Hector the Collector — Turning on the Light in Difficult Times
Hi Everyone! Normally, March and April are kind of quiet collection months. If a lot of snow has fallen up north and the weather has been nice down south, most businesses, especially seasonal ones, have managed to do fairly well. Unfortunately, this year we’ve been...
What do you think?
What’s the range of the average salary for a credit risk manager in the U.S.? $60K - $80K$80K - $100K$100K - $120KOver $120K According to the website, Salary.com, the average Credit Risk Manager salary in the United States is $121,703 as of January 29,...
Life After Credit & Collections
I periodically speak to credit and collection professionals who are heading towards retirement and wondering, “What do I do now with my life?” For starters, the longer we credit professionals work in our field, the deeper and more diverse our expertise...
What do you think?
How valuable would it be to serve on the Committee of Unsecured Creditors? ExtremelySomewhat Not so muchNot at all With bankruptcy filings up by more than 25% during this past year, and surely with many more to come in the near future, an increasing number...
Dear Crabby — I’m Wearing Too Many Hats at My Company
Dear Crabby, Like many companies, ours has also had to let people go during these tough times, and several departments are now running on a skeleton crew. Up until around mid-summer of last year, I was carrying out credit functions and some high dollar collection...
Serving Up a New Credit Risk Management Recipe
I received a call in early December from a client who wanted my feedback on a new sales terms arrangement they were discussing with one of their customers for this new year. Our client is a mid-sized manufacturer of a unique plastic...
Hector the Collector — To What Extent Do We Help a Customer in Trouble
Hi Everyone! It’s Hector and I hope you had a nice New Year holiday. No question that last year turned out to be “annus horribilis,” but I hope you’re raring to tackle all the challenges and achieve many great things throughout this coming year. Over the past few...
What Do You Think? — How valuable is an MBA these days?
How valuable is an MBA these days? ExtremelySomewhat Not so muchNot at all I read an interesting article recently on whether or not a Master’s in Business degree is really as lucrative or as educational as it used to be. Certainly, there’s always great...
Rockin’ Around The Christmas Tree
https://youtu.be/pb6WMnOrVlk Happy Holidays From CMI!
Avoiding the Pitfalls of an Outdated Credit Application
One of the things I enjoy doing is sharing the challenges that some of our clients are experiencing. By learning from their issues is how we continue to be a work in progress, avoid the same mistakes, and improve on the performance of our credit risk management...
Dear Crabby — I’ve Been Told to Go Cold Turkey on Certain Collection Calls
Dear Crabby, I’ve been reading your column now for the past few years and as a credit & collection professional at a small distribution company, I’ve always found your advice to be spot on. That said, I never thought I’d actually be writing to you. Recently...
Take a Guess!
In 2019, what was the average per capital consumption of turkey in the U.S.? 5.5 pounds11.2 pounds16.1 pounds7.8 pounds21.3 pounds Today’s consumer recognizes turkey’s nutritional value and enjoys turkey year-round – not just during the holidays. The turkey...
Does It Makes Sense to Change Jobs During this Period?
Last year after I wrote the article, What I Look for in Choosing a New Credit Manager, I have continued to receive inquiries from credit professionals asking for my thoughts, especially in this economy, about changing jobs. Bearing in mind that I’m not...
Hector the Collector — Timing is Everything
HI Everyone! It’s Hector and I’m always pleased to hear from credit professionals out there. I’m glad that many of you are adjusting to your new home offices and that your work is continuing to move along. Regretfully, I’ve also been hearing from some of you who...
What are your thoughts?
Which financial ratio is the most important to you in analyzing financial statements? Working Capital RatioQuick Ratio Gross Margin PercentageProfit Margin PercentageInventory Turnover Rate We credit professionals are finding that in these tough times it...
When the Customer Puts a Specialty Goods Shipment on Hold
I received a call the other day from the president of one of our clients to get my thoughts from a credit and collection perspective on what to do with a shipment that their customer put on hold. Our client, a specialty plastics film manufacturer, received an order...
Dear Crabby — We’re Losing Customers Left and Right
Dear Crabby, I’ve been reading your column for a long time and I can’t believe I’m actually writing to you. But here I am and I’ve got a big problem. As the credit and collection manager for a small wholesale distributor (there are only six of us at the company), it...
What are your thoughts?
How much can a company save per year when letting an employee work from home? $3,000$6,500$7,500$9,000$11,000 According to current data compiled and published by the marketing firm, Review42, $11,000 is how much companies can save annually for each employee that...
Getting the Basics of the Creditors Committee in Chapter 11 Cases
As most of you have already noticed, bankruptcies are on a dramatic rise. According to the American Bankruptcy Institute, it’s estimated that in 2020 there will be about 7,300 total commercial filings. This is a 30% increase over 2019, in which there were 5,519...
Hector the Collector — Ding Dong ….. “Anybody home?”
Hi Everyone! It’s Hector and I’ve been hearing from a few of you regarding what to do with onsite visits to your customers during this pandemic. During our pre-pandemic days, from time to time when a commercial customer became delinquent, the sales or...
What are your thoughts?
Are Americans’ Credit Card Balances: • Increasing • Decreasing • Staying about the same According to current data from the Federal Reserve) revolving credit debt has declined for the third month in a row. Specifically, revolving credit debt dropped to $995 billion in...
Are Personal Guarantees Making a Comeback?
Not to sound cliché, but extraordinary times call for extraordinary measures. With the economy struggling, and even customers that we thought were “built to last” experiencing tight budgets and cash flow problems, we never know who the next serious past due account...
Dear Crabby — My Teenager Got Hold of Our Customer Data
Dear Crabby, I’m the accounting and credit manager at a mid-sized shipping company and over the past few months, almost all the staff are working from home. In view of keeping safe and well, working remotely has been both a blessing and a curse. I have three teenage...
What are your thoughts?
Which sectors are on target to surge during this pandemic? Light Consumer ManufacturingHeavy Equipment ManufacturingAgricultureGamblingRetail Alcohol Beverage To say the COVID-19 pandemic and its ensuing lockdown have caused a considerable hole in the world’s...
The Post Pandemic Credit Manager’s Role
Like many of you, I’m taking several deep breaths as the business community carefully moves forward from a self-imposed 2-3 month hibernation. Stepping out carefully to adhere to the working normal, we are grateful for still being able to fully support our clients for...
Hector the Collector — I Need a New Collection Strategy
Hi Everyone! It’s Hector and I believe many of you are working at companies that are starting to reopen after a few months of being either partially or fully closed. I’ve been hearing from several credit and collection managers who have begun calling customers and...
What are your thoughts?
Off the top of your head, how much do you think the U.S. National Debt is? $6 trillion$10 trillion$15 trillion$19 trillion$26 trillion Answer: As of May 2020, the National Debt reached a whopping $25.75 trillion! Given that the national debt has...
When the Going Gets Tough….
In these trying and emotional times, when our lives have been horribly disrupted by health and financial challenges, we still need to get up every day and do things to retain some semblance of normalcy. Some of what we do may be new and refreshing, and other...
Dear Crabby — I’m Bored!
Dear Crabby, As the credit manager at a small tools manufacturing and distribution company of 50 employees, we’ve been closed since April 1st and it looks like we’re going to be closed for the rest of May. Fortunately, during this time our company has continued to pay...
What Are Your Thoughts?
How long will it take for the U.S. economy to recover from the Corona virus shutdown? 6 months1 year2 years5 yearsAnyone’s guess If you ask 100 economists when the U.S. economy will recover, you may very well get 100 opinions. With unemployment numbers...
We Are Fully Supporting You During This Unprecedented Time!
Dear Clients, Colleagues, and Friends,Without question, whether it's customers or suppliers, everyone is concerned about their business and how other businesses may affect them. With the latter in mind, I am pleased to inform you that as your collection outsourcing...
Your Health Is Our Utmost Concern
For the month of March 2020, I was planning on sending out our regular newsletter but in view of the Coronavirus pandemic, I thought it would be more appropriate to address this issue with some thoughts and ideas for your consideration. The first thing I...
To Centralize or Decentralize the Overseas Credit Function
As a credit risk management professional, I’m often requested by clients to share my thoughts on various credit risk management issues. One topic that recently came up was whether the company should centralize each global credit operation into one very large hub in...
Communicating with a Debtor Who Is Grappling with a Dire Situation
Hi Everyone, One of the things that I’ve been hearing about recently is the difficulty in trying to communicate effectively with a debtor who is experiencing a dire family or employee issue. Specifically, it’s not your usual “so when will payment be forthcoming and...
CMI Trivia Quiz – When was the first bankruptcy law recorded?
When was the first bankruptcy law recorded? 512 AD China 1313 Venice 1542 England 1789 France 1800 U.S Answer: 1542 England In England, the first official law concerning bankruptcy was passed in 1542 under Henry VIII. At that time, a bankrupt individual was considered...
When Accountants Let Creditworthiness of New Clients Slide
As tax season is now upon us, there’s often the opportunity for accounting firms to take on new business clients. Without question, it’s always nice whenever a new client knocks on the door and there’s the hope that a small initial tax return can gradually evolve into...
Finding a Solution for a Less Stressful New Year’s Resolution
Dear Crabby, Another year has passed by quickly and I'm looking towards this new year with hope and promise. As the credit and collection manager at a small company, my work is always very busy, which I generally love. I especially feel good when I can support the...
CMI Trivia Quiz
Which President held the position as a credit reporter during his lifetime? John Quincy Adams Abraham Lincoln Ulysses S. Grant Grover Cleveland William McKinley Jimmy Carter Answer: You’ll be very surprised to learn that Abraham Lincoln, Ulysses S. Grant, Grover...
Walking in a Winterwonderland
https://youtu.be/u6XqSoyo_ZY
Can We Talk?
It’s so nice to have customers you feel are good as gold. They’re the ones who’ve been with you for years — maybe even generations. They order on a regular basis, in large amounts, and always pay on time. They’ve contributed to your company’s long-term success and...
Why Did the Chicken Cross the Road?
Hi Everyone! You may not know this about me but I’m generally the type of person who loves a good joke and enjoys gently teasing people. I especially try to cheer people up in the office when they’re feeling a little blue by making a funny face (you have to see it to...
CMI Trivia Quiz
In which country or kingdom was the concept of debits and credits formally established? China India England Persia Venice Egypt Answer: Both India and Venice The concept of debits and credits as a financial transaction classification system was first used and...
What I Look for in Choosing a New Credit Manager
From time to time a few of our clients will find themselves without a credit manager and have reached out to CMI for assistance in finding a replacement. This request is not an easy one since by virtue of its products, services, size, number of employees, and the...
I’ve Got to Be a Witness at a Collection Trial
Dear Crabby, I can’t believe I’m actually writing to you but glad you’re there to give me some badly needed advice. Our company is on the east coast and about one year ago we sent a claim for $25K to a collection attorney on the west coast, nearby the debtor. From the...
CMI’s Trivia Quiz
As recognized by the United Nations, there are currently 180 currencies across the world. Among all these currencies, how many countries do you think call their currency the "dollar?" 8 20 32 44 51 Answer: 20 The “Dollar" (symbol: $) is the name of 20 currencies,...
Getting Past the Obstructions of Deductions
For many companies, deductions continue to be a serious problem that are costly, cause confusion, and impact customer relationships. Usually the reasons for deductions fall into one of the following categories: 1) Pricing errors between the invoice and the purchase...
I Love Paris in the Springtime, I Love Paris in the Fall….
Hi Everyone! I absolutely adore that song, "I Love Paris," written by Cole Porter and published in 1953. As the “City of Lights”, this song embodies the romance and grandeur of Paris that has captured the imagination of millions around the world. Now, cutting right to...
CMI’s Trivia Quiz
Among all of the well-known credit cards today, which one was the first to be introduced as a dining and entertainment credit card? American Express Mastercard Discover Visa JCB Diners Answer: Diners According to historian Jonathan Kenoyer, the concept...
The CMI Spirit – Adam Carliss
CMI is delighted to spotlight Adam Carliss for our September newsletter. Please read through his interview which conveys his passion for CMI, the collection business, and his zest for life. Q-1: What was the initial opportunity that brought you to CMI and into this...
Six Points for Getting Out from Under Cash Flow Crunches
Unless you're a company that is extremely cash rich or can turn on the credit line spigot with your bank just by clearing your throat, most companies from time to time will have a crimp in their cash flow. For some companies, this is a short and temporary situation,...
