

5 years

Glen

Woodhouse

MICM

NSW

Bob and Pete’s 100% Yum

5 years

Kenneth

Barmby-Spence

MICM

QLD

Premier Financing

5 years

Carla

Eldridge

MICM CCE

QLD

Liquid Speciality Beverages

5 years

Leanne

Farrugia

MICM CCE

QLD

Ashdown-Ingram

5 years

Tracey-Lee Haggett

MICM

QLD

Southern Queensland Steel Pty Ltd

5 years

Maree

Kent

MICM

QLD

SRJ Walker Wayland Pty Ltd

5 years

Dale

Rhall

MICM

QLD

Australian Credit Risk Management

5 years

Greg

Sellick

MICM

QLD

Rollpress Proplate Group Pty Ltd

5 years

Victoria

Sprecak

MICM

QLD

Southern Queensland Steel Pty Ltd

5 years

Paul

Tweedie

MICM

QLD

Collection Consultancy

5 years

Eddie

Bastiani

MICM

SA

Oakbridge Lawyers

5 years

Tricia

Horne

MICM

SA

Vinidex Pty Ltd

5 years

Kelsey

Pepper

MICM

SA

National Credit Insurance (Brokers) Pty Ltd

5 years

Abby

Poyzer

MICM

SA

Credit Solutions Pty Ltd

5 years

Stacey

Smith

MICM

SA

Ferrocut Australia Pty Ltd

5 years

Nicole

Willcourt

MICM

SA

Ferrocut Australia Pty Ltd

5 years

5 years

64 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Member anniversaries Designation

State

Company

Years of Service

Sean

Brasher

MICM

VIC

REA Group

5 years

Kevin

Heri

MICM

VIC

Independent Hardware Group

5 years

Rose

Irwin

MICM

VIC

Chris

Jurotte

MICM

VIC

Australian Pharmaceutical Industries

5 years

Jacqui

Larsen

MICM

VIC

Reece Pty Ltd

5 years

Jeanne

McArthur

MICM

VIC

McArthur Commercial Recoveries Pty Ltd

5 years

Elizabeth

Limnios

MICM

VIC

Australian Rollforming Manufacturers Pty Ltd

5 years

Linton

Webster

MICM

VIC

Recoveries Corporation Pty Ltd

5 years

Michelle

Powell

MICM

VIC

GWA Group Limited

5 years

Gabrielle

Reynolds

MICM

VIC

IG Design Group Australia Pty Limited

5 years

Sunanda

Sharma

MICM

VIC

Viva Energy Australia Pty Ltd

5 years

Andrew

Steele

MICM

VIC

Independent Hardware Group

5 years

Shane

Thompson

MICM

VIC

Simplot Australia Pty Ltd

5 years

Tangikina

Tuungahala

MICM

VIC

Soulfresh Group Pty Ltd

5 years

Belinda

Parkinson

MICM

WA

Veolia Australia and New Zealand

5 years

Carmen

Grima

MICM

NSW

Rutger

Hesseling

MICM

NSW

QBE Global Credit and Surety

10 years

Cherie

Howard

MICM

NSW

Coates Hire

10 years

Ashley

Short

MICM

NSW

Sony DADC Australia Pty Ltd

10 years

Catherine Murphy

MICM

QLD

KPMG

10 years

Katrina

Sander

MICM

QLD

Tillys Crawler Parts Pty Ltd

10 years

Ratibor

Mirkovic

MICM

SA

NCI (Brokers) Pty Ltd t/a AMA Collection Services

10 years

Luigi

Galassi

MICM

VIC

The Laminex Group

10 years

Mary

Petreski

MICM CCE

VIC

Asahi Beverages

10 years

Liat

Walker

MICM

QLD

Collect Success

15 years

Mei Chi Salina

Leung

MICM

VIC

Visy Industries

15 years

Christine

McKenna

MICM

VIC

Visy Industries

15 years

Lyston

Thayer

MICM

VIC

Prushka Fast Debt Recovery Pty Ltd

15 years

John

Williams

MICM

VIC

JAS Oceania Pty Ltd

15 years

Karen

O’Rourke

MICM CCE

VIC

20 years

Filomena

Pensabene

MICM

NSW

25 years

Nick

Elias

MICM

VIC

Schon

Condon

MICM

NSW

Brenton

Glaister

MICM

Donald

MacLaren

Austin

5 years

10 years

AWN

25 years

Condon Associates

30 years

SA

Kemps Credit Solutions

30 years

MICM

VIC

Mills Oakley Lawyers

30 years

Taylor

MICM

SA

Meertens Chartered Accountants

40 years

Gregory

Wilson

MICM

VIC

Score Debt Management

40 years

Lindsay

Groom

MICM

WA

Retired

40 years

Edmund

Watts

LICM CCE

NSW

Retired

50 years

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 65

DIVISION REPORT

Name

DIVISION REPORT

Member anniversaries We celebrated membership milestones achieved in the last 12 months at recent AICM events including the below: Victoria/Tasmania – with Catrina Galanti MICM CCE, Vic/Tas Division President

Ersilia Barbone MICM (White Cleland) – 5 years, Tim Faulkner MICM CCE (CH2) – 5 years, Mary Petreski MICM CCE (Asahi Beverages) – 10 years, Jacqui Larsen MICM (Reece) – 5 years, Linton Webster MICM (Recoveries Corporation) – 5 years, Jeanne McArthur MICM (McArthur Commercial Recoveries) – 5 years, Melissa Mann MICM (Visy Industries) – 10 years, and Lori Popa MICM (National Mercantile) 5 years.

Victoria/Tasmania

Queensland

New South Wales

Katrina De Kaste MICM (Tasmanian Collections Service) – 15 years

Ben Blake MICM (Cleanaway) – 5 years

Gillian Seddon MICM (Bluescope Steel) – 5 years

– with Nick Pilavidis FICM CCE, AICM CEO

– with Stacey Woodward MICM, Qld Division President

– with Theresa Brown MICM CCE, NSW Division President

New South Wales – with Theresa Brown MICM CCE, NSW Division President

Steven Lamb MICM (Brickworks Building Products) – 5 years

James Smith MICM CCE (ARMA a Credit Clear company) – 5 years

66 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Fiona Reynolds MICM (Turks) – 10 years

Member anniversaries

Gemma McGrice MICM (NCI) – 5 years

John Antoniadis MICM CCE (NCI) – 15 years

Austin Taylor MICM (Meertens Chartered Accountants) – 40 years

South Australia – with Neil Fennell MICM, SA Division President

Eddie Bastiani MICM (Oakbridge Lawyers) – 5 years

Nancy Duong MICM (CCC Financial Solutions Group) – 5 years

Maria Scacchitti MICM (NCI) – 5 years

Daniel Mackintosh (NCI) – 5 years

Western Australia – with Kevin Allen LICM, WA Division Councillor

Natalie Walker MICM (APM) – 15 years

Trevor Greenhill MICM (Cloud Payment Group) – 15 years

Linda Croft MICM (SRG Global) – 20 years

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 67

DIVISION REPORT

South Australia – with Trevor Goodwin LICM CCE, AICM National President

DIVISION REPORT

Queensland

Madison Ryan MICM (Dynamic Supplies) and Mackenzie Gunn (Agility Law Group).

Samuel Whitelaw (Results Legal), Declan Lane (Cathro & Partners) and Andries Breytenbach (Results Legal).

Josephine Decuyper MICM (Cor Cordis), Erin Blake (Deloitte) and Melanie Donnison MICM (Ampac Debt Recovery).

Toni Sawyer LICM CCE (AICM), Maria Teodosio MICM (Stoddart Group) and Gemma Poore MICM (Cleanaway).

President’s report

much looking forward to meeting them all and seeing who the QLD representative at National Conference will be.

Members should keep an eye out for the WINC registration email, as always, this event is likely to be a sell out so please ensure you register your table as early as you can.

Thanks again to the amazing QLD council for all your time and effort and a big welcome to our newest member, Emma Purcival who is taking on the challenge of organising the ‘Around the States’ section of the AICM magazine for QLD. Thank you,

Just like that we are already into the second half of the year and the QLD council has had a very busy few months, with events now going ahead it looks like we are full steam ahead for the rest of the year!

Members would have seen the registration email hit your inbox for the National Conference, which is being held in Brisbane this year. We can’t wait for this longawaited event, it’s been two years since our last face-toface National Conference, and I know we are all very keen to meet up in person in this year.

Since my last report we’ve had three events in QLD, the first was the National Risk Seminar held at Rydges in Southbank. This was a well-attended event, and we were fortunate enough to have seven engaging speakers for the afternoon.

We’ve then had two social events, one at Oche in the Fortitude Valley and our most looked forward to event, Trivia night. Both events were a success, and we can’t wait for our next social event.

We have our AGM coming up in July along with our Young Credit Professional Awards night, from what I’ve heard we have a diverse and high calibre group of finalists and deciding on a winner wasn’t easy! I’m very

68 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

– Stacey Woodward MICM QLD President

Social night – Oche Our first social night of the year was delayed due to floods but we finally kicked off our year at Oche in Fortitude Valley on Friday 6th May. We had over 50 in attendance and a great time was had by all.

Guests had the option of playing SHUFL or trying their luck at darts! It was a great way to meet new people

Queensland

as we had to form teams of four during SHUFL. There was a lot of laughs and a little bit of competition during the night. All in good fun of course.

Madison Ryan – 2021 QLD YCP, Ashleigh Mason – 2019 YCP National Winner and Stacey Woodward – 2014 QLD YCP all reflected on their YCP journey and encouraged all eligible members to put their name forward for this years award which is being announced in QLD on the 29th July.

James Smith MICM CCE (Credit Clear), Gemma Poore MICM (Cleanaway), Maria Teodosio MICM (Stoddart Group) and Justin Watson MICM (Credit Clear).

Social night – Trivia Friday 10th June we held our annual trivia event, this year at the Caxton Hotel in Paddington.

A great turnout with over 50 in attendance. We again had the amazing team from Think Trivia host, with Talia doing an amazing job, really engaging the audience.

We had nine teams and they certainly did not disappoint with their creative team names. There was something for everyone with trivia categories covering everything from Sport, Music, Science and Geography.

Extra points were available for each team by nominating the biggest tosser of each team for a game of “Ring Toss”.

The tossers had some great ideas on how to maximise those points. Who knew we had so many Potterheads amongst us during a

Cleanaway crew: Cameron Patrick, Mark Moorhouse MICM, Gemma Poore MICM, Nicole Hewat MICM, Vijay Gandhi and Wai Anderson.

NCI Team: Renee Dobson MICM, Eleisha Yassine, Maria Tisdell MICM, Matthew Spann MICM, Taleah Moriaty and Ellynnah Lamont.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 69

DIVISION REPORT

Fletcher Building Team: Kayla Woods MICM, Sam Marsh MICM (Holman Webb Lawyers), Michelle Jackson MICM, Karen Clarkson MICM CCE and Jo Fitch MICM.

DIVISION REPORT

Queensland

Team Vincents. round of Harry Potter themed Heads or Tails.

Overall the scores were very tight, but as always there must be a winner. Taking out first place with a massive 69 points was Better Than Number 2, followed by VIN Quizitive with 67 points in second and The Gunn Sho in third place with 66 points.

NCS Crew: Annette Fabian MICM, Carey Burrows MICM, Dale Hannan MICM CCE, Melissa Kirk MICM, Joseph Dickson MICM and Josephine Decuyper MICM.

Interview with Andrew Knight, Esker (QLD AICM partner)

Agility Law Group: Lachlan Marchant (Enyo Lawyers), Levi Smouha, Madelyn Martin, Alia Hamid, Doug Bartholomew, Mackenzie Gunn and Stacey Woodward MICM (Qld President).

Action shot of the Ring Toss.

70 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

How long have you been working with Esker and what is your position in the company?

I have been working for Esker for just under a year now and I wear two hats, one is as the Business Manager for Queensland, which involves building our brand and coverage of clients from Northern NSW all the way up to Tropical Queensland.

My second role is that of Strategic Alliance Partner, which is building relationships with suitable partners to help refer/resell our suite of solutions.

Queensland

Melanie Donnison MICM and Ben Blake MICM.

Panel: Steven Staatz MICM CCE, Anna Taylor MICM, Ben Blake MICM and Louise Nixon MICM.

Tell us a little about Esker Esker is a publicly-traded company, headquartered in Lyon, France and founded in 1985 by our CEO JeanMichel Bérard. We’ve been in Australia for 25 years now and what we do is help businesses transform their manual, timeconsuming, repetitive tasks within AR and AP departments with automated processes using our proprietary capture, and AI software.

Adam Bailey, Decia Guttormsen MICM CCE, Merv Mahony MICM CCE, Roger Masamvu MICM CCE.

Why did you choose to be divisional partner in Qld for the AICM? Esker is already a divisional partner in NSW and Victoria and has been for some time but until I joined, we had no presence in Queensland. So now is the perfect time to expand our partnership to also include Queensland.

What do you enjoy about attending the social events?

I always enjoy the opportunity to meet new people outside of work in a fun environment. My trivia knowledge might need a little work for the next session!

What are your interests beside work?

My wife and I like to keep active, which is just as well given our love for food and wine, and enjoy the gym, outdoor hiking, and canyoning. We are passionate about

visiting new places and with the borders now open travel is top of our priority list.

What’s an interesting fact about yourself?

For many years I have had interest in horse racing/ ownership and was very fortunate to have the opportunity to be part of a syndicate that had a small share (left nostril!) in a horse that won the Melbourne Cup back in 2013.

National Risk Seminar I had the pleasure of attending the QLD Risk Seminar at the beautiful Rydges Hotel in Brisbane recently. It was great to be out and meeting people face to face after such a long time.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 71

DIVISION REPORT

Speakers Matthew Joiner MICM and Ian Dorey.

DIVISION REPORT

Queensland

Brisbane City Council Group.

The Australian Institute of Credit Management welcomes our Partners for 2022 National Partners

Trusted Insights. Responsible Decisions.

Louise Nixon MICM and Stacey Woodward MICM. Over a delicious lunch Stacey Woodward, the QLD AICM President welcomed guests with an acknowledgement to Country and gave an overview of how the afternoon would run. Nick Pilavidis CEO of the AICM gave a risk outlook using data from 2021/22 and an update on recent developments notably small business restructuring, hardship reporting and ATO activity, something that is very much a developing situation.

We then had a very entertaining legal and insolvency update from Ian Dorey Partner K & L Gates and Matthew Joiner Partner Cor Cordis. How anyone could feel gloomy about insolvency after those two is a mystery.

Following afternoon tea, Louise Nixon, Partner Turks legal led a very talented and knowledgeable panel of credit professionals: Anna Taylor Principal Results Legal, Ben Blake Shared Services Receivables Manager from Cleanaway and recent winner of Credit Manager of the year in the QLD Pinnacles, Steven Staatz Director Vincents and QLD council member.

It was great to have the panel share and collaborate on the challenges posed by the current economic environment with the audience; there really is no better way to ensure credit professionals are equipped to assess and manage credit risk in what looks to be an unsettled period moving forward post covid.

– Fiona Doherty MICM CCE, QLD Treasurer, Group Credit Manager – Hyne Timber

72 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

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.

New South Wales

President’s Report The NSW Council has had a jam packed quarter with the return of the wonderfully insightful Risk Seminar, a fabulous fun networking Trivia night, we opened the YCP nominations, hosted the YCP judging event and by the time this edition publishes we will have announced and awarded the NSW winner at the YCP awards night.

This year I had the immense pleasure of being one of the YCP judges again alongside fellow judges David Jovanov from ARMA, Stirling Streeter from CreditorWatch, Gary Stephen Mullette MICM (Matthews Folbigg) and Bruce Gleeson MICM (Jones Partners Insolvency & Restructuring).

Poslinsky from EDX and previous YCP National finalist James Smith from ARMA. I can honestly say, all judges were blown Council and we had three inquisitive AICM NSW members away by the calibre of the finalists this year! Each finalist come along to the past few council meetings to check brought enthusiasm, professionalism and a strong out what the council is ‘all about’. I am happy to report knowledge in their specialising fields. All employers we have not scared them off… yet. With the NSW AGM should be extremely proud and honoured to have these soon approaching on August 9 we hope they choose to individuals within their team. Although there can only stay on long term and continue to share their enthusiasm be one winner, I know the Credit industry is going to be and creative ideas for years to come – stay tuned! in good hands for many, many years to come! Best of But until then we hope to see you at one of our luck to: James Hunt, Stefanie Ross, James Mason, Arnela upcoming events: Adanalic, Colin Smith and Chris Kiss. z Virtual AGM, 9 August NSW Council is literally growing with members z Professional Development seminar, 11 August Balveen and Kimberly giving birth to beautiful healthy little girls (they are both so cute!!!). Our team wishes you both the very best and hope you enjoy your wellRisk Seminar, 12 April deserved maternity breaks. We cannot wait to see you The 2022 NSW Risk Seminar was a superb event held (and bubs!) at Council again soon. on 12 April at the Rydges Hotel in the CBD. It featured This has opened two short term opportunities on great food, networking and an array of informative

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DIVISION REPORT

Julia Fawcett MICM CCE (Noumi Limited), Tony Pilimon MICM CCE (Rexel Australia), Bruce Bills MICM CCE (Metcash), Stewart Free MICM (Jirsch Sutherland) and Fiona Reynolds MICM (Turks).

DIVISION REPORT

New South Wales

Theresa Brown MICM CCE NSW AICM President presents 5 year membership to Steven Lamb MICM (Brickworks).

Theresa Brown MICM CCE presents 5 year pin to James Smith MICM CCE (ARMA).

Gillian Seddon MICM and Danielle Basford MICM (BlueScope Steel).

Julia Fawcett MICM CCE (Noumi Limited) and Tanya Nightingale MICM CCE (Northern Beaches Council).

sessions. Highlights included a few new terms and sayings to add to the Credit Managers lexicon…read content below.

Our NSW President Theresa Brown kicked off the event with a warm welcome to attendees. Following networking and introductions the first agenda item was the risk outlook presented by our AICM CEO Nick Pilavidis. He presented an analysis of where to spot risk, including factors such as trends on payment assistance.

Bruce Gleeson and Stephen Mullette provided a detailed Legal & Insolvency update. They covered so many topics and shared fantastic statistics. An interesting one was around the long-term decline in relative insolvencies per 10,000 businesses. They mentioned ‘the new phoenix’ where businesses simply close and deregister. The volume of these has quadrupled lately and

a suspected factor in this is that directors tend to face little in terms of penalties for doing so. When providing the audience insights from the market Bruce spoke of the ATO sending letters to put 50,000 directors on notice around outstanding company tax debts in what has been coined the ‘threat to threaten’.

The Risk Panel is always a highlight at our events and this year was no exception. Our Panel included three superstar experienced Credit Managers – Bruce Bills, Julia Fawcett and Tony Pilimon. We had one Insolvency Professional – Stewart Free. The discussion was facilitated by Fiona Reynolds who is a Partner at Turks.

Topics discussed included how they manage insolvency workflow, mitigating risk and how managing risk has changed. Interesting insights were: z The benefits to struggling businesses of seeking early advice – more options on the table

74 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

New South Wales

Georgia Barbera MICM CCE (Bingo Industries), Amy Bayliss (Turks) and David Copp (Bingo Industries).

z The huge value the group placed on PPSR – often declining credit if security could not be provided z Working to mitigate risk upfront – by having good trading terms, PPSR, guarantees and caveats z Rewarding good behaviour such as use of direct debit A final anecdote we were left with from the Panel: “Love your customers, just don’t trust them”.

Networking function – Trivia Night Wednesday 22 June 2022 Hopefully the Trivia night becomes an annual fixture as it was a fun and entertaining night for all. It was held at the Greenwood Hotel, North Sydney.

I had the pleasure of introducing Rob Willoughby, representing our sponsor CreditorWatch. Their contribution to the event was crucial in allowing us to provide the included drinks, canapes and entertainment.

Rob welcomed our guests and then our Trivia Host kicked-off the proceedings. Our Trivia Host, Daniel from Skywolf Events raised the energy levels instantly with his first game that got everyone off their seats!

During the night the lucky prizes winners were: z Clive Wing won a gift voucher donated by Trace Personnel z James Hunt graciously accepted a bottle of

Alex Simmons MICM, Nick Johnson MICM, Narissa Sitthirat MICM and Joseph Bernier MICM (Optus).

Niranga De Silva MICM, Khemendra Goundar MICM, James Hunt MICM and Christopher Williams MICM CCE (all Holcim Australia).

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DIVISION REPORT

Gary Poslinsky MICM (EDX & AICM NSW Councillor) presenting prize to Fiona Reynolds MICM (Turks).

DIVISION REPORT

New South Wales Gin on behalf of his team donated

by ARMA z Georgia Barbera won a bottle of whiskey donated by EDX z Fiona Reynolds won a bottle of fine wine donated by Byron Thomas Recruitment z The Optus team appropriately named “Terrible at Trivia” won a bottle of spirit donated by the AICM NSW Council for last place.

The winning team called themselves ‘Quiz Pro Quo’ and they didn’t disappoint. They each took home Gold-Class vouchers donated by CreditorWatch. Well done to Peter Moore from Jirsch Sutherland, Benjamin Bronzon & Trish Kastanias from Gadens and Steve Vigolo from Murchisons!

– Gary Poslinsky MICM NSW Council

Rob Willoughby (CreditorWatch) presented the winners prize to ‘Quiz Pro Quo’: Peter Moore MICM CCE (Jirsh Sutherland), Benjamin Bronzon MICM (Gadens) and Trish Kastanias MICM (Gadens).

AICM Councillor in spotlight Sam Pearlman MICM CCE (Events)

How did you get involved in the NSW AICM Council running our Pinnacles event for the 7th consecutive year?

I first became involved in the AICM in 2004 by attending the conference in Melbourne.

Partners at the firm I was working at were AICM Sam Pearlman MICM CCE members and they brought me along. Only in 2009 did I join the NSW Council. My primary role has always been in events. For a number of years I was arranging the Tuesday Credit presentations at the Grace Hotel. Sometimes I would present alongside an insolvency or credit professional. I met many of our longstanding supporters. Over the last 7 years I have almost exclusively worked on and been MC at the Pinnacle awards.

What has being on Council of AICM done for you?

I have had the opportunity to utilise my skills and experience to benefit the credit industry. This has included submitting articles to the magazine and assisting with our submissions to Government. It has also put me in constant touch with great people, current and former clients. The AICM is a great networking opportunity outside of work. I have been to

76 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

every conference in person since 2008. When I travel for work, I often meet-up with AICM members, some of whom I have worked with in the law over the years.

How have the Pinnacle Awards changes in that time?

It’s really grown in magnitude recently, but it’s always been well attended. The venues have been getting bigger and better. It’s grown now in all states, whereas it was originally just in NSW. This year we are again working with the National Team to ensure this event is at another beautiful venue. It’s a great reward for teams to dress-up and have fun, not to mention awarding the stars in our industry just prior to the end of the year.

What has been your career journey?

Since graduating from University many years back, I have tended to specialise as a commercial disputes and insolvency lawyer. That said I have done work in a variety of areas of commercial law, pretty much always in disputes of some kind. I have held varying roles in national law firms and also been a director of a firm owned by a publicly listed mercantile agency. At Colin Biggers & Paisley I continue to act in insolvency litigation, insurance litigation and contractual disputes.

What do you outside of work?

My wife and I have two boys -an 8 and 6-year-old. On the weekends we spend time at the beach and at the football in winter. I also go for a weekly swim at Bondi Icebergs, year-round.

New South Wales Gary Poslinsky (Publications) As the newest member of the AICM council and Publications lead, I have the pleasure of interviewing myself as a AICM Councillor in spotlight…

How did you get involved in the AICM Council?

It was friendship that got Gary Poslinsky MICM me involved. Through a few different events I met Theresa Brown and James Smith (our President and Vice President) and they both suggested I join. I always said I’d be happy to join if I could be of assistance so that was it. They needed someone to take on the Publications portfolio. I’m still quite new to the AICM in general having only been in the industry for about 3 years. This is my 4th quarter writing up the publication.

any requests or ideas for future events please do not hesitate to reach out to council president theresa. brown@optus.com.au.

This quarter some of us had the pleasure of interviewing bright young rising stars in the Credit industry for the upcoming YCP award. Talk about talent!

It was a privilege. Be sure to come along to the YCP Awards night at KittyHawk on 21st July.

The Australian Institute of Credit Management welcomes our Partners for 2022 National Partners Trusted Insights. Responsible Decisions.

What has been on Council of AICM done for you?

It has been very rewarding. I know I’m helping the AICM which really works hard to be the voice of the Credit industry. I have enjoyed the events and learnt a lot. As someone new to the industry it gives me the opportunity to be across all the latest industry issues. I had made many new business contacts and friendships over the past year.

Divisional Partners

CREDIT MANAGEMENT SOFTWARE

What do you outside of work?

I’m a family man with two active little boys and a new puppy that I surprised my wife with. I don’t have any wacky hobbies but I like to try a little of everything. Any given weekend I may be running, rock-climbing, camping or testing out the latest kids activity centre.

Official Division Supporting Sponsors

What has been your career journey?

I started out as an Accountant at PwC in the 2006 graduate intake. I qualified as a Chartered Accountant and then moved to Telstra once I reached 5 years. At Telstra I had numerous mini careers in the commercial space before moving back into Finance to lead a process improvement team. After nearly 10 years at Telstra, it was time to leave for EDX and the rest is history. Now I have the best mentor and PPSR Specialist to learn from so I feel very fortunate.

NSW AICM Council – Food for thought and see you soon!

The NSW AICM Council is always planning the next event and how to serve our members. If you have

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.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 77

DIVISION REPORT

AICM Councillor in spotlight

DIVISION REPORT

South Australia

Jenny Paradiso (Our WINC keynote speaker).

Lisa Plag (NCI (Brokers) Pty Ltd) and Joan Knezevic (Dress for Success).

Nicola Ribbans MICM (Adelaide Brighton Cement Limited), James Neate LICM CCE (Lynch Meyer Lawyers), Georgia Gray (Lynch Meyer Lawyers), Georgina Thorp MICM (Elders Rural Services Australia Limited), Alice Carter MICM CCE (Lynch Meyer Lawyers), Janice Zilm MICM (Detmold Group), Caroline Stone (Paperpak), Lesley King MICM (Deloitte Touche Tohmatsu).

President’s Report It has been a busy few months for the SA division council with some great events held, members recognised for their achievements and the YCP awards well underway for 2022.

It is pleasing that our efforts to connect, represent and educate members at an SA and National level have led to an increase in memberships in SA this year. We look forward to connecting with these members at events in the coming months.

In June we held a successful Economic Breakfast at the Lion Hotel, with a presentation provided by Cedric Hodges of Deloitte Access Economics. His modelling and analysis provided some very useful insights into the emerging trends locally, nationally and internationally.

We also recognised two members significant achievements at the breakfast: z Austin Taylor from Meertens Chartered Accountants celebrated 40 years of AICM membership. It was

78 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

inspiring to hear from Austin on how the relationships formed through the AICM community have meant so much to him personally and professionally. z Steven Thomas from Oracle Insolvency Services was presented his CCE certificate after recently becoming SA’s newest CCE. We look forward to celebrating the future of the credit community at the upcoming YCP to be held at the Bath Hotel in Norwood on 11 August 2022. SA has produced strong candidates in Clare Venema, a Credit Manager from Beyond Bank and Georgia Gray from Lynch Meyer. It will be great seeing them both progress throughout the competition and we wish them the best of luck.

SA WINC On 13 May 2022, the SA Division hosted yet another fabulous WINC Luncheon. We hosted a room full of guests at the fabulous Crowne Plaza and were proud

South Australia

to support our charity partner, Dress for Success.

Joan Knezevic joined us to speak about the important contribution Dress for Success provides to empower women to achieve economic independence by providing a network of support, professional attire and the development tools to help women thrive in work and in life.

Our audience was particularly touched to hear of a number of Standing: Sherill Wood MICM (Mercantile CPA), Chloe Monteleone MICM (Mercantile CPA).

Sitting: Tarissa Elmer (ScotPac Business Finance), Crystal Li (ScotPac Business Finance) and examples where women Halmira Hamit (ScotPac Business Finance). have been able to go on to obtain employment after approaching Dress for Success for assistance.

Economic Breakfast We then introduced our keynote speaker, Jenny On the 9th of June 2022 the SA Division held their Paradiso, the Managing Director and co-founder of Economic Breakfast at the Lion Hotel in North Adelaide. national solar and battery storage company, Suntrix.

Attendees enjoyed a great presentation by Cedric Jenny gave an inspiring presentation which highlighted Hodges who leads the Deloitte Access Economics team key milestones in her career, which included building a in South Australia and Tasmania. successful solar and battery business from her kitchen Cedric is an esteemed member of the profession, with table. a first-class Honours degree in economics, having written Thank you to our sponsors Equifax (Premium his thesis on CGE modelling, and having a Master’s Sponsor) and Results Legal and NCI (Supporting degree from The Australian National University where he Sponsors ) for your ongoing support of this wonderful is now completing his PhD. event. We look forward to you joining us again next With credit professionals having to navigate through year. economic uncertainty in recent times, Cedric discussed

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DIVISION REPORT

Standing: Robin Loechel (City of Charles Sturt), Allison Balkauskas MICM (Group Management Services), Vivienne Pierson (Hallett Group). Sitting: Annette Martin (City of Charles Sturt), Kylie Sunners (City of Charles Sturt), Gail Crowder MICM (Credit Solutions Pty Ltd) and Neil Fennell MICM (Meertens).

DIVISION REPORT

South Australia

Neil Fennell MICM (Meertens & SA Division President), Cedric Hodges (Deloitte Access Economics) and Sam Collins (Deloitte).

Trevor Goodwin LICM CCE (NCI & AICM National President) presents 40 year membership pin to Austin Taylor MICM.

Grant Morris LICM CCE (Southern Steel Group), Alice Carter MICM CCE (Lynch Meyer Lawyers), James Neate LICM CCE (Lynch Meyer Lawyers), Austin Taylor MICM (Meertens Chartered Accountants), Lisa Anderson FICM CCE (Cooper’s Brewery) Andrew Luckhurst-Smith (Angas Securities), Merna Spain MICM (Brice Metals Australia Pty Ltd) and Anne Wilkins.

Thoshan Karannagoda MICM, Parmeet Bindra MICM, Joshua Farrow MICM, Scott McGrice MICM, Nicholas Cooper MICM (All Oracle Insolvency) and Georgia Gray (Lynch Meyer).

Trevor Goodwin LICM CCE receives 40 year pin from James Neate LICM CCE (immediate past AICM National President) and Grant Morris LICM CCE (previous AICM National President).

the intensifying risk influenced by inflation, ongoing COVID-related impacts, higher fuel prices and interest rate rises.

In addition to the presentation, the SA Division was able to celebrate the membership anniversaries of Austin Taylor from Meertens(40 years), John Antoniadis from NCI (15 years), and Gemma McGrice from NCI (5 years). Furthermore, Stephen Thomas from Oracle

Insolvency Services was recognised for attaining his Certified Credit Executive status, and Trevor Goodwin from NCI and Adrian Stewart from Australian Clutch Services were recognised for their obtaining their CCE recertifications.

A big thank you to the National Breakfast sponsor Turks for helping this event to go ahead, it was an informative and fun event for all attendees.

80 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

South Australia Alejandro Jaramillo (AJ) MICM CCE A great contributing member of the SA Division is Alejandro Jaramillo (AJ), who not only holds a leadership position as a Team Leader in Credit Services at National Credit Insurance (Brokers) but has also attained his CCE. AJ has been a member Alejandro Jaramillo (AJ) MICM CCE of the AICM since 2010 and marks his biggest professional accomplishment to date as transferring the skills that he learned overseas to his job in Australia, and on top of that even gaining a promotion.

This experienced credit professional advises emerging credit professionals to attend as many functions and events as possible, as this is the best way to expand work contacts and make themselves known.

On this note, AJ remarks that being a member of AICM has given him the opportunity to meet a great deal of people, not only from his field, but also professionals in different fields who all benefit from being a member. AJ has also added that being able to attend many functions has further enhanced his knowledge of the credit industry.

Aside from his impressive career in the credit profession, AJ enjoys spending time with his family, mountain biking with his son, walking, watching a good movie and enjoying a dinner with his friends.

New Division Partner The SA Division welcomes a new Division Partner – Oracle Insolvency Services.

The SA Council is delighted to welcome the team from Oracle Insolvency Services as members of the AICM and the firm as a new Division Partner.

Oracle Insolvency Services is a boutique firm of Chartered Accountants specialising in corporate and personal insolvency and forensic accounting services.

Since the firm’s inception in September 2020, Oracle has been a standout firm in the insolvency profession, having been ranked number 1 firm in SA by appointment value in the Corporate Insolvency Index by Insolvency Australia, and Partners Nick Cooper and Dominic Cantone being ranked number 1 and 3 liquidators in SA in the Liquidators Ranking Report.

Many members in the SA Division will recognise Managing Partner, Nick Cooper, as a familiar face within the AICM, having previously served as

Oracle Insolvency Services: Partners Nick Cooper MICM, Yulia Petrenko MICM and Dominic Cantone MICM. President of the SA Council. Nick and his team of insolvency experts are a welcome addition to the SA Division through their innovative strategies for asset recovery, turnaround and both formal and informal insolvency solutions.

The Australian Institute of Credit Management welcomes our Partners for 2022 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.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 81

DIVISION REPORT

Spotlight on Member

DIVISION REPORT

Victoria/Tasmania

Rachel Burdett (Cor Cordis) responding to audience questions.

Nick Pilavidis FICM CCE (AICM), Daniel Alley MICM (Reece Group & 2021 YCPA) and Mary Petreski MICM CCE (Asahi Beverages).

President’s report What a way to finish up…This is my last report as the Vic/Tas President as I am heading off on maternity leave. It’s a little bit of a bittersweet finish for me. I’ve always wanted a family, however the timing with the traction we are getting in the Vic/Tas division is mildly inconvenient. I have been working hard with the support of our local council and National Office to get great events and proactive engagement for our members. The current council we have in place, plus the leadership of Michelle Networking over afternoon tea.

Carruthers MICM as the new President, will deliver wonderful results. collaboration with the Australian Restructuring Insolvency Case in point, my last in person event was the WINC and Turnaround Association (ARITA). A big thanks to our luncheon. We had a record breaking 204 attendees and amazing MC’s, Daniel Alley and Mary Petreski. were able to raise over $7,000 for our chosen charity, Our speakers were fired up and filled with knowledge Dress for Success. to share. AICM CEO Nick Pilavidis took us through Our next event was MC’d by our previous YCP the Risk Outlook, which was published in the AICM National winner and all-around great councillor, Daniel magazine. If you have not read it, I recommend you do.

Alley. This event was another record attendance for the The information takes us through some key insights Vic/Tas division. on corporate insolvency, impacts over the last 2 years We now have a spectacular, collaborative council that and where personal insolvency has dropped. It also are determined to improve and enhance the member mentioned that business related insolvency increased experience here in Vic/Tas. in January 2021 compared to March 2022. We were also I’m very proud of everything I’ve achieved in my time taken through some key areas of bankruptcy, ATO debt with the AICM and will miss everyone as I take some and fair preference. time out. I imagine I’ll be back at some point, the AICM Allan Kawalsky and Robyn Erskine took us through has been such a huge part of my life. I will miss all your the Legal and Insolvency updates and raised some smiling faces. Thank you again to my amazing councillors, interesting questions. For example: current, future and past. We can do great things! z Formal insolvencies have halved, driven by massive – Catrina Galanti, President MICM CCE stimulus, low interest rates and ATO withdrawing collection activity. z What does deregistration mean for us, could this be Risk and Insolvency Seminar – June 7th the new way to phoenix?

The Risk Seminar on the 7th of June at the Jasper Hotel z Pre covid an estimated 10,000 corporate insolvencies was another huge sell out event. For four consecutive were recorded per year, and an estimated 40,000 years, this seminar has been developed by a national were deregistered by ASIC. committee of credit, legal and insolvency professionals, in z Has COVID changed insolvency forever?

82 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Victoria/Tasmania

In my opinion our last session was the highlight of that day. We had a panel of special guests; Natalie Sherriff (MICM), Tim Faulkner (MICM), Prue Greenfield (MICM) and Rachel Burdett who talked openly about their biggest learnings over the last 12 months. For example, we learnt that; z Supply chain and retaining staff were two common issues across all industries. z Prue took us through the digital signature space, an area that expanded across so many sectors during COVID. z It was discussed how credit professionals could manage the potential increase of insolvencies, solutions included reviewing T&C’s, PPSR registrations are managed correctly, and obtaining guarantees where possible. z Rachel gave some great insights on different risk signals to look out for, including understanding the entire structure of a business, potential leakage and fraud documents.

We closed off the Risk Seminar with nibbles and networking. The environment was positive with fabulous feedback on the seminar content.

– Mary Petreski MICM CCE

What Achievements are you most proud of?

At Esprit De Corp, I was able to recover many very old debts through managing relationships and maintaining quality paperwork. There was one particularly challenging longstanding customer who was very unwilling to sign the appropriate credit documentation.

Through building a rapport with this customer and managing the relationship carefully and negotiation, I was eventually able to get him to sign all the necessary documentation, to ensure risk was taken care of for this business.

Member in spotlight Shirley Wells Credit Manager at Huon Aquaculture Company Pty Ltd, 30 years of membership

How did you get into credit?

I became interested in credit after doing back end for a family plastering business. I then moved to Melbourne to take a position with ANZ, to

get my foot in the door in credit and became secretary for the Camberwell branch. I then got an interview with Cuggi Australia, a family owned Knitwear fashion company. At Cuggi I worked closely with the managing directors who really opened the door to credit for me. I became somebody who based my business relationships on respect and placed a big focus on customer relationships.

I then spent some time at Jag clothing in a Credit Manager role, where the sales staff were very much immersed in credit, and then had a short stint at a Diners Club Credit Card Company where I learnt a lot of skills that helped me shape thoughts on delinquent debts and the investigative process, which has helped me during my journey in credit.

I then worked at Esprit in credit, which was a very inspiring place to work for connections with youths on the street assistance and environmental approach to communities. The manager was heavily involved with the AR function, which was very encouraging. One thing I’ve found is that I can apply the basics of credit across all industries I’ve worked in.

Any advice for young people in the industry?

Shirley Wells

Start with the AICM and do your best to network in the industry. Learn as much as you can and find your feet, everyone has a unique approach to credit. Getting to

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DIVISION REPORT

Tim Faulkner MICM CCE (CH2), Allan Kawalsky MICM (Turks), Prue Greenfield MICM (Macpherson Kelley), Natalie Sherriff MICM (NHP Electrical Engineering Pty Ltd), Rachel Burdett (Cor Cordis) and Robyn Erskine AM MICM (Brooke Bird).

DIVISION REPORT

Victoria/Tasmania

Leigh Garth MICM CCE (Bennetts Petroleum Supplies Pty Ltd), Ivana Griggs (Murdoch Clarke), Travis Anderson (Deloitte).

Cedric Hodges (Deloitte) and Nick Pilavidis FICM CCE (AICM).

know your customer and their habits and maintaining relationships is invaluable.

Tas Economic Breakfast

What do you get out of the AICM? I did my CCE quite late in my career, I’m largely selftaught and have found the AICM has been a valuable resource for information. The networking opportunities are fantastic, I’ve found many friendships and professional connections through the AICM networking events. The courses always give me a buzz, I always learn something new and go away with new ideas.

Being able to adopt new ideas and reinvent yourself is essential to be able to move with the industry.

The Tasmanian Economic breakfast and Risk Seminar was attended by a number of interested professionals on the 19th of May. Cedric Hodges from Deloitte’s provided great insight to the risks and challenges we expect to battle over the next year.

There was a lot of discussion around the growing concern with the ATO commencing activity around tax debt and the impact that will have on our ledgers.

My key takeaway from the breakfast was to complete a full audit on all PPSR registrations. Overall, it was a great opportunity to reconnect with colleagues in the industry.

– Leigh Garth MICM

How were you affected by Covid?

Bennetts Petrol

Initially we had a work from home directive, although I found with my role that didn’t pose too much of an issue. My results were still there, and I was able to communicate with the customer and manage relationships when they were doing it tough. However, this is the first time I had seen hardship amongst my debtors, so it was a learning experience for me. I found myself doing a lot more to support my customers, which made it a very challenging and busy time. It was also difficult not being able to travel to an extent, as it was easier to maintain relationships with face-to-face customer visits.

What do you do outside of credit?

I’m passionate about my Argentine tango dancing, and I often travel to Argentina to practice and learn from the Masters. I also used to play a lot of squash and became Tasmanian Junior and Senior Squash champion, representing the State of Tasmania at championships. I generally enjoy watching sport now and walking to keep active. I was planning to travel to southern Italy later next year which I’m looking forward to!

– Alex Hawtin MICM

84 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Member in spotlight Mal Pericic MICM CCE Group Credit Manager at GWA Group Limited 31 years membership

How did you get into Credit?

My first role at Siddons Industries was in accounts payable, then I was promoted to an assistant accountant role. I spent most of my time preparing and Mal Pericic MICM CCE completing reporting results after the fact, I wanted to be able to contribute towards the success of the business and be more dynamic. I worked near the AR manager and saw how much engagement he had with customers, sales, finance and dealing with the challenge of getting paid on time. Most days for him were very different, and at times unpredictable, especially at month end. I decided to try my hand in AR and was

Victoria/Tasmania

Leigh Garth MICM CCE (Bennetts Petroleum Supplies Pty Ltd), Stacey Joseph (Tasmanian Chamber of Commerce & Industry) and Jennifer Sparks MICM ( Tasmanian Collection Service).

hooked with the thrill of chasing money, negotiating win – win outcomes, achieving KPI’s, engaging with customers and making a difference that could be measured.

What is your favourite industry to work in?

Tell us about your career and what you have learnt.

After the recession, my career took off. I started in a supervisor role at Dulux. I learnt a lot about collection and risk management strategies, managing for results, systems, reporting, writing risk commentary for board papers, legal processes, setting targets and a never say die attitude. At the time I had a tough, yet great credit manager that really drove the team. From that experience it really gave me a platform and set of principles that I have incorporated and still use today.

I’ve worked at Parmalat, Bosch, Nylex, Computershare and now at GWA, all different industries and unique businesses. However, in general the same principles apply with some adjustment. I’ve learnt the art of collection is the same no matter which industry you are in. You have Major Accounts, 2nd tier accounts, buying groups, stand alone, single businesses and export. The risk profile may change and trading terms. It’s all about your ability to manage the outcomes within agreed terms and setting goals according to terms and management expectations.

Removing perceived barriers, collaborating with key stakeholders, and having the support from the executive leadership especially the CEO and CFO are also critical.

Key learnings: Without a great AR team that is supportive and willing to achieve the same goal, who believe in the vision and strive for the results, nothing is possible. I have also learnt that it is important to benchmark your progress against industry and peers, conduct proactive reporting and celebrate successes. Having great relationships and the support of external collections agencies, legal representatives, reporting agencies, insurance brokers and recruiters all help to build a reliable support service to assist in managing your ledger.

Fast moving consumer goods (FMCG) is my favourite industry. I thoroughly enjoyed working at Parmalat (Paul’s Milk),a company that heavily invested in staff training and development. A collaborative and proactive company years before these buzz words were used in business. It was a very dynamic environment, surprisingly innovative and highly competitive, with low margins. Everyone was challenged to make a difference, through devising process improvement, and saving millions across all parts of the business from supply chain, production and transport to finance. The company had a great culture, we worked hard and celebrated our success, there were many successful highlights.

What is your career highlight?

My career highlight is that I’ve had several roles where I have moved onto new challenges and my 2IC has stepped into my role. I enjoy empowering my employees to discover their own potential in credit and it’s very humbling knowing that I had a hand in helping them build a career.

What advice would you give the younger generation? z Ensure you align your KPI’s with the company’s goals i.e. don’t set yourself up for failure before you have started. z Benchmark your progress internally and with industry peers. Look to explain what is needed to achieve your goals rather than why they weren’t. z Understand your terms and conditions, in particular the credit clauses and payment terms, close any gaps. z When entering a new role collaborate with stakeholders including customers, AR team and management to understand what is working and what is not. z Remain proactive and communicate the benefits of achieving KPI’s, i.e., increased cash flow, reduced overdue debt, improved DSO, reduced risk and savings.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 85

DIVISION REPORT

Fiona O’Rourke (O’Rourke Business Recovery & Insolvency Services), Ivana Griggs (Murdoch Clarke) and Adam Johnston (Deloitte).

DIVISION REPORT

Victoria/Tasmania

Our inspiring speaker Milly Tapper.

Brooke McGlashan (MessageMedia), Cathy Grinter MICM (MessageMedia), Donna Cortissos (MessageMedia) and Rebecca Ford MICM (CollectAU).

Debbie Leo MICM (Equifax) with her team and guests.

What do you do for fun?

I play racquet ball twice a week with friends, play golf every now and then and I enjoy entertaining family and friends. I follow the footy, my entire family are Richmond supporters, and we also follow Manchester United. I watch my daughter and son both play senior soccer. I enjoy spending my summers with my family down in Rye. – Michelle Carruthers MICM

Women in Credit (WINC) Luncheon On Friday the 20th of May we hosted our annual WINC luncheon at the RACV City Club in Melbourne. It was another sell-out event in our VIC/TAS calendar, with over 200 people in attendance and you could feel the energy in the room. This is my favourite event of the year and it is the reason I got on council.

Milly Tapper insipired the audience, sharing lessons learned from her journey and how she didn’t let being born with brachial plexus, a nerve condition affecting her right arm, prevent her from achieving Paralympic and Olympic medals.

I thoroughly enjoyed being the MC, as every year

86 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

it gets bigger and better. A huge thank you to our Premium sponsor Equifax and our supporting sponsors Results Legal and NCI. We raised over $6500 for our national charity “Dress for Success”. A big shout out to all those who donated items for the raffle and a particular thanks to the below big ticket donations for the silent auction: z 2021 Hawthorn AFL team signed jersey – donated by Adidas; z Off Road Animal Safari at Werribee Open Range Zoo for 2 – donated by CreditorWatch; z A tailored interactive session – donated by Gordon Jenkins; z Luxury Yarra Valley Stay with Breakfast and Dinner – donated by National Collections Services; z Two Nights’ Accommodation in a Two Bedroom Apartment – Donated by Quest New Quay; z Aboriginal art piece by a female artist – donated by RecoveriesCorp.

Finally, a huge thank you to my fellow committee members, in particular Mary, Robyn, Sheriff, Catrina and Prue.

– Michelle Carruthers MICM

Victoria/Tasmania

Michelle Carruthers MICM (PayOK & Current Vic/Tas President), Robyn Tredinnick (Groomed to Go) and Catrina Galanti MICM CCE (NCI [Brokers] Pty Ltd & immediate past Vic/Tas President).

Stan Velonis MICM, Diana Velez MICM and Claudine Coles MICM (Urbis Pty Ltd).

Our new Vic/Tas President and MC Michelle Carruthers MICM welcomes members and guests.

Councillor Changes Farhan Hossain is stepping down from council, he will be missed as he was a great contributor to the success of Victoria’s YCP. We have asked him to answer a few questions before he leaves.

What did you enjoy about being on council?

Being a council member of the AICM has been a great

space for me to develop my knowledge of the wider credit industry outside of Banking and I have thoroughly enjoyed that.

What will you miss?

First and foremost, I will miss the other council members who have been very welcoming from day one after I joined the council. Secondly, I will miss participating in

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 87

DIVISION REPORT

Nicholas Boyce MICM (Results Legal), Erin Johnson, Alicia Cooley (both Reece Pty Ltd) Anna Taylor MICM (Results Legal), Natalie Alescio (Assured Credit Management), Lilian Bougiouklis MICM (Ball and Doggett Pty Ltd) and Joe Mercieca (Assured Credit).

DIVISION REPORT

Victoria/Tasmania

Strike bowling the amazing industry events that the AICM organises throughout the year.

10 years – Mary Petreski and Melissa Mann.

20 years – Natalie Sheriff, Malani Mason, Sia Patouras.

25 years – Rick Dunham.

Would you recommend being on council?

Definitely, I joined the AICM council straight off the back of participating in the YCP in 2020 and I have learned something new every month in our council meetings. It is a great way to enhance your knowledge of the wider credit industry and any legislative changes,

What are you looking forward to?

Even though I am stepping down from the council, I will continue to serve in the YCPA subcommittee to mentor the Young Credit Professionals that will represent Vic/Tas in the coming years. I am looking forward to meeting and assisting potential candidates throughout the interview process and helping them realise their potential.

The Australian Institute of Credit Management welcomes our Partners for 2022 National Partners Trusted Insights. Responsible Decisions.

Divisional Partners

Strike Bowling Social event – Thursday 7thApril It was such a great experience to be back in Melbourne’s CBD for the Young Credit Professional networking event at Strike Bowling. It started off with a presentation by Daniel Alley, last year’s National YCP winner, and he was accompanied by Alex Hawtin our Tony Mammone winner for Victoria. It was great to see the new generation of credit professionals, as well as suppliers to the industry.

This year’s Young Credit Professionals look stronger than ever and with the help of our amazing councillors Daniel Alley, Alex Hawtin, Amaran Navaratnam MICM CCE we are hoping for another VIC/TAS win for National YCP. A big shout out to Paul Butler who was the night’s overall bowling winner!

– Michelle Carruthers MICM

Membership Milestones 5 years – Ersilia Barbone, Tim Faulkner, Jeanne McArthur, Jacqui Larsen, Linton Webster and Lori Popa.

88 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

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

President’s Report My thoughts and reflections of the past few months in the WA Credit environment coincidentally echo some of the very same sentiments that I spoke of this time last year, particularly in terms of AICM Member activity and events here in the West.

We were fortunate to be able to again host a very successful Women In Credit event, with a record turnout of over 90 members and guests at the Doubletree On the Waterfront coming together to hear Jan Cooper OAM share her journey and challenges in her roles in increasing female participation in AFL across Australia. We were also fortunate to be able to support Dress for Success as our nominated charity, with fantastic contributions to all who attended. Again, the WA Council thanks Equifax for sponsoring this fantastic event. I would also like to thank WA councillors Rowan, Raffaele, Kevin and AICM Events Manager, Brittney who were able to manage and host our Members in my absence.

One of our favourite networking and social events of the year, the Young Credit Professional of the year is being repositioned as a networking event. Sadly this is due

Jan Cooper OAM (West Coast Eagles).

Raffle Tickets in high demand.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 89

DIVISION REPORT

Simon Read MICM (PPSAdvisory), Grace Welch (QBE Australia), Anne Donaldson (Dress for Success Perth), Anna Taylor MICM (Results Legal), Lisa Keen (PPSAdvisory) and Jan Cooper OAM (West Coast Eagles).

DIVISION REPORT

Western Australia/Northern Territory

Sheetal Bhundia (Bankwest), Zoe Newell (Bankwest), Tia Evers (Bankwest), Tanya Fisher (Equifax), Carys Stonelake (Bankwest) and Aleks Henderson (Export Finance Australia)

The power of team! to a lack of applicants from WA for the YCP award program this year. The YCP award is a fantastic opportunity to recognise and reward our young credit talent, and it has been a great success in previous years, sending many on a path to excellence and achievement in our field. I eagerly encourage all members, and member organisations to start the search now for next year’s Young Credit Professional of the year.

Stay tuned for information on the repositioned event which will be a great opportunity for YCPs and experienced credit professionals to connect at a time when connecting with peers in the industry has never been more important. With the support of the YCP sponsors ARMA (a Credit Clear company) and CreditorWatch this will be a not to be missed event.

Our AGM notices will be issued shortly, all members are encouraged to attend as this is your opportunity to

90 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

have your say and contribute to the institute. We are always on the lookout for new councillors so please, if you wish to contribute and help shape and drive your institute in the West, reach out to either myself, Vice President Raffaele, or Director Rowan for a chat.

I, like many, am very excited with the prospect on attending the National Conference IN PERSON for the first time in over two years. It’s fantastic that planning and preparation for the conference is well under way, and I am sure it will be our best yet as we can all gather in Brisbane in October. My flights are booked, and bags packed, and I highly recommend attending this event if you can. It is well worth the cost and time spent on the three days of highly insightful and enriching content, together with the awesome opportunity to meet and network with peers from many differing industries all over the country. And not to forget the President’s dinner – the biggest and most popular event on the AICM

Western Australia/Northern Territory

Calendar. I do look forward to seeing as many WA AICM Members and guests as possible in Brisbane in October.

– Troy Mulder MICM CCE WA Division President

WINC The WA WINC event was held on 17 June 2022 at the Doubletree By Hilton in the Perth Waterfront.

A big thank you to Anna Taylor MICM (Results Legal) who at late notice stepped in to MC the event due to Debbie Leo MICM (Equifax) unfortunately contracting COVID-19 on arrival into Perth from Sydney.

The event achieved record attendance with over 90 people gathering to celebrate Women in Credit and hear from keynote speaker Jan Cooper OAM, former AFL National Manager: Female Football Development for 12 years. Jan’s presentation on how she overcame societal and organisational bias in the role to increase the female participation in AFL across Australia from 16,000 players to 480,000 was inspirational. The management style and methodology employed by Jan in her role to achieve the outcomes that she did could be adopted by anyone in the room to overcome stereotyping and bias they might encounter in their careers.

The WINC events also provide an opportunity to support a charity and the chosen charity for this year’s events was Dress For Success, who empower women to achieve economic independence by providing a network of support, professional attire and the development tools to help women thrive in work and in life. Anne Donaldson presented on their behalf and shared stories of success achieved by the charity in assisting many women to find work and overcome bias and discrimination.

The Australian Institute of Credit Management welcomes our Partners for 2022 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.

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 91

DIVISION REPORT

Raffaele Di Renzo MICM CCE (Nova Legal), Mel Frazer (Auxilium Partners), Kelly Turner (Auxilium Partners), Lynda Maclean (St John of God Health Care), Trevor Greenhill MICM (Cloud Payment Group), Cheryl Dickinson MICM (Vinidex Pty Ltd), Linzi Sorrell MICM (Mediterranean Shipping Company) and Linda Croft MICM (SRG GLOBAL).

DIVISION REPORT

New members The Institute welcomes the following credit professionals who were recently admitted to membership between April and June.

New South Wales

Fereshta Kazim

Omnicom Media Group Australia Pty Ltd

Dro Abad

Christopher Kiss

IPF Digital Australia

Ananda Maharjan

Whiting Holdings Pty Ltd

IPF Digital Australia

Sara Abdullah Jasiah Ah-Chong

IPF Digital Pty Ltd

Sean Mahoney

Credit Collection Services Group

Zohra Ali

Corporate Credit Recovery

Sandesh Mainali

Credit 24

Helen Anderson

Scotts Refrigerated Logistics

Katie Merkouris

Transurban

Renee Appleby

CCSG Pty Ltd

Manasa Munnaluri

LG Electronics Australia

Suzanne Appleton

WISEGLOSYD

Chris Mushan

ChapterTwo

Serena Arabian

BCC Trade Credit

Arjeta Muslic

Transurban

Michala Arnott

Credit Collection Services Group

Kim Nguyen

Matthews Folbigg Lawyers

Aritree Barua

Matthews Folbigg Lawyers

Tiffany Nguyen

IPF Digital Australia Pty Ltd

Almira Benitez

Whiting Holdings Australia Pty Ltd

Laura Nguyen

WiseTech Global (Australia) Pty Ltd

Zarina Bibby

Talent International

Mahalakshmi Niranjan

Talent international

Victoria Bogomolets

The Bond & Credit Co.

Edgar Paz

IPF Digital Australia Pty Ltd

Babette Bottin

DAS Insure Pty Ltd

Ben Phillips

Equifax

Jessica Boyle

Bob & Pete’s

Leony Podmore

Ecolab Pty Ltd

Rosalie Carino

GrainCorp Operations Limited

Meg Rasdall

Equifax

Nola Casey

Transurban

Jacob Reardon

Matthews Folbigg Lawyers

Vivian Chau

IPF Digital/Credit24

Vamsi Rella

Deloitte Touche Tohmastu

Qian (Cynthia) Chen

The Bond and Credit Co.

Kerri Roach

Wisetech Global

Antonio Concha

Transurban

Linda Saddi

Rexel Australia P/L

Elias Danos

UCC Coffee Australia

Carol Sahani

Omya Australia Pty Ltd

Erik de Jager

The Bond and Credit Company

Kaye Scott

CSR Limited

Joseph Dejoras

Transurban

Grace Stevenson

Whiting Holdings

Sulia Fotu

WiseTech Global

Joseph Sugiarto

The Bond & Credit Co

Damian Frittum

IPF Digital

Robbie Sweet

CCSG

Dustine Galindez

Ecolab Pty Ltd

Cesar Tamayo

Omnicom Media Group Pty Ltd

Santosh Gottivedu

Deloitte Touche Tohmatsu

Janine Tatnall

Transurban

Tushar Gupta

The Bond & Credit Company

Pramila Thapa

Wisetech Global

Andrew Hack

Matthews Folbigg Lawyers

Sanet Thiessen

Inghams Enterprises Pty Ltd

Jade Harper

IPF Digital Australia

Risti Tjia

Omnicom Media Group Australia Pty Ltd

Edman Ho

illion

Louis Tsang

illion

Sarah Howe

PeopleIN

Anees Unnisa

Deloitte Touche Tohmastu

Sammi Hu

GrainCorp Operations Limited

Jean Franco Vilaro

Australian Centre for Advanced

Olivia Hunt

Ecolab

Luke Hyland

Rostron Carlyle Rojas Lawyers

Rebecca Wewege

Omnicom Media Group Australia Pty Ltd

Maree Isaacs

WiseTech Global Limited

Bianca White

Cadia Group Pty Ltd

Simone Ison

Metal Manufactures Pty Ltd

Alan Williamson

San MIguel Yamamura Australasia

Melesala Johnson

Transurban

Melissa Zirilli

LG Electronics

Felix Joseph

Etex Australia Pty Ltd

Liliana Jovanovic

Omnicom Media Group Australia Pty Ltd

92 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

Computing and Communication Pty Ltd

New members Chenoa Nichol

People Infrastructure Limited

Sajina Adhikari

JBS Australia

Karen Olson

JBS Group

Shari Barnes

PeopleIN

Jeanine Paganoni

Metal Manufactures Pty Ltd

Tracey Bevan

Foundation Education

Louise Perovic

QRIDA

Christopher Biggin

QRIDA

Anthony Perricelli

Cor Cordis

Carey Burrows

National Collection Services

Gemma Poore

Cleanaway Waste Management Limited

Brooke Carter

Cement Australia

Vicky Reeves

Cement Australia

Jacinta Chand

Brisbane City Council

Shane Roberts

Holman Webb Lawyers

Belinda Chaseling

Queensland Rural and Industry

Karen Rodgers

Marsh Alliance

Development Authority

Dianne Shedden

SLIQPAY

Chloe Chen

JBS Australia

Karlie Simpson

Beaumont Tiles

Owen Clark

Heritage Bank

Irene Singh

JELD-WEN Australia Pty Ltd

Lisa Clement

Sliqpay

Charles Smith

Sliqpay

Rob Colussi

Vincents

Luke Thirlwell

Vincents – Brisbane, Qld

Elliott Currie

BRI Ferrier

Owen Tilley

Sliqpay

Meghan Derbyshire

National Collection Services

Rachel Turk

Rostron Carlyle Rojas Lawyers

Joseph Dickson

National Collection Services

Brooke Valinoti

Metal Manufactures Pty Ltd T/as

Laura Dietrich

QRIDA

Leah Dinh

Elders Rural Services Australia Limited

Natasha Vallenduuk

QRDIA

Sam El-Merebi

Transurban Limited

Matthew White

Sliqpay

Diana Endino

Vincents – Brisbane, Qld

Fleur Wilson

Cairns Hardware

Tiffany Engler

Beaumont Tiles

Cherie Woodford

Beaumont Tiles

Peter Flynn

Brisbane City Council

Jayklyn Wright

Heritage Bank

Ahmed Girach

Transurban

Adam Young

Nutrieng Ag Solutions

Danial Grace

Metal Manufactures Pty Ltd

Lyla Granger

Ball & Doggett

Ruth Griffiths

Heritage Bank

South Australia

Craig Guyan

Sliqpay Pty Ltd

Viyani Almeida

National Credit Insurance Brokers

Xiaodan Han

Cairns Hardware

Amy Coombes

Elders Rural Services Australia Limited

Lily Huang

People Infrastructure

Narelle Evans

Hallett Business Services

Queensland Rural and Industry

Lisa Guyton

CCC Financial Solutions Pty Ltd

Development Authority

Angela Murray

National Credit Insurance (Brokers) Pty

Ashley Hunt

Haymans Electrical

Ltd

Maree Hurley

Cement Australia

Bron Keen

QRIDA

Amy Oliver

Elders

Teresa Keleher

Ergon Energy Retail

Michelle Royals

Elders Rural Services Australia Limited

Michelle Larsen

Stramit Corporation

Nathan Schwarz

Deloitte Touche Tohmatsu

Ellie Leslie

Holman Webb Lawyers

Rachelle Tilbury

People’s Choice

Anne-Maree Lightbourne Bretts Pty Ltd

Kylie Wood

Hallett Business Services

Lyn Shih Hua Lin

FBS Collections and Receivables

Kitty Liu

Cairns Hardware

Mariella Llamas

Shine Lawyers Pty Ltd

Tanyaradzwa Mataswa

JBS Australia

Molly McEncroe

People Infrastructure

Sialafua Muliaga

JBS

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 93

DIVISION REPORT

Queensland

DIVISION REPORT

New members Victoria/Tasmania

Rory Kitching

Optus

Kylie Alexander

Villa Maria Catholic Homes

Suzanne Koni

BMW Financial Services

Christian Alvear

BMW Finance Australia Ltd

Timothy Krieger

Dahlsens Building Supplies

Jennifer Badzaj

Metcash

Matthew Lawson

Bluescope Steel

Aileen Beaton

Australian Pharmaceuticals Industries

Nicole Leak

Visy

Ltd

Tiana Mann

Moula

Johnny Belicovski

BMW Financial Services

Manal Matin

Australian Pharmaceutical Industries Ltd

Scott Benger

Cor Cordis

Siobhan McEntee

Bond & Credit Co

Peter Bignold

Tasmanian Collection Service

Erin McLean

Middendorp Electric Co Pty Ltd

Chris Blake

The Bond & Credit Company

Rebecca McNamara

API

Anne Boudeville

Dahlsens

Vinh Mei

BMW Australia Finance

Vi Bui

Australian Pharmaceutical Industries

Jose Mejia Lora

Lantrak Pty Ltd

Darryn Cann

FICO

Nick Mellos

Grant Thornton

Peter Chan

illion Australia

Sharon Monsurate

Dahlsens

Michelle Christian

DuluxGroup

Katrina Narracott

Woolworths Group Limited

Phillip Cooke

Australian Pharmaceutical Industries Ltd

Brigid Nichols

Woolworths Group

Nicholas Dade

Optus

Natalie-Ann Nicolay

New Balance Australia

Qiang Niu

Calendar Cheese Company

Hayley Oswin

Woolworths

Nikolaos Oustas

BMW Finance Australia LTD

Estrella Penn

Zeefi

Amanda Phillips

Jeldwen Australia

Steven Pickwell

Select Harvests Limited

Sacha Poly

Adidas Australia Pty Ltd

Shane Priscina

Australian Pharmaceutical Industries Ltd

Ashwini Raut

Dulux Group

Shreekant Dangra Dev Darvall

Recoveries Corp.

Larissa de Groot

Metcash Food & Grocery

Rounak Dhanuka

Optus

Suzanne D’Monte

Middendorp Electric Co Pty Ltd

Renee Duffin

WiseTech Global

Sean Ellams

Middendorp Electric Co Pty Ltd

Melissa Etcell

Dulux Group

Bettina Evert

FE Law

Robert Fellowes

Woolworths Group

Denise Forster

Mecwacare

Jane Francis

PPG Industries Australia Pty Ltd

Sonia Gopinath

Calendar Cheese Company

Prue Greenfield

Macpherson Kelley

Isuruni Gunawardena

Amanda Rothwell-Hiscock Rothwell Lawyers Pty Ltd Noula Settinelli

Optus Communications Pty Ltd

Gregory Simmons

Link Refunds

Halle Skews

National Credit Insurance (Brokers)

Joel Sorosoro

ZeeFi

Benny Spina

Outsourcing Oceania Pty Ltd

Glenn Spooner

Cor Cordis

Enes Tat

TAT Solutions

Dorothy Taylor

Middendorp Electric Co Pty Ltd

Zoran Terzic

Equifax

Brian Hempenstall

REA Group

Jacqueline Holmes

adidas australia pty ltd

Charmaine Hore

mecwacare

Denise Hudson

API Pharmaceutical Industries Ltd

Mitchell Thomson

API

Erin Jackman

Australian Pharmaceutical Industries

Kremlyn Trance

Australian Pharmaceutical Industries Ltd

Sharon Jansen

IMCD

Subashini V.Subramaniam PPG Industries Australia Pty Ltd

David Jones

illion Australia and New Zealand

Stan Velonis

Urbis

Ravindra Kanade

Credit Collection Services Group

Anna Vouladas

Middendorp Electric Co Pty Ltd

Shilpa Kardaley

Jake Wilson

Dahlsens

Natasha Kaur

Dahlsens Building Centres

Sharon Wilton

Metal Manufactures Pty Limited

Felicity Keenan

Woolworths Group Limited

Jennifer Yang

Adidas

Samiah Khan

REA Group

Zejun Yang

mecwacare

94 CREDIT MANAGEMENT IN AUSTRALIA • July 2022

New members Michal Adin

Fleetcare Pty Ltd

Carole Aird

SGS Australia

Suzie Beckley

FinTech Services Australia

Yao Yang Choong

Fair Go Finance

Steven Cole Jeremy Deng

Fintech Services Australia

Cameron Emery

Elders Rural Services Australia Limited

Victoria Farley

FinTech Services Pty Ltd

Tanya Fisher

Equifax

Melissa Gore

Milton Graham

Kim Haley

BDO

Debbie Hennigan

Fair Go Finance

Andrew Kennedy

Tokio Marine

Neil Le Febvre

FinTech Services Australia

Willy Nurhadi

SRG GLOBAL

Linzi Sorrell

Mediterranean Shipping Company

Bobby Stamatoski

Cloud Payment Group

Alice Tapu

FinTech Services Australia

Andrew Thomas

FinTech Services Australia

Jason Turner

Fleetcare Pty Ltd

Kerry van Harmelen

Fair Go Finance

Paul Walshe

FinTech Services Australia

Overseas Wei Ching Goh

Goodman Fielder New Zealand Limited

Philip Holbrough Monika Lacey

Centrix

Janet Leong

Goodman Fielder Pty Ltd

Cai Li Leow

Goodman Fielder Pty Ltd

Steven Lim

Goodman Fielder New Zealand Limited

Qi Yin Mak

Goodman Fielder Pty Ltd

Boon Chun Ng

Goodman Fielder Pty Ld

Janice Riley

Bridgestone Australia

Kar Chun Wong

Goodman Fielder New Zealand Limited

Five reasons to become an AICM Member!

1 Industry news and insights

Members continue to be informed of the latest news in credit, regulatory changes and receive insights to best practice from leaders in the industry.

2 Complimentary registration to our webinar series Members receive complimentary registration to our webinar series valued at over $300! The value from this member benefit alone covers the majority of your membership fee.

3 Discounts for all AICM activities

Receive a member discount for all AICM events and training courses. The more engaged you are with us, the more you’ll save and have your membership to thank for it.

4 Access to resources

Being a member will provide access to resources that will assist in navigating the ever-changing business economic and regulatory environment. This includes articles, reports, webinars and our quarterly magazine.

5 Be part of our professional community

Last but not least, join our growing professional credit community which has reached over 2800 members for the first time in the last 17 years! Interact with fellow credit professionals to build relationships and tap into credit management insights.

BONUS: More value for teams!

Do you manage or work within a team? AICM offer a group membership for organisations to enrol multiple employees as members at discounted rate.

To find out more about AICM Membership go to www.aicm.com.au

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 95

DIVISION REPORT

Western Australia/Northern Territory

AICM Marketplace

Directory of services

For information, options and pricing please contact Claire Kasses on +61 2 9174 5727 or E: claire@aicm.com.au COLLECTIONS AICM Divisional Partner

COLLECTION SYSTEMS

INFORMATION

AICM Divisional Partner

AICM Divisional Partner

CREDIT MANAGEMENT SOFTWARE

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.

AICM Divisional Partner

Accessii Group

OnGuard 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.

CONSULTANCY

PO Box 1551, Kenmore, QLD 4069 Tel: 1300 831 331 Email: team@accessii.com.au Web: www.accessii.com.au Accessii provides information and technology to businesses that extend credit terms to customers.

Our platforms enable users to: l digitally receive and approve applications l assess capacity of customers to pay – multi-bureau decisioning l monitor ongoing creditworthiness l process and manage PPSR We offer end to end credit management in one place.

AICM National Partner

AICM Divisional Partner

CMA Collect Tel: 07 3108 2840 Email: wbj@cmacollect.com Web: www.cmacollect.com Collections: l Online commission free Mercantile demands l Easy online referral option l Full integrated l Access to QCAT claims up to $25,000.00 (Fully funded T&C’s apply) Credit Documents: l Digital Credit Application via the CMA webpage l Approval confirmation and DocSign authorisation l Personal deed of guarantee from l Data stored in the CMA webpage in a historical format

COLLECTION SYSTEMS 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.

Credit Solutions

CreditorWatch

Unit 1/245 Fullarton Road, Eastwood SA 5063 Tel: 08 8418 1450 Email: gcrowder@creditsolutions.net.au Web: www.creditsolutions.net.au

GPO Box 276 Sydney NSW 2001 Tel: 1300 501 312 Web: www.creditorwatch.com.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.

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.

DISTRIBUTION & PRINTING

AICM National Partner

AICM Divisional Partner

Lane Communications

Equifax

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 multi-channel communications.

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Tel: 13 83 32 Web: www.equifax.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.

AICM MARKETPLACE

AICM Marketplace Directory of services

For information, options and pricing please contact Claire Kasses on +61 2 9174 5727 or E: claire@aicm.com.au INFORMATION

LEGAL

INSOLVENCY

AICM Divisional Partner

AICM National Partner

Trusted Insights. Responsible Decisions.

illion 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.

Insolvency Intelligence for Credit Managers Tel: 1300 265 753 Web: www.jirschsutherland.com.au/ insolvencyintelligence/ Email: intelligence@jirschsutherland.com.au Insolvency Intelligence: a specialist provider of insolvency and turnaround advice and 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. Contact us now to find out how we could assist you.

AICM Divisional Partner

TaleFin Tel: 1300 284 193 Email: info@talefin.com Web: www.talefin.com www.linkedin.com/company/talefin TaleFin is Australia’s fully comprehensive credit reporting agency.

We can help you to identify the reasons to say ‘yes’ to your customers, increasing your conversion rate, while helping you to reduce your arrears rate.

TaleFin – Fit for the 21st century, we’re the home of fair credit reporting.

INSOLVENCY AICM Divisional Partner

Nova Legal Level 2, 50 Kings Park Road West Perth 6005 Tel: 08 9466 3177 Web: www.novalegal.com.au 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

Oakbridge Lawyers Pty Ltd SV Partners Level 8, 68 St George’s 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 specialist accounting and advisory firm with 17 offices across Australia. Our expert accountants have the skills and experience to provide tailored insolvency, turnaround and advisory services. We partner with professionals and their clients, providing expert advice with a human touch.

Tel: 1300 154 597 Email: contact@oakbridgelawyers.com.au Contact: Nikita Klar Web: www.oakbridgelawyers.com.au Oakbridge Lawyers is a national specialist credit litigation firm. Our friendly and experienced team understands that recovery action must be prompt, cost-effective and strategic, and we consistently achieve exceptional outcomes for our clients.

Oakbridge acts for a broad range of creditors (from ASX listed entities to SMEs and everyone in between) in all major industries. Oakbridge Lawyers are also experts in the PPSA, privacy law and insolvency law.

AICM Divisional Partner

AICM Marketplace BRI Ferrier Unit 3, 99-101 Francis Street Northbridge WA 6003 Tel: 08 6316 2600 Fax: 08 9227 8008 Email: info@brifwa.com.au Web: www.briferrier.com.au BRI Ferrier is a national affiliation of insolvency accounting firms with offices across Australia as well as the United Kingdom and New Zealand. BRI Ferrier prides itself on being experts in business recovery, insolvency, forensic accounting, and advisory.

All BRI Ferrier offices offer extensive experience across several industries, laying the foundation of our outside the box reputation. At BRI Ferrier, we focus on providing transparent solutions to financial challenges to help financially distressed businesses and individuals recover, change, and renew.

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.

AICM MARKETPLACE

We’re proud of the AICM and we want to let all credit professionals know those businesses that support the AICM. Thank you to these companies for their continued support and please consider them first when you’re looking for assistance in your business. We’ll also include these sponsors on our website so you can be sure to find them easily.

For more information contact:

Claire Kasses

Direct: +61 2 9174 5727 Email: claire@aicm.com.au Tel: 1300 560 996

July 2022 • CREDIT MANAGEMENT IN AUSTRALIA 97

AICM Marketplace

Directory of services

For information, options and pricing please contact Claire Kasses on +61 2 9174 5727 or E: claire@aicm.com.au LEGAL

LEGAL

AICM Divisional Partner

AICM National Partner

Results Legal

Turks

Level 4, 183 North Quay Brisbane QLD 4000 Tel: 1300 757 534 Web: www.resultslegal.com.au

Tel: 02 8257 5700 Web: www.turkslegal.com.au Contact: Daniel Turk

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.

THE NEW HOME OF CREDIT MANAGEMENT

TRADE CREDIT INSURANCE

National Credit Insurance Brokers

Turks 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.

We are delighted to launch our new and improved website that will provide members with a range of new self-service features that make it easier to access member benefits.

The new format has been developed with the member experience front of mind and will be further developed in the coming weeks, including obtaining member feedback.

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National Supporting Sponsor

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, Singapore and Malaysia. Trade credit insurance is a highly specialised area of insurance and with its 35 years of experience, NCI has developed an unmatched depth of expertise in arranging the right protection at the best price for your particular trading needs.

Features include: z Smooth individual and group event registration process z Easy to navigate menu structures z A new member portal Over the coming weeks we will be releasing additional features. Members will need to reset their password when signing in for the first time.

AICM MARKETPLACE

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