FCIB / NACM

Country Risk Climate:  The Number of Troubled Companies on the Rise

Number of Troubled Companies Rise in Latest Default Risk Study – Greece and United Stated dominated A monthly study tracking the probability of defaults among companies rose to its highest level in several months in June. The dubious list was dominated by companies based in Greece and the United States. An index tracking the percentage of companies with a default ... Read More »

USA Risk Climate: Small Business Optimism Reaches ‘Normal’ Level

The G20, the EU and other SME institutions bemoan the fact that SMEs have difficulties in accessing finance and thus retarding growth.  The surprising fact is that in the US only 4% of owners of businesses had problems in financing their operations.  The majority stated that they did not need access to finance! The National Federation of Independent Businesses’ (NFIB) ... Read More »

Credit Management:  Internal Knowledge of Country’s Culture Key to Success in Global Business

When considering expanding into the international market, it is essential for credit professionals to have a clear understanding of the values and cultures of a country’s business environment. That was a key takeaway during the breakout session, “Going Global,” at NACM’s 119th annual Credit Congress in St. Louis from May 17-20. “It’s culture, communication, regulation and currency,” said Gent Culver, ... Read More »

FCIB Summit: Global Companies Increasingly Turning to Bank Payment Obligation

Technological platforms are becoming a more prevalent resource within the credit industry as ways to help boost a company’s supply chain and optimize working capital. As more corporations see partners and competitors using them with positive results, acceptance will only increase. And the interest in using such tools is already huge, according to panelists at FCIB’s recent International Credit and ... Read More »

B2B e-Commerce Expected to Grow

Business-to-business (B2B) e-Commerce sales will top $1 trillion by 2020 and account for 12% of the total $9.39 trillion B2B sales in the United States, according to Forrester’s inaugural five-year B2B e-Commerce forecast. This estimate represents an 8% compound annual growth rate over the next five years, with B2B sales reaching $780 billion by the end of this year, Forrester ... Read More »

USA Country Risk Climate: Credit Management Index Signals Financial Stress

The March report of the Credit Managers’ Index (CMI) from the National Association of Credit Management fell further this month, surprisingly, indicating that some serious financial stress is manifesting in the data.  Concern is growing as the CMI flirts with the contraction zone, anything under 50, for the first time in nearly five years.  “We now know that the readings ... Read More »

US Country Risk Climate: Trade Deficit Worsens Fast

It was not long ago that the United States was boasting of its improved trade deficit, but those days are gone and unlikely to make a comeback anytime soon. The whole issue of a trade deficit can be tricky to grasp, as a wide deficit between what one sells and buys may not be a bad thing, just as having ... Read More »

Credit Managers’ Index Decline in February Surprises

The National Association of Credit Management’s Credit Managers’ Index dropped significantly this month, an unexpected decrease considering where projections were a few months ago. “That is a nasty drop and at no point in the last year has it been that low,” said Chris Kuehl, NACM economist and cofounder of Armada Corporate Intelligence. “The reduction in the overall score was ... Read More »

Bitcoin Exchange Suspension Unlikely to Derail Growth of Digital Currencies

London-based Bitstamp, the second largest exchange for alternative currency Bitcoin, suspended services following a hack that accounted for more than $5 million in losses. Nobody said the rise of digital currency would be a smooth ride.  Proof of that came again this week as one of the oldest, relatively speaking, Bitcoin currency exchanges went offline following a hacking incident. But ... Read More »

Z-Score Creator Predicts Bank-Based Credit Bubble, Impact on Trade Creditors

A market bubble appears to be forming in bank- and financial institution-based credit that could trigger a spike in bankruptcy filings within the next couple of years, according to Ed Altman, PhD, inventor of the famed bankruptcy prediction Z-Score model and instructor at the upcoming summer session of NACM’s Graduate School of Credit and Financial Management (GSCFM).  That is likely ... Read More »

USA Country Risk Climate: Late Business Payments Rising Again

Payment habits for US businesses worsened in the third quarter, but the performance differed markedly between various industries, according to a report unveiled this week by global trade credit insurer Euler Hermes. Euler Hermes’ latest “Economic Insight” showed a 2% increase in the average dollar amount of past due payments to US businesses through the first three quarters of 2014, ... Read More »

Majority of Very Late Payments Remain Uncollected in the Americas

More than half of the value of B2B receivables over 90 days past due were written off as uncollectable by businesses in Brazil, Canada, Mexico and the United States (the Americas). The September 2014 edition of the Atradius Payment Practice Barometer, a survey of B2B suppliers in Brazil, Canada, Mexico and the US, found that, on average, 38.4% of the ... Read More »

FCIB Global: Compliance as Hot a Topic as Ever

Compliance appeared to have been the hottest topic among credit managers of companies presently exporting their goods and services at FCIB’s 25th Annual Global Conference last week.  Perhaps the biggest takeaway was that perfection isn’t always necessary to appease governments and regulators, but diligence most certainly is. As previously noted by NACM, regulatory activity and the size of fines for ... Read More »