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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 »

U.S. Lenders Reluctant to Switch to Better Performing Credit Risk Scoring Models

For an industry that prides itself for being sophisticated with the use of data and advanced analytics adoption to new credit scoring systems is a slow and expensive process. According to VantageScore LLC, three recent independently conducted surveys http://www.vantagescore.com/news-story/140 suggest that slightly more than 50% of the lenders interviewed would consider switching from their existing credit scoring system to one ... Read More »

Velocity Credit Characteristics Expected to Significantly Improve Credit Models

In an independent study released by Capital Services, Sioux Falls SD performed in conjunction with South Dakota State University researchers concluded that enhanced time series information recently introduced by the leading U.S. credit bureaus will significantly improve credit scoring and decision support platforms across all aspects of the consumer credit lifecycle http://www.sdstate.edu/mathstat/upload/A-Credit-Evolution_ASMBI.pdf .  As a leading payment portfolio management and ... 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 »

Bank Payment Obligations & Friends have a Stranglehold on the LC and will soon finally lay it to rest….

Alas poor Letter of Credit!  I knew him well, Reader: a fellow of infinite costliness and complexity, but most excellent utility in enabling trade betwixt strangers. How so the demise of the LC?  He doth bestride the narrow world like a Colossus, and all petty alternatives walk under his huge legs and peep about. BIIA’s contributing editor Ron Wells writes about ... Read More »

Andreas Tesch, the New President of ICISA Targets SME Sector

In an exclusive interview with Global Trade Review (GTR), the new International Credit Insurance & Surety Association (ICISA) president Andreas Tesch has singled out SME finance and stronger association links as key aims moving forwards. In his first interview as president of ICISA, Tesch spoke to GTR about the association’s goals and ambitions, and also his personal view of the industry, with ... Read More »

Many Businesses Will Not Survive the 3D Printing Revolution – Start Adapting Now!

Ron Wells, a credit expert and BIIA’s newest contributing editor, offers his assessment of the impact of 3D printing on credit management.  So-called 3D Printing (3DP) describes the manufacture of three dimensional objects from raw material inputs by a machine, as directed by a design program.  That is without the intervention of human labour, except to set up the machine ... Read More »

Risk Assessment:  There is a Naive Belief that Mathematical Models can Foretell Future Risks…

The article titled “Well Short of Model Behaviour” written by Brandon Davies (CEO of dRisk.biz) and published in the October 2013 edition of Financial World (www.financialworld.co.uk) provides an excellent description of the development and abject failure of financial risk modelling, as currently practiced. Reading the article is highly recommended. Mr Davies’ perceptive conclusion is quoted here to pique your interest: ... Read More »

TINUBU & ICM RESEARCH: UK Businesses are not Maximizing Available Tools to Improve Financial Management

Tinubu Square announced the findings of new research it has conducted with the Institute of Credit Management (ICM) into risk management operations across UK businesses.  The findings reveal that despite the huge efforts made by UK businesses in the years following the financial crisis “reducing days sales outstanding” was still considered the area with the greatest need for improvement in ... Read More »

EU Late Payment Directive: Germany Inches Closer to Implementation

Reports out of Germany indicate the government may be inching closer to in-country implementation of the European Union’s Directive 2011/7/EU, the Late Payment Directive.  Germany was one of the final holdouts among the 28-member bloc and an important one, given its stature in the Union.  Still, many are skeptical that, even with the Germans on board, the Directive will be all ... Read More »

Commercial Credit Reporting: Amended Virginia Credit Reporting Bill Introduced for 2014 Legislative Session

An amended version of the Virginia commercial credit reporting bill was introduced in the Virginia General Assembly last week. The previous bill, HB 2198, has since been abandoned after the Virginia Small Business Commission made no recommendation on the bill last December. On January 3, however, Delegate Christopher Head (R), a former co-patron of HB 2198, introduced HB 370 for consideration ... Read More »

USA Trade Credit Climate: December CMI Falls Dramatically

Market-watchers looking for holiday cheer will be hard pressed to find any in the December Credit Managers’ Index (CMI), which was released on December 30th 2013 by the National Association of Credit Management (NACM). The Combined Index fell dramatically, erasing most of the gains made in the last few months and taking the CMI back to levels not seen since the ... Read More »

Small, Spotty and Zero Data: Insights Gleaned from the Absence of Data

Insights appear to be funny things.  They don’t necessarily depend on data, but, without corroboration in the objectively measurable, insights must be taken on faith.   In essence that’s a slippery slope to superstition and subjective decision making. Sleuthing is everything.  Insights are something one usually has to work for, and, more often than not, that involves vetting the data from ... Read More »