The InterConnection VOLUME 6
The 122nd Credit Congress and Expo is Now in the Books Lillian Novak, CGA
n
ISSUE 4
n
JULY/AUGUST 2018
Emerging Leaders A Program for Exceptional Credit Team Members
A
re you aware of the program NACM Connect has specifically to develop high-performing credit professionals? The Emerging Leaders Program honors outstanding and exceptional young credit professionals and further develops their skill set through education and networking. All members of NACM Connect are eligible for this program. Candidates must be 35-years-old or under, and be employed by NACM Connect member companies in good standing. The annual call for nominations will begin in November. For more information regarding the program, visit www.nacmconnect.org/membership. The recipient of the 2018 Emerging Leaders Award is Brendan Misik, CCE, CICP, Area Credit Manager of Nutrien Wholesale Credit. The award was announced during the Opening General Session of the Credit Congress held in Phoenix. Following is the essay Brendan submitted for award consideration.
The Importance of Business Credit
H
eld in Phoenix, AZ during a spell of record-breaking heat, our members were not deterred. NACM Connect was well represented by both members and staff, with several of our members also participating as instructors as lecturers. Two member events, the Caine & Weiner/NACM Connect hospitality suite and the Great Lakes Region breakfast, were decidedly successful and offered our members a place to come together. Three awards were bestowed upon members of NACM Connect this year, and one award on the Association itself. Member awards given out at the Opening General Session included: CCRA Designation of Excellence: Martine Dyer, CBF, CCRA, Parts Town, LLC CBA Designation of Excellence: Ed Bell, PhD, CBA, ICCE, W W Grainger, Inc. Emerging Leader Award: Brendon Misik, CCE, CICP, Nutrien
Continued on page 7>>
Brendon Misik, CCE, CICP Business credit plays a vital role in any organization as well as in the global economy. In a world where transparency is becoming increasingly important to both decision makers as well as investors, business credit becomes the focal point of any organization. A sale is not a sale until funds are collected, and it takes a talented Brendon Misik, CCE, CICP group of credit managers to make this happen from the Area Credit Manager, initial stages of account opening, through timely account Nutrien Wholesale Credit reviews, and until all funds are collected. Receivables that become uncollectable put significant cash flow strains on an organization and make it difficult to successfully operate. These unexpected bad debt writeoffs also create anxiety for investors who may lose faith in the operations of a business. Without the guidance that credit departments provide, companies can quickly find themselves out of business and possibly even sending a ripple through various economies. It is up to the credit department of a business to manage the appropriate risk of a company. This would be a risk level that both executives and investors are comfortable with and aware of. It is also important that the credit role be ‘arm’s length’ from the sales function. Although a strong relationship with sales is important, it is imperative that sales does not control or persuade the credit decision making process. We have seen over the past two decades how not having arm’s length transactions have resulted in various scenarios including creative accounting practices, which have resulted in the failing of businesses and the significant loss of investors’ equity. This would result in similar situations if controls were not put in place to prevent the sales function of an organization from altering the risk practices of a company. Business credit plays a critical role to manage a certain level of risk that can be anticipated so that cash flows Continued on page 9 >>