What Motivates Someone to Work for a Company for Decades?
During the past forty-seven years, CMI has had the honor of having several team members contribute to our success for three or more decades. Over this period, getting to know each of them professionally and personally has been extremely rewarding. Each one is highly...
How Often Do You Look at the Shareholder Loan Account on a F/S?
As credit professionals, there is a tendency to look at only the most familiar current assets and liabilities on the balance sheet of a prospective company. If the current or quick ratio turns out to be acceptable, we quickly move on to the next credit request. But as...
Dear Crabby – I’m Feeling Old and Out of It
Dear Crabby, I have been the credit manager at my company, a confectionary goods distributor, for the past 35 years and our customers are retail shops across the nation. Although I’m in my sixties, I still have a lot of energy and motivation to do my job....
Take the Poll – How Would You Rate Your Company’s Customer Service?
An associate of mine was telling me about the Customer Relationship Management (CRM) platform they implemented last year and all the problems they are having with it. But the biggest problem is the lack of customer service and technical support to...
Unusual Valentine’s Day Traditions Across the Globe
Like hundreds of millions of people around the globe, February 14th is your day to either receive a special gift, give some special flowers, or both. In the US and the UK, Valentine's Day means heart-shaped cards and heart-shaped boxes of chocolates. But what...
Are You a Credit Manager Who Could Work on a Commission Basis?
I had a fascinating discussion recently with a colleague of mine who was interviewing several candidates for their credit and collection manager position, and one of them was particularly intriguing. When the subject of compensation came up and the...
Hector the Collector – Does It Make Sense for Collectors to Share the Same Office Space?
Hi Everyone, It’s Hector here and as always, I greatly enjoy reading your emails. One email that really caught my eye was from a collector who works at a national office supply goods chain detailing the problem he is experiencing with the office set up and...
Take the Poll – From a credit perspective, how do you consider Goodwill on a customer’s financial statement?
Like many of you, I have heard of Goodwill but not really had a firm idea of what it is. Basically, Goodwill is an intangible asset that is recorded on the acquiring company's balance sheet under the long-term assets account. Goodwill is considered...
How Will Gen Z Affect Your Workplace in 2023 and Beyond?
First things first, let me wish everyone a very Happy New Year! Whatever holiday you celebrated, I hope you had a wonderful time with friends and family, and that you have lots of health and happiness in this New Year. As we enter the new year, I’m finding the...
Are Your Customers Still Filling Out Credit Applications by Hand?
A few years back I wrote an article, Avoiding the Pitfalls of an Outdated Credit Application, and one of the things I mentioned was the importance of maintaining updated information on your customer’s credit application. The impetus behind that article had to do with...
Dear Crabby – Our Customer Won’t Even Pay for the Products Received in Good Order
Dear Crabby, As collectors, we always strive to get all of the invoices paid in full. But, in the manufacturing business where you send pallets or shipments out on a daily basis, you are bound to have discrepancies. These discrepancies include shortages,...
Take the Poll – What was your biggest credit risk management regret in 2022?
I have always loved the song, My Way, when it’s sung by Frank Sinatra. That one line, “Regrets…. I’ve had a few….” truly resonates with me. On that musical note, several years ago I attended a wonderful workshop with credit and collection...
Happy Holidays from CMI 2022
https://youtu.be/sXtP544rMBw
Veterans Day Is Coming Up
Did you know that there are roughly 20 million American veterans in this country? Of this number, there are 6.4 million Vietnam War veterans over the age of 70. Many are not in such good condition, both mentally as well as physically. Sadly, there are many veterans...
Do You Have an Emergency Fund?
The other day when I was talking with some friends about our current economic situation, one of them mentioned that although they lost their job and their financial situation is stressed, for the time being they have several months of savings in their “emergency fund”...
Dear Crabby – Our Customer Paid With Turkeys
Dear Crabby, I’m the collection manager at an elevator maintenance, repair, and installation company. We’re a small organization but have been around for decades in a major metropolitan area. We’ve developed a reputation for servicing those small businesses that...
Take the Poll – Should you send a long-term customer, who Is unfortunately now past due, a holiday gift?
This is one of those difficult customer and human relations situations that can keep us up at night. There are many factors involved as we try to evaluate the past relationship and anticipate how things may turn out in the future. Personally,...
Fall May Be the Best Season for Hiring
As the summer comes to a close and everyone returns to their normal working routines, hiring managers are ready again to post jobs, schedule interviews, and shore up employment needs before the end of the year. There are a few factors that drive employment...
What’s the Difference between DSO and SDSO?
It was a long and hot summer in my neck of the woods, which fortunately was periodically interrupted by the occasional downpour and cloudy day. But now that it’s October, it won’t be long before we’re donning our winter coats, and for my generation, our galoshes....
Hector the Collector — Are Pre-recorded Collection Voice Messages Effective?
Hi Everyone! It’s Hector and I’m always pleased to receive your emails inquiring about collection ideas and issues. Over the past few months, I’ve been hearing from some of you regarding the use of automated pre-recorded collection voice messages to past due...
Take the Poll – As a credit professional, when was the last time you accompanied your sales professional on a client visit?
There’s no rule that a credit and/or collection team member should accompany a sales professional when visiting a client. I will say however, that the more credit professionals understand what is involved in their own sales process, the better...
The New Labor Force Is Getting Older and Better
Hope everyone had a real nice Labor Day holiday this year. It’s always a pleasure to meet with family and friends for an easy day of relaxation and enjoyable conversation. Among the many topics discussed is the fact that it's not uncommon for us baby boomers...
Asset-Based Lending vs. Factoring: What’s the difference?
From time to time our agency is requested to be the “back-up servicer” on asset-based loans that have become past due. The term, "back-up servicer,” is a nice way of saying “third party collection platform.” We are also at times the collection platform for factoring...
Dear Crabby — Our Salesperson Should Not Be Handling Client Complaints
Dear Crabby, I am the credit manager at a small digital design graphic arts company (where we all were several hats) and have been in this position for about 10 years. It’s a great field to work in as it’s constantly evolving with many interesting technological...
Take the Poll – Your customer just declared Chapter 11 bankruptcy but still needs your product ASAP to keep their line going. Do you:
It’s never easy dealing with a customer who has declared Chapter 11 bankruptcy. In contrast to a Chapter 7 bankruptcy, in which the business closes up, assets are liquidated by the bankruptcy trustee, and the proceeds from the business...
Whistle While You Work!
Last month CMI conducted a poll asking followers of its LinkedIn Company page to respond to how they keep distractions at a minimum at work. Somewhat surprisingly, 38% of respondents indicated that listening to music was their preferred concentration support method....
Quick Run Down on the Global Economy and Foreign Exchange Risks
With the global economy experiencing some very unusual developments, I would like to put on my basic economics hat and convey to you what I think is happening in the global economy and how to use simple foreign exchange risk strategies. But first, let me mention a...
Hector the Collector — Does a Credit Professional Make for a Good Collector?
Hi Everyone! It’s Hector and as always, I’m delighted to hear from many of you regarding your credit and collection issues. One idea I would like to talk about is the correlation between the size of a company and the role of the credit professional. In most...
Take the Poll – Do you let work dominate your life?
Letting work dominate your life means having less time and energy for the people who matter to you. Whether it’s your partner, children, family or friends, they will be getting less time (and more to the point, less quality time) with you. However...
Will You Take a Staycation this Summer?
Staycations are the new way to vacation! But what exactly is a staycation, and how is it different from a vacation? Simply put, a staycation is a vacation where you stay at or close to home. For some people, that means staying in and enjoying their local vicinity...
Untangling Your Customer’s Corporate Relationships
Hardly a day passes where we don’t receive a claim against a company with a very confusing network of subsidiaries, sister companies, or affiliates. Although the claim might be against a sister company, sometimes trying to figure which entity will ultimately be...
Dear Crabby — I’ve Been Told I’m Being Stingy with Credit
Dear Crabby, I am the credit manager at a small tools manufacturing company and recently, I’ve got the whole company angry at me, especially sales. Let me explain what’s going on. About six months ago, out of the blue, one of our best customers declared...
Take the Poll – What do you do to keep yourself from getting distracted at work?
Whether the distractions you experience at work occur because of someone else in the office or because you could benefit from a different routine, you can take various steps to help you focus longer and get more work done. Here are several ways...
Today’s Father Would Not Have Been Recognized 50 Years Ago
Father’s Day is coming up on the 19th and for many families, it’s a time to appreciate one’s father. Throughout the centuries, I suppose we could boil down a father's role in the family as the protector and to “bring home the bacon.” Chances are pretty good that...
Hector the Collector — How to Fix a Micromanaging Situation
Hi Everyone, It’s Hector here and I hope all is well. Always a pleasure when I hear from many of you with your thoughts, ideas, and even complaints about life in the credit and collection lane. We credit professionals often end up trying to please everyone, but...
Three Basic Economic Indicators Credit Risk Managers Should Know
Over the many years I’ve been in business, a regular reading and studying of the basic economic indicators has helped to me see the rhythm of how our economy works. As a credit professional, allow me to share with you my general understanding of the top three indices...
Take the Poll – Have rising gas prices directly affected your business?
Small businesses have struggled over the past two years of the pandemic, facing shutdowns and closures, dealing with supply chain issues and a shortage in labor. Many business owners were hopeful that as time went on and COVID-19 cases...
A Surprising Bit of History About the Founder of Mother’s Day
Mother’s Day in the US had several starts and contributors, but it is Anna Maria Jarvis (May 1, 1864 – November 24, 1948) who is credited as the founder of our national Mother's Day holiday. Anna Jarvis' campaign for a special day to celebrate...
Dear Crabby — I’m Feeling Blue After Our Credit Department Was Audited
Dear Crabby, I have been the controller at a US subsidiary for the past 11 years which has its headquarters in Germany. Like every year, in March our organization was audited. Normally when the auditors are here, they spend a great deal of time verifying...
How the Credit Professional Can Respond to Supply Chain Disruptions
Every day there seems to be another revelation regarding the global economy. Although the Covid pandemic seems to have come under a reasonable level of control in the US and Europe, China has continued to implement severe anti-virus spread restrictions in some of its...
Take the Poll – How to categorize an excuse for non-payment.
In the above scenario, one of the first questions that may come to mind is why after two months when the invoice is past due is the customer now mentioning a problem with the product? To understand if the customer’s complaint is legitimate, we...
Why Was April 15th Chosen to Be Tax Day?
Between the middle of March and the middle April, I get a little strange feeling in my stomach. Not only does it have to do with turning our clocks ahead one hour, but that corporate and personal taxes are coming due very soon. My thoughts swing back and forth...
Hector the Collector – Trying to Calm One’s Nerves Before Collection Calls
Hi Everyone!It’s Hector and hope Spring has arrived in your area. As always, I appreciate hearing from you regarding your credit and collection issues and challenges, from which we can all benefit. I heard from one senior credit manager who has a full-time...
Beware the “Reviewed” Financial Statement
In these unpredictable times, regretfully there are going to be instances where the scruples of some customers, for whatever reasons, may begin to fall short. Consequently, we need to be vigilant about the validity of financial statements submitted to support...
Take the poll — How often have you had to pursue a personal guarantee to pay an outstanding commercial A/R?
Personal guarantees will often make the difference in collecting a past due account compared to simply obtaining a judgment. Obtaining a personal guarantee should coincide with your credit policy and like every contractual document that...
Did You Know that Spring Cleaning Week Starts March 27th?
If you didn’t know, it’s alright — I didn’t know either. But here we are with a wonderful event to keep our personal and professional spaces clean and tidy. National Cleaning Week begins each year on the fourth Sunday in March. It is a week-long lineup of...
Dear Crabby — It Appears Our A/R and Credit Departments Will Be Outsourced
Dear Crabby, I’ve been working as the credit and collection manager at a large heating & cooling equipment installation and maintenance company for the past 20 years, and about two months ago a new CFO came on board. From the start this person has been...
Are You Trying to Survive in a Declining Industry?
Every business in every industry is ultimately susceptible to a disruption, stagnation, and becoming obsolete. As technology progresses or sudden events occur, many new opportunities will arise, while leaving many people behind who cannot change with the times. For...
Do you deposit post-dated checks earlier than the check date?
Sometimes creditors will receive post-dated checks that are generally between 10- 90 days beyond the date received. Whether a check can be deposited prior to the actual check date written depends on the: Amount - smaller amounts get deposited...
When Valentine’s Day Flowers Keep on Blooming and Blooming
Who doesn’t love getting a gorgeous bouquet of flowers on Valentine’s Day? They are not only beautiful to look at, but they remind us of how special we are to someone. Along with a lot of chocolates and other delicious sweets, they make us feel like a million bucks. ...