by Nancy Seiverd | Oct 13, 2020 | Uncategorized
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...
by Nancy Seiverd | Sep 9, 2020 | Feature Article
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...
by Nancy Seiverd | Sep 9, 2020 | Dear Crabby
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...
by Nancy Seiverd | Sep 9, 2020 | Uncategorized
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...
by Nancy Seiverd | Aug 11, 2020 | Feature Article
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...
by Nancy Seiverd | Aug 11, 2020 | Hector the Collector
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...
by Nancy Seiverd | Aug 11, 2020 | Uncategorized
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...
by Nancy Seiverd | Jul 14, 2020 | Feature Article
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...
by Nancy Seiverd | Jul 14, 2020 | Dear Crabby
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...
by Nancy Seiverd | Jul 14, 2020 | Uncategorized
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...
by Nancy Seiverd | Jun 9, 2020 | Feature Article
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...
by Nancy Seiverd | Jun 9, 2020 | Hector the Collector
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...
by Nancy Seiverd | Jun 9, 2020 | Uncategorized
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...
by Nancy Seiverd | May 12, 2020 | Feature Article
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...
by Nancy Seiverd | May 12, 2020 | Dear Crabby
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...
by Nancy Seiverd | May 12, 2020 | Uncategorized
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...
by Nancy Seiverd | Apr 7, 2020 | Feature Article
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...
by Nancy Seiverd | Mar 18, 2020 | Feature Article
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...
by Nancy Seiverd | Feb 11, 2020 | Feature Article
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...
by Nancy Seiverd | Feb 11, 2020 | Hector the Collector
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...
by Nancy Seiverd | Feb 11, 2020 | Uncategorized
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...
by Nancy Seiverd | Jan 7, 2020 | Feature Article
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...
by Nancy Seiverd | Jan 7, 2020 | Dear Crabby
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...
by Nancy Seiverd | Jan 7, 2020 | Uncategorized
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...
by Nancy Seiverd | Dec 17, 2019 | Uncategorized
by Nancy Seiverd | Nov 12, 2019 | Feature Article
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...
by Nancy Seiverd | Nov 12, 2019 | Hector the Collector
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...
by Nancy Seiverd | Nov 12, 2019 | Uncategorized
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...
by Nancy Seiverd | Oct 8, 2019 | Feature Article
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...
by Nancy Seiverd | Oct 8, 2019 | Dear Crabby
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...
by Nancy Seiverd | Oct 8, 2019 | Uncategorized
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...
by Nancy Seiverd | Sep 10, 2019 | Feature Article
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...
by Nancy Seiverd | Sep 10, 2019 | Hector the Collector
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,...
by Nancy Seiverd | Sep 10, 2019 | Uncategorized
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...
by Nancy Seiverd | Sep 10, 2019 | Employee Spotlight
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...
by Nancy Seiverd | Aug 13, 2019 | Feature Article
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...
by Nancy Seiverd | Aug 13, 2019 | Dear Crabby
Dear Crabby, I’ve been the person in charge of credit at my company (over 200 employees) for the past two years, and I’m the third credit professional in the last eight years to have this position. I found out that the turnover was rather high (they left on their own)...
by Nancy Seiverd | Aug 13, 2019 | Uncategorized
In terms of developing a credit scoring model, which benchmarking approach do you think would work best? Process benchmarking Financial benchmarking Functional benchmarking Best-in-class benchmarking Operational benchmarking Before we give you our answer, let’s take a...
by Nancy Seiverd | Jul 15, 2019 | Feature Article
As originally published in the Credit Research Foundation 2Q 2019 CRF News. Have you ever thought about from where the concept of benchmarking originated? Like most people, I never really gave it much thought. But interestingly, way back in the days before mass...
by Nancy Seiverd | Jul 15, 2019 | Hector the Collector
Hi Everyone! One of the most exciting sports I enjoy watching is beach volleyball. It’s not just the extreme difficulty of running and moving around so quickly on the sand that boggles the mind, but it’s seeing how two players work together with such agility and...
by Nancy Seiverd | Jul 15, 2019 | Uncategorized
Which financial ratios should credit professionals rely on the most? a) Profitability ratios b) Liquidity ratios c) Management Efficiency ratios d) Leverage ratios e) Valuation & Growth ratios There really is no right answer. In my view, it’s wide and various as...
by Nancy Seiverd | Jun 19, 2019 | Feature Article
In the Wild West days of collections, collectors went out to the customer’s location to “persuade” them to make good on their payment obligations. Unfortunately, the term “persuade” didn’t always have the best of meanings and other terms, such as “intimidate and...
by Nancy Seiverd | Jun 19, 2019 | Dear Crabby
Dear Crabby, I work at a mid-size company of about 150 employees and I’m part of a team of four collectors. I’ve been working at my company for over fifteen years and I have the title, Senior Collector. Over the past few months I’ve noticed that I’m getting more...
by Nancy Seiverd | Jun 19, 2019 | Uncategorized
Since many readers where both pleasantly surprised and challenged from our last crossword puzzle, please enjoy exercising your credit and collection mind.
by Nancy Seiverd | May 16, 2019 | Feature Article
If every company manufactured and delivered their products and services perfectly all the time, the courts would be a very quiet and boring place to work. The reality however is that commercial disputes come in all flavors, colors, shapes, and sizes in which the sheer...
by Nancy Seiverd | May 14, 2019 | Hector the Collector
Hi Everyone! As collectors, we’ve often been trained to overcome the objections with replies and sound bites that quickly neutralize the reasons why someone can’t or won’t pay. However, there are times that we need to step back and explain “what happened” in...
by Nancy Seiverd | May 14, 2019 | Uncategorized
How many different kinds of bank letters of credit are there? • 3 • 4 • 5 • 6 • More than 6 Answer: More than 6 A letter of credit (LC), also known as a documentary credit, bankers commercial credit, or letter of undertaking (LoU), is a payment...
by Nancy Seiverd | Apr 17, 2019 | Feature Article
As many of you already know, the last step in the collection process on a commercial delinquency is the filing of a suit against the debtor, especially when the balance due is large and there remains some viability of collecting. Although every effort is taken...
by Nancy Seiverd | Apr 17, 2019 | Dear Crabby
Dear Crabby, I’m the accounting manager at a small wholesaler and like many small companies, we have just a handful of clients. Although there’s the general formula that 20% of your clients make up 80% of your sales, in our case we have one client that makes up 80% of...
by Nancy Seiverd | Apr 17, 2019 | Uncategorized
This is a hard one but take a stab at it. How many countries have declared bankruptcy over the past 200 years? • 15 • 35 • 68 • 83 • 111 Answer: A total of 83 countries, including the world’s biggest economies such as the U.S., Germany, Japan, and...
