Should a Final Demand Letter Be Sent?
It’s so frustrating when our customer doesn’t pay, especially after we have fulfilled all of our obligations to provide the products or services with the utmost total customer satisfaction possible. Subsequently, when we start to get some payment delays, which turn...
Hector the Collector – Taking It Up the Transportation Claim Ladder
Hi Everyone, It’s Hector here and hope your summer has begun with a lot of nice weather. Recently, I received an interesting email from a well-known logistics carrier explaining a claim situation that kind of stumped me. Back in the Spring of 2022, goods were...
Take the Poll – How many times have your credit decisions been overridden in favor of sales?
When economic times get tight and companies are vying to take business from their competitors, there may be a tendency for credit decisions to take a back seat to sales, especially on a potential customer that truly is not creditworthy. At...
What NOT to Get Your Mother on Mother’s Day
It’s coming up to Mother’s Day again and for all those who still have their sweet and tender mothers (this also includes wives, grandmothers, mothers-in-law, and anyone who might fall into the “mother” category), trying to find that special gift can be a...
How Recession Proof Are Credit & Collection Positions?
Are credit and collection positions immune to the difficulties that a bad economy can often bring with it? In strong economies, when business is booming and customers have more than the usual amount of cash to pay their debt obligations on a timely...
Dear Crabby – I’ve Been Told My Gravelly Voice Is Not Good for Collections
Dear Crabby, I’m the collection person at our company and I’ve been employed here for decades. About two years ago I had an illness that kind of wiped me out and I was off work for several months. Although I made a complete recovery, there were some physical changes...
Take the Poll – You have overlooked a customer that you now realize is 75 days past due. Do you:
I was talking with a client recently and they mentioned how they misapplied a payment received from Customer A to Customer B. From time to time this happens in every organization, especially if company names are very similar. However, if Customer B...
Six Surprising Health Benefits to Gardening
It’s April and as I walk around the neighborhood, I’m enjoying seeing all the flowers coming up. First there are the daffodils, followed closely behind by the tulips. There is one house that always has a magnificent display of flowers throughout the spring, summer,...
Letting Friendships Override Credit and Legal Protocols
We recently received a claim for quite a large amount at about six months passed the due date from a regular client we have supported for many years. During our long relationship, I’ve become good friends with the credit manager who has worked at her...
Hector the Collector – Avoiding the Collection Puddles
Hi Everyone, It’s Hector here! Not sure what’s happening by you but in my neck of the woods, there have been a lot of April showers. The streets have become a little flooded, there are puddles everywhere, and the weather continues to be gray, drizzly, and cold....
Take the Poll – As a credit professional, have you ever asked your customer to provide a certificate of business insurance?
As per Investopedia, "A certificate of insurance is a document provided by an insurance company, agent, or broker to prove the existence of an insurance contract between the insurer and the insured. It includes such information as the name of the...
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...