2020 InterConnection Newsletter January-February by NACM Connect

The InterConnection VOLUME 8

ISSUE 1

JANUARY/FEBRUARY 2020

Annual Call for Nominations and Volunteers Lillian Novak

appy 2020! As we settle back into the routine of another year, how about taking some time to think about how you can help your Association through volunteering for positions on the governing Board of Directors or various committees? As is typical, the January issue of the InterConnection is full of forms – forms for volunteering; forms for scholarships; forms for awards; forms for Elite Membership nominations. It takes every single member of NACM Connect to contribute to the success we have been having over the past few years in growing our affiliate to the largest (and best!) in the NACM network. We are always looking for new ideas and strategies. Why not share your talents this year in one of the following programs. 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. Look for a special Legal Symposium to be held on February 19, 2020 at the Meridian Conference Center in Rolling Meadows, IL. Sponsored by the Bankruptcy and Creditors’ Rights Sections of the Commercial Law League of America, this day-long event is a great way to pick up some free legal advice specific to credit. Both in this newsletter as well as online at www.nacmconnect.org, you will find the application for 20202021 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 eleven-state region to join the leadership of NACM Connect through volunteering on the Board of Directors or one of our many committees. Interested in throwing in for the Board of Directors? Fill out the form, 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 for consideration. Members elected to the BOD not from the Chicago-area 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 Continued on page 17>>

The Health of the US Economy in 2020: Cynicism, Success or Slowdown? Christie Citranglo, NACM Editorial Associate

he health of the U.S. and global economy has been a contentious topic in the past few years,especially with the rise of populism in the U.S. and several other countries around the world. Economists have predicted recessions along with growth, seemingly paradoxical outlooks from a variety of reliable sources. And while the political tensions continue to

remain high in the U.S. with sporadic outcomes from unpredictable actions by the U.S. government, it is likely the economy will see a slowdown in the near future rather than a recession. NACM Economist Chris Kuehl, Ph.D, led the NACM webinar “2020— The Year of Living Dangerously (Economically Speaking)” to address the main concerns and debunk any misconceptions conjured up between the news media, credit managers, salespersons, etc. While Kuehl admitted to the

impossibility of clairvoyance—akin to how meteorologists cannot predict the weather with total confidence— economists can still make educated assumptions backed by data and Continued on page 37>>

2019-2020

Board of Directors CHAIRPERSON Erica White, CCE Ferguson Enterprises VICE CHAIRPERSON Patrick Nelson ACCO Brands, Inc. TREASURER Mike Hill, CCE MiTek USA, Inc. DIRECTORS—TERMS ENDING 2020 Christine Culbreth ArcelorMittal International America Michele Pancotto, CCE, CICP Radiant Clipper Ed Stauber Kevin Stinner, CCE, CCRA Pinnacle Agriculture Distribution DIRECTORS—TERMS ENDING 2021 Tracey Bland First Citizens Bank Staci Cima, CCE Crescent Parts & Equipment Co., Inc. Diana Hoffmann Rockline Industries, Inc. Brendon Misik, CCE, CICP Nutrien Dave Zahller, CCE Tubular Steel DIRECTORS—TERMS ENDING 2022 Joe Lange, CCE, CCRA Brenntag Great Lakes, LLC John-John McEvilly, CBA/CICP PSAV Adam D. Ross, CCE, CBF, CBA Feralloy Corporation George Valletti, CFO/COO Ginsey Home Solutions PRESIDENT Phillip J. Lattanzio, CCE NACM/Chicago-Midwest SECRETARY Kerry Jensen, CPA NACM/Chicago-Midwest

In This Issue Annual Call for Nominations and Volunteers

NACM Connect Illinois/Wisconsin Industry Credit Group Meetings

The Health of the US Economy in 2020: Cynicism, Success or Slowdown?

NACM Connect Missouri /Kansas Local Industry Group Meeting

2018 Institute of Credit Class Schedules

NACM Ohio Credit Conference Photos

NACM Connect Nebraska Local Industry Group Meetings

2020 NACM Connect Annual Meetings Schedule

NACM Connect Indiana/Michigan/Ohio Local Industry Group Meetings

Credit Issues in Mexico & Latin America Seminar Photos

NACM Connect Pennsylvania Local Industry Group Meetings

Santa Cop Photos

Annual Call for Volunteers and Nominations Form

NACM Connect National Industry Credit Group Meeting

2019 Credit Executive of the Year Nomination Form

NACM Connect New York Local Industry Credit Group Meeting

Event Calendar

2020 Elite Membership Nomination Form

2020 IOC Class Schedule

Credit 101, 102, & 103

Exam Review Classes Schedule

Credit 101, 102, & 103 Indiana Michigan & Ohio

Policing Export Sales–What the Internet Doesn’t Tell You

NACM Connect Member Spotlight Luz Moreno, CCE, CICP

Upcoming Mentoring Program

The Robert L. Vodraska Scholarship Application

2020 Legal Symposium

NACM Connect Missouri Honors and Awards Nomination Form

Missouri Members Host Holiday Toy Drive

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

Pennsylvania Holiday Luncheon Photos

Eight Idea Starters for New Year 2020

20 Member Benefits in 2020

Find Staff at Midwest Business Staffing

Welcome New Members and Reps

Access All Solutions in One Place

Ad Media Group Holiday Gathering Photo

Webinar: Credit Reports: Many Options

Cincinnati Construction Suppliers Holiday Lunch Photo

Michigan Round Table: Open Networking Forum

Kurt Albright Receives the 2019 Callahan Award

The Northern Illinois Heating and Plumbing Credit Group Holiday Lunch Photo

Michigan Half Day Seminar: Social Media for the Credit Professional; Fraudulent Transfers

Missouri Roundtable: New Year, New Challenges

An Overview of the Secure and Fair Enforcement (SAFE) Banking Act of 2019

Employee Drug Testing and Recreational Use of Marijuana

Ohio Roundtable: How to Collect, Bankruptcy Environment and AR Concerns

NACM Connect

COUNCILOR Kurt Albright Uline

Mission Statement To provide a forum to its members within the credit profession for education, networking and business resources.

EDITORIAL STAFF EDITOR Linda Herbst Senior Marketing Administrator

Vision Statement Striving to have the most comprehensive and leading NACM affiliate serving the commercial credit profession by consistently exceeding the members’ expectations.

ASSOCIATE EDITORS Lillian Novak, CGA V.P. of Education and Marketing Margaret Krafft Marketing Administrator

THE INTERCONNECTION

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. JANUARY/FEBRUARY 2020

PAGE 2

Education Digest

Institute of Credit (IOC)

tart the process of earning your professional designation. If you would like more information, please contact the NACM Connect Education Department at 800.935.6226 or email Margaret Krafft at margaret.krafft@nacmconnect.org.

WINTER/SPRING 2020 CBA (Credit Business Associate) Course Schedule

Each of these courses fulfills one of the CBA certification requirements. Financial Statement Analysis 1 Available via Live Videoconference

Thursdays, January 9 - March 12

Rolling Meadows, Illinois

Business Credit Principles

Thursdays, March 12 - May 14

Elkhart, Indiana

Business Credit Principles Available via Live Videoconference

Mondays, March 16 - May 18

Rolling Meadows, Illinois

Business Credit Principles

Wednesdays, March 18 - May 20

Dayton, Ohio

Basic Financial Accounting Available via Live Videoconference

Thursdays, March 19 - May 21

Rolling Meadows, Illinois

Wednesdays, April 8 - June 10

Financial Statement Analysis 1

Grand Rapids, Michigan

CBF (Credit Business Fellow) Course Schedule This course fulfills one of the CBF certification requirements.

Business Law Available via Live Videoconference

Wednesdays, March 18 - June 3

Rolling Meadows, IL

Tuition Must be Paid Before the First Class Begins. Online registration only through www.NACMConnect.org. Registrations will not be accepted past the registration deadline. All online exams must be taken during regular business hours. Contact Lillian Novak for exceptions. Classes are subject to cancellation based on enrollment. Live classes are available 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. CST Please refer to the class registration form for details on instructors, locations, fees and class times.

EXAM REVIEW CLASS SCHEDULE

SAVE-THE-DATE NACM Connect Annual Meetings April 8 & 9 – New York April 14 - Wisconsin April 16 – Illinois April 21 – Missouri April 23 – Missouri May 7 – Indiana May 12 – Ohio May 14 – Pennsylvania May 19 – Nebraska May 21 – Kansas June 9 – Michigan

Available via Live Phone Conference

CBA

CBF

CCE

Tuesday, February 11

Tuesday, February 4

Tuesday, February 6

DESIGNATION EXAM DATES & DEADLINES Exam Dates

Application and Paperwork Deadlines

Monday, March 9, 2020

Friday, January 17, 2020

Sunday, June 14, 2020 Credit Congress, Las Vegas, NV Monday, July 27, 2020 Monday, November 9, 2020

VE A S

THE DA TE

Friday, April 17, 2020 Friday, May 29, 2020 Friday, September 4, 2020

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Ohio

NACM Ohio Credit Conference And thatâ&#x20AC;&#x2122;s a wrap for Fiesta Conference 2019! The last conference of the year held in Ohio was educational AND fun. Attendees had the chance to learn, network, eat (there is always food!) and win fabulous prizes. Ole until next year!

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NOVEMBER 5 & 6

JANUARY/FEBRUARY 2020

PAGE 4

NACM Connect

2020 NACM CONNECT ANNUAL MEETINGS NACMCONNECT.ORG

SAVE THE DATE! NEW YORK

Rochester

WISCONSIN

Pewaukee

■ April 8 & 9 ■ April 14

ILLINOIS

■ April 16 Rolling Meadows

MISSOURI

■ April 21

MISSOURI

■ April 23

Kansas City St. Louis

INDIANA Indianapolis

OHIO ■ May 12 Cleveland PENNSYLVANIA Pittsburgh

NEBRASKA Omaha

KANSAS Wichita

■ May 14

■ May 19

■ May 21

MICHIGAN

Grand Rapids

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■ May 7

■ June 9

JANUARY/FEBRUARY 2020 PAGE 5

Illinois

Credit Issues in Mexico & Latin America Seminar

NOVEMBER 20 The Business Beyond Borders seminar held at the NACM Connect HQ was an overwhelming success. 21 attendees learned from guest speaker, Romelio Hernandez, on how to handle credit challenges in Mexico.

Santa Cop

DECEMBER 19 NACM Connect members and staff generously donated lots of fun toys for Santa Cop, a local program helping families in need to celebrate the holidays. Visit ciintl.org for more information. We would say the NACM Connect HQ holiday party, hosted by the Emerging Leaders and sponsored by Caine & Weiner (thank you both!) was quite the success and many children will be very happy this holiday season.

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JANUARY/FEBRUARY 2020

PAGE 6

NACM Connect

2020

Annual Call for Volunteers and Nominations minate committee or no Volunteer for a on the e agues to serv one of your colle rectors. Di of d ar idwest Bo NACM/Chicago-M

Deadli

ne Jan uar y

BOARD MEMBER NOMINATION

31, 20 20

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

Nomination made by: Name Company Phone

COMMITTEE VOLUNTEER

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/Conference  KC Education  Nebraska Education  Wisconsin Education

   

Wichita Education New York Education Scholarship Pennsylvania Education

Name Company Phone

Submission Deadline: January 31, 2020 Please submit your nomination by email to Lillian Novak at lillian.novak@nacmconnect.org or by fax to 847.253.6241.

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JANUARY/FEBRUARY 2020 PAGE 7

NACM Connect Submit Your Nomination for the NACM Connect-Midwest

Robert M. Healy

2019 Credit Executive of the Year Each year, the membership of NACM Connect-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 ChicagoMidwest Annual Meeting on April 16, 2020.

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 ____________________________________

Email this form to Lillian Novak at lillian.novak@nacmconnect.org. Nominations Must be Received no Later Than March 1, 2020 THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 8

NACM Connect

2020 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 years from April 1, 2020 – March 31, 2022 candidates must be 35-years-old or younger, and be employed by NACM Connect member companies in good standing.

Candidates selected for two-years of Elite Membership beginning April 1, 2020 will receive:

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.

• Free admission to all NACM social events.

• 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. • Elite Members will be appointed to the Emerging Leaders Committee. • Free admission to other special social/networking events planned for the Elite Membership group and geared for them and their peers.

Nominations will be accepted until January 31, 2020.

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

Nominations will be reviewed by the Emerging Leaders Committee and winners will be notified no later than February 28, 2020.

• 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, 2020, to Lillian Novak by mail (address below), 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, 2020. 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 THE INTERCONNECTION

JANUARY/FEBRUARY 2020 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 __________________________________________________________ Company _______________________________________________________________________________________________________________ Mailing Address ______________________________________________ City_______________________ State _________Zip ________________ Phone: __________________________________________________ Email: __________________________________________________________

Reason or Need for Scholarship

Candidate may attach additional pages if needed.

Please indicate your intended use for the scholarship funds if they are awarded to you. Please be very specific: _ Regional Credit Conference _ Seminars _ Webinars

_ Credit 101 _ Credit 102 _ Credit 103

_ Business Credit Principles _ Basic Financial Accounting _ Financial Statement Analysis I

_ Business Law _ Credit Law _ Review Classes/Testing Fees

Explain how a scholarship will help you achieve your academic and/or career goals. _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________ Does your employer pay for education? _ Partial

_ Full

_ No

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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JANUARY/FEBRUARY 2020

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NACM Connect The Robert L. Vodraska

Scholarship Foundation SCHOLARSHIP APPLICATION

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)

Candidate may attach additional pages if needed.

Professional Designations _ CBA

_ CBF

_ CCRA

_ CCE

_ CICP

_ ICCE

_ Other

Please list other designations: _______________________________________________________________________________________________________________________ _______________________________________________________________________________________________________________________

NACM Involvement Please contact Janet Raap at janet.raap@nacmconnect.org 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. Scholarships are not valid for Credit Congress. 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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JANUARY/FEBRUARY 2020 PAGE 11

Illinois

February 19

Rolling Meadows

ILLINOIS

LEGAL SYMPOSIUM 2020 8 AM — 5 PM PRICING $249 members TIME

SPONSORED BY: The Bankruptcy and Creditors’ Rights Section of the Commercial Law League of America

(Two coupons per person are valid)

$498 nonmembers LOCATION

Meridian Banquet & Conference Center 1701 West Algonquin Road Rolling Meadows, IL 60008

ALL REGISTRATIONS ARE TAKEN ONLINE AT NACMCONNECT.ORG

Registration Deadline February 5, 2020

Questions? Contact Lillian Novak at lillian.novak@nacmconnect.org or call 847.483.6478.

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JANUARY/FEBRUARY 2020

PAGE 12

Illinois S Y M PO S I U M AG E NDA AND E DU CATI O NAL SE SSI O NS CEU points and CCE recertification points are available for all educational sessions. 8:00 — 8:30 AM REGISTRATION

8:30 — 9:30 AM

ARBITRATION BAD: JURISDICTION GOOD

Donald Mausar, Weltman, Weinberg & Reis Co., L.P.A. Join us in learning about the pros and cons of contractual Arbitration Provisions. The contractual arbitration provisions approach will be compared to and contrasted from contractual jurisdiction provisions. Related topics in this session include litigation as tool towards collections, and the business analysis behind the investment of court cost, what you get for your money when it comes to court costs, and how much should you spend in court costs on any given matter.

POST-JUDGMENT COLLECTION AND PERFECTING SECURITY INTERESTS IN ILLINOIS

Randall Woolley, Askounis & Darcy, PC Chicago-based attorney will provide overview of Illinois law regarding supplementary proceedings and practical tips for enforcing judgments in Illinois. Specific topics will include filing citations, recording judgments, and collection options once assets are discovered. Session will also address issues regarding perfection of security interests in equipment, inventory and titled property and obtaining mechanic’s liens.

9:45 — 10:45 AM

COMMERCIAL LITIGATION: TOP TEN WAYS TO LOSE AT TRIAL

11:00 AM — 12:00 PM

AVOIDING AVOIDANCE ACTIONS

Ronald R. Peterson, Jenner & Block Mr. Peterson shall start with preference actions and point out two important changes that will take effect on January 1, 2020. Venue and Good faith. He will then review the latest cases on the affirmative defenses. On fraudulent transfers he will mention the new test for establishing a fraudulent transfer made with the actual intent to delay, hinder and defraud. Finally tuition claw backs, the latest rage in higher ed and how it applies to all businesses.

1:00 — 2:00 PM

PERSONAL GUARANTEES AND BANKRUPTCY – STAY, CLAIM AND DISCHARGEABILITY ISSUES

Beau Hays, Hays Potter & Martin, LLP What is the effect of a bankruptcy on the personal guaranty? Who can you proceed against when a bankruptcy gets filed? And what issues arise when the guarantor gets a discharge? This program will look at the state of the law regarding creditors and guarantors and best practices for protecting your claims from the evils of bankruptcy.

WHAT’S IN YOUR CONTRACT?: THE THREE BIGGEST CONTRACTUAL PITFALLS

Tim Wan, Wan Law Group PLLC What’s In Your Contract? The Three Biggest Contractual Pitfalls - Venue and Jurisdiction, Arbitration Clause, Interest and Late Charges. We will cover the three biggest contractual pitfalls.

Howard Weber, Law Office of Howard B. Weber This presentation will focus on the most common procedural and substantive defenses that can lead to a creditor’s failure to prove its debt at trial. The seminar will feature practical tips and strategies to avoid the pitfalls in pursuing debt collection suits by going through a step-by-step analysis of preparing a claim for suit, examination of the documentation supporting the claim and the steps required for effective communications with the client in preparation for trial.

SOCIAL MEDIA AND CYBERSECURITY

Wanda Borges, Borges and Associates Most people today are familiar with the terms “Phishing”, “Hacking” and “Malware”. Those terms are accepted as activities to get access, connections, and information to create a transaction where an entity can profit from an unauthorized or illegal activity. The term “Cyber security” refers to the body of technologies, processes, and practices designed to protect networks, devices, programs, and data from attack, damage, or unauthorized access. Cyber security may also be referred to as information technology security. This program has been designed to educate the credit executive about cyberfraud and steps which may be taken to protect you and your company from these crimes.

11:00 AM — 12:00 PM

1. Where do you sue? Do you sue in the jurisdiction where the debtor is? Or sue pursuant to the venue clause and/or home state and then domesticate where the debtor is? 2. When Arbitration works, and when it doesn’t. 3. Are you adding interest or late fees? Can you?

2:15 — 3:15 PM

NUTS & BOLTS OF BANKRUPTCY LAW

Reuel Ash, Ulmer & Berne LLP Reuel will cover several topics of basic bankruptcy law from a creditors’ rights perspective, including the different types of bankruptcy; basic concepts of bankruptcy procedural law; what constitutes a bankruptcy estate; the automatic stay and how a creditor obtains relief from the automatic stay; how creditors get paid in different bankruptcy cases; the role of trustees in bankruptcy; avoidance actions such as preferences and fraudulent transfers, and the treatment of contracts and leases in bankruptcy.

CREATING THE PERFECT CREDIT POLICY

COLLECTIONS TO BANKRUPTCY – BEST CHANCE FOR RECOVERY

Kirk Burkley and Raymond Wendolowski, Bernstein, Burkley, P.C. This seminar will help credit and collection professionals prepare for the possibility of bankruptcy filings from their customers, will enable them to develop policies and procedures to better prepare for this eventuality, and will allow them to better understand the do’s and don’ts of preparing for and handling an account that goes into bankruptcy.

Tom Fawkes and Brian Jackiw, Goldstein & McClintock Risk can be mitigated through the institution of a formal credit policy, and during this presentation we will discuss the benefits of a thoughtful and carefully-crafted policy, both within the company and in dealings with customers. A sound credit policy can increase consistency in dealing with troubled accounts, reduce conflict among sales and credit professionals and enhance protections in the event that a customer becomes insolvent. Best practices and sample credit policies will be shared as well as suggestions on how to sell your company on adopting a formal credit policy.

3 : 1 5 — 5 :00 PM RE CE PTI O N THE INTERCONNECTION

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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. 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.

The lists of qualifications are below. Please indicate which award is being selected.  2020 Member of the Year Award

 2020 Credit Excellence Award

• Nominated by members, including self nominations • No professional designation (CBA, etc.) required • Recognizes beginners as well as experienced credit professionals • Can be won multiple times

• Nominated by members, including self nominations • NACM professional designation (CBA, etc.) required • History of involvement with NACM through volunteering on the Advisory Board, Education Committee, teaching/ speaking at educational events including classes, seminars and the annual conference, or serving in another capacity for the betterment of NACM Connect

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_____________________________________________ Phone __________________________________________________ Email____________________________________________________

Email to lillian.novak@nacmconnect.org. Nominations Must be Received no Later Than March 1, 2020. THE INTERCONNECTION

JANUARY/FEBRUARY 2020

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Missouri

Missouri Members Host Annual Holiday Toy Drive Rochelle Wilson, CGA

ACM Connect Missouri members who brought a toy to the Annual Open House received a ticket to networking festivities at Edge Wild restaurant. As you can see, the members were VERY generous and donated LOTS of toys for ‘Toys for Tots.’ Afterwards, NACM Connect staff moved the collection box to their office lobby and people in the building also contributed toys! Wow, great job! Hopefully, there were some super happy kids over the holiday! ■

Illinois Construction Stuff and Stuff Illinois Construction Stuff and Stuff by Norm Cowie, CCE will return in the next issue. Thanks Norm, for all of your contributions!

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.

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JANUARY/FEBRUARY 2020 PAGE 15

Caine & Weiner News

Caine & Weiner 2020 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 Crate&Barrel 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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Pennsylvania

Holiday Luncheon

DECEMBER 11 Over 40 people attended the holiday luncheon and presentation by D&B in PA on December 11th. Thank you to D&B for sponsoring this festive and informative event. Thank you to our members for donating gifts for the children!

Annual Call for Nominations and Volunteers <<Continued from page 1 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 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 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.

THE INTERCONNECTION

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 2020 PAGE 17

Member News

Welcome New Members & Reps Barrett Paving Materials, Inc. Tim Plaspohl Bennett Supply of New York LLC Lisa McGrath Bennett Supply of Ohio LLC Trish Chalkley Carboline Company Sean Stewart Euronet Worldwide Inc Ruthie Ortega Fusion IT Lora Nickel Generac Power Systems, Inc. John Larson Generac Power Systems, Inc. Amanda Kasuboski Grede Holdings LLC Debbie Klemm Lakeside Roofing And Siding Missy Luckenbach Lion Group Inc Lauren Graham Newly Weds Foods Inc Nikki Brandon Quotient Technology, Inc. Jamie Lehane Seigle’s Cabinet Center Nancy Guthrie Silco Fire & Security Lisa Stone The Protectoseal Co. Lori Jolly

NEW REPRESENTATIVES Stephanie Lucas Advance Apex Melisa Burgess Alvogen Keith Patterson Ametek Solidstate Controls Jayna Shouse ASK Chemicals David Renker Black & Decker Dawn Lehman Burroughs Payment Systems Inc. Olga Cook Classic Aire Care, Inc. Jeff Lacey Ericksons Flooring & Supply Jamie James Imagen Brands LLC Karri Aurs Indiana Brick Rama Chandron JSW Steel US Rodney Qualls Nesco Rentals Ryan Lawlor Owens Corning Dan Ranks RKA Petroleum Companies Rob Etzel Starline

ATTENTION ALL MEMBERS Watch your email inbox-it will be worth it! Watch your inbox for a chance to win prizes during the NACM Connect 20 Benefits in 2020 Promotion! Each month, prizes will be awarded to members who respond to each email. Lucky winners will be drawn randomly from submitted responses. Learn about all the benefits of your NACM Connect membership in a new and fun way this year (there may even be a few things about you didn’t know!). Learn about: • Industry Group Services • Credit Reporting • IOC Classes with videoconferencing And so much more!

Thelen Materials LLC Mark Holtcamp Zippo Manufacturing Company Kaylee Worden

Starting in January

Welcome

Click the link in your email to enter and win. Enjoy and good luck!

New

emM NMew be em rsbers

THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 18

Member News

DECEMBER 6 Pat Speyer, CGA NACM Connect Group Services, hosted a holiday gathering with the Ad Media Group. Looks like their celebration was very fun and festive!

Congratulations to Kurt Albright! Mr. Kurt Albright, Director of Credit and Collections for Uline, is the recipient of the 2019 Callahan Award of Professional Excellence from CRF.

THE INTERCONNECTION

DECEMBER 11 Members from the Cincinnati Construction Suppliers enjoyed a holiday lunch with Paula Slyder from NACM Connect. What a great way to network and start the holidays!

DECEMBER 12 The Northern Illinois Heating and Plumbing Credit Group celebrated the holidays with NACM Connect on Thursday, December 12th. The group enjoyed lunch in a festive setting!

JANUARY/FEBRUARY 2020 PAGE 19

News

An Overview of the Secure and Fair Enforcement (SAFE) Banking Act of 2019 Reprinted with permission by the Credit Research Foundation White Paper Brief Jeffrey D. Prol, Esq., Bruce N. Nathan, Esq., Andrew Behlmann, Esq., and Jeremy Merkin, Esq. Abstract: SAFE Banking Act, if enacted, would provide a safe harbor for financial institutions that provide services to plant-touching businesses and non-plant touching suppliers of goods or services to the cannabis industry. The bill, if enacted, will prohibit Federal regulators from penalizing, discouraging or taking adverse action against these firms.

annabis, with the exception of hemp, remains illegal under federal law, the supreme law of the land under the Supremacy Clause of the United States Constitution. As a result, banks and credit unions continue to largely avoid the cannabis industry even as a growing number of states legalize its distribution and consumption. What many people fail to consider is the growing scope of companies that potentially fall under the umbrella of the cannabis industry. Financial institutions are turning away not only growers, processors, and retailers of cannabis and cannabis products–the “plant-touching” side of the cannabis business–but also ancillary suppliers that provide goods or services to plant-touching businesses and may never come into contact with cannabis at all. Some examples include a manufacturer of specialized heat lamps or of custom wraps used to package cannabinoid-infused edibles. Due to the unavailability of banking, credit card processing, and other traditional financial services, a multibillion-dollar industry has essentially been reduced to a cash-only business, forcing companies and their suppliers to carry the risk that comes with dealing exclusively in significant amounts of cash.

Though it is a far cry from federal legalization of cannabis, the Secure and Fair Enforcement (SAFE) Banking Act of 2019 is a proposed solution to the current lack of available financial services in the cannabis industry. The bill’s stated purpose “is to increase public safety by ensuring access to financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses.” If enacted, the SAFE Banking Act would provide a safe harbor for financial institutions that provide financial services to plant-touching businesses operating pursuant to applicable state, local, or Indian tribal laws (defined as a “cannabis-related legitimate business”) and their non-plant-touching suppliers of goods or services, including real property (defined as a “service provider”). In an effort to bring a wider array of financial services to the booming cannabis industry, the bill would prohibit Federal banking regulators from penalizing, discouraging, or

THE INTERCONNECTION

otherwise taking any adverse or corrective supervisory action against a depository institution or associated entity for providing financial services to a cannabis-related legitimate business or service provider in a state or subdivision where cannabis is legal and the business operates according to applicable state, local, or Indian tribal law. Of particular importance to ancillary suppliers to the cannabis industry, the SAFE Banking Act provides that “the proceeds from a transaction conducted by a cannabis-related legitimate business or service provider shall not be considered as proceeds from an unlawful activity solely because the transaction was conducted by a cannabis-related legitimate business or service provider, as applicable.” If the SAFE Banking Act becomes law, ancillary suppliers will no longer have to fear federal prosecution and forfeiture resulting from accepting payments from a plant-touching business. As further protection, a depository JANUARY/FEBRUARY 2020

PAGE 20

News institution and any associated entity, insurer, and Federal Reserve Bank and the officers, directors, and employees thereof, would not be held liable pursuant to any federal law or regulation solely for providing financial services to a cannabis-related legitimate business or service provider or for further investing any income derived from such a financial service. Additionally, a depository institution or Federal Reserve Bank that provides financing or other financial services to an owner, employee, or operator of a cannabis-related legitimate business or service provider or to an owner or operator of real estate or equipment that is leased or sold to a cannabis-related legitimate business or service provider would not be subject to criminal or civil penalties or administrative forfeiture pursuant to any federal law for providing such loan or other financial service. The SAFE Banking Act would not eliminate the burdensome bureaucratic requirement that financial institutions file Suspicious Activity Reports (SARs) for transactions suspected to be illegal. However, the bill would relax SAR requirements by requiring the Financial Crimes Enforcement Network to issue revised guidance that is consistent with the bill’s purpose and intent and “does not significantly inhibit the provision of financial services to a cannabis-related legitimate business or service provider” in a state or subdivision that has legalized cannabis. What does this all mean? Mainstream financial institutions may soon have sufficient legal cover to begin offering the same financial services to the cannabis industry – deposit accounts, credit card processing, wire transfer and ACH payments, etc. – that are available to any other business or operation that is not prohibited by federal law. Notwithstanding the safe harbor the SAFE Banking Act would provide, banks will still need to conduct the necessary diligence to make sure the cannabis companies with whom they conduct business are complying with all state, local, and other applicable legal requirements.

On September 25, 2019, the House of Representatives passed the SAFE Banking Act in a promising bipartisan 321-103 vote that included the support of 229 Democrats, 91 Republicans, and 1 Independent. When, or if, the Republican-controlled Senate will vote on the Safe Banking Act remains unknown. The optimist will note that the Senate version of the bill currently has a promising number of co-sponsors, including 26 Democrats, 5 Republicans, and 2 Independents. The pessimist will note that Senate Majority Leader Mitch McConnell is not one of the co-sponsors, and that President Trump has not yet given an indication as to whether he would sign the bill if it passes the Senate. The realist will simply point out that in order for the burgeoning cannabis industry to continue to safely grow and become a stable presence in the marketplace, market participants – plant-touching or not – must have access to ordinary business financial services. The authors are attorneys in the Bankruptcy and Creditors Rights Department at Lowenstein Sandler LLP, a full service law firm with offices in New York, New Jersey, Washington DC, California, and Utah. ■

Lowenstein Sandler is a national law firm with over 350 lawyers working from five offices in New York, Palo Alto, New Jersey, Utah and Washington, D.C. We represent clients in virtually every sector of the global economy, with particular strength in the areas of technology, life sciences, and the financial management and fund industries that fuel economic growth.

Employee Drug Testing and Recreational Use of Marijuana With the ushering in of the new year, medical and recreational use of marijuana has become legal in many states. However, under federal law, its use remains illegal. Even though a state has legalized recreational use of marijuana, employers have a legal right to a drug free and alcohol free work environment, and the right to drug test employees according to the company’s drug policy. “The workforce in general–employers and employees–needs to tread carefully as recreational marijuana use increases in legality,” states Leslie Harrison, Vice President of Membership, Staffing, and HR of NACM Connect. “Whereas alcohol metabolizes relatively quickly, marijuana can linger in the body. So, an employee can test positive in a drug test several weeks after recreational use of marijuana." Recreational marijuana use legalities vary by state. Contact your HR department if you have any questions.■

UPDATE: The SAFE Banking Act of 2019 passed the House of Representatives and is pending in the Senate Banking Committee.

THE INTERCONNECTION

JANUARY/FEBRUARY 2020 PAGE 21

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

GROUP

MEETING LOCATION

January 9

Northern Illinois Plumbing & Heating Wholesalers Credit Group

Ditka's, Oakbrook Terrace, IL

January 14

Electrical Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

January 15

Institutional Credit Association Credit Group

Michael Jordan's, Oak Brook, IL

January 16

Ad Media Credit Group

Conference Call

January 21

Metal Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

January 23

Basic Material Credit Group

Ditka's, Oakbrook Terrace, IL

February 11

Electrical Distributors Credit Group

Ditka's, Oakbrook Terrace, IL

February 11

Masonry Credit Group

Ditka's, Oakbrook Terrace, IL

February 13

Northern Illinois Heating & Plumbing Wholesalers Credit Group

Weber Grill, Schaumburg, IL

February 18

Floor Covering & Wall Tile Credit Group

Conference Call

February 18

Metal Distributors Credit Group

Michael Jordan's, Oak Brook, IL

February 20

Ad Media Credit Group

iHeart Media, Chicago, IL

February 27

Basic Material Credit Group

Michael Jordan's, Oak Brook, IL

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

GROUP

MEETING LOCATION

January 16

Kansas City Building Materials Credit Group

The Peanut

January 21

Midwest Regional Food Credit Group

Conference Call

January 22

Gateway Electrical Credit Group

Bartolino's, St Louis, MO

January 24

Refrigeration Warm/Cool Air Suppliers Credit Group

Bartolino's, St Louis, MO

February 11

Caterpillar Dealer Credit Group

Conference Call

February 13

Kansas City Building Credit Group

TBD

February 14

Central Illinois Electrical Credit Group

The Dublin Pub, Springfield, IL

February 18

Midwest Regional Food Credit Group

Conference Call

February 19

Electrical Distributors Credit Group

Bartolino's, St Louis, MO

February 21

Refrigeration Warm/Cool Air Credit Group

Bartolino's, St Louis, MO

NACM Connect - Nebraska Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 14

Omaha Builders Credit Group

Teleconference

February 11

Omaha Builders Credit Group

Teleconference

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JANUARY/FEBRUARY 2020

PAGE 22

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

GROUP

MEETING LOCATION

January 22

Cleveland/Akron/Canton Food Suppliers Credit Group

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

January 22

Plumbing & Heating Wholesalers Credit Group

Blueberry Hill, Indianapolis, IN

January 22

Cincinnati Construction Suppliers Credit Group

UNO's Pizzeria, West Chester, OH

February 11

Electric Industrial Supply Credit Group

Pietro's, Grand Rapids, MI

February 11

Fort Wayne Building Materials Credit Group

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

February 12

West Michigan Heating & Plumbing Wholesalers Credit Group

Brann's, Wyoming, MI

February 13

Columbus Wholesale Electric Suppliers Credit Group

The Kendall Group, Columbus, OH

February 13

Michiana Credit Association Credit Group

Luchesse's, Elkhart, IN

February 18

Indiana Electrical Suppliers Credit Group

The Kendall Group, Indianapolis, IN

February 18

Automotive Suppliers Credit Group

Conference Call

February 19

Metal Service Center Credit Group

Antonio's, Canton, MI

February 19

Indianapolis Building Trade Suppliers Credit Group

Blueberry Hill, Indianapolis, IN

February 20

Michigan Electric Supply Credit Group

Mojave Cantina, Clawson, MI

February 26

Cincinnati Dayton Wholesale Electric Credit Group

Century Inn, Cincinnati, OH

February 26

Cleveland/Akron/Canton Food Suppliers Credit Group

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

February 26

Plumbing & Heating Wholesalers Credit Group

Blueberry Hill, Indianapolis, IN

February 26

Cincinnati Construction Suppliers Credit Group

UNO's Pizzeria, West Chester, OH

NACM Connect - Pennsylvania Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 8

Building Trades Credit Group

Marzoni's, Altoona, PA

January 15

Food Credit Group

Bravo Restaurant, Homestead, PA

January 21

Construction/Plumbing & Heating Credit Group

Bravo Restaurant, Cranberry Township, PA

January 28

Electrical Suppliers Credit Group

Bravo Restaurant, Homestead, PA

February 12

Building Trades Credit Group

Marzoni's, Altoona, PA

February 18

Construction/Plumbing & Heating Credit Group

Bravo Restaurant, Cranberry Township, PA

February 19

Food Credit Group

Bravo Restaurant, Homestead, PA

February 25

Electrical Suppliers Credit Group

Bravo Restaurant, Homestead, PA

THE INTERCONNECTION

JANUARY/FEBRUARY 2020 PAGE 23

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

GROUP

MEETING LOCATION

January 9-10

National Horticultural Credit

Hyatt Place Inner Harbor, Baltimore, MD, 2-day

January 14-17

National Home Healthcare, Nursing Home & Food Credit Group

B Ocean Resort, Fort Lauderdale, FL, 4-day

January 15

National Musical Instruments Credit Group

Sheraton Park Hotel, Anaheim, CA

January 20-22

National Manufactured Housing Credit Group

El Conquistador, Tucson, AZ, 3-day

January 23-24

Meatpackers of America Credit Group

Loews Ventana Canyon, Tucson, AZ, 2-day

January 29

National Tool & Accessories Manufacturers Credit Group

NACM Connect, Rolling Meadows, IL

February 5-6

National Construction Credit Group

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

February 5-6

National Architectural Metal & Glass Credit Group

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

February 5-6

National Auto Glass Credit Group

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

February 10-11

National Metal Industry Raw Material Group

TBD, 2-day

February 10-11

National Plumbing, Pipe & Heating Credit Group

The Mills House, Charleston, SC, 2-day

February 11-12

National Home Centers Credit Group

The Mills House, Charleston, SC, 2-day

February 12

Northeast Regional Metal Distributors

Sheraton Suites, Philadelphia, PA

February 12-13

National Coated Paper Credit Group

Sirata Beach Resort, St Pete Beach, FL, 2-day

February 13-14

National Steel Mill Credit Group

Bahia Mar, a DoubleTree, Fort Lauderdale, FL, 2-day

February 13-14

National Consumer Products Credit Group

The Mills House, Charleston, SC, 2-day

February 19-20

National Christian Suppliers Credit Group

Hilton Westshore, Tampa, FL

February 20-21

National Metal Buildings & Components Credit Group

Hilton New Orleans St Charles Ave, New Orleans, LA, 2-day

February 21

National Circuit Board Credit Group

Teleconference

NACM Connect - New York Local Industry Credit Group Meetings DATE

GROUP

MEETING LOCATION

January 8

Rochester Plumbing & HVAC Credit Group

CONFERENCE CALL

January 10

Buffalo Building & Construction Credit Group

Eagle House, Buffalo,NY

January 14

Western New York Food & Beverage Supply Credit Group

Ilio DiPaolo's, Buffalo,NY

January 16

Rochester Building Credit Group

Cerame's, Rochester, NY

January 21

Central New York Building Credit Group

Coleman's, Syracuse,NY

January 28

Buffalo Plumbing & Electric Credit Group

Eagle House, Buffalo,NY

February 11

Western New York Food & Beverage Supply Credit Group

Ilio DiPaolo's, Buffalo,NY

February 12

Rochester Plumbing & HVAC Credit Group

CONFERENCE CALL

February 14

Buffalo Building & Construction Credit Group

Eagle House, Buffalo,NY

February 18

Albany New York Building Credit Group

Scarborough's, Albany, NY

February 19

Central New York Building Credit Group

Coleman's, Albany, NY

February 20

Rochester Building Credit Group

Cerame's, Rochester, NY

February 25

Buffalo Plumbing & Electric Credit Group

Eagle House, Buffalo,NY

THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 24

Event Calendar DATE

EVENT

LOCATION

TIME

PRESENTER / INSTRUCTOR(S)

January 9

NACM Connect Illinois – Rolling Meadows Financial Statement Analysis I (10 weeks) Available through Live Videoconferencing

NACM Connect Rolling Meadows, IL

5:30 p.m. – 8:30 p.m

Larry Grogan, CCE

January 14

NACM Connect Illinois – Rolling Meadows WEBINAR: Credit Reports Many Options: Credit Bureaus & Reports Compared

NACM Connect Rolling Meadows, IL

10:00 a.m. – 11:00 a.m. Craig Smith

January 14

NACM Connect Illinois – Rolling Meadows Mentoring Program Available through Live Videoconferencing

NACM Connect Rolling Meadows, IL

4:30 p.m. – 6:30 p.m

Various

January 23

NACM Connect Missouri – St. Louis Roundtable Discussion

Chris’ Pancake & Dining St. Louis, MO

8:00 a.m. – 9:30 a.m.

Rochelle Wilson, CGA

January 28

NACM Connect Ohio – Cleveland Roundtable Discussion

Panera Bread Meeting Room Brooklyn, OH

8:30 a.m. – 10:30 a.m.

Rob Folland Kyle Gerlach

February 4

NACM Connect Illinois – Rolling Meadows CBF Exam Review Available Through Phone Conference

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m

John Jaeger, CCE

February 6

NACM Connect Illinois – Rolling Meadows CCE Exam Review Available Through Phone Conference

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m

John Jaeger, CCE

February 11

NACM Connect Illinois – Rolling Meadows CBA Exam Review Available Through Phone Conference

NACM Connect Rolling Meadows, IL

5 p.m. – 8 p.m

John Jaeger, CCE

February 11

NACM Connect Illinois – Rolling Meadows WEBINAR: Managing Construction Credit and the Importance of Obtaining Job Information

NACM Connect Rolling Meadows, IL

10:00 a.m. – 11:00 a.m. Chris Ring

February 12

NACM Connect Illinois – Rolling Meadows CREDIT 101 Available through Live Videoconferencing

NACM Connect Rolling Meadows, IL

9:00 a.m. – 4:00 p.m.

Richard Bellis, CCE

February 13

NACM Connect Michigan – Grand Rapids Open Networking Forum

Behler-Young Company Grand Rapids, MI

11:30 a.m. – 1:30 p.m.

Jason MacDougall, CBA

February 19

NACM Connect Illinois – Rolling Meadows Legal Symposium 2020

Meridian Banquet & Conference Center Rolling Meadows, IL

8:00 a.m. – 5:00 p.m.

Various

February 25

NACM Connect Michigan – Grand Rapids Half-Day Seminar: Social Media for the Credit Professional: Benefits and Pitfalls and Fraudulent Transfers and Preferences.

Behler-Young Company Grand Rapids, MI

10:00 a.m. – 1:30 p.m.

Thomas Fawkes, Esq. Brian Jackiw, Esq. Chad Salsbery

THE INTERCONNECTION

JANUARY/FEBRUARY 2020 PAGE 25

Institute of Credit (IOC)

Institute of Credit

2020 Course Schedule

3005 Tollview Drive Rolling Meadows, IL 60008 Phone: 847-483-6478 Fax: 847-253-6241 nacmconnect.org

All courses are available through live videoconferencing! CBA COURSES Financial Statement Analysis I

WINTER Thursdays | January 9 – March 12

Business Credit Principles

SPRING Mondays | March 16 – May 18

Basic Financial Accounting

SPRING Thursdays | March 19 – May 21

(10 weeks)

CBF COURSES Business Law

SPRING Wednesdays | March 11 – May 27

(12 weeks)

COURSES FEES Member – $450 (plus textbook fee**) Two coupons are valid per person.

Non-Member –$900 (plus textbook fee**)

**Additional rush charges may occur if registration is not submitted two weeks prior to start of class.

Evening Class Times: 5:30 – 8:30 p.m. As a remote student, you can take live classes via our videoconferencing platform from the comfort of your home or office.

Questions?

Contact Margaret Krafft at 847.483.6420 or margaret.krafft@nacmconnect.org

Tuition Must be Paid Before the First Class Begins.

All registrations for NACM Connect educational events are taken online at nacmconnect.org Absolutely no registrations will be accepted after one week prior to the class date. No exceptions. All testing must be done during regular business hours unless you are taking class in Rolling Meadows. Contact Lillian Novak for exceptions.

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.

Classes are subject to cancellation based on enrollment. Questions? Contact Lillian Novak at lillian.novak@nacmconnect.org or call 800.935.6226 THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 26

Institute of Credit (IOC)

CREDIT 101, CREDIT 102, CREDIT 103 Credit 101, 102 and Credit 103 are interactive and invite the class to give real world examples of the credit department environment. In each class, NACM Connect provides a textbook for each student to take back to the office and use as a reference guide. The intention of these courses is to teach students about credit and prepare them for the workplace. These classes also set the stage for continuing education in future seminars and Institute of Credit classes, in which students prepare to earn their professional designations.

CREDIT 101

CREDIT 102

CREDIT 103

Credit 101 is a basic-level orientation program that introduces newcomers to the multifaceted field of credit management. This session examines the credit function, the procedures and tasks performed in a typical credit department and how those procedures impact an entire organization.

Credit 102 is an intermediate-level program designed for inquisitive credit personnel who wish to exceed the basics of credit management. This professional educational program examines the underlying knowledge required to successfully function and advance in today’s ever-changing credit department.

Credit 103 is designed for mid-level credit professionals who would like to learn where they fit into the corporate structure and give them tools, which are not widely talked about and creating a positive impact on the mission of their credit department. This course is interactive and will include scenarios that will teach students ways to use the tools presented in the class.

CURRICULUM

• The credit department function • Credit investigation • Credit policy • The legal forms of business • Basic bankruptcy • Sales/credit relationship • NACM Connect Education and the Institute of Credit

• Legal issues and out-of-court settlements • Negotiable instruments • Bankruptcy • Financial statements • NACM Education and what it can do for you

THE INTERCONNECTION

• The role of the credit department within an organization • An ethical look at the credit department • Choosing professional vendors • Putting the pieces together, how to use the tools • The importance of education and obtaining your certification

JANUARY/FEBRUARY 2020 PAGE 27

Institute of Credit (IOC)

Members: $230 (per class) Non-Members: $460 (per class) All classes are from 9 a.m. – 4 p.m.

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

Location: NACM Connect | 3005 Tollview Drive Rolling Meadows, IL 60008

CREDIT 101

CREDIT 102

CREDIT 103

February 12 June 10 October 7

March 11 July 8 November 11

April 8 August 12 December 9

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 margaret.krafft@nacmconnect.org All registrations for NACM Connect educational events are taken online at 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.

THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 28

Institute of Credit (IOC)

Institute of Credit

3005 Tollview Drive Rolling Meadows, IL 60008 Phone: 847-483-6478 Fax: 847-253-6241 nacmconnect.org

2019 Exam Review Class Schedule

Instructor

CBA

John Jaeger, CCE

Location

NACM Connect 3005 Tollview Drive Rolling Meadows, IL 60008

Time

5 - 8 p.m. CST

Tuition

$125 per class One Coupon Accepted

CBF

CCE

Review Class

Tuesday February 11

Tuesday February 4

Thursday February 6

Available to participate via Phone Conference! All registrations for NACM Connect educational events are taken online at 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. Cancellation Policy: Cancellations must be received in writing, via fax, e-mail or mail, no later than one week prior to the class date to qualify for a full refund. Cancellations received later than a week prior to the class date do not qualify for a refund of registration fees. Sorry, phone cancellations cannot be honored.

Questions? Contact Lillian Novak at lillian.novak@nacmconnect.org or call 800.935.6226

THE INTERCONNECTION

JANUARY/FEBRUARY 2020 PAGE 29

Institute of Credit (IOC)

Members: $199 (per class) Non-Members: $398 (per class) All classes are from 9 a.m. – 4 p.m. (Continental breakfast at 8:30 a.m., lunch not included)

INDIANA Elkhart

MICHIGAN Dearborn

CREDIT 101

CREDIT 102

CREDIT 103

March 19

April 16

May 21

April 17

May 15

June 19

Mid City Supply Co. Inc. 940 Industrial Pkwy Elkhart, IN 46516 Carhartt, Inc. 5750 Mercury Drive Dearborn, MI 48126

MICHIGAN Grand Rapids

Behler-Young Co 4900 Clyde Park Avenue SW Grand Rapids, MI 49509

March 18

April 15

May 13

OHIO Cincinnati

Cincinnati Container Co., Inc. 5060 Duff Drive Cincinnati, OH 45246

March 18

April 15

May 20

Valtris Specialty Chemicals, Inc. 7500 East Pleasant Valley Road Independence, OH 44131

March 18

April 8

May 20

OHIO Independence (Cleveland)

OHIO Toledo

Toledo/Sylvania Township Branch Public Library 3900 King Road Toledo, OH 43617

May 12 &14

June 2 & 4

June 23 & 25

3:30 p.m. - 6:30 p.m.

(each class)

All registrations for NACM Connect educational events are taken online at 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 2020

PAGE 30

Institute of Credit (IOC)

Policing Export Sales–What the Internet Doesn’t Tell You Reprinted with permission by Credit Today’s Weekly Update Wayne Muller

e’re in the age of the Internet, and never has there been more information instantly available. But what’s the quality of this information? Often, it’s questionable or worse, and, in the opinion of this credit management veteran, it is dragging down credit risk analysis. This company operates with a tight credit policy. On export sales it is, and always has been, cash-in-advance wire transfer. But they might consider open terms for an overseas order if they can get a PO from a domestic billing entity, which takes payment responsibility. Today, however, domestic entities aren’t always what they appear to be. In August Dave Zahller, credit manager for Tubular Steel, Inc., got word that a company in Singapore wanted to place a substantial order to be billed to and paid for by their New York-based partner. His initial research revealed, however, that the entity that he’d been told is based in New York is actually headquartered in Luxembourg. He told the salesperson that he’d like to see a PO, but that he was concerned about the overseas headquarters. “If we’re dealing with a broker who is acquiring material on behalf of someone in Luxembourg to ship to someone in Singapore, that’s like a double export,” he pointed out. How did this “entity” claim to be in New York?–by listing the New York address on their website. “Some of these websites are so blasted clever,” notes Zahller. “They’re silent as to where their main office is. A tab labeled ‘locations’ brought up several, and one was, indeed, New York. But none was identified as the main office, and the credit reporting tool he was using identified Luxembourg as the main site.

“It’s this social media frenzy,” he continues. “People take any flipping thing that’s put out there like it’s gospel, but it’s total garbage. My whole team uses the Internet. We go to customer websites, but they’re like a politician’s self-promotion.” He contends that to be successful in Credit today you must have a good “bull____-meter.” “If something sounds too good to be true, drill a little and find out if it is or it isn’t.” Like the old adage in news reporting, “If it bleeds it leads,” it is bad and sensational things that get our attention. Editors in all the media are cutting corners. Instead of verifying before coming out with something, they’re all in a rush to get the scoop, and in Zahller’s considered opinion, they have managed to discredit themselves. There is a dearth of fact checking. Coming over to the Credit space, he recalls how the “Cadillac of Credit reporting” used to include an extremely valuable operations and history section in their full reports. Although the information in this section was self-reported and therefore somewhat suspect, the service had boots on the ground. So, if you wanted an investigation done to open a file for a new account, you’d share it with

THE INTERCONNECTION

your local rep and someone would physically visit the address and site you wanted a report on. “But that isn’t happening anymore,” he complains. “They’ve slashed their field people. And since most back office work is now outsourced to third world countries you can’t get them to clean stuff up.” In a recent situation at Tubular Steel the credit supervisor was making an annual review of files and found that one customer company had gone through an ownership change. “We realized that there were two agency reports listing physical addresses, one for the previous owner,” he says. “We sent our field salespeople to verify what had happened. They were given a phone number for the new owner. He was busy, and it was hard to get him. When they did reach him, he verified the structure and the date of the transaction. It was an asset purchase, so he had formed a new entity.” But the Agency declined to make the change, claiming they could not reach the new owner. “I tried to point them right to it, and they wouldn’t do it,” he says. “There did not seem to be an incentive within the reporting organization to get it right.”

Continued on page 37>>

JANUARY/FEBRUARY 2020 PAGE 31

Member Spotlight

NACM Connect Member Spotlight Luz Moreno, CCE, CICP

ur very own NACM Connect member, Luz Moreno, CCE, CICP at Klein Tools, is featured in the Designee Spotlight of the January 2020 issue of NACM Business Credit. We had a chance to speak with Luz at the Chicago Conference in October to find out more about how she started her career, what she enjoys about being a credit professional and how she became a NACM Connect member. Luz will be presenting at our NACM Connect Mentoring program on January 14, 2020. If you haven’t signed up yet, please join us in person or via live videoconferencing. Congratulations Luz for being recognized for your outstanding efforts in credit and thank you for being a loyal and supportive member of NACM Connect! ■

Luz Moreno,CCE, CICP, took a moment during the Illinois Credit Fiesta Conference to talk about her experience as a member This image is linked to a video which can be viewed on NACM Connect's YouTube Channel.

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JANUARY/FEBRUARY 2020

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Mentoring Program Our new Full Circle Mentor/Mentee Leadership Program is now underway. This unique program is designed for Members by Members. The structure and continued development is based on the needs and desires of all participants. There will be both educational and soft skills presentations at every meeting. Be a part of this exciting opportunity! Improve Your Skills ► Elevate Your Leadership Training ► Inspire Younger Generations ► Collaborate on New Ideas ► Assist in Career Development ► Build Relationships in Your Field ►

DRIVEN BY YOU!

PROGRAM JoinTUESDAY Us January 14, 2020* 4:30 - 6:30 p.m.

Moderator: Kathy Antoine, CCEns:

20-30 minute Presentations: What Tools to use When Looking at International Customers Luz Moreno, CCE Jeanmarie Luedtke, CBF Yazmin Yepez, CBF, CCRA, CICP Managing a Team Mary Guzzarde, CBF Joe Lange,CCE, CCRA Bill Lovitt, CCE, ICCE ► Current Issues ► Overview of Topics ►

Available th rough Live Videoconfe rencing

Register online at nacmconnect.org/calendar/ NACM Connect | 3005 Tollview Drive Rolling Meadows, IL 60008 *In the event of inclement weather, the meeting will be held on January 22, 2020

Contact: Leslie Harrison, SPHR, CGA 847.483.6485 leslie.harrison@nacmconnect.org

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FOR YOU BY YOU! JANUARY/FEBRUARY 2020 PAGE 33

News

Eight Idea-Starters for New Year 2020 Larry Grogan, CCE

or many of us, December is one of our favorite months of the year as we gather together with family and friends to celebrate the holidays and look back on our accomplishments. It’s also a time to share our disbelief that the planet we live on has once again traveled 584 million miles around the star we call the sun at an average speed of 67,000 miles per hour. That’s just a scientific way of saying we have all aged another year! The purpose of this article is to share 8 idea starters as we look ahead to a bright, prosperous and hopefully, recession-free 2020.

Create a ‘From-To’ Grid: This is a great one-page template to assist you and/or your team in moving from where you are to where you desire or aspire to be. It’s really simple. Meet as a team. Start with an overall purpose, mission statement or motto(s) at the top of the page. You could also use 3 headings with several bullet points below each: ‘We will accomplish this by…’ (list strategies), ‘Our priorities are…’ (list them) and ‘When we are done…’ (describe what success looks like). Then begin describing where you are now (“From”) and where you aspire to be in the future (“To”). The power of this tool lies in the contrast between the two, seen side by side, at the same time. The more aspirational your ‘To’ is, the more it will pull you away from the all too familiar and comfortable ‘now’ to create a more compelling future. The grid to the right has examples from both life at home and life at work. Make daily eye contact with your grid. Add to it as you go about your life and work and let it be a simple one-page reminder of new directions you and/or your team have committed to pursue in 2020. Find and become acquainted 2 with several ‘thought leaders’ and follow them throughout 2020.

A thought leader could be anyone who thinks differently that you. I highly recommend a few that I’ve recently come across: a) Author & management

Excellence is a Habit

“My personality is my working capital and letter of credit” “We will find a way or make one” FROM

Leaving the dinner table full

Leaving the dinner table a bit hungry

Trying to get to the gym 4x per week to work out one hour (excuse: ‘I don’t have enough time or the energy after work’)

Exercising at home 5 minutes inside and 10 minutes outside in morning (how can I not find 15 minutes a day to exercise?)

Seeing is believing (doubt or fear-based thinking)

Believing is seeing (faith-based thinking)

Focus on getting payment dates from past-due Customers

Focus on changing Customer payment behavior

Not knowing the top 5 tasks I have to complete today

Determining, in advance, the top 5 tasks I have to complete today

Communicating with people

Connecting with people

Activity focus

Accomplishment focus

‘Keeping my job’

Being committed to being the best there is in my role

Habit of making statements or stating opinions

Habit of asking more questions

Seeing the pattern that caused things to be the way they are

Changing the pattern to make things the way they ought to be

Focused on developing my own competence in my role

Helping others develop their competence as well

Event driven (‘putting out fires’)

Purpose driven (‘preventing fires’)

Above: From-To’ Grid The grid above has examples from both life at home and life at work. Add to it as you go about your life and work and let it be a simple one-page reminder of new directions you and/or your team have committed to pursue in 2020.

consultant Lee Thayer: Lee has written approx. 25 books on management, organizations, and communication. He noted he has read nearly 20,000 books on these subjects! By the way, he’s in his early 90’s! He’s not a fan of self-help books and believes ‘it’s the cook that makes the difference, not the recipe’ and ‘leaders think differently’. Here are 3 book titles by Lee that I think any current or prospective people leader would benefit from reading: ‘How Leaders Think’, ‘Leadership Virtuosity’ and ‘Leadership: Thinking, Being

THE INTERCONNECTION

and Doing’. b) Author and Speaker Simon Sinek: Simon is an insightful storyteller. Although I’ve never read one of his books, I found several of his YouTube videos to be life changing. Here are a few of his presentation titles: “Leaders Eat Last: why some teams pull together and other don’t” and “If you don’t understand people, you don’t understand business”. c) TED Talk speakers on YouTube (ted.com): their topics are always intriguing. In essence, each speaker sets out to change the viewers perspective and have 20 JANUARY/FEBRUARY 2020

PAGE 34

News minutes to do it! There are over 2500 TED talks. Thought leaders are like wake-up calls. They have a unique way of re-framing the meaning we assign to things happening all around us. The goal of following thought leaders is to become one.

Upgrade your ‘Elevator Speech’: if you were on an elevator with the controller or treasurer of your company and they asked what you do for the company, the best response may not be the one that first comes to mind: “I collect money from our customers”. While that is definitely one aspect of the task, it can be infused with a higher purpose: “I work diligently to change our customer’s payment behavior. I realize we are competing with many other suppliers for our customer’s scarce cash. I believe our company produces a quality product, delivers it on time, backs it up with solid customer service and charges a fair price. As they say, ‘a sale is not complete until the money is collected’. I do whatever it takes to complete the sale and get the cash we have earned into our bank account at the earliest opportunity”. This ‘speech’ is not just for use in elevators. In many ways it’s the mission statement of the best collectors.

Consider volunteering to serve on a NACM Connect committee or on the NACM Connect Board of Directors: 'Tis the season to consider ways of contributing back to your Association. From my experience, it’s a guaranteed win/win. I’ve always admired the way people from highly successful businesses are attracted to serve on the boards of other companies as a way of sharing the insights they gained in their business lives. Whether you use the valuable products and services provided by the Association or not, you can provide feedback, suggest new products or services, share your insights on various Association decisions and network with other board and committee members. Here’s a quote from the early 1900’s by Henry Churchill King: “Occasionally a man needs soberly and deliberately to form the habit of adding fifty percent to his natural estimate of what he means to his friends. He is continually losing power and happiness through an underestimate of his own significance”. As a member of NACM, your experience and your voice counts.

If interested, contact Lillian Novak to request the application form to complete and return by 1/31/20. Winterize your portfolio: 5 For those of us who live in the north, we have a list of things we do

to prepare for the winter: clean the furnace, throw a shovel and a bag of salt into the car trunk, and make sure the winter coat, hat and gloves are readily available. Not knowing what mother nature has in store, we usually prepare for the worst-case scenario. It’s no different in business. It feels like we have been in one long economic summer which will eventually move into a recession. Here are 3 suggestions on how to prepare your portfolio now, while economic times are good. a) Get Control Of Expanded Terms Of Sale: Where they have been granted, check carefully for compliance. If the expanded terms are being stretched, warn your customer they are at risk of losing them. You could use a ‘3 strikes you’re out’ approach i.e. 3 warnings, then remove. Or make EFT a condition of continuation of the expanded terms. Keep in mind, the longer the terms, the higher the exposure and hence the larger the potential loss when a recession occurs. b) Request Financial Statements: While credit reports can tell you how your customer pays others on average, they cannot reveal actual or potential financial vulnerabilities they might be facing. If their balance sheet, income statement, cash flow statement or footnotes suggest problems now, in good times, wouldn’t it be important to know about it before another recession occurs? Or before you grant them expanded terms of sale and increase their credit limit accordingly? It’s a good bet that you are more likely to get financials when the economy is booming, and your customer is showing good results rather than when it is heading into a recession. If you obtain & review them, you will have a baseline of their financial performance. If customers decline to provide sufficient financial disclosure, you have a basis for holding them to a lower credit limit, declining requests for longer terms of sale and a logical reason for requiring some form of

THE INTERCONNECTION

security (Letter of Credit, Corporate Guaranty etc.). c) Focus On Changing Customer Payment Behavior: Getting payment dates is useful, but not sufficient. Here are some good questions to incorporate in to a ‘quality collection call: “Our terms are Net 30, what terms are you paying us at? Have those terms been approved? By who? When?” Or: “Thank you for your promise of payment. Unfortunately, I will need to hold your order until we receive the cash. Here is the address you can Fed-ex it to”. Or: “Here are our wire instructions. Once receipt of your wire is confirmed, we will release your order”. If it’s already late, why enable even more late days due to mail time? Creating a sense of urgency is essential in changing behavior. It’s always a good practice to let a customer know that you know exactly how many days late they are paying your company and then compare it to your standard terms.

This is a partial list. I hope it helps in arriving at a place where you can say ‘we are now prepared for any economy’.

Bring home the new technology! While most of us will go thru life without creating or inventing a work-changing, time saving tool, we can voluntarily take on the role of exploring what is already on the market and bringing it to the attention of our management. It could be a new or different brand of business credit reports, a public company data accumulation tool like Credit Risk Monitor, or credit management & collection tools like GetPaid, TermSync or CreditPoint. Or risk mitigating tools like credit insurance or UCC filings. How do we find these resources? NACM conferences and websites (nacmconnect.org or nacm.org), webinars, credit groups, Business Credit magazine, NACM Connect member surveys (free to members) or networking events. How do we convince our management the new tools offer a viable solution and good return on investment? By asking the vendor for a free trial. Or permission to contact a current user of their product as a reference. Imagine going into Continued on page 36>> JANUARY/FEBRUARY 2020 PAGE 35

News

Eight Idea-Starters for New Year 2020 <<Continued from page 35 your annual performance review being able to document how you brought new technology to your company that improved the productivity of your entire team!

‘How To Guides’ with FAQ’s: This could also be called ‘How to avoid re-inventing the wheel over and over again!’ In our day to day work we can usually predict what we will be asked, by who and how we usually respond. For example: A sales rep asks: ‘What are the steps to get a new customer set-up in our system? Or ‘How do I process a customer request for non-standard terms of sale?’ Or ‘Why do my customer’s orders keep getting held up in the credit queue?’ I’ve caught myself re-inventing the wheel a number of times when instead I should have created a document that captures my team’s best thoughts on the particular topic and distribute it as a ‘just in time’ teaching tool to any Sales rep who asks. A good practice would be to a) identify the topics/ questions the credit / A/R team are most frequently asked b) where it makes sense, create a document that states the topic, describes the policy and process around it, followed by a list of FAQ’s (actual questions and ones you anticipate might come up) c) aim to keep it to one page if possible d) make it an easy to email template in Outlook e) revise it at regular intervals as needed. It may take a team meeting and 1-2 hours to complete the document but consider the alternative: team members explaining the topic verbally or via email over and over again. The idea can be expanded to internal customers who have questions about other credit & A/R policies and processes. You can also ask other teams to prepare similar documents around their policies and processes as well (tax, customer service, invoicing, pricing, HR etc.). A good motto: “Create it once, share it over & over”.

THE INTERCONNECTION

Think safety to be safe: Our lives are so predictable…until they aren’t. My son Tim relayed a story about the apartment building across from his that caught on fire in the early morning hours. It spread quickly. Before the firemen arrived, the residents on the 3rd floor had a difficult choice to make: wait for help as the smoke and heat escalated. Or jump. They made the choice: They jumped and were injured. My son lives on the 3rd floor of his building. He will be getting a 25-foot escape rope ladder that can be stowed under his bed for Christmas! ‘Safety’ is a mindset that leads you to drive cautiously and defensively, use the hand railing when climbing stairs, turning off all appliances before leaving the house (washer, dryer, dish washer), and looking out for the safety of others, both at home and at work. No matter where you are, the one who is most in charge of your safety is…you. Here’s to a safe and prosperous 2020! ■ Larry Grogan, CCE, is a Credit Team Leader 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.

ABOVE: Susan Fattore, Director of Credit at M. Holland uses Midwest Business Staffing when fulfilling staffing needs.

Find Staff at Midwest Business Staffing If you need to find the right applicant, Midwest Business Staffing can help! From flexible temporary-based staff to direct-hire employees, Midwest Business Staffing has the resources to help you find the match. Midwest Business Staffing offers a broad selection of employment verifications and uses a rigorous screening process that offers a proprietary candidate skills assessment developed for us by industry credit managers to provide an in-depth financial skills validation. All candidates are thoroughly interviewed in credit/collections and accounts receivable skills. For over 20 years Midwest Business Staffing has been helping companies achieve their workforce goals with staffing solutions that meet the unique needs of their business. For more information, visit www.NACMMidwestStaffing.org ■

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News

The Health of the US Economy in 2020: Cynicism, Success or Slowdown? <<Continued from page 1 similar patterns throughout history and throughout geographic location. “We think we know what’s going on, but then we get more data,” Kuehl said. “... And so much of what happens in [the credit world] is really quite local. … In the United States, you’re going to have places that are in recession, you’re going to have places that are booming.” Each state and each city within the U.S. has its own pulse, something which can be difficult to gage when extending credit to companies nationally. Kuehl explained how the entirety of California’s GDP is on par with that of the U.K.—a region with the “fifth-largest economy in the world,” Kuehl said—whereas a state like Idaho has a GDP similar to that of Myanmar. Understanding the difference in local economies can aid in determining the strength of a credit manager’s customers and how the local economies can plan to move forward.

A variety of surveys and indices have been wavering, but nothing has seen a dramatic drop off. NACM’s Credit Managers’ Index (CMI) remained steady throughout 2019, with the manufacturing and service sectors recovering; dollar collections showing strong numbers has helped to keep the index up. The Purchasing Managers’ Index (PMI) similarly held its own, staying outside of contraction territory. The overall readings have not increased the past several months, but the mediocrity of the indices reflect that of the overall U.S. economy—all the while reminding creditors there has not been a need to panic. “If we’re not heading for a recession, what are we heading for? It’s a slowdown,” Kuehl said. “We’re going to be going back to rates of growth that we have averaged—really over the last 20 to 25 years—around 2%. This is not bad growth, it is just kind of mediocre,

unforgiving growth.” The slowdown in the U.S. will likely be further punctuated with the 2020 election. Consumers lead the economy more than business-to-business organizations do, and if consumers slow down, so does the economy. After the 2016 election and the continuing tensions building and erupting, the next election cycle may hit the consumer. “The consumer is the God, they run everything. … There’s a reason why the economy has skated through some of these more crisis situations,” Kuehl said. “... Something we know about a political year is that it depresses consumers. Consumers hear nothing but gloom and doom from both parties for a year. … And the consumer ends up becoming depressed and slowing things down.” ■

Policing Export Sales–What the Internet Doesn’t Tell You <<Continued from page 31 “We understand the file. We know who is really running it. We now have a proper credit app. But we’re unable to document our file with a correct report from our primary reporting agency.” What he’s chosen to do is manage the account according to what he knows (“I guess we have let the rest of the trade creditors be uninformed about this.”) and accept the increasing reality that the only truly reliable source of accurate trade-line data is from trade creditors who share their AR files. But he so misses the days when that operations and history section in the agency report was something he could rely on. THE INTERCONNECTION

“I’d always valued it because, if business has a chance of success, one of the things that’s helpful is looking at the guy’s business background,” he says. “If he’s been successful with other companies you have some level of confidence that he has a skill set that will give this a chance of being a good customer for you.” About Dave Zahller, CCE Dave earned a B.S with Distinction from Iowa State University in 1981. He has over 30 years of experience in Banking, Asset-based Lending, Insurance and as a stock broker but has spent the majority of his career in Trade Credit. He worked as an

Area and Regional Credit Manager with Monsanto, Arcadian Corporation and Smurfit-Stone Container. When Smurfit-Stone was acquired by a competitor in 2011, he moved to Tubular Steel, Inc., a $200 Million distributor of steel pipe and tube located in Creve Coeur, MO to lead their Credit department. He earned his CCE designation in July, 2011. Dave can be contacted by email at david. zahller@tubularsteel.com ■

JANUARY/FEBRUARY 2020 PAGE 37

NACM Connect

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JANUARY/FEBRUARY 2020

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Webinar

PROFESSIONAL EDUCATIONAL WEBINARS

Managing Construction Credit and the Importance of Obtaining Job Information

Credit Reports Many Options: Credit Bureaus & Reports Compared Join us on: Tuesday, January 14, 2020 10 - 11 a.m. CST

Join us on: Tuesday, February 11, 2020 10 - 11 a.m. CST

ABOUT THE PRESENTER

Craig Smith

Chris Ring

Craig Smith, Director of Credit Solutions at NACM Connect, has over 20 years of providing companies credit information to reduce risk. Craig previously held positions at D&B and Experian.

Chris Ring is the National Representative for NACMâ&#x20AC;&#x2122;s Secure Transaction Services and he specializes in assisting credit professionals secure their receivables using Mechanicâ&#x20AC;&#x2122;s Lien Laws and Article 9 of the Uniform Commercial Code. Chris consults with companies on a daily basis leading them to find the best way to use these credit tools to assure that they are in the best possible position to get paid.

Participation points are available for this webinar Topic: Digital Order-to-Cash: A Roadmap to Automation (Part 1)

Topic: Digital Order-to-Cash: Keeping the Customer and Maximizing Cash Flow (Part 2)

Presenter: Phyllis Saavedra

Date: Tuesday March 10, 2020

Date: April 14, 2020

Time: 10 -11 a.m. CST Topic: Digital Order-to-Cash: Happy Customers, Happy Shareholders (Part 3) Presenter: Phyllis Saavedra Date: May 19, 2020 Time: 10 -11 a.m. CST

Upcoming Webinars

Time: 10 -11 a.m. CST Topic: TBD Presenter: TBD Date: TBD Time: 10 -11 a.m. CST

Cost (per Webinar) $99 - Member, $198 - Nonmember (One coupon will be accepted)

WEBINAR REGISTRATION All registrations for NACM Connect educational events are taken online at 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. Cancellation Policy: Cancellations must be received in writing, via fax, email or mail, no later than two weeks prior to the event date to qualify for a full refund. Cancellations received later than two weeks prior to the event 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 2020 PAGE 39

Michigan

February 2020 Michigan

Open Networking Forum Moderator:

Jason MacDougall, CBA

ROUNDTABLE DISCUSSIONS

Thursday, February 13 Come join us! Time: 11:30 a.m. - 1:30 p.m. Attendance at this roundtable discussion is worth .2 Continuing Education Units/CCE Recertification Points.

We are having an Open Networking Forum on a variety of topics that you bring to the table.

Location

Behler-Young Company 4900 Clyde Park Avenue SW Grand Rapids, MI 49509

Cost per Meeting

$30 Members, $60 Non-members One coupon per person is valid. Lunch included.

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

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.

Questions?

Contact Kelly Hall at kelly.hall@nacmconnect.org or call 317-225-4281

Email this form to registration@nacmconnect.org. You will be invoiced shortly.

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JANUARY/FEBRUARY 2020

PAGE 40

MICHIGAN

Half-Day Seminar For Credit Professionals

Tuesday February 25, 2020 10:00 a.m. - 1:30 p.m. (lunch included)

Behler-Young Co. 4900 Clyde Park Avenue SW Grand Rapids, MI 49509 Guest Speakers: Thomas Fawkes, Esq. Brian Jackiw, Esq. Goldstein & McClintock

Social Media for the Credit Professional: Benefits and Pitfalls Social media can bring a multitude of benefits to the credit professional. This presentation will focus on those most common benefits as well as several potential legal pitfalls that can result in substantial liability to your business.

Fraudulent Transfers and Preferences This presentation will discuss the legal elements of a preference and fraudulent transfer claim, the most

Chad Salsbery

common statutory defenses to those claims and

Adamy Valuation

$139 Members $278 Non-members (One coupon per person)

strategies that should be employed to ensure that you are putting on your best defense.

Registration Deadline: February 14, 2020

Attendance at this seminar is worth .3 CEU Units/CCE Recertification points

All registrations for NACM Connect educational events are taken online at nacmconnect.org

All payments must be received one week prior to seminar 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.

Questions? Contact Kelly Hall at kelly.hall@nacmconnect.org or call 317-225-4281 THE INTERCONNECTION

JANUARY/FEBRUARY 2020 PAGE 41

Missouri

January 2020 Missouri

New Year New Challenges

What worked in the past? Will we need a new set of tools?

Moderator: Rochelle Wilson, CGA NACM Connect

ROUNDTABLE DISCUSSIONS

Thursday, January 23 Time: 8:00 - 9:30 a.m.

Attendance at this roundtable discussion is worth .15 Continuing Education Units/CCE Recertification Points.

Location

Chrisâ&#x20AC;&#x2122; Pancake & Dining 5980 Southwest Avenue St. Louis, MO 63139

Cost per Meeting

$25 Members, $50 Non-members One coupon per person is valid. Breakfast included.

Come join us to discuss how you and your company will deal with New Year Challenges. 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

Questions?

Contact Rochelle Wilson at rochelle.wilson@nacmconnect.org or call 314-677-2803

Email this form to registration@nacmconnect.org. You will be invoiced shortly.

THE INTERCONNECTION

JANUARY/FEBRUARY 2020

PAGE 42

Ohio

January 2020 Ohio How to Collect, Bankruptcy Environment and AR Concerns

Moderators:

Rob Folland, Partner Kyle Gerlach, Attorney at Law Barnes & Thornburg, LLP

ROUNDTABLE DISCUSSIONS

Tuesday, January 28 Come join us! Time: 8:30 - 10:30 a.m. Attendance at this roundtable discussion is worth .2 Continuing Education Units/CCE Recertification Points.

Location

Panera Bread Meeting Room 5090 Tiedeman Rd Brooklyn, OH 44144 (Cleveland area)

Cost per Meeting

$25 Members, $50 Non-members One coupon per person is valid. Breakfast included.

Topics of Discussion: How to collect from a distressed supplier - your options Current bankruptcy environment What is keeping you and your CEO up at night with AR? 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

Questions?

Contact Kelly Hall at kelly.hall@nacmconnect.org or call 317-225-4281

Email this form to registration@nacmconnect.org. You will be invoiced shortly.

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JANUARY/FEBRUARY 2020 PAGE 43

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CREDIT CONGRESS AND EXPO 2020 HELD IN GLORIOUS LAS VEGAS

June 14 - 17, 2020 CEASARS

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