2018 November/December by NACM Connect

The InterConnection VOLUME 6

ISSUE 6

NOVEMBER/DECEMBER 2018

2018 Credit Conference Update education for our members who need financial support. A special thanks to both Uline and The Chamberlain Group for their support of the raffle.

Lillian Novak

n the midst of NACM Connect’s conference season, with St. Louis and Chicago under our belts and Columbus taking place in the near future, we are again very grateful for the support of our members and vendor community for supporting these events. Gateway’s attendance reached the highest number since becoming part of the Connect family, Chicago numbers beat budget for attendees, and we welcomed the largest number of exhibitors in over fifteen years. The Great Lakes Conference in Columbus is also on track to be the best attended since Great Lakes came under the Connect umbrella.

Members, staff and vendors have been having fun with the tailgate theme, coming dressed sporting the logos and slogans of their favorite sports teams. An assortment of games and activities were not only fun, but helped us to raise money for the Robert Vodraska Scholarship Foundation, ensuring continuing

“Our volunteer committees and staff work very hard in trying to provide the type of event that is of the most benefit to our members, both educationally and as a way to network with other members and vendors while having fun,” stated Phil Lattanzio, CCE, President of NACM Connect. “We are always looking for ways to improve our conferences and hope we are hitting that mark.” Please enjoy our pictorial recap of St. Louis (page 14) and Chicago (pages 16-17). We will share pictures from Columbus in our next edition.■

The Risky Business of Extending Credit to Ch. 11 Debtors Andrew Michaels, NACM Editorial Associate

nce a thriving toy retailer, Toys “R” Us is no more. Debt struggles repeatedly struck the popular chain store in 2016 and led the company to hire a law firm for corporate restructuring the following year. In September 2017, the centuryold New Jersey-based company filed for Chapter 11 bankruptcy, only to decide to liquidate in March 2018. Despite the impending downfall, suppliers stayed supportive of Toys “R” Us by extending hundreds of millions of dollars in trade credit and lengthening invoice payment

periods, hoping the retailer would turn around—an objective Toys “R” Us vocally expressed to its suppliers. Instead, Toys “R” Us left suppliers high and dry after announcing plans to liquidate its assets, close hundreds of stores across the U.S., and effectively leave suppliers unpaid. It’s not unusual for suppliers to lend a hand to a Ch. 11 debtor, or in this case, lend credit, but when murmurs of bankruptcy arise, broken promises of payment can strain or even sever a business-to-business relationship. Just because a debtor is in Ch. 11 doesn’t necessarily mean credit managers should avoid their business. Due diligence must be a priority, said Bruce Nathan, Esq.,

partner with Lowenstein Sandler LLP of New York. What happened with Toys “R” Us doesn’t happen in every Ch. 11 case. Sometimes, Nathan said, debtors file for Ch. 11 reorganization and restructuring, continue paying administrative costs and then exit fairly unscathed. Then, there’s the liquidation process seen with Toys “R” Us. Continued on page 31>>

2018-2019

Board of Directors CHAIRPERSON Kurt Albright Uline, Inc. VICE CHAIRPERSON Erica White, CCE Ferguson Enterprises TREASURER Patrick Nelson ACCO Brands, Inc. DIRECTORS—TERMS ENDING 2019 Mike Hill, CCE MiTek USA, Inc. David Sperduto, CCE VP Supply Corp. Rich Weiss, CBA Jaeckle Distributors Dave Zahller, CCE Tubular Steel DIRECTORS—TERMS ENDING 2020 Christine Culbreth ArcelorMittal International America Les Witrzek, CCE, CICP Kuriyama of America, Inc. Ed Stauber Stericycle, Inc. Kevin Stinner, CCE, CCRA Pinnacle Agriculture Distribution DIRECTORS—TERMS ENDING 2021 Tracey Bland Kevin Burke, CCE Erie Materials, Inc. Staci Cima, CCE Crescent Parts & Equipment Diana Hoffmann Rockline Industries, Inc. Brendon Misik, CCE,CICP Nutrien

In This Issue

COUNCILOR John Fahey, CCE Edward Don & Company EDITORIAL STAFF EDITOR Linda Herbst Senior Marketing Administrator ASSOCIATE EDITORS Lillian Novak, CGA V.P. of Education and Marketing Margaret Krafft Marketing Administrator

NACM Connect Indiana/Michigan/Ohio Local Industry Group Meetings

NACM Connect Nebraska Local Industry Group Meetings

NACM Connect National Industry Credit Group Meeting

NACM Connect New York Local Industry Credit Group Meeting

Event Calendar

Financial Statements and the Valuable Products They Can Deliver

Caine & Weiner Quarterly Give Away

Illinois - SAP Credit and A/R Users Group Meeting

Indiana - Best Practices Discussion Group

Indiana- UCC/LIENS Seminar

The Risky Business of Extending Credit to Ch. 11 Debtors

2018 Institute of Credit Class Schedules

Ohio - Super Credit Bowl Schedule

Six Ways Credit Reporting Agencies Can Help Protect Credit Managers

Illinois Construction and Stuff

Ohio - Super Credit Bowl Schedule Illinois Construction and Stuff Congratulations, Credit 101 Graduates!

Credit 101, Credit 102 and Credit 103

IN, MI OH Credit 101,102 & 103

Welcome New Members and Reps

NACM Connect Golf Outing Photo Gallery

NACM Connect St. Louis Credit Conference Photo Gallery

NACM Connect Wisconsin Fox Valley Photo

Kansas - Roundtable: Economic Update: International Credit

NACM Connect Wisconsin Madison Photo

Michigan - Roundtable: How to Effectively Work with Your Sales Team

NACM Connect Wisconsin Milwaukee Photo

NACM Connect Wisconsin Best Practices Group Photo

Michigan - Roundtable: Open Networking Forum Missouri - Open House and Toy Drive

NACM Connect Chicago Credit Conference Photo Gallery

Compensation Survey Information

New York - Roundtable: Customers Paying Slower Than Ever

Midwest Staffing

Ohio - Roundtable: Credit and Collections 101

NACM Connect Illinois Industry Credit Group Meetings

Wisconsin - Roundtable: Identifying and Finding The Best Talent

Wisconsin -Eastern - Best Practices Discussion Group

PRESIDENT Phillip J. Lattanzio, CCE NACM/Chicago-Midwest SECRETARY Kerry Jensen, CPA NACM/Chicago-Midwest

NACM Connect Missouri Local Industry Group Meetings

2018 Credit Conference Update

NACM Connect Mission Statement To provide a forum to its members within the credit profession for education, networking and business resources. Vision Statement Striving to have the most comprehensive and leading NACM affiliate serving the commercial credit profession by consistently exceeding the members’ expectations.

Value Statement We are committed to the highest ethical standards and recognize that our Association must take a leadership role in our profession. Through our integrity and dedication we will earn the respect of our members as we know that our success as an Association depends on their trust in us. By creating strong relationships we will attain the loyalty of our members and alliance partners. We continuously seek to build an environment for learning to enhance the knowledge and expertise of our members.

The InterConnection newsletter is published bimonthly by NACM Connect, a not-for-profit Association affiliated with the National Association of Credit Management. For membership information, visit our website at www.nacmconnect.org, call 800.935.NACM or fax us at 847.253.6685. NACM Connect Headquarters is located at 3005 Tollview Drive, Rolling Meadows, IL 60008.

THE INTERCONNECTION

NOVEMBER /DECEMBER 2018

PAGE 2

Education Digest

Institute of Credit (IOC)

tart the process of earning your professional designation and register today for the NACM Connect Institute of Credit (IOC) Quarter for Spring of 2019.

If you would like more information, please contact the NACM Connect Education Department at 800.935.6226 or email Lillian Novak at lillian.novak@nacmconnect.org.

SPRING 2019 CBA (Credit Business Associate) Course Schedule

Each of these courses fulfills one of the CBA certification requirements. **Class available via Live Videoconference

**Business Credit Principles **Financial Statement Analysis 1

Mondays, 3/18 - 5/20 Thursdays, 3/21 - 5/30* *No class April 18

Rolling Meadows, IL Rolling Meadows, IL

CBF (Credit Business Fellow) Course Schedule

Each of these courses fulfills one of the CBF certification requirements. **Class available via Live Videoconference

Credit Law

Wednesdays, 1/9- 3/13

Zeeland, MI

**Business Law Wednesdays, 3/27 - 6/12 Rolling Meadows, IL

As a remote student you are able to take live classes via our videoconferencing platform from the comfort of your home or office. Questions? Contact Margaret Krafft at 847.483.6420 or email margaret.krafft@nacmconnect.org. Evening Class Times: 5:30 - 8:30 p.m. Institute of Credit (IOC) CBA and CBF class times are usually in the evenings. Please refer to the specific class registration form for more details on instructors, locations, fees and times.

Exam Dates & Deadlines Application and Paperwork Deadlines Friday, January 18, 2019 March 22, 2019 May 31, 2019 September 13, 2019

Exam Dates Monday, March 4, 2019 Sunday, May 19, 2019 Credit Congress, Denver, CO Monday, July 22, 2019 Monday, November 4, 2019

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 3

Event

2018 NACM CONNECT CREDIT CONFERENCE

s, OH

bu Colum |

Wednesday - November 7

7:30 – 8:00 a.m.

Registration and Breakfast

8:00 – 8:15 a.m.

Welcome Remarks - NACM Connect President, Phil Lattanzio, CCE

8:15 – 9:15 a.m.

THE COMPLETE CREDIT PROFESSIONAL - Opening Keynote Speaker: BARRY ELMS

9:45 – 11:00 a.m.

The Digital Worker and Robotics Process Automation Steve Smith, nBotix, Inc.

Negotiations Barry Elms

Credit Files: Are Yours Worth a Dime or a Gold Mine? Judy Wagner, CCE, MBA, Roche Diagnostics; Susan Thomas, CCE

Collections Practices Roundtable Moderator: Todd Fierstein, NACM Connect; Penny Hackbarth, Kimball Midwest; Chad Nicoletti, MFS Supply

1:30 – 2:45 p.m.

Dirty Little Secrets of AP Nicole Caley, MBA, AMP

NACM National Update Chris Ring, NACM Secured Transactions

3:15 – 4:30 p.m.

Automating Accounts Receivable Jon Seaman, Esker

The Art of Customer Visits Judy Wagner, CCE, MBA, Roche Diagnostics; Todd Fierstein, NACM Connect

4:30 – 5:30 p.m.

Reception and Networking Event - Hosted by the Exhibitors

8:00 – 8:30 a.m.

Registration and Breakfast

11:30 a.m. – 12:30 p.m.

| 8:30 – 9:45 a.m.

10:15 – 11:30 a.m.

Thursday - November 8

Being a Millennial in Today’s Business World

Customer Portals Eric Self, SAP Ariba

Credit Card Acceptance Update: Rulings from the Supreme Court

National Trade Credit Report 101 Phil Lattanzio, CCE, NACM Connect

Sears: A Case Study John Jaeger, CCE

Letters of Credit for the Credit Professional Thomas Fawkes, Goldstein & McClintock; Brian Jackiw, Goldstein & McClintock

Zach Cherry, Roche Diagnostics; Katie Donahue, Formica Corporation; Lauren Graham, Becker Electric Supply

Scott Blakeley, Blakeley & Blakeley

12:45 – 2:00 p.m.

2:15 – 3:30 p.m. 3:30 – 4:30 p.m.

PHIL LATTANZIO/PAULA SLYDER - VENDOR GAME AND SILENT AUCTION DRAWINGS ECONOMIC UPDATE - Closing Keynote Speaker: Hyun Woong Park, Denison University Networking Hour - Open Bar & Silent Auction Wrap-up

Conference registration and details at www.nacmconnect.org THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 4

Increase Your Sales!

The competitive advantages of UCC Filings. The widespread benefits of a UCC filing program include: Minimized financial risk Reduced DSO Improved cash flow Increased sales

“Wait, increased sales?” Yes! You read that right increased sales.

UCC filing is more than reducing risk; it’s about the opportunity to expand your market, by providing you with the security needed to sell to marginal accounts and by providing the added security needed to increase existing clients’ credit lines. Take the steps to reduce your risk today! In a sampling of recent bankruptcy cases, NCS UCC Services found that unsecured creditors received, on average, 9.3 cents on the dollar, compared to secured creditors being paid 96 cents on the dollar. Which creditor would you rather be?

Contact NCS to secure more sales with UCC filings! New clients, mention “UCC4” and receive a $50 credit on your first service request.

Securing Your Tomorrow ®

NCScredit.com 800.826.5256 NCSsales@NCScredit.com

Collection Services | UCC Services | Notice & Mechanic’s Lien Services | Education & Resources THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 5

News

Six Ways Credit Reporting Agencies Can Help Protect Credit Managers Nick Pokrifcak, Credit Solutions Consultant NACM Connect

rganizations such as Dun & Bradstreet, Experian Business Information Services, Equifax Commercial, NACM and Skyminder supply credit reports on businesses. Credit reporting agencies such as these compile, manage and report credit information on consumers and businesses. These reports may be used by you to manage the credit risk of your portfolio, or to provide important information used in other areas of a company. 1. Manage Credit Risk Credit reports help companies decide if a potential new business customer is a good or bad credit risk. They can be used in a decision to trade with another company or aid in agreeing to credit terms that will lower the risk of customers defaulting on their financial obligation. By utilizing business credit reports, you can determine the status of a prospective customer’s payment history, business conditions, UCC filings, and other company details. Some reporting agencies also have programs which can be used to identify risk within a company’s existing customer base. 2. Clean Up Bad Data Ninety-seven percent of US companies use the data provided by credit reporting agencies to improve profitability and turn it into actionable information. They are looking to better understand their current customers and assess their potential new customers. The old saying “garbage in is garbage out” is true when dealing with information. If you don’t trust the accuracy of your data, you may not

be able to trust the assumptions that can be derived from that data. The major credit reporting agencies, D&B, Experian and Equifax, can be used to “clean your current data”. They have the ability to match and append data from their database to your lists. This is the best way to have correct information appended, such as correct SIC codes or zip codes or to find out who the ultimate parent company is. 3. Supply & Operational Risk How many times have you been asked to pull up a credit report on your own company? How many times have you been asked to pull up a report on a supplier? Your company’s credit report is one factor that a bank will use to determine what terms you receive on loans. Knowing the financial strength of suppliers is essential to managing the supply chain. Suppliers are fundamental to a business and selecting the ones that will be around for the long haul is essential.

THE INTERCONNECTION

4. Find Out Before Anything Bad Happens Monitoring your customer’s payment history with their vendors is a good predictive indicator on how you will be paid in the future. The credit reporting agencies make it easy to rank your customers to determine which hold the highest credit risk and which are the lowest credit risk. From this information you may decide on actions such as decreasing or increasing your customer’s credit line, or tightening terms. Many of the agencies have account monitoring services available. You can set criteria for alerts when accounts meet certain thresholds. This allows you to be proactive with our accounts as opposed to reactive. 5. Improve Debt Recovery Reporting your accounts receivable history to a business credit agency gives other creditors notice of debts owed to your business. This not only NOVEMBER/DECEMBER 2018

PAGE 6

news allows other credit grantors to know a company’s existing debt but also improves your company’s ability to recover your own debts. Businesses are more likely to pay their debts if they know that their payment history is being reported to a credit agency. It is free to report your trade data to the credit reporting agencies. 6. Automate Credit Decisions Credit reporting agencies have services that allow you to build your own custom score card and use this criteria to instantly return a credit decision on a potential customer. These services can be added onto your CRM such as Salesforce and Net Suite. A sales rep from your company can click a button in their CRM and get back a credit decision and line of credit even before meeting with the prospect. Also you can create a link on your company’s website that allows companies to enter their company information and receive back a consistently calculated line of credit. All of these services are offered to NACM Connect members at a substantial discount. To find out more information please contact one of our Credit Solutions Consultants or visit our Website at www.nacmconnect.org/ creditsolutions. ■

Why Purchase Credit Report Services Through NACM Connect? NACM Connect covers all your commercial credit reporting needs― from domestic to international― with access to Dun & Bradstreet, Experian, Equifax, Skyminder and the NACM National Trade Credit Report (exclusively for NACM members). Each reporting agency offers unique information to assist in making sound credit decisions, leading to reduced delinquency and fewer bad debts. For more information about acquiring credit reports through NACM Connect please contact one of the regional representatives below. Chicago/Illinois Craig Smith Director of Credit Solutions Phone & Fax: 847.483.6484 Email: craig.smith@nacmconnect.org

Northern Illinois, Wisconsin & Nebraska Nick Pokrifcak Credit Solutions Consultant Phone & Fax: 847.483.6469 Email: nick.pokrifcak@nacmconnect.org

Missouri, Michigan, Kansas Rich Steinkoenig Credit Solutions Consultant Phone & Fax: 314.677.2804 Email: rich.steinkoenig@nacmconnect.org

THE INTERCONNECTION

Indiana, South West Ohio (Cincinnati/Dayton Areas) Jim Kelly Credit Solutions Consultant Phone & Fax: 513.795.1740 Email: jim.kelly@nacmconnect.org

New York, Ohio: Eastern, Northern and Central Areas Darren Greene Senior Credit Solutions Consultant Phone & Fax: 740.324.7507 Email: darren.greene@ nacmconnect.org

Supports all NACM Connect Members Paula Slyder, CGA Vice President of Great Lakes Region Phone & Fax: 937.401.2710 Email: paula.slyder@nacmconnect.org

NOVEMBER/DECEMBER 2018 PAGE 7

News

Illinois Construction Stuff and Stuff Norm Cowie, CCE

all. The owner’s attorney tried to fight this saying everything should have been apportioned, and our supporting paperwork did this. Once he saw that and understood the law he shut up about that defense, but then he pretty much disappeared and didn’t respond to our demands for payment, so we petitioned the court to lift the stay so we could file foreclosure. But we had other problems, well, mostly one problem. We had a difficult judge. Not a difficult judge, let’s say he was the ““poo-poo”” head of ““poopoo”” heads.

t’s time to vent about something.

Yeah, I know I’m always venting about something or another. If I’m not careful, I’ll pick up a new nickname, like the Ventilator or the Furnace Filter or something. But things happen that shouldn’t happen, and it feels good to purge them by typing about them in an angry sort of way, punishing innocent keys on my keyboard until they squeak in protest. So the vent is this. Back in 2014, one of our customers filed a Chapter VII bankruptcy. Unfortunately, we happened to be doing a huge job with them at the time and they owed us the paltry sum of $492k at the time of filing. Fortunately, we were within our lien rights, so we filed a half dozen liens, including one massive one for over $450k itself. This lien had its own complications because the material was being installed in approximately 60 different buildings covering several square miles of land. The lien law has an answer for this. Section (770 ILCS 60/7) states: In the event the contract relates to 2 or more buildings on 2 or more lots or tracts of land, then all of these buildings and lots or tracts of land may be included in one statement of claims for a lien. So we filed one lien covering them

He decided that our foreclosure would have to take place in his Federal Court instead of the State courts, where mechanics lien legislation belongs. And did I tell you he doesn’t know squat about mechanics liens? That meant that every spurious argument the opposing ““poo-poo”” head … Wait, that reminds me of something else totally screwed up this screwy judge did on this case. He allowed the Trustee to work out a deal with the secured lender’s ““poo-poo”” head, who represented the secured lenders, and now enable this same “poo-poo” head to also represent the unsecured creditors. You heard me… er, read me. The judge appointed the SECURED LENDER’S attorney to represent the UNSECURED creditors! That’s like putting the fox in charge of the chicken egg-laying factory. When I heard about it I was spitting and spewing and everything on my desk was covered in dribble which smudged all of my ink and got into the cracks of my keyboard, probably starting a process that will rust out everything under my “H” key. And I’m not done. Well, I am, but the judge wasn’t. Here’s what else this, respectfully, nutjob decided. Um, can’t remember. There’s something else. See, I’m so ticked off I can’t think straight. Anyway, here’s where it gets worse. At the last moment … seriously the last day that it can be done … the Trustee filed a preference claim against us for over $149k that

THE INTERCONNECTION

we received in the ninety days prior to the bankruptcy. We, of course had a wonderful defense. First, for $115k of this we exchanged a waiver for payment. For $34k of the claim, the principal of the firm who went bankrupt signed a trust receipt in exchange for an upfront waiver, and soon after paid us that exact amount. The trust receipt clearly stated that any money he obtained with our waiver was to be held in trust for us, so it was our money. The Trustee loved all of our evidence and dropped the complaint. Yeah, that’s what should have happened. Instead, they started fighting us tooth and nail with what they called evidence, which we fought with our own teeth and nails. We also furnished proof that the customer’s DSO in the year prior to the bankruptcy was within 1 payment day of that in the preference payment, so we had an ironclad ‘ordinary course of business’ defense. The Trustee’s “poo-poo” head’s spurious responses to this were they claimed that the aging reports we send monthly to the customer did not show credits showing payments. Duh, our agings only show open invoices, not paid. I had previously sent them spreadsheets showing all payments received in the two years prior and up to the bankruptcy to demonstrate the one day difference in DSO. But they ignored this and then said that our trust declarations which upon this trustee “poo-poo” head’s statement, and I quote, “… upon information and belief Paramont did not previously require.” And they were not ‘made in accordance with ordinary business terms in the construction industry.’ Really? You think not, Mr. “poo-poo” head? And here’s why I’m so rankled. I had already sent them proof that not only did we utilize trust receipts prior with this customer, but also sent clear evidence we did this with other customers. It’s a customary and routine practice for us. And to his assertion that it’s not something routine in the construction Continued on page 31>> NOVEMBER/DECEMBER 2018

PAGE 8

Spending too much time making credit decisions?

It’s not too late to automate.

Learn more at www.experian.com/NACMConnect/automate To learn more about Experian’s Business Information Services, call NACM Connect at 1 847 483 6484 © 2018 Experian Information Solutions, Inc. • All rights reserved. Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 9

Education

OCTOBER 3

Fall 2018: Credit 101 Graduates!

Front row (from left): Diona Theodoratos (Medline); Peter Bednarz (NALCO Company); Amanda Nelson (OSM Worldwide); Paola Schelli (OSM Worldwide); Middle row (from left): Jason Henshall (Cole-Parmer Instrument Company); Dorann Guenard (NACM Connect); Tracy Guziec (NALCO Company); Mary Herbert (NALCO Company); Wanda Perez (Stericycle); Back row (from left): Javier Canelo (Chicago Tube and Iron); Rimma Filipov ( John B. Sanfilippo & Son, Inc.); Katie Olson (Ozinga Ready Mix Concrete, Inc.); Toni Jendras (Ozinga Ready Mix Concrete, Inc.); Not seen: Instructor Rich Bellis, CCE; Lori Chapman (Winkler, Inc.) - Videoconferencing

ILLINOIS Classes now Available via Live Videoconference! Register for the

Credit 101, 102, 103 Series Upcoming NACM Connect 2018 Class Dates Credit 102

Credit 103

• November 7

• December 5

Registration Information Class Time 9 a.m. – 4 p.m. Location

NACM Connect Headquarters 3005 Tollview Drive, Rolling Meadows, IL 60008 $230 per class Members

$460 per class Non-Members

Visit www.nacmconnect.org/course-schedules for more locations, information and registration.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 10

Education

Credit 101, Credit 102, & Credit 103 Time: All classes are from 9 a.m. – 4 p.m.

(Continental breakfast at 8:30 a.m., lunch not included)

Cost: Members $199 (per class)

Non-Members $398 (per class)

INDIANA | MICHIGAN | OHIO CREDIT 101

INDIANA Elkhart

OHIO

Cincinnati

OHIO Independence

CREDIT 102

Mid City Supply Co. Inc., 940 Industrial Pkwy. Elkhart, IN 46516

December 6

Cincinnati Container Co., Inc. (Upper Conference Room) 5060 Duff Drive Cincinnati, OH 45246 Valtris Specialty Chemicals, Inc. 7500 East Pleasant Valley Rd. Independence, OH 44131

CREDIT 103

December 18 November 14

December 12

January 16, 2019

All registrations for NACM Connect educational events are taken online at www.nacmconnect.org While registering online, you will have the opportunity to choose your payment method. We are happy to take a credit card online or invoice you. You will also have the opportunity to apply coupons as allowed.

Please Note:

• Payment must be received one week prior to class date • “No Shows” will be responsible for full amount • Classes subject to cancellation based on enrollment • 0.6 CEUs available

Cancellation Policy: Cancellations must be received in writing (via fax email or mail) no later than one week prior to the class date to qualify for a full refund. Cancellations received later than one week prior to the class date do not qualify for a refund of registration fees. Sorry, phone cancellations cannot be honored. A 20% surcharge applies to late registrations and rebooking. If you have any questions, email info@nacmconnect.org.

NOVEMBER/DECEMBER 2018 PAGE 11

New Members & Reps

Welcome New Members and Reps New Members AIB International Inc. AIB International Inc.

Fastener Industries, Inc. Clint Moats, Jr.

ASK Chemicals LP Stacey Kotz

Factory Direct Appliance, A Ferguson Enterprise Linda Coyle

Builders FirstSource Allen Bauer C3 Worldwide Ben Kramer Centro Sarah Roach Columbian Home Products, LLC Jeannette Cloud, CBF Envigo Christina Clark

Graybar Electric Co. Lisa Holcomb Heidrick & Struggles Dale Mommaerts Herff Jones, LLC Christa Newcom Husky Marketing & Supply Company Brandon Nickoli

Husky Marketing & Supply Company Deanna Pegg

Marmon Retail Products Inc. Vince Muglia

Husky Marketing & Supply Company Lucas Franklin

Multi Service Technology Solutions, Inc. Tiffany Offutt

Husky Marketing & Supply Company Kyle Hoffman

Ozinga Bros., Inc. Jordan Peloquin

Ideal Group Michael Roth Imagen Brands LLC Lisa Stone

Quantum Polymers Inc. Carmen Sommers Regal Ware Inc. Carrie Holewinski

Knauf Insulation, Inc. Kevin Kline

The Gorilla Glue Company Rachel Tarasovitch

New Representatives A Schulman Inc. Katie Patti

Classic Aire Care, Inc. Briana Britt

Hartzell Fan, Inc Lisa Twiggs

Spectrum Brands Inc. Tom Breiten

Admar Supply Company Mike McSparron

Coopervision Cindy Plotzker

Health Care Logistics Billie Welch

Starline Industries Inc. Samantha Sibilio

Akron Brass Company Kathy Anderson

Corrigan Moving Systems Joanne Toth

High Radius Maya Hughley

Sysco Food Services Albany Robert Walsh

Big River Steel LLC Brent Venable Buzzi Unicem USA Inc. Robert Amato Buzzi Unicem USA Inc. Justin Daniels Caldwell Manufacturing Co. Lori Van Voohis Caleres Doug Grimwood Carhartt, Inc. Katie Clow Central States Manufacturing Adrian Noel

Custom Truck One Source Kathy Summers Delden Manufacturing Mike House Dynamic Logistics Aimee Clardy Energizer Holdings Inc. Susan Marlatt Energizer Holdings Inc. Lin Carver Feralloy Corporation Adam Ross, CCE Gustave A. Larson Company Jessica Rivera

THE INTERCONNECTION

Hussman Corporation Phil Boone Johnstone Supply Co. Tammy Wilcox Keystone Technologies Aaron Rose Klein Steel Service, Inc. Jim Roth Merchants Capital Corporation Katie Belser Oatey Company Joe Bahhur Patten Tractor & Equipment Company Don Oâ&#x20AC;&#x2122;Neil

Tacony Corporation Brittany Guritz TSC Apparel LLC Patrick Bourne United Heating, Cooling & Plumbing, Inc. Gerald Gantt US Foods MOA Teresa Lay WAV Inc Mary Boedigheimer Whirley Drink Works Brett Ball

NOVEMBER/DECEMBER 2018

PAGE 12

Event

NACM Connect Fall Golf Outing

SEPTEMBER 12

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 13

Event

NACM Missouri Credit Conference

SEPTEMBER 19 & 20

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 14

Event

NACM Connect Wisconsin Fox Valley

NACM Connect WisconsinMadison

SEPTEMBER 12

NACM Connect Wisconsin - Milwaukee

SEPTEMBER 12

SEPTEMBER 13

NACM Connect Wisconsin Best Practices Discussion Group

THE INTERCONNECTION

SEPTEMBER 20

NOVEMBER/DECEMBER 2018 PAGE 15

Event

NACM Connect Credit Conference

OCTOBER 18 & 19

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 16

Event

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 17

NACM Connect 3005 Tollview Drive Rolling Meadows, IL 60008 P: 847.483.6400 F: 847.253.6685 www.nacmconnect.org

SECOND EDITION Co-sponsored by

Timeline

Survey distribution: October 31st, 2018

Survey deadline: November 30th, 2018

Results published: January, 2019

Pricing

Survey participants - Free Non participants - $200

Questions?

Leslie Harrison, SPHR 847.483.6485 leslie.harrison@nacmconnect.org

NACM Connect is announcing the launch of their second Credit Professionals Compensation Survey. This yearâ&#x20AC;&#x2122;s survey will include benefits questions, and information relevant to credit professionals including designations, certifications and emerging trends in Credit department hiring. The survey will provide detailed information covering compensation information for each credit department position benchmarked. The survey will be conducted/compiled by HR Source of Downers Grove, IL, a firm specializing in secure compensation surveys. W e recognize the highly sensitive nature of this information and this way we can assure confidentiality. You will receive an email from the HR Source company inviting you to participate in the survey on October 31st. The survey will remain open for four weeks, and the deadline to participate will be November 30th. The results will be tabulated and are expected to be available in January 2019 free to each participating member. Nonparticipating members can purchase a copy of the results for $200. The survey results are not available to non-members. This survey and its results will be exclusively for member companies of NACM Connect, an affiliate of the National A s sociation of Credit Management.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 18

MIDWEST STAFFING

Credit Career Corner CANDIDATES OF THE MONTH BROUGHT TO YOU BY MIDWEST STAFFING

JOE DEDUCTIONS SPECIALIST • Ran and analyzed aging reports • Collected past due balances from Big Box accounts • Compiled financial reports for meetings • Researched and resolved deductions, overpayments and unapplied cash

• B.S. degree in business administration • Proficient in Microsoft Excel, Word, SAP, HTML and Oracle • Available for temporary, temp-tohire and direct hire positions • Willing to commute 20 miles from Lindenhurst, IL.

STEPHANIE RESULTS-ORIENTED ACCOUNTS RECEIVABLE SPECIALIST

For more Information For more information on these candidates or any of our credit and collection professionals please call Dorann Guenard at 847-483-6434. If you do not wish to receive emails from NACM/Chicago-Midwest please let us know. NACM/Chicago-Midwest 3005 Tollview Drive, Rolling Meadows, IL 60008

• Responsible for all cash received for largest accounts • Dispersed deposits to all correct general ledger accounts including all check, cash, credit card, and wire payments • Monitored short pays and deductions • Developed and implemented policies, procedures and process

improvements • Proficient in Microsoft Excel, Word, and SAP • Available for temp-to-hire, and direct hire positions • Willing to commute 20 miles from Chicago

ELIZABETH CREDIT COLLECTIONS SPECIALIST • Heavy Collections and Discrepancy Resolution for 5000+ Customer Portfolio • Initial credit review for new customer with references, applications and D&B reports • Reviewed aging reports with executive staff • Processed credit card, ACH and wire payments

• Approved/denied product shipments based on payment histories • Proficient ion Microsoft Excel, Word and Peoplesoft • Available for Direct Hire • Willing to commute from Oakbrook 15 miles

To view all of the available opportunities visit our website at www.nacmmidweststaffing.org Midwest Business Staffing is a subsidiary of the National Association of Credit Management NACM Midwest affiliate. Midwest Business Staffing is dedicated and committed to providing our members and clients real solutions for their need to staff with qualified financial professionals. We are the only firm in Chicago that specializes in the recruitment of business-to-business commercial credit, collections, accounts receivable and deductions professionals. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 19

Credit Group Meeting Calendar

NACM Connect Illinois Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 8

Northern Illinois Heating & Plumbing Wholesalers Credit Group

Weber Grill, Oak Brook, IL

November 13

Electrical Distributors Credit Group

Ditka's, Oak Brook Terrace, IL

November 13

Metal Distributors Credit Group

Ditka's, Oak Brook Terrace, IL

November 14

Institutional Credit Association Credit Group

Ditka's, Oak Brook Terrace, IL

November 15

Ad Media Credit Group

Cumulus Media, Chicago, IL

November 15

WISCA Credit Group

Devon, Oak Brook Terrace, IL

November 20

Builders Credit Group

Kona Grill, Oak Brook, IL

December 7

Electrical Distributors Credit Group

Bob Chinn's, Wheeling, IL

December 11

Masonry Credit Group

Parker's, Downers Grove, IL

December 13

Northern Illinois Heating & Plumbing Wholesalers Credit Group

Wildfire, Schaumburg, IL

December 18

Floor Covering & Wall Tile Credit Group

Conference Call

December 20

Builders Group

Greek Islands, Lombard, IL

NACM Connect - Missouri Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 2

Central Illinois Electrical Distributors Credit Group

Dublin Pub, Springfield, IL.

November 15

Kansas City Building Materials Credit Group

Blind Box BBQ, Shawnee, KS

November 15

Electrical Distributors Credit Group

Bartolino's, St. Louis, MO

November 16

Refrigeration & Warm/Cool Air Suppliers Credit Group

Bartolino's, St. Louis, MO

November 20

Midwest Regional Food Suppliers Credit Group

Bartolino's, St. Louis, MO

November 27

Agricultural Credit Group

IL Bel Lago, St. Louis, MO

December 7

Mid Missouri Construction Credit Group

Addison's, Columbia, Mo.

December 16

Refrigeration & Warm/Cool Air Suppliers Credit Group

TBD

December 20

Midwest Regional Food Credit Group

Gateway Office

December 20

Kansas City Building Materials Credit Group

Hereford House, Shawnee, KS

December 21

Electrical Distributors Credit Group

Bartolino's, St. Louis, MO

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 20

Credit Group Meeting Calendar

NACM Connect - Nebraska Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 13

Omaha Builders Credit Group

Teleconference

December 11

Omaha Builders Credit Group

Teleconference

NACM Connect Indiana/Michigan/Ohio Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 1

Michiana Credit Association Credit Group

Luchesse's, Elkhart, IN

November 7

West Michigan Heating & Plumbing Wholesalers Credit Group

Brann's, Wyoming, MI

November 8

Indiana Wholesale Floor Covering Credit Group

Conference Call

November 8

Columbus Wholesale Electric Credit Group

NACM Connect Office, Dayton, OH

November 8

Lumber & Building Materials Credit Group

Pietro's, Grand Rapids, MI

November 13

Electric Industrial Supply Credit Group

Main Street Pub, Kalamazoo MI

November 14

Michigan Electric Supply Credit Group

Antonio's, Canton, MI

November 15

Cincinnati Dayton Wholesale Electric Credit Group

Century Inn, Cincinnati, OH

November 16

Fort Wayne Building Materials Credit Group

Don Hall's Gas House Restaurant, Fort Wayne, IN

November 20

Indiana Electrical Suppliers Credit Group

Becker Conference Room, Indianapolis, IN

November 20

Automotive Suppliers Credit Group

Conference Call

November 21

Indianapolis Building Trade Suppliers Credit Group

Blueberry Hill, Indianapolis, IN

November 28

Cincinnati Construction Suppliers Credit Group

Uno Pizzeria & Grill, West Chester, OH

November 28

Plumbing & Heating Wholesalers Credit Group

Conference Call

November 28

Metal Service Center Credit Group

Antonio's, Canton, MI

November 28

Cleveland/Akron/Canton Food Suppliers Credit Group

Iacomini's/Papa Joe's, Akron, OH

December 11

Electric Industrial Supply Credit Group

TBD

December 12

West Michigan Heating & Plumbing Wholesalers Credit Group

Brann's, Wyoming, MI

December 13

Michiana Credit Association Credit Group

Luchesse's, Elkhart, IN

December 13

Columbus Wholesale Electric Credit Group

NACM Connect office, Dayton, OH

December 18

Indiana Electrical Suppliers Credit Group

Becker Conference Room, Indianapolis, IN

December 18

Automotive Suppliers Credit Group

Conference Call

December 19

Indianapolis Building Trade Suppliers Credit Group

Blueberry Hill, Indianapolis, IN

December 19

Cleveland/Akron/Canton Food Suppliers Credit Group

Iacomini's/Papa Joe's, Akron, OH

December 21

Fort Wayne Building Materials Credit Group

Don Hall's Gas House Restaurant, Fort Wayne, IN

December 26

Plumbing & Heating Wholesalers Credit Group

Conference Call

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 21

Credit Group Meeting Calendar NACM Connect National Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 7

National Circuit Board Group

Irvine, CA, 2-day

November 8

National Suppliers to Window Manufacturers Credit Group

Hampton Inn & Suites, Columbus, OH, 2-day

November 13

National Home Centers Credit Group

Sheraton Sand Key, Clearwater Beach, FL, 2-day

November 14

National Manufactured Housing Credit Group

Embassy Suites, Dallas. TX, 2-day

November 15

National Consumer Products Credit Group

Sheraton Sand Key, Clearwater Beach, FL, 2-day

November 15

National Steel Mill Credit Group

Hilton Garden Inn, Scottsdale, AZ, 2-day

November 16

National Electrical Manufacturers Credit Group

Conference Call

December 6

National Paper Packaging Credit Group

DoubleTree, Charleston, SC

December 10

National Metal Producers Credit Group

Hilton, Clearwater Beach, FL, 2-day

December 13

National Underground Utilities Supply Credit Group

Hilton, Clearwater Beach, FL, 2-day

NACM Connect - New York Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

November 8

Rochester Plumbing & HVAC Credit Group

Humphrey House, Penfield, NY

November 9

Buffalo Building & Construction Credit Group

Eagle House, Williamsville, NY

November 13

Western New York Food & Beverage Supply Credit Group

Ilio DePaolo's Restaurant, Blasdell, NY

November 15

Rochester Building Credit Group

Cerame's Restaurant, Rochester, NY

November 16

Benchmarking Credit Group

Cerame's Restaurant, Rochester, NY

November 19

Erie Building Credit Group

Ruby Tuesday, Erie, PA

November 20

Central New York Building Credit Group

Coleman's Syracuse, NY

November 21

Upstate New York Energy Credit Group

Conference Call

November 27

Buffalo Plumbing & Electric Credit Group

Eagle House, Williamsville, NY

December 11

Western NY Food & Beverage Supply Credit Group

Ilio DePaolo's Restaurant, Blasdell, NY

December 13

Rochester Plumbing & HVAC Credit Group

Humphrey House, Penfield, NY

December 14

Buffalo Bldg./Const. Group

Eagle House, Williamsville, NY

December 17

Albany Building Credit Group

Scarborough's, Latham, NY

December 18

Central New York Building Credit Group

Coleman's Syracuse, NY

December 19

Upstate New York Energy Credit Group

Conference Call

December 20

Rochester Building Credit Group

Cerame's Restaurant, Rochester, NY

December 26

Upstate New York Energy Credit Group

Conference Call

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 22

Event Calendar DATE

EVENT

LOCATION

TIME

PRESENTER / INSTRUCTOR(S)

November 7

NACM Connect Wisconsin Roundtable Discussion

ABV Social (Library Room) Wauwatosa, WI

12:15 p.m. – 2 p.m.

Leslie Harrison, SPHR, CGA

November 7

NACM Connect - Chicago Available Through Videoconferencing Credit 102

NACM Connect Rolling Meadows, IL

9 a.m. – 4 p.m.

Rich Bellis, CCE

November 7 & 8

NACM Connect Missouri - St. Louis CREDIT CONFERENCE

Orlando’s Banquet & Event Center Maryland Heights, MO

8:30 a.m. – 5:30 p.m.

Varies

November 12

NACM Connect Illinois - Chicago SAP Credit and A/R Users Group Meeting

NACM Connect Rolling Meadows, IL

8:00 a.m. – 4 p.m.

Linda Hass

November 13

NACM Connect Ohio - Cincinnati Credit 102

Cincinnati Container Co., Inc. Cincinnati, OH

9 a.m. – 4 p.m.

Cliff Chamberlain, CPA

November 14

NACM Connect Ohio Independence Credit 101

Valtris Specialty Chemicals, Inc. Independence, OH

9 a.m. – 4 p.m.

Matthew Meyer, CCE

November 14

NACM Connect New York Buffalo Roundtable Discussion

Original Pancake House Williamsville, NY

9 a.m. – 10:30 a.m.

TBA

November 15

NACM Connect New York Rochester Roundtable Discussion

International House of Pancakes Rochester, NY

9 a.m. – 10:30 a.m.

TBA

November 15

NACM Connect Indiana Indianapolis Best Practices Discussion Group

Blueberry Hill Pancake House Indianapolis, IN

11:30 a.m. – 1:30 p.m.

Daniel D. Cobb

December 4

NACM Connect Michigan New Hudson Roundtable Discussion

Behler-Young New Hudson New Hudson, MI

11:30 a.m. – 1:30 p.m.

Jason MacDougall, CBA

December 5

NACM Connect - Chicago Available Through Videoconferencing Credit 103

NACM Connect Rolling Meadows, IL

9 a.m. – 4 p.m.

Rich Bellis, CCE

December 6

NACM Connect Michigan - Zeeland Roundtable Discussion

Herman Miller, Inc. Zeeland, MI

11:30 a.m. – 1:30 p.m.

Kenia Espinoza

December 6

NACM Connect Missouri Open House and Toy Drive

NACM Connect Creve Coeur, MO

4:30 p.m. – 6:30 p.m.

TBA

December 6

NACM Connect Indiana - Elkhart Credit 103

Mid City Supply Co. Inc., Elkhart, IN

9 a.m. – 4 p.m.

Stu Boswell, CBF

December 11

NACM Connect Indiana - Elkhart SEMINAR: UCC/LIEN

BAYMONT INN & SUITES Elkhart, IN

9 a.m. – 4 p.m.

Jerry Bailey, NCS

December 12

NACM Connect Kansas - Shawnee Roundtable Discussion

Hereford House Shawnee, KS

11:30 a.m. – 1:30 p.m.

Dr. Chris Kuehl

December 12

NACM Connect Ohio - Independence Credit 102

Valtris Specialty Chemicals, Inc. Independence, OH

9 a.m. – 4 p.m.

Matthew Meyer, CCE

December 13

NACM Connect Ohio - Beachwood Roundtable Discussion

OMNOVA Solutions Inc Beachwood, OH

11:30 a.m. – 1:30 p.m.

Larry McClatchey

December 18

NACM Connect Ohio - Cincinnati Credit 103

Cincinnati Container Co., Inc. Cincinnati, OH

9 a.m. – 4 p.m.

Cliff Chamberlain, CPA

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 23

News

Financial Statements and the Valuable Products They Can Deliver Larry Grogan, CCE

henever a company requests and receives financial statements from a Customer, its Credit team can turn that ‘raw material’ into 6 valuable products that can lead to lower bad debt, appropriate risk mitigation, increased profitable sales and more efficient use of time. It may seem unusual to treat the intangibles of a credit process or policy as products, but when you do, you may find it makes it easier to talk, think and write about them. Viewing them as tangible products with certain attributes also makes it easier to improve them as well. The 6 products include:

1. Risk Ratings Based on Financial Data

2. Right-sized Credit Limits 3. Staggered Credit Limit Expiration Dates 4. Appropriate Security Decisions: When and How Much? 5. High Risk Customer Watch List 6. Rational Expanded Terms of Sale Decision Making

RISK RATINGS BASED ON FINANCIAL DATA

Whether it’s a basic 3-level scale of Low, Medium or High Risk or a more defined 1-10 scale, this product delivers benefits for several internal teams: credit, collections and sales. The raw materials needed to create this product include a) Customer financial statements (2-3 years’ worth); b) Excel spreadsheet to calculate several ratios; c) Footnotes provided with the financials or gathered over the phone; d) Credit report data to check on how they pay other suppliers and to determine if there are any material suits, liens, judgments or items placed for collection; and e) Comments from internal collection staff on how well they pay your company (for established Customers).

RIGHT-SIZED CREDIT LIMITS

There is often a difference between the Credit Limit a Customer is asking for and the one they can afford or deserve. In the absence of financial data, it’s easy to over-extend credit which may lead to slow pay and possibly bad debt. Several credit report vendors offer a “Credit Limit Recommendation” but it is often based on the extension of credit by others who likely based their decision on payment data rather than financial data on the Customer. Many trade creditors who use financial statements have traditionally factored in their Customer’s Risk Rating in combination with a policy defined multiple of their Net Worth to right-size the Credit Limit. For example, let’s assume a hypothetical credit policy allows a maximum Credit Limit of 20% of a Customer’s Net Worth if the Risk Rating is ‘Low’, 15% if the Risk Rating is ‘Medium’ and 5% if it’s ‘High’. Now let’s do the math: if ABC Company has a Net Worth of $500,000, a hypothetical credit policy might recommend a maximum Credit Limit of 20% or $100,000 if they were ‘Low’ risk, 15% or $75,000 if ‘Medium’ risk and only 5% or $25,000 if ‘High’ risk.

THE INTERCONNECTION

Why is Net Worth used? Using a variation of the Balance Sheet equation, Assets – Liabilities = Net Worth, it becomes clear that the Customer’s stake in the business can be measured by what’s left over after subtracting what the firm owes from its total assets. The more equity or stake the Owner has in relation to the requested Credit Limit, the better the Creditor feels about extending a certain level of credit. During the Great Recession of 2008, the homeowners who walked away from their homes were the ones with little or no equity. They had nothing to lose. The same principle is relevant in the business world. The credit policies of some companies favor using a more conservative number in the right-sizing calculation. It’s called ‘Tangible Net Worth’. If you locate Net Worth (or Shareholders Equity) on the Balance Sheet and then find and deduct ‘Goodwill’ and ‘Intangibles’ from it, it will yield the firm’s Tangible Net Worth. This provides a better approximation of a company’s worth in a liquidation. If the Customer noted above had a Net Worth of $500,000, Goodwill of Continued on page 27>>

NOVEMBER/DECEMBER 2018

PAGE 24

ALL-IN-ONE

B2B CREDIT MANAGEMENT SaaS PLATFORM

PLATFORM FEATURES ELECTRONIC CREDIT APPLICATION SYSTEM

ACCOUNTS RECEIVABLE MANAGEMENT

SELF-SERVICE PAYMENT PORTAL

Intelligent, customizable, and configurable system of digital credit information with sales, credit, and customer facing online portals.

Track, measure, and report quality of AR portfolio. Complete toolkit for AR reviews, customer billing, dispute resolution, etc.

Instant collection of payments and deposits into clientsâ&#x20AC;&#x2122; bank accounts. Flexible and policy-driven automated payment plans.

CREDIT MANAGEMENT WORKFLOWS

COLLECTIONS MANAGEMENT

E-LOCKBOX

Universal and configurable credit management workflow that organizes, tracks, monitors, measures and reports all credit review activities from credit request initiation to approval.

High-yield, low-cost collections management process automation. Automation of everyday collections management tasks through predefined strategies.

Convenient and fast payment methods for customers with errorfree automatic cash applications.

NOVEMBER/DECEMBER 2018 PAGE 25

news

MONEY BACK. GUARANTEED. BOLD STATEMENT, BUT TRUE.

IAB Solutions, LLC

We find and recover unauthorized customer deductions. You get paid or you donâ&#x20AC;&#x2122;t owe us a dime. Guaranteed.

Partners. Solutions. Results. iabllc.com

Join our many highly regarded clients by putting our years of success and a full complement of A/R services to work for you. Contact us today at (800) 742-0014 or partners@iabllc.com. OP ERATIO NS

P E N N S Y LVA N I A

NEW JERSEY

C E NTE RS

CONNECTICUT

THE INTERCONNECTION

IN:

ILLINOIS

WISCONSIN

NOVEMBER/DECEMBER 2018

PAGE 26

NEWS

Financial Statements and the Valuable Products They Can Deliver <<Continued from page 24 $100,000 and Intangibles of $50,000, its Tangible Net Worth would be $350,000. The right-sized credit Limits for each level of Risk would be lower using this number rather than using Net Worth without any adjustments. Right-sizing Credit Limits across a portfolio can reduce overall risk. Low risk Customers will receive a higher multiple to be applied to their Net Worth than higher risk ones. If a Customer declines to provide financials, it may be worth asking if they would share a single number: the amount of their total Shareholder’s Equity (or Net Worth). Credit Report scores and your historical payment data can be used in place of the financials to come up with a Risk Rating.

STAGGERED CREDIT LIMIT EXPIRATION DATES BASED ON RISK RATINGS

If you risk rate the accounts in your portfolio as Low, Medium or High risk, a great deal of time can be saved by giving the Low risk account Credit Limits a longer expiration timeframe and the High risk account a shorter one. For example, a hypothetical credit policy might suggest the following Credit Limit expiration dates: Low risk: 18-24 months. Medium risk: 12 months or annually and High risk: every 6 months. In the case of the Low risk accounts, you might still request and review their financials annually, but unless the risk changes materially, there is no need to do another credit appraisal write-up until the 18-24 months have elapsed. In the case of a high risk private company, monthly or quarterly interim financials can be requested and reviewed. In the case of a high risk publicly traded company, quarterly financial statements, public ratings (Moody’s, S&P or Fitch) and stock prices can be easily monitored at regular intervals to determine if the risk changed materially. If so, the Credit Limit expiration date can be modified accordingly. In general, requiring an annual review of all accounts, regardless of risk, may

result in a misallocation of resources. If a company would prefer not to stagger expiration dates based on risk ratings, they could consider using a shorter write-up format (1 page) on Low and Medium risk accounts and a more in depth one on high risk accounts (2-3 pages). The resulting time savings can be used to put more focus on high risk accounts.

APPROPRIATE SECURITY DECISIONS: WHEN AND HOW MUCH? This ‘product’ compares the Credit Limit amount requested by the Customer to the calculated Right-Sized Credit Limit. If difference is a positive amount, it represents the amount of security needed to close the gap. If the difference is a negative amount, then no security is necessary. For example: a Customer requested a Limit of $50,000 but the Right-Sized Credit Limit was only $30,000 based on their current Risk Rating and Net Worth. They need $20,000 more than the policy allows. The creditor has the option of requiring security to bridge some or all of the $20,000 gap. A key advantage of this approach is it is logical. This makes it easier to justify the need for security to a Customer. Over time, as the Customer’s Risk Rating improves and its Net Worth grows, so too will the amount of Credit Limit that can be extended. If their financials deteriorate further, the formula will automatically reduce the Recommended Credit Limit. What forms of security are available to fill the gap? Here are a few worth considering: letter of credit, surety bond, cash deposit, corporate guaranty from a related company, personal guaranty(s) of owner(s),credit insurance, UCC-1 filings or pledging of certain assets (real estate, stocks etc.). Shorter terms of sale can also be used to reduce the gap by effectively reducing the required Credit Limit. Credit Cards and pre-pay eliminate the need for a Credit Limit altogether. Another product credit teams are often known for is the knowledge of how

THE INTERCONNECTION

each of these risk mitigating ‘tools’ work.

HIGH RISK CUSTOMER WATCH LIST

Once a Customer’s Risk Rating is determined, high risk Customers can be added to a Watch List which can be used by management to monitor / review for potential bad debt and related reserves. Collectors can use it to alert the credit team when they notice a change in the payment behavior of an account on the list.

RATIONAL EXPANDED TERMS OF SALE DECISION MAKING If a Customer refused to provide financial statements and later requests extended terms, it’s a golden opportunity to require financials. In negotiations, the Creditor could take a “win/win or status quo” approach: they will consider the request only if financials are provided. If Customer refuses, then current terms prevail. If you already have their financials, the Credit Limit required to accommodate the requested expanded Terms of Sale can be compared to the rightsized Credit Limit to see if there is any room on the Limit for the additional exposure. Credit policy would dictate next steps but in general, if there is a gap, work to bridge it by some form of security. If Customer is unwilling to provide it, the request can be denied until the combination of the Customer’s Risk Rating and Net Worth improve to where they support a higher Limit. Here’s a very basic way of determining the impact of extended terms on the Credit Limit requirement. Net 30: there are twelve 30 day periods in the year. Net 45: eight 45 day periods. Net 60: six 60 day periods. Net 90: four 90 day periods (using a 360 day accounting year). If Customer’s expected annual sales are $500,000, the approximate Credit Limit need for Net 30 terms would be ($500,000/12) = $42,000. For Net 45 it would be $62,500 Continued on page 28>> NOVEMBER/DECEMBER 2018 PAGE 27

News

Financial Statements and the Valuable Products They Can Deliver <<Continued from page 27 ($500,000/8). For Net 60: $83,000 and Net 90: $125,000. Note: this assumes a level sales pattern which may not be realistic. This serves to illustrate how it’s one thing to sell to a Customer on Net 30 terms without their financials. But it’s a very different decision when the required Credit Limit will double if they pursue Net 60 terms. Using the Right-Sized Credit Limit approach provides credit teams with a first line of defense for declining these requests where a) Customer has not met the financial statement requirement or b) you do have their financials but they do not support the Credit Limit the new terms would require. If they still want expanded terms, you have the option of requiring some form of security to mitigate the risk of the increased exposure. SOME FINAL THOUGHTS:

• Credit policies can establish at what Credit Limit amount financials are required. Many companies use Credit Reports up to a certain point because it is cost efficient and their bad debt experience confirms it makes sense.

• If a company typically does not

require financials, now may be a good time to move in that direction since many businesses are doing well in the current economy and may be more willing to share their good results with trade creditors. This may not be true 1-2 years from now.

• Moving from using Credit Reports

alone in setting Credit Limits to requiring financial statements is a challenging task in large part because many Customers get all the trade credit they need without providing any financial data. It will require much work to overcome this objection, but now is a good time to start because recessions are a part of the normal business cycle. Starting now when times are good can build the necessary momentum to implement an approach that works

IN CONCLUSION

so when tough times come around, a request for financial statements will be viewed as a routine request, rather than an exceptional one.

• The prime rate is the rate banks

charge their most creditworthy Customers. Currently its 5.25%. Those that are less creditworthy might get charged Prime + 1 (or more) i.e. 6.25% etc. Within a few months the prime rate could be as high as 6%. How does this impact your Customer? Banks also use Risk Ratings and numbers like Net Worth when setting up lines of credit and in deciding what interest rate to charge. Your Customer’s borrowing costs will increase as their loan rates increase as the prime rate goes up. This increases the interest expense on their Income Statement, lowers Net Income and requires a larger cash outlay. This in turn may cause them to use their suppliers like a bank (at zero interest) by slow paying. It can also lead to requests for expanded terms. The best way to see how your Customer is being impacted is to require their financials. I‘m not aware of any cases where a bank will lend money without reviewing their Customers financials first. Unfortunately, trade creditors don’t always have the same luxury of saying ‘no’ to Customers who want to buy from their company but decline to provide financials.

Our Customer’s financial statements can be seen as providing raw material that can be converted by a credit team into several valuable products to be used in making credit decisions and managing risk. For companies that don’t request financial statements from their Customers, it’s my hope they will consider how useful they are when used in addition to credit reports and other credit resources. I hope to eventually build a seminar around this topic in the near future to cover the 6 products in depth. ■

Larry Grogan, CCE, is a Credit Analyst with BP Products NA. With over 25 years of credit experience, Grogan played a lead role in implementing credit score carding at BP and is past Chairman of the NACM Midwest Board of Directors. Grogan received a Bachelor of Science degree in Marketing from Bradley University and an MBA from Benedictine University. He is also a graduate of NACM’s Graduate School of Credit & Financial Management at Dartmouth College. Grogan is currently on the faculty of NACM Connect’s Institute of Credit’ and has taught classes, seminars and delivered on-site training on the topic of Financial Statement Analysis.

• How can ratios be used to Risk Rate

accounts? Here is a short answer: calculate ratios under each of the 5 standard categories: Liquidity, Leverage, Profitability, Activity and Cash Flow. Review 2-3 ratios under each category and for each category; assign a Low, Medium or High risk rating. Then count up which was the most frequently appearing risk rating and make that the overall risk rating. Use this when right-sizing credit limits.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 28

news

Put More Time Back Into Your Day Successful companies thrive on efficiency. CreditPoint automates tedious everyday manual tasks streamlining onboarding & customer portfolio management. Achieve a shorter sales cycle & grow revenue ®

Accelerate the entire credit review process ®

Receive alerts when key data changes on your customers Make confident credit decisions

Improve all aspects of onboarding & trade risk management

Solutions For Today’s Credit Professional

® Rapid & Accurate Onboarding

Credit Decisioning

Seamless Data Integrations

Document Management

THE INTERCONNECTION

Business Intelligence

918.376.9440 www.creditpointsoftware.com

NOVEMBER/DECEMBER 2018 PAGE 29

Caine & Weiner News

Caine & Weiner 2018 Quarterly Giveaways NACM CONNECT

NOVEMBER | DECEMBER

Place a collections claim with Caine & Weiner anytime during the months of November and December and become eligible to win a $150 Nike gift card. Each claim you place will be eligible for the drawings. Enter as often as you like! For information on placing claims, please contact Jim McGee at 847-407-2348. You may also place a claim online at www.caine-weiner.com.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 30

News

The Risky Business of Extending Credit to Ch. 11 Debtors <<Continued from page 1 “If the case liquidates and if there isn’t enough to pay the secured lender [at all] or in full and have funds for all of the administrative expenses in Ch. 11, like unpaid post-petition rent, professional fees and all other postpetition payables, then everybody takes a haircut on their post-petition credit extension,” Nathan said. “Anybody who is considering extending credit has to do a lot of homework and be able to figure out what happens when the music stops. What are the chances of their post-petition credit extension getting paid in full? There’s a risk of delayed payment. There’s a risk that it will not be paid in full.” In the case of Toys “R” Us, vendors were told that the existence of Ch. 11 financing provided assurance of post-petition trade claims. The

company expected to come out on top in 2018 or 2019 after the holiday shopping season; however, Toys “R” Us never had the chance due to an underperforming budget. According to a Retail Dive article in August, a settlement agreement was reached between the retailer and vendors in July that “provides a baseline recovery of $180 million on some $800 million owed to vendors, with the potential for more.” To their dismay, vendors can’t sue the retailer or pursue claims in full to fully recover, but they can file a proof of claim. Critical vendors were “burned” by Toys “R” Us because they agreed to have their pre-petition claim paid over time and continued to extend post-petition credit, Nathan said. Then, payments stopped when the company failed.

“If I were a critical vendor, I wouldn’t extend credit in excess of whatever payment I got on my critical vendor claim because, otherwise, you’d be extending yourself more than you got paid,” Nathan said. “I’m not saying you shouldn’t do business with a Ch. 11 debtor; I’m saying there’s a risk that if you do business on credit, you don’t get paid in full or there’s likely a delay in payment. The answer may be that you do business on cash-in-advance terms.” Bloomberg reported in June that nearly 40% of the company’s vendors shipped product without cash in advance, cash on delivery or payments outstanding. Nathan said paying attention to the company’s well-being is the best way to deal with a Ch. 11 debtor. ■

Illinois Construction Stuff and Stuff <<Continued from page 8

The Illinois Mechanics Lien Law Statutes ...and Other Construction Stuff For over a decade Norm Cowie, CCE, has been writing an award-winning column for the NACM Connect newsletter, the InterConnection. Included in his column are situations that arise in a typical credit department of a company related to the construction ﬁeld, and in most cases in any typical credit department. These articles have been accumulated into a book that we are pleased to offer at the member price of $29.95 plus S&H. Besides a great, funny read, this book will serve as a must-have reference guide to the often difficult-to-interpret Illinois Mechanics Lien Act.

To order, contact Lillian Novak at 847.483.6478 or email her at lillian.novak@nacmconnect.org. THE INTERCONNECTION

industry? After I received his ridiculous letter, I contacted my NACM distributor’s group, and asked them to send me letters confirming that they also routinely use trust receipts. I was rewarded within hours with four such letters, and will probably receive more. I don’t know how this is going to end up, but we’re in court next week for a pretrial conference (as of this writing). I’m going in guns blazing. ■ Norman Cowie, CCE is Director of Credit for Paramont-EO, Inc. Besides his regular column for InterConnection, he has written articles appearing in the Chicago Tribune, Cynic Magazine, Business Credit and the Herald News. His current book titled, “The Illinois Mechanics Lien Statutes … and other construction stuff” is available for sale through NACM Connect. He also has ten published humor/fantasy novels, some through traditional publishers Echelon Press, Quake Books and Draumr Publishing, although more recently he has transitioned over to Indie publishing. Norm can be reached at norm.cowie@paramont-eo.com, or feel free to visit him at www.normcowie.com which features past NACM Connect articles.

NOVEMBER/DECEMBER 2018 PAGE 31

If Accounts Receivable is a cash flow problem,

For more information on how we can collect for your company locally, nationally or internationally contact us today!

Kelly Hall 317-225-4281 kelly.hall@nacmconnect.org

Try NACM Southwest Discover how our association is different from collection agencies...we can turn your debt into cash assets at a price no one can beat! NACM Connect has partnered with NACM Southwest to bring you a great collection service.

Each claim placed in July/August/September eligible for a drawing for a $150 Gift Card. NACM Southwest 751 Plaza Blvd. Coppell, TX 75019 972.518.0019 www.nacmsw.com

Illinois

SAP Credit and A/R Users Group Meeting Open Forum Discussion Moderated by

Linda Hass, SAP Consultant

Monday, November 12, 2018 NACM Connect 3005 Tollview Drive Rolling Meadows, IL 60008

Open Forum 8:00 A.M. – 4:00 P.M. Cost SAP User Group Members Registration Fees

Non-Member Fees

$175, SAP User Group Members, first attendee  $145, Each additional attendee from the same company

 $350, Non-SAP group member  $450, Non-NACM member

Price includes continental breakfast and lunch. Sorry, no coupons accepted for this event.

Registration Form Name:____________________________ Company: ___________________________________Member #_________________ Address: ___________________________________________ City: ______________________ State: ____ Zip: __________ Phone: _______________________________ E-mail: _________________________________ Fax: _______________________ What do you consider your level of expertise in SAP:

 Beginner  Intermediate  Advanced

You will be invoiced for this meeting. Please submit payment once invoice has been received. Upon receipt of the invoice, if you wish to pay by credit card please call 1-800-935-6226.

Please e-mail your discussion topics to themis.vlahos@nacmconnect.org. Fax this registration form to 847-483-6428 no later than Tuesday, November 6, 2018. For more information, please contact Themis Vlahos, CCE at 800-935-6226, ext. 6428.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 33

Indiana

NACM CONNECT INDIANA

BEST PRACTICES DISCUSSION GROUP We understand that information in today’s credit world is vital and participating in such a group will provide you with creditspecific education, contacts in the local credit community, along with the opportunity to share ideas and best practices with fellow colleagues.

About the Best Practices Discussion Group

Unlike traditional credit groups, the NACM Connect Indiana Best Practices Discussion Group is not industry specific. Your entire company may attend each meeting including your associates, members of the credit department and even the CEO of your organization. Any NACM Connect member company is welcome to join the group. Each meeting will discuss best practices and no specific customers will be mentioned.

Next Meeting Topic: A BANKER’S EVALUATION OF CREDIT AND TAX LAWS. Speaker: Daniel D. Cobb Vice President Senior Commercial Banker, MutualBank

About the Group Meetings

Date: Thursday, November 15 11:30 a.m. – 1:30 p.m.

Objectives of the Best Practices Discussion Group

Location: Blueberry Hill Pancake House Meeting Room 7803 E. Washington Street Indianapolis, IN 46219

Four times each year, the Best Practices Discussion Group will hold a roundtable discussion. Local meetings will be held in the Indianapolis, IN area. We will focus on various credit-related topics relevant to today’s business professional. NACM Connect personnel, a member company or guest speaker will facilitate a lunch meeting. Annual dues are $250, lunch is billed separately. • Determine necessary improvements for your credit and/or accounting departments and organization. • Analyze how other organizations achieve high performance levels. • Use gathered information to enhance your company’s performance.

THE INTERCONNECTION

Information or to Register: For more information, please contact Kelly Hall at kelly.hall@nacmconnect.org or 317.225.4281

NOVEMBER/DECEMBER 2018

PAGE 34

Indiana A half day seminar designed for Credit Professionals

UCC/LIENS BAYMONT INN & SUITES

│

Tuesday December 11

Presented By: Jerry Bailey, NCS

3010 Brittany Court

│

Elkhart, IN 46514

8:00 a.m. – 12:30 p.m. Continental Breakfast 8:00–8:30

$139 – Members (One coupon per person)

Registration Deadline: November 27

$278 – Nonmembers

UCC Filing Session: 8:30 a.m. - 10:20 a.m. • Impact to DSO, Cash Flow, Working Capital • Overview and Benefits of Secured Transactions • Basic UCC Filings • Purchase Money Security Interest Filings • Chapter 7 and Chapter 11 Bankruptcies • Types of Filing: Which is Right for Your Situation? • Leveraging Default • Who Might Use these Tools? • Security Agreements and Financing Statements • Forms and Filing Rules • Recognizing opportunities to take security • Questions and Answers

Lien and Bond Claim Session: 10:30 a.m. - 12:30 p.m. • What are Credit Managers Saying? • Impact to DSO, Cash Flow, Working Capital • Justifying the Credit • A Brief History • Types of Liens • Terms, Legal Procedures and Ladder of Supply • State Laws: Similarities and Differences • Foreclosure Considerations • Bonds: Definitions and Types • Miller Act • Public Improvement Liens • Questions and Answers

Attendance at this seminar is worth .4 Continuing Education Units/CCE Recertification points.

Cancellation Policy: Cancellations must be received in writing via fax, email or mail no later than one week prior to the meeting date to qualify for a full refund. Cancellations received later than one week prior to the meeting date DO NOT qualify for a refund of registration fees. Sorry, phone cancellations cannot be honored. If you have any questions, please email info@nacmconnect.org.

Questions? Contact Kelly Hall at kelly.hall@nacmconnect.org or call 317.225.4281 THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 35

Kansas Roundtable discussions are a great opportunity to review, discuss, question and learn best practices with credit professionals of countless experience and backgrounds, across various industries and company sizes. It is a great opportunity to network with other credit professionals that you can later reach out to regarding the roundtable discussion or other related credit processes or circumstances. They are equally beneficial to both the newer and the more experienced. â&#x20AC;&#x201C;Chuck Levy, CCE Credit Manager Fabick CAT

2018 Kansas

December Lunch Roundtable Discussion

ECONOMIC UPDATE/ INTERNATIONAL CREDIT Guest Speaker/Facilitator: Dr. Chris Kuehl, Managing Director of Armada Corporate Intelligence, Chief Economist for NACM and Board Member for FCIB

Wednesday December 12, 2018 11:30 a.m. â&#x20AC;&#x201C; 1:30 p.m. Hereford House 17244 Midland Drive Shawnee, KS 66217

Cost per Meeting $25 members, $50 non-members. One coupon per person is valid. Lunch included. Attendance at this roundtable discussion is worth .2 Continuing Education Units/CCE Recertification points; 2 points Continuing Education Units/ICCE Recertification points

All registrations for NACM Connect educational events are taken online at www.nacmconnect.org While registering online, you will also have the opportunity to apply coupons as allowed. All payments must be received one week prior to meeting date. Cancellation Policy: Cancellations must be received in writing via fax, email or mail no later than one week prior to the meeting date to qualify for a full refund. Cancellations received later than one week prior to the meeting date DO NOT qualify for a refund of registration fees. Sorry, phone cancellations cannot be honored. If you have any questions, please email info@nacmconnect.org.

Email this form to registration@nacmconnect.org. Register online at www.nacmconnect.org You will be invoiced shortly. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 36

Michigan

Roundtable discussions are a great opportunity to review, discuss, question and learn best practices with credit professionals of countless experience and backgrounds, across various industries and company sizes. It is a great opportunity to network with other credit professionals that you can later reach out to regarding the roundtable discussion or other related credit processes or circumstances. They are equally beneficial to both the newer and the more experienced. –Chuck Levy, CCE Credit Manager Fabick CAT

2018 Michigan

December Lunch Roundtable Discussion

How to Effectively Work with your Sales Team Moderator: Jason MacDougall, CBA / Behler Young Co.

Tuesday

December 4

• Strong Open Communication with Sales (more info is better than no info) • Travel with Sales (face to face with customer & sales) • Help Sales grow business – while keeping customer in terms • Know your Salesmen (push to be included in trainings or gatherings with them) • Every salesman works differently, learn to build reciprocal trust

11:30 a.m. – 1:30 p.m. Behler-Young New Hudson 30158 Research Drive New Hudson, MI 48165

• Courtesy of response – prompt – good, bad or no news, is better than no news at all (expect same from Sales) **Sale is not final until the $ is in the bank – use your Salesman when you need help collecting or resolving disputes

Cost per Meeting $30 members, $60 non-members. One coupon per person is valid. Lunch included. Attendance at this roundtable discussion is worth .2 Continuing Education Units/CCE Recertification points

NOVEMBER/DECEMBER 2018 PAGE 37

Michigan Roundtable discussions are a great opportunity to review, discuss, question and learn best practices with credit professionals of countless experience and backgrounds, across various industries and company sizes. It is a great opportunity to network with other credit professionals that you can later reach out to regarding the roundtable discussion or other related credit processes or circumstances. They are equally beneficial to both the newer and the more experienced. â&#x20AC;&#x201C;Chuck Levy, CCE Credit Manager Fabick CAT

2018 Michigan

December Lunch Roundtable Discussion

OPEN

NETWORKING FORUM Moderator: Kenia Espinoza/Herman Miller, Inc.

Thursday December 6 11:30 a.m. â&#x20AC;&#x201C; 1:30 p.m.

COME JOIN US!!

Herman Miller, Inc. 855 E. Main Avenue Zeeland, MI 49464-0302

We are having an Open Networking Forum on a variety of topics that YOU bring to the table. Cost per Meeting

$30 members, $60 non-members. One coupon per person is valid. Lunch included. Attendance at this roundtable discussion is worth .2 Continuing Education Units/CCE Recertification points

Email this form to registration@nacmconnect.org. Register online at www.nacmconnect.org You will be invoiced shortly. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 38

Missouri

5th Annual NACM Connect

OPEN HOUSE & TOY DRIVE We’re welcoming NACM Connect members with holiday treats on Thursday, December 6th at the NACM Connect Missouri office for our 5th Annual Open House & Toy Drive.

Donate a toy and receive a free drink ticket for an after hours networking opportunity that night, 6:30 pm at Edgewild Bistro, 12316 Olive Blvd., Creve Coeur, MO 63141 You can help bring the joy of the holiday season to less fortunate children by bringing a new and unwrapped toy (which will be donated to Toys for Tots). This is a GREAT opportunity to help needy children and families, celebrate the holiday season and connect with friends and colleagues! Can’t make it? Feel free to drop off a donation at the office anytime before December 6.

THIS HOLIDAY SEASON HELP BRING A SMILE TO A CHILD

DECEMBER 6 | 4:30 pm - 6:30 pm NACM Connect Missouri Office 12101 Woodcrest Executive Drive, Suite 145 Creve Coeur, MO 63141 Questions? Contact Rochelle Wilson at rochelle.wilson@nacmconnect.org or call 314.677.2800. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 39

New York

2018 Eastern/Western New York

Roundtable Discussion Series

Customers Paying Slower than Ever

How Do We Handle This? November 14th - Buffalo

•

November 15th - Rochester

Please select each meeting you plan to attend. All meetings are from 9 – 10:30 a.m. Moderator(s) to be announced.

Buffalo Location: Original Pancake House 5479 Main St. Williamsville, NY 14221

Rochester Location:

International House of Pancakes 556 Jefferson Road Rochester, NY 14623

Cost per Meeting

$25 members, $50 non-members, one coupon per person is valid. Breakfast Included. Attendance at this roundtable discussion is worth .15 Continuing Education Units/CCE Recertification points

Email this form to registration@nacmconnect.org. Register online at www.nacmconnect.org You will be invoiced shortly. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 40

Ohio

2018 Ohio

December Lunch Roundtable Discussion

CREDIT AND COLLECTIONS 101 Credit Applications How They Can Protect Your Business

Thursday December 13 11:30 a.m. – 1:30 p.m. Location: OMNOVA Solutions Inc. 25435 Harvard Road Beachwood, OH 44122

Moderator: Larry McClatchey, Kegler Brown Hill + Ritter •

Key information about the customer in the credit application

•

Obtaining trade references/checking for liens

•

Personal guaranties

•

The credit application as a contract

•

Key provisions you should consider for your company’s credit application

NOVEMBER/DECEMBER 2018 PAGE 41

Wisconsin Roundtable discussions are a great opportunity to review, discuss, question and learn best practices with credit professionals of countless experience and backgrounds, across various industries and company sizes. It is a great opportunity to network with other credit professionals that you can later reach out to regarding the roundtable discussion or other related credit processes or circumstances. They are equally beneficial to both the newer and the more experienced. –Chuck Levy, CCE Credit Manager Fabick CAT

2018 Wisconsin

November Roundtable Discussions

IDENTIFYING AND FINDING

THE BEST TALENT

FOR YOUR CREDIT DEPARTMENT Guest Facilitator: Leslie Harrison, SPHR, CGA, Vice President of Membership, Staffing and Human Resources, NACM Connect

► Milwaukee Wednesday, November 7

12:15 p.m. – 2 p.m. (lunch)

ABV Social (Library Room) 11200 West Burleigh Street | Wauwatosa, WI 53222 (Highway 45 at the Burleigh exit in the Mayfair Collection complex)

Pre-registration is required! Registration deadline: 24 hours prior to the roundtable of your choice.

$25 members, $50 non-members. One coupon per person is valid. Attendance at this roundtable discussion is worth .175 Continuing Education Units/CCE Recertification points

Email this form to registration@nacmconnect.org. Register online at www.nacmconnect.org You will be invoiced shortly. THE INTERCONNECTION

NOVEMBER/DECEMBER 2018

PAGE 42

Wisconsin

NACM CONNECT

EASTERN WISCONSIN BEST PRACTICES DISCUSSION GROUP We understand that information in today’s credit world is vital and participating in such a group will provide you with creditspecific education, contacts in the local credit community, along with the opportunity to share ideas and best practices with fellow colleagues. About the Best Practices Discussion Group Unlike traditional credit groups, the NACM Connect Best Practices Discussion Group is not industry specific. Your entire company may attend each meeting including your associates, members of the sales department and even the CEO of your organization. Any NACM member company is welcome to join the group. Each meeting will discuss best practices and no specific customers will be mentioned.

About the Group Meetings Four times each year, the Best Practices Discussion Group will hold a roundtable discussion. Local meetings will be held in the Sheboygan/ Kohler/Plymouth/Manitowoc/Fond du Lac area. We will focus on various credit-related topics relevant to today’s business professional. NACM personnel, a member company or guest speaker will facilitate a lunch meeting.

Next Meeting Topic: Credit Research With or Without Credit Reports Presenters: Nick Pokrifcak and Frank Schetski NACM Connect

Date: Friday, November 9, 2018 12 Noon - 2 pm Location: Sprecher’s Resturant 820 Indiana Avenue Sheboygan, WI (Private room)

Information or to Register: For more information, please contact Frank Schetski at frank.schetski@nacmconnect.org or 414.232.4565

Objectives of the Best Practices Discussion Group • Determine necessary improvements for your credit and/or accounting departments and organization. • Analyze how other organizations achieve high performance levels. • Use gathered information to enhance your company’s performance.

THE INTERCONNECTION

NOVEMBER/DECEMBER 2018 PAGE 43

The InterConnection

800.935.NACM

Stay Connected