Is Your Debtor Honest, Evasive, Aggressive or Deceptive?
With all of my years in the credit and collection field, I have probably spoken to thousands of debtors of every kind. Without question, it has been a tremendously valuable lesson in understanding the psychology behind the payment of money. From this life-long...
Don’t get hung up on!
Hi Everyone, From time to time I receive a claim in which the creditor has forewarned me that the debtor hung up on them. Subsequently, when I called the debtor, they told us that the creditor was saying this and that and they needed to abruptly end the call. Although...
CMI’s Credit & Collection Crossword Puzzle
Whether you're an industry veteran or just starting out, we know readers like you want to be challenged! Please take a few minutes and give our CMI Credit & Collections Crossword Puzzle a good old college try. We know you’ll enjoy testing your credit and...
The CMI Spirit – Vaughn Williams
As we are delighted to spotlight Vaughn Williams for our March newsletter, please read through his interview, which conveys his passion for CMI and the collection business. Q-1: What was the initial opportunity that brought you to CMI and into this industry? A-1:...
Five Important Points to Charging Interest
Like Ernie is discussing with Bert, including interest on past due accounts is not always an easy idea to implement. As a case in point, not too long ago our office received a claim for $85,000 for the sale of electrical supply products. In reviewing the statement of...
I Have a Secret Collection Amore
Our company is a small business with about thirty employees and I have been there about five years as the person in charge of collections. After I arrived, I inherited a long time customer who always had a very up and down payment record with us. Although he would pay...
CMI’s Credit & Collection Trivia Quiz
In which ancient kingdom or empire were the concepts of accounting first developed? Egypt Greece Mesopotamia Phoenicia Babylon Answer: Mesopotamia and Babylon Accounting records dating back more than 7,000 years have been found in Mesopotamia showing lists...
The Four I’s of the Credit Application Process
As we enter this New Year, I’d like to share some thoughts with you on the importance of improving and strengthening the credit application process. Information - In many companies, even prior to any sales proposals and contracts, the credit application is the first...
My 10 HOPES for the New Year!
Hi Everyone, It’s Hector the Collector and now that the New Year has begun, it’s also a time for me to set some HOPES for this year. I use the word “HOPES” because every year when I proclaim my “resolutions," I just get too overwhelmed trying to make them a reality....
CMI’s Credit & Collection Trivia Quiz
In which country, principality or city was the first stock exchange established? China Venice Belgium London Constantinople Answer: Technically Belgium but credit will also be given for choosing Venice. Please read below. When people think of stock...
Have A Holly Jolly Christmas!!!
https://youtu.be/mWgi4ivAlJE
When a Mobile Number Can Make or Break a Claim
One of my passions is sharing some of our collection stories with our readers as a way of imparting advice or knowledge that I feel can be of help. This story goes back a year or so when we received a claim from a new client against a customer with whom they had only...
My Debtor Speaks Gobble Gobble!
Dear Crabby, I meant to reach out to you much sooner as I’ve got a customer (very small business, 2-3 employees) who rambles on and on with a new excuse each time I call them to make their payment. For example, four months ago the problem was due to severe cash flow...
CMI’s Trivia Quiz
Which group of people developed the first cheques? The Romans The Vikings The Knights Templar The Merchants of Venice The Founding Fathers Answer: The Romans The ancient Romans are believed to have used an early form of cheques known as praescriptiones in the...
When Marketing Tools Can Help the Credit Department
As credit professionals we are always on the lookout for ideas that will improve our credit goals. Surprisingly, those ideas may come from unlikely places. It’s not very often that we think of the intersection between marketing and credit. In fact, we usually see the...
Walking the Thin Line of Sympathy
Hi Everyone, It’s Hector the Collector and as always, I enjoy sharing my collection ideas with you. As I was recently asked about how far collectors should go in getting involved in a debtor’s personal struggles, let me take a moment to share my thoughts on this...
The CMI Spirit – Eric Allen
As we are delighted to spotlight Eric Allen for our October newsletter, please read through his interview which conveys his passion for CMI and the collection business. Q-1: What was the initial opportunity that brought you to CMI and into this industry? A-1: I've...
CMI’s Trivia Quiz
Which country was the first to use paper as money? a) England b) India c) Spain d) China e) None of the above The answer is (d). The first bank notes were printed on paper nearly 1,400 years ago in China, during the Tang Dynasty. At first they were used for exchanges...
Does Your Sales Team Work With You or Against You?
In our busy world of trying to get new customers and hold on to the currents ones, every company strives to attain three sales and credit goals: to maximize sales safely to maximize cash flow to minimize credit risk, past due accounts and bad debts When these three...
Our Company is Discount Central
Dear Crabby, I’ve been reading your column for some time now and as the accountant at my company who is also managing some of the credit and collection functions, I finally decided to put pen to paper and seek your advice. My company is in the service business,...
Authorizing Credit – Who Makes the Final Call?
I received a call recently from the accounting manager at one of our smaller clients who asked me about what I thought the credit authorization levels within her company should be. I responded that the credit authorization level depends on many factors. Even if I...
Our Collectors Attended Collection Summer Camp
Hi Everyone! It’s Hector the Collector and I hope you’re having a great summer. Here at CMI, we’re having a great time too but it’s not all arts and crafts, fishing, and singing around campfires. Instead, we’ve taken advantage of the summer time by boning up on...
♫ Money Makes the World Go Round ♪ ♫
How I loved the scene from the musical Cabaret with Liza Minelli and Joel Gray when they sung and danced to the song, Money Makes the World Go Round. With the catchy lyrics and foot tapping melody, I feel the song definitely resonates with my profession. Recently, one...
Making Your Collection Partner Part of Your Credit Dream Team
Hi Everyone! It’s Hector the Collector and I hope that as part of your spring cleaning, you’re sweeping out winter’s past due receivables and handing them over to your collection partner. For most businesses, once a claim is placed, the next time they may want to hear...
The CMI Spirit – Desiree Shelley
As we are delighted to spotlight Desiree Shelley for our April newsletter, please read through her interview which conveys her passion for CMI and the collection business. Q-1: What was the initial opportunity that brought you to CMI and into this industry? A-1: At my...
It’s Not My Fault
Dear Crabby, I’m at my wits end and I need to vent! To make a long story short, as the credit and collection manager at our mid-sized home interior decorating company, I’ve got dozens of past due accounts where the customer wants to pay but is holding back until we...
Getting Our Arms Around Conglomerates and Other Entities
Broadly speaking, conglomerates are huge multinational and publicly traded corporations that either partially or fully own a number of other companies in a wide array of industries. One of the most well known conglomerates is Berkshire Hathaway, which has throughout...
The CMI Spirit – Sharon Smith
As we are delighted to spotlight Sharon Smith for our March newsletter, please read through her short interview which conveys her passion for CMI and the collection business. Q-1: How long have you been working at CMI and as the Collection Coordinator? What was the...
When You’re Pressured to Approve the Last Minute Month End Order
Hi Everyone! It’s Hector the Collector and like myself, I’m sure you’ve been having a very hectic winter season. Last month was particularly busy with our sales team doing a great job getting so many new customers. All of this new business has certainly given us a...
Why You Need to Look Carefully at Your Customer’s Bank Credit Line
As we credit professionals hurry to gather all of the substantiating documentation to evaluate a customer's creditworthiness, which may include the customer's financial statements and trade and bank references, not much thought may be given to the timing and amount of...
My Debtor Remembers Me on Valentines Day
Dear Crabby, I’m the credit and collection manager at my company and I have a customer who ended up owing us several tens of thousands of dollars. Since this customer had been with us for a couple of decades, our president agreed to let him pay off the receivable over...
Making Your Credit Department a Proactive Part of the Sales Machine
As credit professionals, we may sometimes find ourselves at odds with the sales department and the executive management. The main reason is that while the sales team is trying to push the credit envelope to reach their sales goals, we’re pushing back trying to protect...
A Look Back in Credit and Debt Collection Time – Ancient Sumer
It is believed that one of the first western urban civilizations, Sumer, is also the place where the first commercial and consumer loans were provided. You may ask, “Where is Sumer?” Sumer is the earliest known civilization in the historical region of southern...
Keeping Oneself Credit Healthy During the Winter Months
Hi Everyone! It’s Hector the Collector and hope you had a nice New Year holiday. As you know, from the Northwest Rockies, through the Midwest, and over here where I am in the Northeast, ringing in the new year has brought with it some brutally cold arctic weather and...
The Credit Manager’s New Year 7 Point Check List
Now that the holidays are over with all of its family, food, and fanfare, it’s time to get back to work. I imagine that except for the few who are super organized, most of us have a pile of papers on our desks that resemble a mini Mt. Everest waiting to be reviewed....
Should a Personal Guarantee Be Included in the Credit Application?
Dear Crabby, Although I’m not formally a credit professional, I was asked a few months ago to take over the credit position at our company. As I plod along, I’m evaluating some of the documentation we use in the credit granting process, which includes our new customer...
When a Debtor Tries to Pull Their Payment Out of a Hat
As a credit and collection professional for a few decades, I've seen my share of ploys by debtors who have attempted to show they have paid. At a minimum, this illusion is an effort to buy a little more time to eventually make a legitimate payment. At a maximum, it’s...
The Meaning of “Giving” in Thanksgiving
Another Thanksgiving is upon us and it’s time for millions of Americans across the US to share a beautiful meal, have lots of laughs, and enjoy one of the most important holidays in our country. Sadly, there are still millions who have no where to go for this special...
How to Turn a Stressful Morning into a Great Day!
Some of us, in spite of spending a lot of time planning our days and weeks, know that with one phone call at 8:00am, our entire schedule can be thrown off and all the things meticulously planned can be put on the back burner. But before we let the backlog of our to-do...
The Pros & Cons of Implementing an Online Credit Application Process
In our world of ongoing technological improvements, it seems that companies are continuously striving to rationalize many aspects of their operations. Whether it’s the assembly line process, in which manufacturing robotics often replace factory workers, many...
Can’t Get the AP Supervisor to Come to the Phone!
Dear Crabby, I’ve been trying for the past several weeks to get my customer's AP supervisor (at a very large company) to come to the phone regarding some past dues. Every time I call I can only leave messages with his secretary and they keep telling me the same...
How Just-in-Time Inventory Systems Can Create a Sudden Cash Flow Crunch
One of the things I greatly appreciate about working with a wide range of clients is that we can learn from each other. Some days I’m the teacher and other days, I’m the student. As every client’s business and credit risk management system has a vast array of...
My Collection Manager Is too Nicey-Nicey
Dear Crabby, I’ve been enjoying your column and now find myself writing to you for help. Our staff collector was trained to be very polite, understanding, and to be reasonably, “accommodating” to our customers, as many of them have been with us for decades. I would...
How a Curious Credit Manager Uncovered a Terrible Fraud Situation
One of the most important aspects in executing the functions of a credit manager is to keep one’s eyes open, especially for the possibility of a fraudulent situation. Although there are countless examples of how fraud can rear its ugly head from internal and external...
The CMI Spirit – Cheryl Carliss
As we are delighted to spotlight Cheryl Carliss for our August newsletter, please read through her short interview which conveys her passion for CMI and the collection business. Q-1: What was the initial opportunity that brought you into the collection profession? How...
When the Debtor Contacts You After Submitting Your Claim
Hi Everyone, It's Hector the Collector here and as always, it’s a pleasure to work with you. Just a quick thought that I'd like to run past you. You know how sometimes a debtor may contact you after you’ve given me the claim and I’ve contacted them? Perhaps you’ve...
Excuse Me, Is this the Argument Room?
From time to time we at CMI receive an inquiry from a potential client with a heads up that their conversation with the customer got a little intense. In a recent inquiry, we were informed that after making several prior requests for payment, suddenly during the last...
The Real Meaning of Being Your Trusted Outsourcing Partner!
What’s the meaning of being a trusted outsourcing partner who can confidently fulfill a range of a client's needs? Every new business relationship is usually met with a dose of skepticism, since the supplier and customer each have their concerns about fulfilling their...
A Signed Credit Application Really Helps Us Help You
Hi Everyone, It's Hector the Collector here and as always, it’s a pleasure to work with you. Just a quick thought that I'd like to run past you. If you could, please kindly include the Customer Credit Application when sending over the claim. As we read over it,...
When Sales Professionals Can Get into the Mind of Credit
Back in February after I published my article, "When Credit Managers Understand the Mind of Sales," I received several requests from credit managers around the world for an article supporting their perspective. As I mentioned last time, when sales and credit...