2019 January-February InterConnection Newsletter by NACM Connect

The InterConnection VOLUME 7

ISSUE 1

JANUARY/FEBRUARY 2019

Education and Volunteering and Awards…Oh MY! Lillian Novak

appy New Year! I hope everyone enjoyed their holidays and are settling back into the routine. The January issue of the InterConnection is always a special and very important one. Included in this newsletter you will find a plethora of opportunities to enhance your NACM Connect experience. From enhancing your credit education, to volunteering locally or affiliatewide, to nominating yourself or a worthy peer for an annual award… information on all of these and more are right here at your fingertips.

1. Education. Save the date for the spring annual meetings! Coming soon – full agendas will be posted. We’re gearing up for our spring classes, and don’t forget they are all available via videoconferencing if you are not in a location where you can take advantage of a live class. Barry Elms will be making the circuit through NACM Connect this spring as well. On page 10 and 11 of this newsletter and also online you will find the application for 20192020 scholarships. Scholarships are awarded on basis of merit and need. Apply for scholarship money for classes, conferences, annual meetings or seminars. If you have wanted to get your designation, attend a regional

conference, etc., but haven’t had the financial resources available for you to participate in these programs, this is a great opportunity for you to get started! Sorry, we cannot offer scholarships for Credit Congress. 2. Volunteer. We are looking for members from across the ninestate region to join the leadership of NACM Connect through volunteering on the Board of Directors or one of the many committees. Interested in throwing in for the Board of Directors? Fill out the form on page 7, submit it to Lillian Novak and she will send you a Candidate Profile for your official submission to the Nominating Committee. All forms must be submitted by January 31 Continued on page 15>>

The Benefits of Going Paperless and How ACH Works to Lower DSO Christie Citranglo, NACM Editorial Associate

aking the switch to electronic payments (e-Payments) from traditional paper checks can be anxiety-inducing—and yet, consumers have overwhelmingly made the switch much quicker than have business creditors. Nearly two-thirds of all business-to-business (B2B) payments are still made by physical checks, according to a recent FinTech Market Landscape study. By just switching payments to ACH, days sales outstanding (DSO) can decrease by 20% after full remittance increasing cash flow and making budgets more flexible, as stated in a recent Receivable Savvy

webinar hosted by Senior Director, Product Management and Strategic Corporate Relations for NACHA, Robert Unger. “Not only is ACH a way to move money between bank accounts [company’s account to seller, etc.], you can push payments and pull payments from a seller,” Unger said in the webinar. “More importantly, it supports a boatload of remittance information. It describes what the payment is about, what kind of deduction is being made, that sort of stuff.” According to a survey by NACHA, more than 50% of respondents in the study said less than 20% of all remittance information is processed automatically with the help of ACH,

meaning most back-office functions are still performed manually. When so many tedious tasks are performed by employees, talents become wasted and the margin of error for processed reports increases. Not only is this use of employees for back-office tasks a waste of time, it’s also a waste of money, Unger said. Staff taking Continued on page 6>>

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

In This Issue Education and Volunteering and Awards…Oh MY!

The Benefits of Going Paperless and How ACH Works to Lower DSO

2018 Institute of Credit Class Schedules

NACM Connect Credit Conference Photos

2019 NACM Connect Annual Meetings Schedule

CFDD Wichita Chapter Super Session Photos

NACM Connect Indiana/Michigan/Ohio Local Industry Group Meetings

NACM Connect National Industry Credit Group Meeting

NACM Connect New York Local Industry Credit Group Meeting

Event Calendar

Welcome New Members and Reps

Midwest Staffing Credit Career Corner

2019 Annual Call for Volunteers and Nominations Form

Visual Analysis of Financial Statements: Tips (A Handy Desk Reference)

2018 Credit Executive of the Year Nomination Form

Illinois - The Complete Credit Professional Seminar

2019 Elite Membership Nomination Form

Indiana - Roundtable: Get Paid! Negotiation Skills & Collection Techniques

Indiana - UCC/Liens Seminar

Kansas - The Complete Credit Professional Seminar

The Robert L. Vodraska Scholarship Application

Congratulations to New Designees

IL Credit 101,102 & 103

IN, MI OH Credit 101,102 & 103

Michigan - Roundtable: The Basics of Financial Statement Analysis

NACM Connect Missouri Honors and Awards Nomination Form

Ohio - Roundtable: Credit Scoring System

Missouri Members Host Holiday Toy Drive

Ohio - Roundtable: Toot Your Own Horn: Elevating the Credit Department

Caine and Weiner 2019 Quarterly Giveaways: January, February, March

Illinois Construction and Stuff

NACM Connect Illinois Industry Credit Group Meetings

NACM Connect Missouri /Kansas Local Industry Group Meeting

NACM Connect Nebraska Local Industry Group Meetings

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.

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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

SAVE-THE DATES!

IOC COURSES 2019 CBA (Credit Business Associate) Course Schedule

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

Basic Financial Accounting

Thursdays, 1/3 - 3/21

Creve Coeur, MO

**Business Credit Principles

Mondays, 3/18 - 5/20

Rolling Meadows, IL

Business Credit Principles Wednesdays, 3-20 - 5/22 Zeeland, MI **Financial Statement Analysis 1

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

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

**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.

April 10 & 11 Rochester, New York April 18 Chicago, Illinois April 23 Kansas City, Missouri April 25 St. Louis, Missouri May 9 Grand Rapids, Michigan June 6 Pewaukee, Wisconsin TBD Omaha, Nebraska TBD Wichita, Kansas June 18 Indianapolis, Indiana June 20 Cincinnati, Ohio

EXAM REVIEW CLASSES All Exam Review Classes are offered from 5 - 8 p.m. at the Rolling Meadows location, and may be taken via phone conference.

Exam

Exam Date

CBF

Tuesday, January 29, 2019

CCE

Thursday, January 31, 2019

CBA

Tuesday, February 5, 2019

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

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JANUARY/FEBRUARY 2019 PAGE 3

NACM Connect Credit Conference

NOVEMBER 7 & 8

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PAGE 4

NACM Connect

2019 NACM CONNECT ANNUAL MEETINGS The Premier Spring Event for Credit Professionals WWW.NACMCONNECT.ORG

Apr 10 & 11 · NEW YORK Rochester

Apr 18 · ILLINOIS Rolling Meadows

Apr 23 · MISSOURI Kansas City

Apr 25 · MISSOURI

SAVE THE DATE!

St. Louis

May 9 · MICHIGAN Grand Rapids

June 6 · WISCONSIN Pewaukee

TBD · NEBRASKA TBD Omaha

TBD · KANSAS TBD Wichita

June 18 · INDIANA Indianapolis

June 20 · OHIO Cincinnati

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JANUARY/FEBRUARY 2019 PAGE 5

News

The Benefits of Going Paperless and How ACH Works to Lower DSO <<Continued from page 1 care of back-office assignments is at greater risk for human error; their skills can be better employed on other tasks. “How do we cut expenses without eliminating personnel?” said Gary Mulherin, CCE, ICCE, in an interview with NACM. “There are additional savings to be had if the business looks carefully into talking to their bank to see what options they have. Sometimes they don’t want to or they don’t have the time to.” With ACH, customers also have the option to trigger payments or have them debited, according to Unger. Using debit transactions, payments can be made almost instantly from one company to another. Instead of waiting for a check to reach the post office−or

dealing with the dreaded, “The check is in the mail” excuse−suppliers have access to money from the customer readily available. This permission can be granted when negotiating terms with a customer. “When you talk about certain customers not being able to send you ACH payments, remember this: With their permission, you can pull funds from their account, too,” Unger said. “Don’t overlook the B2B debit: onethird of all B2B transactions are debits, where one company is pulling funds from another company.” Even after lower DSO, the benefits continue: Using an ACH provider is cheaper than working with physical checks. Third-party senders−one of

the many options for ACH payments− still need to finance their companies; the fees associated with using their services are usually up to the business: Businesses can pass some costs off to the customer or pay their own costs, Senior Manager of Credit Administration at Grainger, Ed Bell, CBA, ICCE, said in an interview with NACM. “It’ll save you money because you’re not doing the function. We’ll charge the actual supplier for the cost,” Bell said. “If we, the supplier, are willing to accept those third-party offerings, it will save money for the end-user customer.”■

CFDD Wichita Chapter - Super Session

NOVEMBER 7

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JANUARY/FEBRUARY 2019

PAGE 6

NACM Connect

2019

Annual Call for Volunteers and Nominations nate mmittee or nomi Volunteer for a co on the rve se to s ue ag lle one of your co rectors. dwest Board of Di NACM/Chicago-Mi

Deadline January 31, 2019

BOARD MEMBER NOMINATION

The NACM/Chicago-Midwest Nominating Committee is seeking nominations for the NACM/Chicago-Midwest Board of Directors, the governing board of NACM Connect. Please use this form to submit the name of a member you feel should be considered for a position. Members are also encouraged to nominate themselves. All nominees will be required to submit a summary of information form and a current resumé.

I would like to nominate:

Name __________________________________________________________________________________________________________________ Company_______________________________________________________________________________________________________________ Phone ___________________________________________________ Email _______________________________________________________

Nomination made by: Name __________________________________________________________________________________________________________________ Company_______________________________________________________________________________________________________________ Phone ___________________________________________________ Email _______________________________________________________

COMMITTEE VOLUNTEER - Advisory Boards and Committees are affiliate specific.

I would like to volunteer for the following committee(s): Chicago Education/Conference GLR Education/Conference Gateway Social

Gateway Advisory Gateway Education KC Education

Nebraska Education Wisconsin Education Wichita Education

New York Education Scholarship

Name _________________________________________________________________________________________________________________ Company ______________________________________________________________________________________________________________ Phone ___________________________________________________ Email _______________________________________________________ Please submit your nomination to Lillian Novak by January 31, 2019 Mail to: NACM Connect Headquarters, 3005 Tollview Drive, Rolling Meadows, IL 60008 Email: lillian.novak@nacmconnect.org or fax: 847.253.6241

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JANUARY/FEBRUARY 2019 PAGE 7

NACM COnnect Submit Your Nomination for the NACM Midwest

Robert M. Healy

2018 Credit Executive of the Year

Each year, the membership of NACM Midwest elects a fellow member whose outstanding performance and accomplishments have made an impact on the credit profession. In order to qualify for a nomination, the credit executive must have a Certified Credit Executive (CCE) designation and be in good standing with the Association. All members are encouraged to nominate someone who has displayed exemplary service in the profession, including teaching, speaking, writing, mentoring, etc. The award will be presented during the NACM Midwest Annual Meeting on April 18, 2019.

Nominee Information Name_______________________________________________________ Company______________________________________________ Address ___________________________________________________________________________________________________________ City____________________________________________ State _________________________ Zip _________________________________ Phone ______________________________________________Email ________________________________________________________

Nominee Qualifications

(Attach a separate sheet of paper if necessary)

__________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________

Please provide the following information about yourself: Name____________________________________________________ Company_________________________________________________

Fax this form to Lillian Novak at 847-253-6241 or email it to lillian.novak@nacmconnect.org. Nominations Must be Received no Later Than March 1, 2019 THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 8

NACM connect

2019 Elite Membership Nomination Form NACM Connect has a long-term interest in engaging more young people in the Association. To that end, our Elite Membership honors outstanding and exceptional young Credit Professionals. For the fiscal year from April 1, 2019 – March 31, 2021 candidates must be 35-years-old and younger, and be employed by NACM Connect member companies in good standing. This program will recognize these young Credit Professionals for their service, talent and outstanding commitment. If you have a team member or co-worker that you think deserves extra recognition for their standout qualities, traits and characteristics, please take a few moments to complete this nomination form. Nominations will be accepted until January 31, 2019. Nominations will be reviewed by the Emerging Leaders Committee and winners will be notified no later than February 28, 2019. Candidates selected for two-years of Elite Membership beginning April 1, 2019 will receive: •

Free membership in NACM Connect as an Elite Member for two years.

•

Free admission to all NACM Connect educational programs including classes, seminars, webinars, the Annual Meeting and the fall Credit Conference. Classes and seminars offered through videoconferencing are eligible.

•

Free admission to all NACM social events.

•

Elite Members will be appointed to the Emerging Leaders/Social Media Committee.

•

Free admission to other special social/networking events planned for the Elite Membership group and geared for them and their peers.

•

Elite Members will receive extra recognition and introduction at all events, and will be featured in the NACM Connect publication, The InterConnection.

•

Elite Members would be required to attend educational sessions at both the Annual Meetings and Credit Conferences in their regions, and will be asked to assist at these events.

Nominee Name_____________________________________________________________________________________ Title or Position in Company___________________________________________________________________________ Member Company __________________________________________________________________________________ Nominee Email________________________________________________ Nominee Phone________________________ I am making the above nomination for Elite Membership for the following reasons: (attach additional pages if needed.) _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________

Nominations (including nominee’s resume) should be submitted on or before January 31, 2019, to Lillian Novak by mail (address below), by fax 847.253.6241 or email lillian.novak@nacmconnect.org. Nominated by______________________________________________________________________________________ Nominator Email_____________________________________________ Nominator Phone________________________ The above-nominated candidate for the Elite Membership Program has the full backing of his/her supervisor or manager and the company, and will be allowed to attend Association events, meetings, etc. that may take them away from their regularly scheduled work hours. Signature of Supervisor or Manager____________________________________________________________________ Members will be notified by the Emerging Leaders Committee no later than February 28, 2019. Self-nominations are not allowed. NACM Connect 3005 Tollview Drive, Rolling Meadows, IL 60008 P: 847.483.6400 . F: 847.253.6685 www.nacmconnect.org

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JANUARY/FEBRUARY 2019 PAGE 9

NACM Connect

The Robert L. Vodraska

Scholarship Foundation Scholarship Application Please complete all sections of this application to be considered for a scholarship. Please print or type. Applications must be mailed to the NACM Connect Headquarters office at 3005 Tollview Drive, Rolling Meadows, IL 60008 or emailed as an attachment to lillian.novak@nacmconnect.org between January 1 and March 1. Applications must be dated on or before March 1, for consideration of scholarships for the fiscal year commencing April 1. An online scholarship application can be accessed at www.nacmconnect.org. Applications are encouraged from members who do not have available to them employer-sponsored reimbursement programs.

Contact Information Name: Title: Candidate may attach additional pages if needed.

Company: Mailing Address: Phone: E-mail:

Reason or Need for Scholarship Please indicate your specific intended use for the scholarship funds if they are awarded to you: qRegional Credit Conference qCredit 101 qSeminars qCredit 102 qWebinars qCredit 103

qBusiness Credit Principles qBasic Financial Accounting qFinancial Statement Analysis I

qBusiness Law qCredit Law qReview Classes/Testing Fees

Explain how a scholarship will help you achieve your academic and/or career goals.

Does your employer pay for education?

qPartial

qFull

qNo

Have you ever attended or completed the event/selection for which you are requesting a scholarship?

Are you currently working in the credit industry? If so, how long? ___________________________________________________________

Education Name of College or University

Number of years completed

Degree earned

Name of College or University

Number of years completed

Degree earned

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NACM Connect

Courses Courses (not part of your degree above) and seminars completed within the last two years: Course Title

Course Sponsor or Institution

Date Completed (mm/dd/yy)

Professional Designations: Candidate may attach additional pages if needed.

qCBA qCBF qCCRA qCCE qCICP qICCE qOther Please list the other designations: ___________________________________________

NACM Involvement

Please contact Lillian Novak at lillian.novak@nacmconnect.org or call 800-935-6226, ext. 6478 for a transcript request on past NACM Connect events and classes attended.

Name of NACM affiliate in which you/your company hold primary membership: Other NACM family of organizations memberships, including credit groups: Number of years as an NACM member: NACM involvement in the past five years: Include information about service on an NACM committee, task force or Board of Directors (NACM includes NACM-National, FCIB, CFDD National, NACM Affiliates and CFDD Chapters.) Be sure to provide date information (for example, May 2014 – June 2016) when listing terms of service. Also include information about participation in NACM sponsored conferences and programs. Local Involvement

Regional Involvement

National Involvement

We reserve the right to interview applicants. I, , attest to the validity of the information within this application to the best of my knowledge. False or misleading information or statements are grounds for disqualification from the scholarship process and ineligibility in the program indefinitely. Applicant’s name (representing signature)

Date

Terms and conditions: 1. Scholarships can be used for NACM Connect sponsored class or seminar fees, Credit Conference, Annual Meeting, fees for credit certification testing, and the NACM Connect Institute of Credit certification review classes. 2. Applicant must complete class and pass with a minimum grade of “C” or reimburse the Scholarship Foundation for course fees. 3. Course must be successfully completed within one year or less from date of award. 4. Applications will be reviewed and awarded by the NACM Connect Scholarship Committee.

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Education

Congratulations to the New Designees CERTIFIED BUSINESS FELLOW (CBF)

CERTIFIED BUSINESS ASSOCIATE (CBA) Seth Appleby, CBA Nook Industries, Inc. Alexandria Aren, CBA Samuel Midwest, Inc. Courtney E. Bailey, CBA Trinity Highway Products, LLC

Kate Long, CBA MacAllister Machinery Company, Inc. Theresa M. Moon, CBA North Star BlueScope Steel, LLC

Lisa M. Burns, CBF Excel Industries, Inc. Elizabeth Staniszewski, CBF Telma, Inc.

Jacob Clark, CBA Bayer Healthcare

Shannon Mutafchiev, CBA Southern Glazer’s Wine and Spirits of NY Metro

CERTIFIED CREDIT EXECUTIVE (CCE)

Freddie Ellis, CBA Kuriyama of America, Inc.

Tina Schneider, CBA Medela LLC

Joseph Michael Lange, CCE Brenntag Great Lakes, LLC

Jennifer Fisher, CBA Foundation Building Materials, LLC

Kathy Wilson, CBA AFX Lighting

Oralia Huizar, CBA Echo, Inc. Kayleigh Jordan, CBA Nucor Steel

Natalie M. Woods, CBA Medela LLC April Hughes, CBA Smithfield Farmland Sales Corp.

2019 ILLINOIS Classes now Available via Live Videoconference! Register for the

Credit 101, 102, 103 Series Upcoming NACM Connect 2019 Class Dates Credit 101

Credit 102

Credit 103

• February 6

• March 6

• April 10

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.

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Education

Credit 101, Credit 102, & Credit 103 Registration Information Class Time 9 a.m. – 4 p.m. (Continental breakfast at 8:30 a.m., lunch not included)

$199 per class Members

$398 per class Non-Members

INDIANA | MICHIGAN | OHIO INDIANA Elkhart MICHIGAN Grand Rapids

OHIO Cincinnati

OHIO Dayton OHIO Independence

CREDIT 101

CREDIT 102

CREDIT 103

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

March 21

April 18

May 16

Behler Young Co. 900 Clyde Park Ave. SW Grand Rapids, MI 49509

February 6

March 6

April 3

March 7

April 9

May 14

April 9

May 7

June 4

March 6

April 10

May 8

Cincinnati Container Co. Inc. (Upper Conference Room) 5060 Duff Drive Cincinnati, OH 45246 NACM Connect Office 41 White Allen Ave. Dayton, OH 45405 Valtris Specialty Chemicals, Inc. 7500 East Pleasant Valley Rd. Independence, OH 44131

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.

JANUARY/FEBRUARY 2019 PAGE 13

NACM Connect Missouri

NACM CONNECT MISSOURI HONORS AND AWARDS NOMINATION Each year the membership of NACM Connect—Missouri selects fellow members who are active in the organization and whose outstanding performance and accomplishments have made an impact on the credit profession. The lists of qualifications are below. Please indicate which award is being selected. All members are encouraged to nominate someone who has displayed exemplary service in the profession. The awards are selected by the Advisory Board and the NACM Connect Staff and will be presented during the NACM Connect—Missouri Annual Meeting.

Eligibility Criteria 2019 Member of the Year Award

2019 Credit Excellence Award

Nominated by members, including self-nominations • Nominated by members, including self-nominations No professional designation (CBA, etc.) required • NACM professional designation (CBA, etc.) required Recognizes beginners as well as experienced credit pro- • History of involvement with NACM through volunteerfessionals ing on the Advisory Board, Education Committee, • Can be won multiple times teaching/speaking at educational events including classes, seminars and the annual conference, or serving in another capacity for the betterment of the NACM • • •

Nominee Information Name__________________________________________________Company_________________________________________ Address______________________________________City_______________________________State_________Zip________ Phone_____________________________________________ Email________________________________________________

Nominee Qualifications - Indicate NACM involvement, credit accomplishments or achievements or other qualifications. (Attach a separate sheet of paper if necessary) _______________________________________________________________________________________________________

_________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

_________________________________________________________________________________ Please provide the following information about yourself Name__________________________________________________Company_________________________________________ Contact Number___________________________________Email Address___________________________________________

Fax this form to Lillian Novak at 847-253-6241 or email to lillian.novak@nacmconnect.org

Nominations Must be Received no Later Than March 1 THE INTERCONNECTION

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Missouri Event

Missouri Members Host Holiday Toy Drive Rochelle Wilson, CGA

he NACM Connect Missouri office welcomed members with holiday treats on Wednesday, December 7th for their Annual Open House & Toy Drive. They helped bring the joy of the holiday season to less fortunate children by having members bring a new and unwrapped toy (which was donated to Toys for Tots). It's a GREAT opportunity to help needy children and families, celebrate the holiday season and connect with friends and credit colleagues! Every member that attended the open house and donated a toy for the drive received a complimentary drink ticket for an after-hours holiday Chuck Levy, winner of admission networking event. ■ to 2019 Annual Meeting.

Education and Volunteering and Awards…Oh MY! <<Continued from page 1 for consideration. Members elected to the BOD not from the Chicagoarea will be partially subsidized for travel to quarterly meetings. Committee volunteers are needed across the board, particularly for help in planning our educational offerings. The annual meeting and conference agendas are driven by the committees guiding staff through what they would like to see offered at these events. If you haven’t attended an annual meeting or conference due to agenda, here’s your chance to be heard.

3. Elite Membership: Is there someone you know on your staff that is an up-and-comer in the credit industry? Nominate them with the form on page 9 to be admitted into our Elite Membership program. The form explains the benefits to these elite few entering into this two-year program. The nominee’s company should be all-in in supporting participation in the program’s requirements. We envision this program to be a lead-in to future leadership of the Association. 4. Awards: Finally, we are searching for the best of the best in candidates for the 2019 Robert M. Healy Credit

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Executive of the Year, and Gateway’s Member of the Year and Credit Excellence Awards. If you know of a worthy candidate, please nominate them. We would love to see each and every member of the Association get involved in one way or another. After all, the value of your membership is based on what you put into it. If you have any questions about any of these opportunities, please direct them to Lillian Novak at lillian.novak@ nacmconnect.org.■

JANUARY/FEBRUARY 2019 PAGE 15

Caine & Weiner News

Caine & Weiner 2019 Quarterly Giveaways NACM CONNECT

JANUARY | FEBRUARY | MARCH

Place a collections claim with Caine & Weiner anytime during the months of January, February and March and become eligible to win a $150 The Home Depot 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.

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News

Illinois Construction Stuff and Stuff Norm Cowie, CCE

utside Salespeople.

Yeah, we all love ‘em, and we all hate ‘em. They can be sneaky, devious creatures, and then be your most loyal and reliable partner. It takes a different kind of person to be able to cold-call potential customers and be willing to duck past a ‘no soliciting’ sign (next to a picture of an angry looking dog with an actual angry dog lurking inside the building). They have to walk the line between the customer, the salesperson’s own company, procedures and vendors and vendor’s reps. They have to meet competitor’s prices, and perceived prices. They have to learn to read upside down, especially if it’s a competitor’s quote sitting on a Purchasing Manager’s desk. They have to be artful with their expense reports, particularly if they entertained a customer in a maybe not so PC place. They’re on the road all of the time, on the phone driving in traffic, trying to plan out the next place to hit a restroom and frowning before picking up a call from a temperamental client. And do it all with a guileless smile, a helpful manner, and being able to deflect anger while resolving issues like late deliveries, price errors and … mean credit managers. I don’t envy them at all. I don’t want to take a customer to a Bull’s game. I don’t want a customer pushing me for ‘free samples’ for them to use at home. I don’t want to rely on commission pay, even if sometimes those commissions are pretty derned high. Nope, Outside-sales to me is a bit of a slippery slope, and I’d rather be on firm tundra, feet clear of mud and that other brownish stuff you don’t want to step in. So I respect what they do … well, most of them … or maybe some of … no,

most is the right word. Sorry, the bad ones sometimes outweigh the good ones in the memory. Anyway, there should be some necessary conflict between the sales and credit departments. The salesperson needs to be an advocate for the customer to Credit, while being an advocate for Credit to the customer. It’s a fine tight-rope. But a Credit professional doesn’t want to get too buddy-buddy with the sales staff because it’s important that credit decisions be made based on what is good for the company, and that he/she not be swayed by personal considerations. But the conflict should be a healthy one (as opposed to what we’re seeing in politics today), and both Credit and Sales need to remember that they are on the same team. If Sales can’t get business, there’s nothing to collect. If Credit can’t collect, there’s no money to meet obligations to suppliers. It’s why I always have favored DSO for a measurement of Credit, since it takes both collections and sales into consideration. For some companies, it’s even more closely aligned, as some salespeople commissions are based upon receipt of payment. And even more, these commissions may drop if payment goes beyond certain dating. So the Credit team can be the Sales team’s biggest friend. In our company, we try to make Credit part of the service we offer customers. We deal with subcontractors who sometimes might get involved with a General Contractor who maybe isn’t very scrupulous. So our Salespeople know to offer to have our Credit team investigate the GC to make sure it doesn’t have tax liens, mechanics liens, suits or judgments against it. It’s to our advantage to make sure that our customer doesn’t get involved with someone who will be a payment problem, so we do this willingly.

clean, while alerting the salespeople to potential commission snags. Our salespeople also appreciate what we do to keep our customers happy. I answer all credit reference inquiries either the same day received, or no later than the next day. This helps them obtain credit with other companies, and we consider it important not to hinder their attempt to do so. We are very efficient with waivers, and we’ve been rewarded by customers who will send checks prior to receiving our waivers because they are confident they will get their waivers. So the salespeople won’t hear the customer complaining about the credit team. Except … If the customer isn’t being responsive to payment requests. Then it’s funny how the story the customer tells the salesperson sometimes differs from the reality. But if you have a good enough relationship with the salespeople, they’re usually going to know who’s at fault. Salespeople. Ya gotta love ‘em. ■ 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.

We also work with the salespeople by giving them a weekly report on open disputes along with the reason for the dispute. This helps them communicate with the customer and help them keep their statements

THE INTERCONNECTION

JANUARY/FEBRUARY 2019 PAGE 17

Credit Group Meeting Calendar NACM Connect Illinois/Wisconsin Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 10

Northern Illinois Plumbing & Heating Wholesalers Credit Group

Ditka's, Oakbrook Terrace, IL

January 15

Electrical Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

January 15

Metal Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

January 16

Institutional Credit Association Credit Group

Ditka's, Oakbrook Terrace, IL

January 17

Ad Media Credit Group

WBBM TV, Chicago, IL

January 24

Basic Material Credit Group

TBD

February 12

Electrical Distributors Credit Group

Ditka's, OakBrook, IL

February 12

Masonry Credit Group

Ditka's, Oakbrook Terrace, IL

February 14

Northern Illinois Heating & Plumbing Wholesalers Credit Group

TBD

February 19

Metal Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

February 21

Ad Media Credit Group

iHeart Media, Chicago, IL

February 19

Floor Covering & Wall Tile Credit Group

Conference Call

February 28

Basic Material Credit Group

TBD

NACM Connect - Missouri/Kansas Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 16

Electrical Distributors Credit Group

Bartolino's, St. Louis, MO

January 17

Kansas City Building Materials Credit Group

Hereford House, Leawood, KS

January 18

Refrigeration & Warm/Cool Air Suppliers Credit Group

Bartolino's, St. Louis, MO

January 22

Midwest Regional Food Credit Group

NACM Missouri Office, Creve Coeur, MO

January 22

Caterpillar Dealers Credit Group

Conference Call

February 1

Central Illinois Electrical Distributors Credit Group

TBD

February 15

Refrigeration & Warm/Cool Air Suppliers Credit Group

Bartolino's, St. Louis, MO

February 19

Midwest Regional Food Credit Group

NACM Missouri Office, Creve Coeur, MO

February 20

Electrical Distributors Credit Group

Bartolino's, St. Louis, MO

NACM Connect - Nebraska Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 8

Omaha Builders Credit Group

Teleconference

February 12

Omaha Builders Credit Group

Teleconference

THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 18

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

GROUP

MEETING LOCATION

January 8

Electric Industrial Supply Credit Group

Pietro's, Grand Rapids, MI

January 9

West Michigan Heating & Plumbing Wholesalers Credit Group

Brann's, Grand Rapids, MI

January 10

Indiana Wholesale Floor Covering Credit Group

Conference Call

January 10

Lumber & Building Materials Credit Group

Pietro's, Grand Rapids, MI

January 10

Columbus Wholesale Electric Supply Credit Group

Becker Electric Conference Room, Columbus, OH

January 15

Indiana Electrical Suppliers Credit Group

Becker Conference Room, Indianapolis, IN

January 15

Automotive Suppliers Credit Group

Conference Call

January 16

Indianapolis Building Trade Suppliers Credit Group

Blueberry Hill, Indianapolis, IN

January 16

Metal Service Center Credit Group

Antonio's, Canton, MI

January 17

Builder Suppliers Credit Group

Kona Grill, Oak Brook. IL

January 17

Michigan Electric Supply Credit Group

Antonio's, Canton, MI

January 17

Cincinnati Dayton Wholesale Electric Credit Group

Century Inn, Cincinnati, OH

January 18

Fort Wayne Building Materials Credit Group

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

January 23

Cincinnati Construction Suppliers Credit Group

Uno Pizzeria & Grill, West Chester, OH

January 23

Cleveland/Akron/Canton Food Suppliers Credit Group

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

January 23

Plumbing & Heating Wholesalers Credit Group

Blueberry Hill, Indianapolis, IN

February 12

Electric Industrial Supply Credit Group

Pietro's, Grand Rapids, MI

February 13

West Michigan Heating & Plumbing Wholesalers Credit Group

Brann's, Grand Rapids, MI

February 14

Columbus Wholesale Electric Suppliers Credit Group

Becker Electric Conference Room, Columbus, OH

February 15

Fort Wayne Building Materials Credit Group

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

February 14

Michiana Credit Association Credit Group

Lucchese's Restaurant

February 19

Indiana Electrical Suppliers Credit Group

Becker Conference Room, Indianapolis, IN

February 19

Automotive Suppliers Credit Group

Conference Call

February 20

Metal Service Center Credit Group

Antonio's, Canton, MI

February 20

Indianapolis Building Trade Suppliers Credit Group

Blueberry Hill, Indianapolis, IN

February 21

Michigan Electric Supply Credit Group

Mojave Cantiona, Clawson, MI

February 21

Cincinnati Dayton Wholesale Electric Credit Group

Century Inn, Cincinnati, OH

February 27

Cleveland/Akron/Canton Food Suppliers Credit Group

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

February 27

Plumbing & Heating Wholesalers Credit Group

Blueberry Hill, Indianapolis, IN

THE INTERCONNECTION

JANUARY/FEBRUARY 2019 PAGE 19

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

GROUP

MEETING LOCATION

January 9

National Manufactured Housing Credit Group

B Ocean Resort, Fort Lauderdale, FL, 2-day

January 10

National Tool & Accessories Manufacturers Credit Group

NACM Connect Office

January

National Home Healthcare, Nursing Home & Food Credit Group

Hyatt Regency, San Diego, CA, 4-day

January

National Water Products Credit Group

Hilton Tampa Airport Westshore, Tampa, FL, 2-day

January 17

National Horticultural Credit

Golden Nugget, Las Vegas, NV, 2-day

January 23

National Musical Instruments Credit Group

Sheraton Park Hotel, Anaheim, CA

January 24

Meatpackers of America Credit Group

Embassy Suites, Scottsdale, AZ, 2-day

February 7

National Construction Credit Group

Embassy Suites, Destin, FL, 2-day

February 7

National Architectural Metal & Glass Credit Group

Embassy Suites, Destin, FL, 2-day

February 7

National Auto Glass Credit Group

Embassy Suites, Destin, FL, 2-day

February 21

National Circuit Board Credit Group

Hyatt Regency Mission Bay, San Diego, CA, 2-day

February 14

National Coated Paper Credit Group

The Edge Hotel, Clearwater Beach, FL, 2-day

February 14

National Steel Mill Credit Group

Hilton, Clearwater Beach, FL, 2-day

February 19

National Home Centers Credit Group

Crowne Plaza, Chandler, AZ, 2-day

February 21

National Christian Suppliers Credit Group

Embassy Suites, Charleston, SC

February 21

National Consumer Products Credit Group

Crowne Plaza, Chandler, AZ, 2-day

February 21

National Metal Buildings & Components Credit Group

Hilton Houston North, Houston, TX, 2-day

NACM Connect - New York Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 8

Western New York Food & Beverage Supply Credit Group

Ilio DiPaolo's Buffalo, NY

January 10

Rochester Plumbing & HVAC Credit Group

Conference Call

January 11

Buffalo Building & Construction Credit Group

Eagle House Buffalo, NY

January 15

Central New York Building Credit Group

Coleman's Syracuse, NY

January 17

Rochester Building Credit Group

Cerame's Rochester, NY

January 18

International Benchmarking

Sport O Kings Batavia, NY

January 21

Erie Building Credit Group

Ruby Tuesday's Erie, PA

January 29

Buffalo Plumbing & Electric Credit Group

Eagle, House Buffalo, NY

February 8

Buffalo Building & Construction Credit Group

Eagle House Buffalo, NY

February 12

Western New York Food & Beverage Supply Credit Group

Ilio DiPaolo's Buffalo, NY

February 14

Rochester Plumbing & HVAC Credit Group

Conference Call

February 18

Albany New York Building Credit Group

Scarborough's Albany, NY

February 19

Central New York Building Credit Group

Coleman's Syracuse, NY

February 21

Rochester Building Credit Group

Cerames Rochester, NY

February 22

Best Practices Group

Eagle House Buffalo, NY

February 26

Buffalo Plumbing & Electric Credit Group

Eagle House Buffalo, NY

THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 20

Event Calendar DATE

EVENT

LOCATION

TIME

PRESENTER / INSTRUCTOR(S)

January 3

NACM Connect Missouri Creve Coeur Basic Financial Accounting

NACM Connect Creve Coeur, MO

6 p.m. – 8 p.m.

Curtis Litchfield, CCE

January 9

NACM Connect Ohio Cincinnati Roundtable Discussion

Fechheimer Brothers Co Cincinnati, OH

11:30 a.m. – 1:30 p.m.

Rob Richardson

January 17

NACM Connect Indiana Indianapolis Roundtable Discussion

Kirby Risk Corp. Indianapolis, IN

11:30 a.m. – 1:30 p.m.

Judy Wagner, CCE, MBA Larry LePage, CCE Frank Sebastian, CBA

January 29

NACM Connect Illinois CBF Exam Review

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m.

John Jaeger, CCE

January 31

NACM Connect Illinois CCE Exam Review

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m.

John Jaeger, CCE

February 5

NACM Connect Illinois CBA Exam Review

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m.

John Jaeger, CCE

February 6

NACM Connect Illinois Credit 101

NACM Connect Rolling Meadows, IL

9 a.m. – 4 p.m.

Rich Bellis, CCE

February 6

NACM Connect Michigan Grand Rapids Credit 101

Behler Young Co. Grand Rapids, MI

9 a.m. – 4 p.m.

Curt Johnson, CCE

February 7

NACM Connect Michigan Grand Rapids Roundtable Discussion

Brann’s Steakhouse & Grille Grand Rapids, MI

11:30 a.m. – 1:30 p.m.

Doug Dietlein

February 7

NACM Connect Ohio West Chester Roundtable Discussion

Uno’s Pizzeria & Grill West Chester, OH

11:30 a.m. – 1:30 p.m.

Phil Lattanzio, CCE

February 12

NACM Connect Indiana Indianapolis UCC/LIENS Seminar

Central Indiana Hardware Co, Inc. Indianapolis, IN

8:00 a.m. – 12:30 p.m.

Jerry Bailey, NCS

February 20

NACM Connect Illinois Rolling Meadows The Complete Credit Professional Seminar

NACM Connect Rolling Meadows, IL

8:30 a.m. – 4 p.m.

Barry J. Elms

February 21

NACM Connect Kansas Overland Park The Complete Credit Professional Seminar

Holiday Inn Convention Center Overland Park, KS

8:30 a.m. – 4 p.m.

Barry J. Elms

THE INTERCONNECTION

JANUARY/FEBRUARY 2019 PAGE 21

New Members & Reps

Welcome New Members and Reps New Members A&B Pipe & Supply Rachel Robbio Andrew Ritchie Clack Corporation Amber Cunningham Elkay Manufacturing Randy Clauson Fireplace Stone & Patio Kristin Porter Gateway Bobcat of Missouri Linda Gaugh Gateway Bobcat of Missouri Roberta Bruder

Gateway Bobcat of Missouri Katie Anich GSF Chemicals Cathy Cox GPA Denise Ragona Huttig Building Products Staci Cima, CCE Instantwhip Foods Carmen Rivera LeMans Corporation Dan Hartmann, CBA LeMans Corporation Janet DeLong

LeMans Corporation Jamie Giddley

Safety-Kleen Ed Cassidy

LeMans Corporation Laurie Zimmerman

Sherwin-Williams Heather McCloskey

LeMans Corporation Kathy Phelps

SpartanNash Scott McAllister

LeMans Corporation Linda Whipp

Staples Promotional Products George Uko

Marcone Quita McMullen

Taubensee Steel & Wire Company Jean Fameree

Mustang Cat Erik Mower

Union Partners LLC Mike Greco

Russell-Stover Chocolates Jenny Jones

New Representatives Addition Manufacturing Technologies Greg Gilkey ADS Bob Whitman Alpha Guardian Chris Pollard Austin Hardware & Supply Vicki Taylor Batteries & Bulbs Lisa Moore Carhartt, Inc. Anissa Martin CED All Phase Electric Supply John Wiora Charter Mfg. Co., Inc. Dennis Oâ&#x20AC;&#x2122;Reilly Crossroads Building Supply Alan Shlachter Echo Inc. Oralia Hulzar

Energizer Holdings Jennifer Walker Energizer Holdings Mickelle Spalding Fresenius Kabi USA, LLC Tom Lynn G & W Electric Company Yadira Esparza Gordon Electric Supply Kathy Rudin Gypsum Wholesalers Inc. Wendy Fiore Hartzell Fan, Inc. Lisa Twiggs Husky Marketing & Supply Company Raymond Arnold Kenney Manufacturing Artin Taskin Mike-Sells Fast Food Company Ann Jones

Grant Kottmeyer Nordson Corporation Alex Gardner Olympic Steel, Inc. Kate Hamill Outdoor Research Kelly Simon, CCE PFG Middendorf Julie Bell Plano Molding Karen Fall Schenck Process LLC Stacy Falco Timpte Inc. Diane Langton Two Old Hippies LLC Dan Larkin Walter USA Vaughn Thunder Watlow Electric Manufacturing Co. Chad Keeven

Mitsubishi Electric Automation

THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 22

Midwest Staffing

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

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

RON CREDIT COLLECTIONS MANAGER • Cultivates productive relationships • Managed Credit risk • Global cash forecasting • Developed standardized reporting/ closing processes • Directed staff accountable for credit risk analysis • Bachelor’s Degree with post graduate Law Studies

• Proficient in FoxPro (PeopleSoft), Global, JD Edwards, SAP 4.7, Web/PC, Microsoft Office • Available for temporary, temp-tohire and direct hire positions • Seeking opportunities in the St. Louis, MO area.

DEB CREDIT ANALYST/ ACCOUNTS RECEIVABLE SPECIALIST • Monitor and collect on high risk accounts • Recovered $750K in unauthorized deductions and unearned discounts • Reducing DSO through assertiveness and developing solutions • Timely resolution of assigned open deductions and administer credit memo within parameters

• Technical skills include SAP, S2K and Oracle • Available for temp-to-hire, and direct hire positions • Willing to commute 20 miles from the Bridgeview, IL. area

MICHELLE COLLECTIONS SPECIALIST • Manages the collections for U.S. and Canadian National accounts • Reduced the over 60-day balance of an $8M account to only 1% • Changed the internal credit memo process resulting in faster resolution • Expert level knowledge of customer owned portals

• Use Excel reports and pivot tables to manage files with over 16,000line items • Available for Direct Hire • Willing to commute 15 miles from the Elk Grove Village, IL. area

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

JANUARY/FEBRUARY 2019 PAGE 23

News

Visual Analysis of Financial Statements: Tips (A Handy Desk Reference) Larry Grogan, CCE

s a teacher of Financial Statement Analysis, I’ve observed over time how easy it is to teach students the components of all the financial statements and then move directly to ratio analysis near the end of the course. A better approach has been to look over the financial statements of a few well known public companies early on in the course using a visual approach similar to the one outlined below. Some of the companies reviewed included Intel, Sears, Amazon and Tesla. I was intrigued by how it was possible to informally rate a company low, medium or high risk using this method and later discovering ratio analysis often confirmed the initial visual based ratings. While I still believe ratio analysis and reading footnotes are necessary steps in the analysis process, I believe visual analysis is a skill worth developing, especially for time-pressed credit professionals and also for those just beginning their journey on to financial statement analysis mastery!

Strive to obtain the last 3 year-end financial statements (Income Statement, Balance Sheet, Statement of Cash Flows and Footnotes). Why 3 years? So you can see trends. For high risk accounts, also request their interim 3, 6 or 9 month financials to see if they are improving. If footnotes were not provided or are not available, try to gather similar information over the phone, especially on the topics of Operating Leases and bank line of credit.

Scan across as many years of data you have. Look for highs, lows, and trends in the numbers. A trend is where a number increases or decreases 2 or more periods beyond the base year. Example: Let 2015 be the base year. Sales: 2017: $5m, 2016: $4m and 2015: $3m. Here Sales are trending up.

generally considered non-cancellable obligations and should therefore be treated as if they were debt.

Look for consistency: Here’s a simple comment you might find in a credit appraisal: “Across the last 5 years, XYZ Company was profitable at the Operating Income level, Net Income level and had positive Cash Flow from its Operations”. In general, this suggests if they achieved this over the last 5 years, they probably have a good handle on their business model and will achieve similar results next year. It would be a very different story if their results were erratic i.e. unpredictable.

Example 2: Bank line of credit and related details including: amount of line? What is currently available on the line? Is the business in compliance with the loan covenants? When does the line expire? Is it secured and if so, by what? What is the interest rate being charged? Is it fixed or variable? How does it compare to the current Prime Rate of 5.25%? While the balance Sheet shows how much interest bearing debt a company has in total, the banking footnote shows when it becomes due. Beware of large balloon payments on the horizon. Will they be able to cash flow it?

Cross-check one statement with another. Example: Income Statement may show plenty of Net Income. Check the Statement of Cash Flows CFO number (Cash Flow from Operations) to see if the operation is producing Cash to back it up.

Cross-check the numbers with the Footnotes or to find numbers that are important but never appear in the financials directly. Example 1: Operating Lease obligations appear in the footnotes and nowhere else (this will change for some companies in the near future per new accounting rules). These leases are

THE INTERCONNECTION

Be aware of the following “should’s”. These are not ‘rules’ but very general guidelines to use as you learn your way around the financial statements: a) Sales (‘Top Line’ on the Income Statement): This should be increasing or at least stable. b) Operating Income (‘Middle Line’ on the Income Statement): This should be positive as a key mission for any

NOVEMBER/DECEMBER 2018

PAGE 24

News

business is to achieve an operating profit.

c) Operating Income should be more than sufficient to cover Interest Expense and Taxes which fall below the Operating Income line in order to have something left over for profit i.e. Net Income. When a company retains some or all of its Net Income, its Retained Earnings account grows and this increases the Equity or worth of the business. d) Net Income (‘Bottom Line’ on the Income Statement) should be positive and hopefully not positive only due to one-time, non-recurring items like gains on asset sales, tax credits or extraordinary items. Many analysts deduct these one-time items before doing ratio analysis to get a better view of how the company is likely to perform in the future when these items are not available to make Net Income appear better than it actually is. e) Net Income is not a pile of Cash. It is an accrual accounting number. Review the Statement of Cash Flows top section to see if the operations of the business “provided” Cash or actually “used” Cash. If CFO is negative, it means the operations did not provide Cash as it should. Beware if CFO is negative for 2-3 years in a row. A company should get most of its Cash from its operations. When it doesn’t, it will likely lean on its creditors who don’t charge interest and / or its bank which does charge interest. The bank also requires compliance to covenants which can constrain the future operations of the business. f) Current Assets should exceed Current Liabilities by a good margin since Current Assets are estimated values based on their quality and timing of receipt (A/R) or sale (inventory). A/R has to be collected. Inventory has to be sold and then the resulting A/R has to be collected. While A/R and Inventory will eventually be converted into Cash, we keep in mind that Customers often stretch terms of sale and the sale of goods for many businesses are seasonal, adding uncertainty to the timing of

cash receipts. Pre-Paid expenses are current assets but are not considered liquid. Current Liabilities are definite amounts! Be sure to review all of the components of the Current Ratio before drawing a conclusion as to how liquid a company is. g) Total Liabilities should be in good proportion to Shareholder’s Equity. For example, 1:1 or 2:1. But beware when it gets much higher than that i.e. 2.5:1 or more. This means the company’s creditors have a $2.50 stake in the business compared to the company’s owner’s $1 stake. If interest bearing debt makes up a large proportion of the Total Liabilities, you can bet the company will have a lot of interest expense which will require a cash outflow to cover it. Net Income will be reduced accordingly. Many businesses that are highly leveraged may have a healthy Operating Profit but end up with a Net Loss due to high Interest Expense alone. h) Cash Flow from Operations (CFO): for a mature company, CFO should be positive. Internally generated Cash is the best kind. If the company needs to source Cash externally by borrowing, there is a cost to doing so: Interest Expense. Like any expense, it reduces Net Income and Cash. A startup company may have negative CFO as it ramps up its operations. This is usually considered normal. Hence it’s good to know where a company is at in its life cycle when you analyse its Statement of Cash Flows. i) Cash Flow from Investing (CFI) should be negative: This means business is using Cash to maintain or expand its asset base as it strives to remain competitive and viable. Acquisitions also appear in the CFI section. These should eventually grow Sales (the ‘top line’). When a company has positive CFI for more than one period, it could be a warning sign. However, if they sold an unprofitable, money losing operation, it could be viewed as a strategic move to ensure or improve the firm’s future rather than a move to raise needed Cash.

THE INTERCONNECTION

j) If CFO did not cover CFI, look to the CFF section of the Statement of Cash Flows to see how the company filled the Cash gap. It’s usually by borrowing or sale of stock. In some cases, the CFI section will show they sold assets to raise needed Cash. Sears CFI section was consistently positive for this reason as their CFO was consistently negative! k) CFO should move in the same direction as Net Income. Beware if Net Income is increasing while CFO is decreasing. The stock market seems to love accrual Net Income (Earnings per Share) more than Cash Flow. Trade creditors know Net Income doesn’t pay bills. Only Cash does. Many businesses with plenty of Net Income fail. Why? They run out of Cash as their Cash is often ‘locked up’ in their slow moving or uncollectible A/R. l) In general, when CFO exceeds Net Income, it suggests the company’s accrual earnings are backed up with Cash. When this is the case, we call it ‘quality earnings’. When the opposite is true, we call it a potential warning sign. ■ 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.

JANUARY/FEBRUARY 2019 PAGE 25

NACM Connect

THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 26

NACM Connect

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.

NACM Southwest 751 Plaza Blvd. Coppell, TX 75019 972.518.0019 www.nacmsw.com

THE INTERCONNECTION

JANUARY/FEBRUARY 2019 PAGE 27

NACM Connect

Access All the Solutions in One Place We provide a full suite of credit reporting solutions exclusively to NACM Connect members at deep discount pricing. We pass big savings to you through our volume purchasing and National Buying Discount. We assist with setup, training and support for all products and solutions. Let us help you increase efficiency, reduce costs and maximize profitability for your organization.

Shop and Compare All These Credit Bureaus with One Contact Person

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THE INTERCONNECTION

INTERNATIONAL

JANUARY/FEBRUARY 2019

PAGE 28

ILLINOIS

THE COMPLETE CREDIT PROFESSIONAL

A dynamic full day seminar for the entire credit management team Featuring:

Barry J. Elms

America’s Business Coach

“I will always be grateful for my career in credit management, the 13 years I spent working as a Credit Professional were the foundation for my success as an entrepreneur and business coach. The skills I learned and developed in my credit career were essential to building a successful business.” – Barry J. Elms Barry has given over 2000 presentations worldwide and is considered by many to be America’s business coach in negotiations and credit management skills.

Part I – Morning Session • 3 keys to a confident credit management personality • Building a successful partnership with your sales team • Understanding bankruptcy procedures and spotting the signs of a troubled company

Part II – Afternoon Session • 6 persuasive skills for effective collections • 5 keys to gaining agreement all credit professionals need • 7 keys to negotiating like a pro

NACM Connect

This exciting interactive seminar will give you all the tools you need to achieve all your goals and maximize your career. Including how to: • Build confidence and self-belief • Develop successful relationships • Effectively analyze corporate performance • Develop strong communication and persuasive skills • Understand how to gain agreement in all credit interactions • Learn how to negotiate like a pro

│ 3005 Tollview Drive│ Rolling Meadows, IL 60008

Wednesday February 20

8:30 a.m. – 4 p.m. (Continental breakfast and lunch included) Registration Deadline: February 6

$199 – Members (Two coupons per person)

$398 – Non-members

Attendance at this seminar is worth .6 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 Lillian Novak at lillian.novak@nacmconnect.org or call 847.483.6478. THE INTERCONNECTION

JANUARY/FEBRUARY 2019 PAGE 29

INDIANA

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

2019 Indiana

January Lunch Roundtable Discussion

GET PAID! Negotiation Skills & Collection Techniques Thursday, January 17 11:30 a.m. â&#x20AC;&#x201C; 1:30 p.m. Location: Kirby Risk Corp. 1348 W. 16th St. Indianapolis, IN 46202

Come join our seasoned, professional credit managers for a panel discussion on helpful tips and techniques for getting paid: Judy Wagner, CCE, MBA with Roche Diagnostics; Larry LePage, CCE with Kirby Risk Corporation; Frank Sebastian, CBA with adidas Indy LLC

Bring your staff and your questions to this educational, interactive event! 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

JANUARY/FEBRUARY 2019

PAGE 30

INDIANA

A half day seminar designed for Credit Professionals

UCC/LIENS CENTRAL INDIANA HARDWARE CO, INC. │

Tuesday February 12

Presented By: Jerry Bailey, NCS

9190 Corporation Drive

│

Indianapolis, IN 46256

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

$139 – Members (One coupon per person)

Registration Deadline: January 29

$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.

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

JANUARY/FEBRUARY 2019 PAGE 31

KANSAS

THE COMPLETE CREDIT PROFESSIONAL

A dynamic full day seminar for the entire credit management team Featuring:

Barry J. Elms

America’s Business Coach

Part II – Afternoon Session • 6 persuasive skills for effective collections. • 5 keys to gaining agreement all credit professionals need • 7 keys to negotiating like a pro

HOLIDAY INN CONVENTION CENTER

│ 10920 Nall Avenue │ Overland Park, KS 66211

8:30 a.m. – 4 p.m. Thursday February 21

(Continental breakfast and lunch included)

Registration Deadline: February 7, 2019

$189 – Members (Two coupons per person)

($175 if 3 or more from the same company)

$378 – Non-members

Attendance at this seminar is worth .6 Continuing Education Units/CCE Recertification points.

Questions? Contact Rochelle Wilson at rochelle.wilson@nacmconnect.org or call 314.677.2803 THE INTERCONNECTION

JANUARY/FEBRUARY 2019

PAGE 32

MICHIGAN

2019 Michigan

February Lunch Roundtable Discussion

The Basics of Financial Statement Analysis

Moderator: Doug Dietlein, Medler Electric Company

Thursday February 7

11:30 a.m. – 1:30 p.m.

• What are financial statements? • What are the four main ingredients to a financial statement? • Why are they necessary to obtain from your customer? • Should you get a financial statement from or on all of

Brann’s Steakhouse & Grille 4157 Division Ave S. Grand Rapids, MI 49548

your customers? Please join us for an interactive discussion on how your credit department analyzes financial statements.

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

JANUARY/FEBRUARY 2019 PAGE 33

OHIO

2019 Ohio

January Lunch Roundtable Discussion

CREDIT

SCORING SYSTEM Moderator: Rob Richardson / Corken Steel Products Company

Wednesday January 9 11:30 a.m. â&#x20AC;&#x201C; 1:30 p.m. Fechheimer Brothers Co 4545 Malsbary Rd Cincinnati, OH 45242

Rob Richardson, Director of Credit at Corken Steel Products Company recently implemented a live, real-time credit scoring system that would enable branch managers and even employeelevel personnel to make instant credit decisions. Rob will present how he developed and implemented his credit scoring model to the group.

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

JANUARY/FEBRUARY 2019

PAGE 34

Ohio

2019 Ohio

February Lunch Roundtable Discussion

TOOT YOUR OWN HORN ELEVATING THE CREDIT DEPARTMENT

Moderator: Phil Lattanzio, CCE, President & COO, NACM Connect

Thursday February 7 11:30 a.m. – 1:30 p.m. Uno’s Pizzeria & Grill 9246 Schulze Drive West Chester, OH 45069

How do you champion your credit department to your company’s upper management? Too many credit managers and credit departments don’t garnish enough recognition. This may be a function of executive leadership, but you have to articulate the importance of your work and the financial impact on your company or they may not hear your message. • What can you do to make the function of the credit department more visible, and as a result more important to the C-suite at your organization? • What does upper management want to know? • What tools are available to make the Credit Department more viable?

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

JANUARY/FEBRUARY 2019 PAGE 35

The InterConnection

800.935.NACM

Stay Connected

NACM invites you to retreat into the beauty and serenity of Aurora, Colorado for our 123rd Credit Congress & Exposition, May 19-22, 2019. Immerse yourself in the conference while relaxing in the picturesque and rustic-chic atmosphere of the brand new Gaylord Rockies! Visit creditcongress.nacm,org for registrationand program details.