News

Heading to Credit Congress in June? Explore What's New in Las Vegas

Fri, 26 Apr 2024 00:57:00 GMT

Whether you travel to Las Vegas often or will be a first-time visitor, you'll have no shortage of new attractions to explore if you’re heading to this year’s NACM Credit Congress. A newly opened resort, the skyline-changing Sphere, immersive attractions and several new food and dining options await.

Fontainebleau Las Vegas
Sixteen years after breaking ground, Fontainebleau Las Vegas finally opened in December 2023. The resort, inspired by its namesake in Miami, was approximately 70% complete when construction halted in 2009 amid the Great Recession and financing challenges. After multiple ownership changes, the project resumed in 2021, opened two years later, and has welcomed visitors for the past few months.

Located north of Wynn Las Vegas and across Las Vegas Boulevard from Circus Circus, Fontainebleau Las Vegas seeks to compete with Las Vegas luxury properties. It features more than 30 restaurants and bars, a Miami-styled pool complex and one of the city’s hottest nightclubs – LIV. Whimsical artwork adorns the property, and you’ll never be able to count the multitude of Fontainebleau bowtie logos scattered throughout the resort.

Sphere Las Vegas
Since September 2023, the Sphere has transformed the Las Vegas skyline. The globe-shaped concert and event venue welcomes visitors with ever-changing exterior video displays, unlike anything you’ve seen. The 20,000-capacity interior features a massive LED video screen, a high-tech special audio system driven by thousands of speakers, moving seats and wind simulation.

Most days, the Sphere hosts “Postcard from Earth,” a film by Darren Aronofsky that takes viewers to picturesque locations worldwide. The arena has also featured concert residencies by U2 and Phish, with Dead & Company booked days before and after Credit Congress.

Immersive Attractions
The latest entertainment trend in Las Vegas has brought numerous “immersive attractions” to the Las Vegas Strip. They include:

Play Playground at Luxor: This oversized game room features more than 20 games and welcomes all ages during the day and adults only at night. Games include Bullseye Bounce, where players suit up in Velcro and bounce from a trampoline against a Velcro bullseye, and Perfect Popper, an oversized version of the pop-up board game Perfection.
Arte Museum at 63 Las Vegas (next to Cosmopolitan) is a digital art exhibit that surrounds visitors with breathtaking visuals.
Paradox Museum at Showcase Mall (across from Park MGM) allows guests to take selfies in 90 funny, weird and dramatic scenes. If your Instagram feed needs some help, this is the attraction for you.

Food and Beverage
Las Vegas is home to dozens of fantastic restaurants and bars. New options include:

Brasserie B at Caesars Palace: Bobby Flay’s newest Las Vegas restaurant focuses on French-inspired dishes, including a raw bar, fish, steaks and chops.
Ole Red at Horseshoe: Country singer Blake Shelton recently opened his bar and grill at the corner of Las Vegas Boulevard and Flamingo Road. This multi-story venue features live music and fantastic views of the legendary Bellagio fountains.
Food Halls: Many resorts are replacing buffets with food halls – a more upscale version of the tried-and-true food court. Options opening in the past several years include Proper Eats at Aria, Block 16 at Cosmopolitan, Famous Foods at Resorts World and Promenade at Fontainebleau.

Bankruptcy Filings Increase Across All Chapters

Thu, 18 Apr 2024 13:31:00 GMT

New bankruptcy filings during the first calendar quarter of 2024 (Jan. 1 through March 31) registered year-over-year increases across all U.S. major filing categories, according to data from Epiq Bankruptcy and American Bankruptcy Institute.

Total commercial chapter 11 filings (including subchapter V) registered the largest increase, as the 1,894 filings during the first quarter of 2024 were up 43 percent from the 1,325 total commercial chapter 11s during the same period in 2023. Total overall commercial bankruptcies increased 22 percent in the first quarter of 2024, as the 7,113 filings surpassed the 5,820 commercial filings during the first quarter of 2023. Subchapter V elections for small businesses increased 30 percent to 606 filings in Q1 2024 from the 465 filed during Q1 2023.

The 120,094 total bankruptcy filings represented a 14 percent increase from the 105,497 total filings during the same period last year. Consumer filings increased 13 percent, to 112,981 filings in the first quarter of 2024 from the 99,677 consumer filings during the same period in 2023. Individual chapter 7 filings during the first quarter of 2024 were 66,861, a 17 percent increase over the 57,158 individual chapter 7 filings during the same period in 2023. Individual chapter 13 filings during the first quarter of 2024 were 45,958, a 9 percent increase over the 42,362 individual chapter 13 filings in the same period of 2023.

“As we expected, the upward trajectory in both commercial and individual related bankruptcy filing volumes continue,” said Michael Hunter, vice president of Epiq AACER. “March marks 20 consecutive months that total, individual, and commercial bankruptcy filings have registered monthly year-over-year increases. Factors contributing to this trend are the higher cost of funds and interest rates, a reduction in consumer discretionary spending, higher housing, costs, and a continued drawdown of excess savings. These factors coupled with the post-pandemic anticipated normalization of bankruptcy volumes lead me to believe this upward trend will continue through 2024.”

New bankruptcy filings in March 2024 also registered year-over-year increases across all U.S. major filing categories. A total of 44,453 new bankruptcies were filed in March, up 5 percent from the 42,412 filings registered in March 2023.

Year-over-year commercial filings were up 3 percent to 2,434 compared to 2,372 in March 2023. Commercial chapter 11 filings (including subchapter V) increased 6 percent to 605 versus the 570 filings registered the previous March. Subchapter V elections in March represented the largest monthly increase, as the 217 filings were up 50 percent over the 145 filings in March 2023.

Total individual filings increased 5 percent in March 2024 to 42,019 vs. 40,040 in March 2023. Year-over-year individual chapter 7 filings increased 7 percent to 26,124 vs. 24,455 in March 2023, and individual chapter 13 filings were up 2 percent to 15,844 vs. 15,532 in March 2023.

Toni Nuernberg Prepares for Retirement from NACM North Central

Tue, 26 Mar 2024 16:44:00 GMT

When Toni Nuernberg exits the NACM North Central office on April 30, 2024, she will close out a 46-year association career. In her more than 14 years as president and chief operating officer for Forius and NACM North Central, she has helped navigate the association through numerous changes, including an office move, an identity rebrand and the development of an association management subsidiary.

“The move out of downtown Minneapolis was one of the first major initiatives the board asked me to oversee,” she said. “They had heard from members that coming downtown in the evening for CAP and ACAP classes was inconvenient and expensive, so they wanted to make a change.”

In 2010, the association moved to its current office in suburban Golden Valley, Minnesota. This location includes the Professional Development Center meeting space and plenty of free parking for visiting members and staff.

Two years later, Toni guided the organization through a corporate restructure, establishing the membership association as the parent company and Forius Business Credit Resources as a for-profit subsidiary. That structure immediately had positive tax implications because nonprofit membership dues and education fees are not taxable. Long-term, the new structure protected the association when the COVID-19 pandemic hit.

“Because our employees were positioned under the for-profit, we were able to benefit from a PPP loan,” she said. “A lot of associations couldn’t apply because nonprofits didn’t initially qualify. The restructure made sense regardless, but it enabled us to remain stable during the pandemic.”

In 2017, Toni led Forius through a rebrand in tandem with NACM National and other affiliates in a complete rebrand. The association side of Forius became NACM North Central and adopted brand standards that strengthened its identity as an NACM affiliate.

With associations increasingly dependent on non-dues revenue, Toni recognized an opportunity for NACM North Central to establish an association management company. In 2019, Forius Association Management Services was born as a new for-profit division. Today, FAMS manages six associations.

“Non-dues revenue is critical for associations,” she said. “You can’t keep the lights on with just membership dues. Having additional revenue through the management of UPPO since I came on board in 2009 and subsequently five more associations as we established and expanded FAMS has been crucial.”

Before joining NACM North Central, Toni accumulated more than 30 years of nonprofit management expertise at ACA International, the association of credit and collection professionals, where she worked in a variety of roles, culminating as chief operating officer. She then served as executive director of the Ethanol Promotion and Information Council for a year and a half.

Ultimately, Toni is most proud of coaching Tanya Guy and preparing her to take over the president and chief operating officer role.

“The board did its due diligence but didn’t have any reservations about naming Tanya as my successor,” she said. “That, along with the team we’ve built, is what I am most proud of from a personal and professional perspective.”

As she prepares to leave work life behind, Toni looks forward to spending time with her husband, Doug, their kids and, most of all, their grandkids. She plans to volunteer at their schools and at the senior housing center where her late parents lived. She’s excited to have more time for traveling and fishing.

While she won’t miss being the boss and making all the decisions necessary to run a nonprofit, she will miss the association staff and members. She encourages members to continue spreading the word about NACM’s value to the credit profession.

“It has been a great honor to work for NACM North Central,” she said. “I hope members continue introducing new credit professionals and urging them to engage with and support NACM.”

NACM and Affiliates Roll Out New Mission, Vision and Values

Thu, 21 Mar 2024 14:30:00 GMT

NACM and its regional affiliates have worked together over the past several months to assess who we are as organizations and where we want to go. This project included many discussions with members and requests for feedback.

We listened intently and used what we learned to develop new, unified mission, vision and values statements. These will guide us as we strive to position our members to drive corporate financial success through best-in-class, comprehensive credit insights, credit services, training and education.

Mission
Empowering business credit professionals by providing comprehensive credit insights through information, education, and services while advocating for responsible commercial credit practices.

Vision
Positioning business credit professionals as the foremost corporate asset driving sustained profitability.

Values

Member-Centric: Delivering tailored solutions that build long-lasting relationships based on trust and mutual success.
Community: Fostering collaboration that leverages the collective knowledge of peers and industry experts.
Innovation: Providing cutting-edge credit management solutions that adapt to evolving business needs.
Advocacy: Promoting reliable business credit and financial management practices.
Social Responsibility: Nurturing a culture for positive change and compassion.
Integrity: Prioritizing honesty and transparency in member services, ensuring the highest level of ethical conduct.
Excellence: Maintaining the highest standards in delivering member services; striving to exceed expectations.

Experian Announces Technology Transformation

Mon, 26 Feb 2024 13:52:00 GMT

As part of Experian’s commitment to deliver best-in-class technology and innovative products for clients, Experian’s Business Information Services (BIS) is transitioning its data, attributes, scores and other products to the cloud in 2024.

To streamline the process, Experian conducted a comprehensive validation of its scores. The Experian validation focused on consistency of data, attribute stability and overall model performance to ensure consistent performance through the transition. The objective of this process is to reduce additional analytical efforts for clients.

The Intelliscore Plus (commercial only) and Financial Stability Risk Score validation white papers are now available for review.

Key white paper takeaways:

The predictive metrics for each score align when generated on the existing systems (current state) versus the cloud (future-state).
The impact to scores is insignificant. Adjusting the use of scores in business strategies or score cutoffs is not required.
SBCS, SBFE and blended score white papers will follow.

Reviewing validation artifacts will prepare you for a smooth transition. You can find the validation white papers here. If required, now is an ideal time to consider resource allocation for this phase. Below is a recap of other important milestones.

Key milestones:

Validation white paper and artifacts – Q1 2024
Validation clients – parallel testing window – February 2024 to October 2024 (Q1–Q4)
Net Connect/API hub testing – Q2–Q3 2024
Additional operational data enhancements – Q4 2024
All clients transition to the cloud – October 2024

All clients are expected to transition to the cloud by October 2024. Client-specific migration dates will be provided in future communications.

If you have specific questions, please contact your NACM North Central representative.

The Future of Fraud

Wed, 14 Feb 2024 13:21:00 GMT

Nearly 70% of businesses report that fraud losses have increased in recent years and over half of consumers feel they’re more of a fraud target than a year ago, according to Experian. Today’s fraudsters are sophisticated and will deploy the latest technology, such as generative artificial intelligence, to dupe consumers and businesses.

Experian recently released its 2024 Future of Fraud Forecast, suggesting consumers and businesses watch out for these five fraud threats in 2024.

Generative AI accelerates DIY fraud: The explosive popularity of generative AI has brought many benefits, but it’s also made fraud more accessible. Experian predicts fraudsters will use generative AI to accelerate “do-it-yourself” fraud with a wide range of deepfake content, such as emails, voice and video as well as code creation to set up scam websites and perpetuate online attacks. Fraudsters may also use generative AI to socially engineer “proof of life” schemes. Using stolen identities, fraudsters will leverage generative AI to create fake identities on social media. They can then interact online with these new profiles that look like a real consumer. This could dramatically increase the number of fraud attacks. To safeguard customers, companies will likely have to utilize multilayered fraud prevention solutions that “fight AI with AI.”

Branches are cool again: Although there’s been a substantial migration to digital lending experiences, many consumers are heading in-person to bank branches to open new accounts or get financial advice. Consumers are doing this as they want to feel safer and think they’re avoiding online security risks by being in-person. When it comes to verifying identities at the branch, there can be human error or oversight that can happen in-person. According to an Experian report, 85% of consumers report physical biometrics as the most trusted and secure authentication method they’ve recently encountered, but the measure is only currently used by 32% of businesses to detect and protect against fraud. Experian forecasts that lenders will introduce more digital identity verification steps, such as physical biometrics, at branches for in-person account openings to protect legitimate customers and mitigate losses.

Retailers hit with empty returns: With a rise in online shopping, fraudsters have found creative ways to scam some retailers and small businesses. The customer says they’re returning their purchased item but when the business receives the box, it’s empty. The customer then says they returned the product and it must have gotten lost in the mail. Experian predicts that more criminals will use this method to keep merchandise in 2024, leaving businesses with lost goods and revenue.

Synthetic identity fraud will surge: During the pandemic, many fraudsters created synthetic identities but then quickly found easier methods to steal funds through various aid programs. Though they may have been dormant, these synthetic identities now have a few years of history. Experian predicts this will make it easier to elude detection — leading to fraudsters using those dormant accounts to “bust out” and steal funds over the next year. Businesses will need to collaborate more closely than ever with their fraud-prevention partners to review their current portfolios for synthetic identity accounts.

Fraudsters expand into cause-related and investment deception: From fake GoFundMe campaigns, social media giveaways, investment opportunities and text fraud, fraudsters are employing new methods that strike an emotional response from consumers with cause-related asks or too-good-to-be-real offers to gain access to consumers’ vital, personal information. Experian predicts that these deceptive cause-related methods will surge in 2024 and beyond. To avoid becoming victims, consumers will have to be extremely cautious and confirm these opportunities, charities or texts are from the intended party before interacting with them.

Country Credit Risk Trends Improve

Mon, 5 Feb 2024 13:18:00 GMT

The global economy showed resilience last year in spite of several global shocks, according to the latest Allianz Trade Country Risk Atlas. The trade credit insurance provider upgraded21 country risk ratings in 2023 while downgrading only four. The trend is totally different from that of 2022, when Allianz Trade upgraded only eight country risk ratings while downgrading 17.

“In 2022, our country risk ratings were largely influenced by the repercussions of the war in Ukraine,” said Allianz Trade Head of Economic Research Ana Boata. “But in 2023, the global economy has shown a certain resilience against one of the most aggressive global monetary policy tightening cycles and in the face of some major global shocks. As such, we have upgraded 21 economies’ risk ratings, equivalent to around 19% of the global GDP.”

Africa saw the most upgrades (10), followed by Europe (6), while only China and Uruguay saw their country risk trajectories improve in Asia and the Americas, respectively. Africa remains the continent with the greatest difficulties in terms of liquidity and access to international markets at a time when liquidity risk is increasing almost everywhere. Against this backdrop, the current cycle and enduring fiscal and monetary policy efforts may trigger further upgrades in the Americas, with Africa and the Middle East most likely to fall behind, according to Boata.

Overall, when looking at the average of all of Allianz Trade’s country risk ratings, the global risk of nonpayment for companies in 2023 stands slightly above 2 (Medium Risk), stable compared to 2022 and almost back to 2019 levels. Regionally, Africa’s average risk rating stands above 3 (Sensitive), while the Middle East, Latin America and Eastern Europe (incl. Russia) are close to but below 3 (Sensitive). Asia Pacific is slightly above 2 (Medium) and Western Europe and North America are close to 1 (Low).

Looking ahead, several factors could challenge the country risk landscape, leading to more downgrades in 2024. Among the major risk factors identified by Allianz Trade for 2024 are:

Liquidity constraints in an environment of high public and private debt and high interest rates.
Below-potential growth in most regions and lower pricing power for corporates, which will drive revenue growth downwards.
Rising business insolvencies (+8% globally in 2024), with Europe and the US leading the acceleration.
Changes in global supply chains, which could take a toll on countries with twin deficits, mainly on current account balances.
Increasingly polarized geopolitics in a packed election year, with economies accounting for 60% of global GDP heading to polls.

View the Country Risk Atlas.

Business Leaders Split on Recession Forecasts

Fri, 5 Jan 2024 15:13:00 GMT

Following a year marked by banking industry disruption, geopolitical risks and sustained macroeconomic challenges, small and midsize business leaders are sharing a more balanced outlook heading into 2024, while pulling back from previous predictions of a near-term recession, according to JPMorgan Chase’s 2024 Business Leaders Outlook survey.

Expectations for a recession, widely held by both small and midsize business leaders at the start of 2023, have moderated following a year of better-than-expected economic growth. In the new survey, 40% of midsize and 51% of small business leaders anticipate a recession in 2024, or believe we’re already in one, down from 65% and 61%, respectively, one year ago. However, almost as many midsize business leaders (38%) say they don’t anticipate a recession in the year ahead as those that do, while 30% of small business leaders don’t anticipate a recession.

Amidst mixed economic signals, midsize business leaders are nearly evenly split in their outlook on the national economy, with 31% optimistic, 34% pessimistic and 36% remaining neutral. While this year’s optimism is higher than the 22% reported a year ago, it remains at historically low levels for the survey. When it comes to the local/regional economy, the outlook is rosier but still mixed, with 44% expressing optimism and 35% remaining neutral. For small business leaders, optimism for the national economy slightly dipped from 49% one year ago to 43% today, and perspectives on the local economy followed suit with 46% expressing optimism compared to 50% previously.

Business leaders are maintaining upbeat projections for their own companies in the year ahead with more than two-thirds of small and midsize business leaders optimistic about their company’s performance. The majority of midsize business leaders are expecting increased revenue/sales (61%), though these expectations are more tempered compared to previous years. Meanwhile, the 69% of small business leaders expecting increased revenue/sales is in-line with the highest levels recorded by the survey. Both small and midsize leaders anticipate greater profits (66% and 55%, respectively).

Small and midsize businesses continue to be vexed by some of the key issues they've faced for years, namely labor and inflation, even as they have tried to adapt and solve for these challenges. More than half of midsize business leaders (54%) cite labor-related issues – including shortages, retaining, recruiting and hiring – as one of their most significant challenges, followed by uncertain economic conditions (47%), revenue/sales growth (39%) and rising interest rates (36%). The labor challenges come as 86% of midsize business leaders say they expect to add to or maintain their current headcount in the next 12 months.

More than one-third of small business leaders (35%) report inflation as one of their most significant challenges, with rising taxes (19%) and the ability to grow sales/revenue (18%) also top concerns. The inflation worries persist as 90% of small business leaders say it has had at least some impact on their expenses, and the majority expect rising costs in areas like labor, energy and materials to continue. Despite this, 41% of small business leaders said that inflation will motivate them to accelerate their business plans, rather than scale back on (26%) or maintain (33%) current operations.

Read the survey.

Report Reveals 20% Rise in Identity Fraud

Fri, 15 Dec 2023 19:20:00 GMT

Overall identity fraud incidents are up 20% compared to last year's findings, according to the Veriff Identity Fraud Report 2024. This overall increase is a result of the rise in impersonation fraud and the availability of more advanced attack methodologies and tools.

As more advanced technology becomes available to fraudsters, detecting and defending against attacks and infiltration attempts becomes more difficult. This is particularly true in gaming, payments and eCommerce, which each saw respective fraud increases over the past year of 47.5%, 54% and 40.3% compared to data from 2022.

Identity fraud has been the most common type of fraud in 2023. According to Veriff's report, essentially 1 in 15 verification attempts (approximately 6%) was a person pretending to be someone else). Veriff's data also revealed that 85% of fraud was categorized as impersonation fraud, which includes the use of someone else's document or the person or document not being present for verification. The remaining 15% consisted of document fraud (13%) and digital and physical man-in-the-middle fraud (MITM) (2%). MITM involves coercing the victim to access accounts, make transactions or tech support scams.

Fraudsters are opportunistic and take advantage of the variety of tools at their disposal. They test out several methods on a target until they find a vulnerability, and then exploit that vulnerability until they are stopped. Therefore, it is impossible to adopt a one-size-fits-all approach or to imagine that a growing company can deploy just one tool to tackle every type of fraud it faces across a complex global and sectoral landscape. Instead, holistic fraud prevention strategies featuring a flexible, multi-faceted approach that employs biometrics, IDV, crosslinking and more are required to successfully combat fraudsters.

Read the full Veriff Identity Fraud Report 2024.

WeWork Bankruptcy Fuels Commercial Chapter 11 Increase

Fri, 8 Dec 2023 18:13:00 GMT

The bankruptcy filing by WeWork Inc. in November propelled November commercial Chapter 11 filings to 842, an increase of 141 percent over the 349 filings registered in November 2022, according to data from American Bankruptcy Institute and Epiq Bankruptcy.

The case filed by WeWork Inc. on Nov. 6 included 517 related filings, according to an ABI analysis, representing the third-most related filings in a case since the Bankruptcy Code became effective in 1979.

Overall commercial filings increased 21 percent to 2,252 in November 2023, up from the 1,864 commercial filings registered in November 2022. Small business filings, captured as subchapter V elections within Chapter 11, increased 79 percent to 181 in November 2023, up from 101 in November 2022.

Total bankruptcy filings were 37,860 in November 2023, a 21 percent increase from the November 2022 total of 31,187. Individual bankruptcy filings also registered a 21 percent year-over-year increase, as the 35,608 in November 2023 represented an increase over the 29,323 filings in November 2022. There were 20,250 individual Chapter 7 filings in November 2023, a 23 percent increase over the 16,421 filings recorded in November 2022, and there were 15,280 individual Chapter 13 filings in November 2023, a 19 percent increase over the 12,862 filings the previous November.

Most categories of bankruptcy filings decreased slightly from the previous month. Only commercial Chapter 11 filings registered an increase, bolstered by the WeWork filings. Commercial Chapter 11s increased 31 percent from October’s 645 filings. Total and consumer bankruptcies decreased by 7 percent compared to their respective October filing totals of 40,663 for total filings and 38,287 for consumer filings. Individual Chapter 7s dropped 9 percent, and Chapter 13s decreased 4 percent from October’s filings. Overall, commercial filings fell 5 percent from the 2,376 filings registered in October. Subchapter V elections within Chapter 11 declined 2 percent from the 185 filed in October 2023.

Demand For Cross-Border Payments Projected To Accelerate

Wed, 22 Nov 2023 19:08:00 GMT

Small businesses are increasingly reliant on international payment networks with three in five sourcing more suppliers internationally than they were 12 months ago. Two in three expect to source more abroad in the coming year, according to Mastercard's new borderless payments report. The primary remittance-related challenges facing consumers and businesses include late or failed payments, the risk of fraud and the effects of being unable to support their own in-country payments.

The report is based on the views of over 11,000 consumers and small businesses across 15 different markets in the Americas, Europe, the Middle East, Africa and Asia Pacific.

This growth in international remittance options – each with different features and guarantees – has delivered a mixed experience for individuals and businesses, with a third of consumer respondents (32%) and nearly four in ten (37%) small businesses having experienced a failed or late payment.

About half (47%) of those businesses who experienced a late or failed payment say the experience has made them far less confident using cross-border payments. As a result, 46% of these small businesses say they now opt to use domestic suppliers instead even if the cost is higher.

The potential for fraud remains a concern when sending money both domestically and internationally. The report reveals people are more likely to have been a victim of domestic payment fraud (23%) than cross-border (17%), yet the struggle to get money returned from both types is evident. Two-thirds of people who were a victim of domestic (66%) and cross-border (71%) fraud said they received either some or none of their money back.

View the report.

Payment Experience Influences B2B Loyalty

Fri, 17 Nov 2023 18:44:00 GMT

According to a new survey, 72% of business buyers are more loyal to a business that offers their preferred payment methods. The Data Is In: B2B Buyers Expect a Better Payments Experience study of 300 global business buyers, conducted by Murphy Research on behalf of B2B payments and invoicing network TreviPay, examines the relationship between payment experience and B2B buyer-seller loyalty.

Businesses use multiple payment methods, but 61% of buyers said trade credit or net terms is their leading way to pay. Payment choice is critical for optimizing first-time and returning buyer experiences: 86% of buyers report the ability to pay using their preferred payment method is important, and 83% say having a variety of payment options available is important. Between credit cards and trade credit, the latter helps merchants close larger deals as survey respondents cite transaction limits as a barrier to checkout with credit cards.

The survey also indicates that business buyers expect convenience at all stages of the purchase experience, beginning the moment they onboard with a supplier. Just like with B2C transactions, B2B buyers also expect convenience when making a purchase. Flexibility with payment options is so important that 78% claim it is necessaryfor merchants to offer invoicing, and 51% would switch to a different merchant if it offers flexible net terms (30-, 60-, 90-days to pay). Finally, 80% of business buyers say it’s very or extremely important that merchants conveniently integrate with their ERP platforms.

Lastly, many B2B buyers (78%) need to customize or control certain aspects of their purchasing experience. Considering the unique invoicing needs of business buyers is part of offering a seamless purchasing experience. This could include capturing PO or serial numbers, as well as setting spending limits or preapproved SKUs.

Credit Managers Shed Light on Subchapter V Issues During Meeting with American Bankruptcy Institute

Mon, 13 Nov 2023 15:38:00 GMT

Several business-to-business (B2B) credit managers and bankruptcy attorneys from Lowenstein Sandler recently convened with the American Bankruptcy Institute (ABI) Subchapter V Task Force to exchange invaluable insights gleaned from their cumulative experiences in Subchapter V cases.

These credit managers, who are members of the esteemed National Association of Credit Management (NACM), played a pivotal role in orchestrating this collaborative dialogue, shedding light on critical matters within the Subchapter V landscape.

“The credit managers who participated in this opportunity gave the entire B2B credit industry a voice when it comes to Subchapter V,” said NACM President Robin Schauseil. “We are thrilled that the Subchapter V Task Force took the time to listen to our members’ concerns.”

The debt ceiling for Subchapter V increased from $2.5M to $7.5M in total noncontingent, liquidated, secured and unsecured debt as part of the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act. NACM members testified that with this increased amount, which will sunset without Congressional action on June 21, 2024, Subchapter V bankruptcies have expanded to include medium-sized businesses rather than only small businesses.the results of its study in a written report.

“We hope the information we provide today will offer a different perspective on Subchapter V and our recommendations for the commission are considered as they move forward,” said Mike Mandell, corporate collection manager at Ryder System Inc. in Miami, Florida. “I have yet to see a Subchapter V plan succeed. The Subchapter V plans that Ryder has been involved in have failed where the customer stops paying.”

Credit professionals testified that debtors should not be able to use Subchapter V to prolong the life of a company that cannot successfully reorganize. A primary concern of trade creditors is the inherent imbalance created by Subchapter V of the Bankruptcy Code. Subchapter V allows small businesses to avail themselves of substantially all of the benefits of a traditional Chapter 11 case through an expedited process at a minimal cost to the debtor. However, the creditors who bear the burden of those benefits are left without the most significant protections of Chapter 11 and, to protect their interests, would have to incur the same costs.

“The lack of disclosures and the reduction of available information for creditors in this subchapter is a major pain point,” said Conrad Ragan, director of corporate credit risk at PepsiCo in Winston Salem, North Carolina.

Trade creditors are the lifeblood of our economy, currently providing approximately $5.6 trillion of capital to businesses in the United States, most of which is extended on an unsecured basis.

“We do business with companies across all industries and sizes, so we have seen quite a few different types of bankruptcies, including many Subchapter V cases over the last few years,” said Jeff Weber, director of credit at Uline in Pleasant Prairie, Wisconsin. “These claims can be made over three to five years, so it creates a burden for us to collect and ensure payments are being made.”

Extra Credit Podcast: A New Way to Learn

Thu, 26 Oct 2023 14:07:00 GMT

by Kendall Payton, editorial associate, NACM

Podcasts have revolutionized our learning by offering a dynamic, convenient and accessible platform. The conversational style makes complicated subjects easy to grasp and allows you to learn at your own pace. That is why NACM created the Extra Credit podcast, so credit professionals have another option for learning and reaching the next generation of credit leaders.

“The podcast team does an excellent job,” said Nathan Hutton, CICP, global credit manager at Donaldson Company Inc. in Minneapolis. “The production quality is top-notch, and the intro music always gets me excited to be educated. Hands down, if credit professionals only have five to 10 minutes to spare each week to learn something new, make Extra Credit the number one priority.”

The podcast format makes it convenient to learn on the go. Even those with the busiest of schedules can still tune in weekly, according to Jill Burns, regional credit analyst at ABC Supply Co. in Beloit, Wisconsin. Being a full-time credit professional and part-time chauffeur to her three kids, Burns appreciates the convenience of the podcast right at her fingertips.

“When I listen to the podcast, I’m in my car, and I’m able to get what I need in those short times,” she said. “It’s helpful for me to get the information I need right away. That way, I’m able to stay regularly informed whether it is an episode on economy trends or even how to use best practices in the day-to-day workplace.”

NACM members can also join the podcast hosts on the other side of their headphones by becoming a guest on Extra Credit. Being a guest on a podcast is a powerful way to establish yourself as a subject matter expert in the credit field. When you share your insights, experiences and expertise with a podcast audience, you showcase your knowledge and demonstrate your passion and credibility. Listeners perceive you as a trusted source of information, someone who can provide valuable guidance and perspectives. Burns was featured on Episode 71: How to Speak the Language of Sales.

“My experience being featured on the podcast was amazing,” she said. “I didn’t expect the reception of being featured on the podcast at all. Several colleagues commented and reached out with insightful thoughts and questions, further continuing the topic afterward, and it connected me with new people in the industry.”

Extra Credit provides many perspectives from credit professionals and allows those listening to learn from shared experiences. “The podcast has become my number one resource,” said Justin Cowart, credit supervisor at Nucor Yamato Steel Co. in Armorel, Arkansas. “It was a new experience for me being featured on the podcast as well because I find it hard to look at myself as an expert on the topic. But I recommend all credit professionals to tune in because it’s a great tool to use!”

Some credit professionals use Extra Credit as a resource to share with those moving up in the industry. The podcast can be especially helpful to the next generation of credit professionals.

“Anything I can do to help those who are coming up behind me, I’m all in favor of it,” said Martin Smith, CCE, CICP, credit manager at Suwannee American Cement Company in Bradenton, Florida.

Smith began listening to podcasts a few years ago. Once he discovered Extra Credit, he added it to his regular line-up playlist.

“If I have five minutes to get a little bit smarter, I take advantage of that time,” he said. “For the person I would like to see succeed me at some point, I encouraged them to get a little bit smarter and tune in when they can.”

Extra Credit is available on Amazon Music, Spotify and the NACM website. NACM releases a new episode every Friday morning. Subscribe so you never miss out. If you are interested in becoming a guest on Extra Credit, please email Annacaroline Caruso, NACM editor-in-chief, at annacarolinec@nacm.org.

Credit Congress Registration Opens with Special Offer

Thu, 19 Oct 2023 12:17:00 GMT

Each year, nearly 2,000 credit professionals gather for NACM's Credit Congress and Exposition, which provides a forum for exchanging information on the most current changes in the field. Attendees get the opportunity to hear from industry experts, network with peers and learn about solutions to help them more effectively manage their companies' risk.

NACM's 128th Credit Congress will be held June 9-12 at the recently renovated Caesars Palace in Las Vegas.

Register by Dec. 8, 2023, for the early-bird rate.

Special offer: Each fully paid delegate is welcome to bring a colleague from the same company who has never attended Credit Congress before—for as low as $249 (early bird rate.)

Learn more on NACM's Credit Congress website.

Report Projects Back-to-Back Acceleration for Global Business Insolvencies

Wed, 18 Oct 2023 13:46:00 GMT

After a small rebound in 2022 (1%), global insolvencies are projected to jump by 6% in 2023 and 10% in 2024, according to the latest Global Insolvency Report from trade credit insurer Allianz Trade.

What’s behind this acceleration? The recession in corporate revenues is gaining traction amid lower pricing power and weaker global demand. As of Q2 2023, the revenue recession has been broad-based across all regions for the first time since mid-2020 (-1.9% year over year). This, combined with continued high costs, is squeezing profitability. As a result, liquidity positions are worsening fast and are unlikely to improve before 2025.

“Companies still have a sizable amount of excess cash, €3.4 billion in the Eurozone and $2.5 billion in the U.S.,” said Allianz Trade CEO Aylin Somersan. “But, these cash buffers remain highly concentrated in the hands of large firms and in specific sectors such as tech and consumer discretionary. And in general, most companies are unable to increase their cash positions through operations in the context of lower-for-longer economic growth. All in all, we expect two accelerations in global business insolvencies, with +6% in 2023 and +10% in 2024, after +1% in 2022.”

The most vulnerable corporates and sectors are caught between a rock and a hard place in 2023, with hospitality, transportation and wholesale/retail on the front line. Other sectors are catching up fast, in particular construction, where backlogs of work have been almost completed – especially in the residential segment.

At the end of 2023, the normalization in business insolvencies will be complete in most advanced economies, and 55% of countries will likely see large double-digit increases, according to the report. This includes the U.S. (47%), France (36%), the Netherlands (59%), Japan (35%) and South Korea (41%). Globally, three out of five countries will reach pre-pandemic business insolvency levels by the end of 2024, including large markets such as the US and Germany. On both sides of the Atlantic, GDP growth would need to double to stabilize insolvency figures, which will not occur before 2025.

“Moreover, in a context of slowing global economic growth, payment terms are likely to lengthen, adding to the rise in insolvencies in the coming quarters: Global Days Sales Outstanding already stand above 60 days for 47% of firms,” Coqui said. “One additional day of payment delay is equivalent to a financing gap of $100 billion in the U.S., €90 billion in the EU and $140 billion in China. With bank loans already drying up for SMEs, closing this financing gap could be a significant challenge.”

Fall Forum Explores Monetary Policy and Economic Implications, Recognizes Credential Recipients

Tue, 26 Sep 2023 14:08:00 GMT

On Sept. 26, 2023, credit professionals gathered at Embassy Suites in Bloomington, Minnesota, for the annual NACM North Central Fall Forum Networking Breakfast.

The event featured keynote speaker Ben Malin, vice president of the Federal Reserve Bank of Minneapolis Research Division. He provided an insider’s perspective on the Federal Reserve’s monetary policy and its economic implications.

In addition to Malin’s insightful presentation, attendees received a report on recent and upcoming NACM North Central activities from NACM North Central Board Chair Craig Pluff. He discussed the association’s education and membership initiatives, upcoming compensation survey, and staff leadership transition to Tanya Guy as Toni Nuernberg prepares to retire in April.

Pluff also recognized 12 members who earned NACM credentials in the past year:

Credit Business Associate recipients: Allison Benge, Rachel Bluemke, Sarah Dillon, Michelle Gleason, Jane Hughes, Kera Le Hu, Leila Maasin and Kayla Prins.
Certified Business Fellow recipients: Tabitha Hanson and Travis Moe.
Certified Credit Executive recipients: Elliott Jenneman and Scott Woitas.

NACM North Central continues to have the highest percentage of credentialed members of any NACM affiliate.

Thank you to attendees, speakers and sponsors for making this year’s Fall Forum a success.

Michelle Ochetti Receives James A. McIntryre Mentoring Award

Tue, 26 Sep 2023 13:43:00 GMT

Each year, NACM North Central recognizes an individual who carries on the association’s rich tradition of mentoring others within the credit profession with the James A. McIntyre Mentoring Award.

The award is named in honor of Jim McIntyre, CCE, whose dedication and enthusiasm for sharing knowledge and helping others have enriched many lives. It has set the gold standard for mentoring within NACM North Central and throughout NACM nationwide.

Anyone within the association may nominate candidates, and previous award winners select the recipients.

This year’s winner, announced at NACM North Central’s Fall Forum Networking Breakfast on Sept. 26, 2023, is Michelle Ochetti, CBA.

Michelle continually supports and encourages her staff to get involved with NACM classes and groups to help them increase their knowledge and network. As an active member in the certification classes and groups, she understands their importance and shares her experiences with others on her team. She provides guidance, motivation and tools to help her team develop their skills and set goals. She listens and gives honest feedback. Michelle has been an NACM North Central Board member and can be counted on for her focus and critical thinking. She is truly dedicated to making a difference in the credit profession.

Congratulations, Michelle, for this well-deserved honor.

NACM Affiliates Announce Credit Professionals Compensation Survey

Tue, 26 Sep 2023 13:24:00 GMT

NACM North Central and other NACM affiliates will soon launch a nationwide Credit Professionals Compensation Survey. This research will benchmark compensation details for each credit department position. Questions will include health insurance, time off, saving plans, the impact of the value of professional designations and emerging trends in credit department hiring.

Due to the highly sensitive nature of the data, NACM is working with HR Source, a firm specializing in secure compensation surveys, to conduct and compile the survey.

Please watch your email on Oct. 3 for an invitation from HR Source. The survey will remain open for four weeks, after which results will be compiled for distribution in January 2024. All participating NACM members will receive a complimentary copy of the report, which will be priced at $200 for nonparticipants.

We urge you to participate in this vital research, and we thank NACM partner UTA for co-sponsoring the survey.

NACM’s Secured Transaction Services: An Extension of Your Credit Team

Fri, 25 Aug 2023 19:10:00 GMT

by Kendall Payton, NACM editorial associate

The construction industry presents unique challenges for credit professionals due to its complicated nature. For example, credit professionals must assess the risk associated with multiple parties involved in a single project. Construction cash flows often depend on project milestones and payments, making it challenging to predict when and how payments will be received.

Given these complexities, credit professionals in the construction industry must deeply understand the industry's dynamics to assess and manage credit risk effectively. NACM’s Secured Transaction Services (STS) acts as an extension of your credit team to help manage the nuances of the construction industry.

STS brings a member-centric customer service aspect by putting members’ needs first. The personal touch behind all services makes STS stand out from competitors. “We are engaged, we are focused, and we are an extension of our members’ credit team,” said Jocelyn Vanlandingham, operations manager for STS in Columbia, Maryland. “Securing rights for our members is a top priority for us, so we handle and review every project as if it were our own.”

Some companies have worked with and used STS for more than a decade, establishing a strong relationship. Ricky Garcia, credit supervisor at Miner, Ltd. in San Antonio, said his company has worked with STS since 2008, along with their management and staff. “STS works at a high level of consistency, promptness and professionalism,” Garcia said. “I believe this sets them apart from their competitors.”

The genuine passion to help credit professionals easily translates into the services STS provides to their customers. STS is managed by credit professionals, for credit professionals, said Anne Scarcella, CCE, CCRA, credit manager at Crawford Electric Supply Company Inc. in Houston. “The information is accurate, timely and important,” Scarcella added. “Customer service, reliability and reputation make NACM stand apart. The website portal is also very user-friendly and clear, and STS does a great job in the services they provide because each service is valuable for credit professionals.”

The STS Lien Navigator provides step-by-step time frames for all 50 states, Washington, D.C., and the Canadian provinces. The Lien Navigator contains links to statute references, quick list sections and "Speed Bump" warnings—cautioning users of nuances in the law. With a Miller Act section, public bond thresholds and values and a robust glossary, the Lien Navigator is a comprehensive guide accessible 24/7.

Sherry Raposo, corporate credit manager at VSS Emultech in West Sacramento, California, said STS has many years of experience in the construction field and preparing preliminary notices. NTO services are especially helpful to credit teams who experience high volumes. “The verification process with NACM’s STS is great because we get updates on when to act on jobs via their reminders, providing our customers with releases monthly,” Raposo said. “The NTO service is a one-stop shop, and we can do all we need to do with the STS program. Not one job has ever been forgotten or overlooked by STS.”

With more than 100 years of experience, STS strives to fulfill all needs of credit professionals in the construction industry. In addition to services such as NTO and the Lien Navigator, STS provides a lien and bond claim filing program, deadline tracking, demand letters, bond payment investigation services, UCC filings, and a waiver manager. Protecting our lien and bond rights to leverage payment and establishing credit on construction projects have been very helpful in our construction credit decision-making,” said Garcia. “The services NACM’s STS provides are essential to our credit department, and we will continue to access their expertise in the construction industry.”

Because STS believes that we are part of your team, your work is our work. STS pays attention to detail, questions things that don’t look quite right, and is always available to consultatively work with you so that together, we make the right decision. “We are a partnership service provider,” said Chris Ring of NACM’s Secured Transaction Services. “We consult with our member customers daily to provide best-in-class services and trusted guidance.”

For more information regarding NACM’s Secured Transaction Services, visit our website or contact STS representatives Chris Ring at Chrisr@nacm.org and Jocelyn Vanlandingham at Jocelynv@nacm.org. You can also join our Construction Credit Thought Leaders Discussion group to connect and network with others in the industry.

Position Yourself as a Thought Leader and Expand Your Impact

Fri, 25 Aug 2023 18:29:00 GMT

by Jamilex Gotay, NACM editorial associate

Thought leaders are the catalysts for change, influencing the trajectory of projects and initiatives in the workplace. The journey toward becoming a thought leader isn't just about personal development; it's a transformative force that drives success, enriches workplace culture and propels organizations toward new heights of achievement.

By joining one or several of NACM’s Thought Leadership Groups, credit professionals can learn to have a greater impact on their companies and give input on strategic business decisions. These groups can lead to lifelong mentorship opportunities to establish yourself or emerge as a credit leader. NACM’s monthly Thought Leadership Groups cover the following topics:

Performance Metrics: Drive confident, data-backed credit decisions and measure performance.
Construction Credit: Explore the nuances of the construction industry, from suppliers to general contractors.
Global Credit Leaders: Discuss the challenges faced with international credit and learn from others who extend credit globally.
Credit Leaders: Credit experts who strategically guide their teams and lead with authenticity.
Technology Leaders: For those who aspire to better their processes and want to use technology more strategically. Discuss automation, portals and dashboards.
*NEW* Emerging Leaders: As an emerging leader, your insights hold the power to shape the future. Secure your spot among the next generation of remarkable leaders.

Credit professionals who routinely attend and participate in Thought Leadership Groups have added value to their credit careers in various ways.

“I’ve listened in on many discussions where people are brainstorming or talking about best practices,” said Esther Hale, ICCE, senior analyst and treasury-global credit at Phillips 66 Company in Bartlesville, Oklahoma, who actively attends the Global Credit Thought Leadership Group. “I take some of those ideas and find where it could fit in my work. I’ve found it very valuable in the fast-paced world of global credit.”

The exchanging of ideas makes for stronger connections and helps you network with other credit professionals. Steven Winn, corporate credit manager at Marek Brothers Systems LLC in Houston, is a member of the Construction Credit, Performance Metrics and Technology Thought Leadership groups.

“Networking not only helps us in our work but makes for a better experience when attending events,” he explained.

These discussion groups act as a safe place to exchange ideas that you can then share with the C-suite.

“In the Performance Metrics group, I was able to take back to the office new ideas for creating dashboards and improving the one we currently use,” Winn said. “The Technology group has been especially enlightening with insights about new automation tools.”

Discussion group participants are high-level credit managers from diverse industries and skill sets. However, most credit managers share one goal.

“There are common grounds, processes and procedures, and because of that, we can learn from one another,” said Sam Smith, senior corporate and collections manager at Crescent Electric Supply Company in Hazel Green, Wisconsin, a founding member of the Construction Credit Thought Leadership Group. “When I have an ongoing issue within my company, I can make it a topic, and if someone has knowledge to spare, they can lead the discussion. If not, we look for a resource to bring in and all learn together. From there, I take the information back and deploy it appropriately within my own company.”

Through sharing information and experiences, credit professionals can make better credit decisions and become stronger credit leaders. “The Global Credit Leaders group keeps me sharp and up to date on current innovations in the global credit world,” Hale said.

Merry Duan, senior strategic account analyst at Bayer Corporation in St. Louis, is a member of the Credit Leaders and Technology Thought Leadership groups and finds it enhances her personal brand.

“It exposed me to different industries and how other companies’ credit management operates,” she said. “I learn new tools every month for how to approach difficult situations or scenarios. I also learned more about skill development, career growth, problem-solving, industry trends, collaboration, access to resources, diverse perspectives and mentorship.”

NACM’s Thought Leadership Groups meet for an hour virtually each month. All who participate can receive .1 CEU toward an NACM designation. You must be a member to join. For more information, click here or email Tracey Lerminiaux, director of education services, at TraceyL@nacm.org.

*NEW* Emerging Thought Leaders will meet on the third Friday of each month at 2 p.m. EST, with its first meeting on Sept. 15. Secure your spot among the next generation of remarkable leaders!
Technology Thought Leaders meet on the second Tuesday of each month at 2 p.m. EST.
Leadership Thought Leaders meet on the second Thursday of each month at 2 p.m. EST.
Construction Credit Thought Leaders meet on the third Tuesday of each month at 2 p.m. EST.
Global Credit Thought Leaders meet on the third Wednesday of each month at 3 p.m. EST.
Performance Metrics Thought Leaders meet on the third Thursday of each month at 3 p.m. EST.

Complete the CMI Survey for a Chance to Win $250

Sun, 23 Jul 2023 21:44:00 GMT

NACM members who complete the Credit Managers’ Index survey every month for the next 12 months will automatically be entered to win one of four $250 gift cards in June 2024.

Responding to the monthly survey takes only about five minutes and requires absolutely no math. The survey consists of 12 credit indicators – number of new credit applications, number of disputes, dollar amount of receivables beyond terms – each with the choices: “higher than a month ago,” “same as a month ago” and “lower than a month ago.”

To make participation easier, NACM recently added a new tool. On the CMI page, click the “Download to Your Calendar” button to add CMI reminder notifications to your Outlook calendar. NACM members can also sign up to receive monthly CMI survey participation email alerts.

View the June 2023 report or past CMI reports.

You Are an Economic Fortune Teller

Sun, 23 Jul 2023 02:35:00 GMT

By Jamilex Gotay, editorial associate, NACM

Credit managers have a special skill that no other professional has—the ability to predict the future. But it’s not based on magic.

Credit professionals are involved in nearly every step of the order-to-cash process, so they have a deep understanding of what drives business and customer behavior. They are inherently forward-looking, as they are always concerned with the chances of getting paid in the future. It is up to the credit department to share this knowledge.

Since its inception in 2003, NACM’s Credit Manger’s Index (CMI) has been a leading indicator in the business cycle. The CMI, a monthly survey completed by credit and collections professionals in the U.S., sounded the alarm for the Great Recession before any other economic indicator. The results reflect the entire cycle of commercial business transactions, providing an accurate, predictive benchmarking tool.

“The CMI data will help you make better credit decisions and adds to the greater knowledge database,” said Gary Juliano, CCE, credit manager at ATI Specialty Materials in Monroe, North Carolina.

Here are three reasons why you should be taking five minutes each month to participate:

Timely Economic Forecasting
The CMI provides monthly, real-time results that can indicate the state of the economy up to six months in advance.

“The CMI started showing weakness in the four months before the COVID-19 pandemic was declared,” said NACM Economist Amy Crews Cutts, Ph.D., CBE. “Unlike GDP, which is revised three times by quarter-end, the CMI results tell you what is changing each month. From a policymaker's perspective or a business strategist's perspective, knowing what is changing in real-time is so much stronger than waiting until it has passed.”

Amy Higgins, CBA, credit manager at Zak Designs Inc. in Spokane, Washington, has taken the CMI survey every month for the last few years to see economic trends month-over-month for her receivables. “I like to compare the CMI results of last month to the current month and look for any red flags in the economy,” she said.

Creditors can use the CMI results to make more informed credit decisions and validate their gut feelings.

“We’re usually a month behind the rest of the industry, so seeing how other companies are performing helps us know what to expect,” said Cathy Klein, controller at Crystal D in Saint Paul, Minnesota, who has actively participated in the CMI for almost 20 years. “When I see CMI results saying sales or payments are starting to decline, I know we’re going into our slower season. That’s when we ramp up our collection calls to stay ahead of the curve.”

Gain Credibility with Upper Management
For publicly traded companies, the CMI helps indicate macroeconomic conditions, especially when presenting for investor days and earnings announcements. For privately held companies that may be speaking to investors, the CMI could help demonstrate their company’s performance or outlook through the CMI results. “Overall, I think that credit managers—more than any other person in the company besides the CEO—have the best view of what’s happening in their company and their industry,” Cutts said.

The CMI can be a valuable tool when building a report to present to the C-suite. It also signals to upper management that you can be relied on for information.

“The executive team meets weekly, and I present the CMI results to them so they have an idea of what is going on,” Klein said. “It opens up a good discussion about what’s going on in the industry and figuring out strategies to use moving forward. It’s also a good way to compare what we’re seeing versus the entire industry. With my AR department, we use it a lot as a reminder that we might be hitting our slow season where we have to ramp up our efforts.”

By participating in the CMI survey, NACM members can gain CCE certification points.

“Prior to getting the opportunity to take it, I didn’t know it was out there,” Juliano said. “It wasn’t until I got my CCE certification through NACM that I started using it. Now, it’s a valuable source of information like a credit reference that tells you if a customer is likely to pay or not.”

Add Value to the Credit Profession
The more participation in the CMI, the more accurate the economic forecast will be. By participating in the CMI survey, credit managers add value and credibility to the profession with information only they can provide.

“The idea that they have a small impact in the economy in relation to their firm is simply not true,” Cutts said. “Each response can determine the strength of economic activity and compliments other economic data used by economists and policymakers. The more participation we have, the stronger the results are that indicate where the economy is headed.”

The CMI does not take long to fill out and is a valuable source of information even if you’re not trying to make economic forecasts.

“Even if you have no intention of getting your certifications or are unsure, just try it,” said Higgins. “Accumulate the roadmap points in case you decide to go after a certification. It’s also a consistent way to review your business and reflect the economy as a whole.”

Participate in the CMI every month for the next 12 months and automatically be entered to win ONE of FOUR $250 gift cards in 2024. Sign up to receive monthly CMI survey participation alerts. For a complete breakdown of manufacturing and service sector data and graphics, view the June 2023 report. CMI archives also may be viewed on NACM’s website.

Commercial Chapter 11 Filings Double

Mon, 19 Jun 2023 21:03:00 GMT

Commercial Chapter 11 filings increased 105 percent in May 2023 to 680 versus the 332 filings in May 2022, according to data provided by American Bankruptcy Institute and Epiq Bankruptcy. Nearly half of the Chapter 11 filings were made by corporate subsidiaries.

Overall commercial filings increased 31 percent in May 2023 to 2,324 versus the 1,771 registered in May 2022. Small business filings, captured as subchapter V elections within Chapter 11, registered a 31 percent increase to 149 in May 2023 versus 114 in May 2022. Total and individual bankruptcies also continue to increase from the reduced volumes experienced during the three years of the COVID-19 pandemic. The 38,669 total filings in May 2023 represented a 23 percent increase from the May 2022 total of 31,330.

Individual bankruptcy filings totaled 36,345 in May 2023, also registering a 23 percent increase from the May 2022 individual total of 29,559. Individual Chapter 13 filings increased 25 percent to 14,644 and individual Chapter 7 filings increased 22 percent to 21,625 from May 2022.

“Rising interest rates, inflation and elevated costs of borrowing can represent a daunting economic challenge to struggling families and businesses,” said ABI Executive Director Amy Quackenboss. “Amid these sustained economic pressures, bankruptcy provides financially distressed companies and households with access to a release valve.”

May’s total bankruptcy filings represented a nine percent increase over the 35,485 total filings recorded the previous month. May’s commercial Chapter 11 filings increased 76 percent from the 387 filings in April 2023. The total commercial filing represented a 27 percent increase over the April 2023 commercial filing total of 1,835. All Chapter 11 subchapter V elections increased 12 percent from the 158 filed in April 2023. Total May individual filings represented an eight percent increase from the April 2023 individual filing total of 33,650.

"We have been diligently monitoring the ongoing trend of monthly new filings versus cases closed and it serves as another indicator for the direction of the bankruptcy market," said Gregg Morin, Vice President of Business Development and Revenue for Epiq Bankruptcy. "After 35 consecutive months (April 2020 – February 2023) of more closed cases than new filings each month, the market had two consecutive months (March and April) of more new filings than closed cases. However, once again in May, 413 more cases closed than opened and year-to-date there are still 5,014 more closed cases than new filings."

Nonpayment Risk Rise Worries 40% of Exporters

Mon, 12 Jun 2023 20:56:00 GMT

Disruptions over the past few years, from the COVID-19 pandemic to the invasion of Ukraine, seem to be leading to a rethink of global supply chains. How are these events affecting companies, their willingness to trade and the way they operate abroad? The recently released Allianz Trade Global Survey discusses the thoughts and experiences of nearly 3,000 exporters from France, Germany, Italy, Spain, Poland, the United Kingdom and the United States.

Survey Highlights

While companies are relatively optimistic about export prospects in 2023, economic uncertainty remains strong. For 2023, roughly 70% of companies expect business turnover generated through exports to increase year-on-year, down from 80% in the 2022 edition. This echoes the less favorable environment for global trade in 2023: Allianz Trade expects global trade to grow slowly in volume terms (+0.7% vs. +3.8% in 2022) and to decline in value terms (-0.1% vs. +9.7% in 2022).

Companies also appear to have a smaller appetite for new markets, favoring a consolidation of existing ones. 63% of respondents favor increasing investment in countries where they are already present, while 47% plan to invest in new countries. When exporting, more than 55% of corporates plan to gain further market share in current countries where they are present, whereas 52% want to diversify and target new countries.

Compared to last year, more respondents expect the length of export payments terms to increase (42% vs. 31%), with the share this year reaching levels close to 50% in both the U.S. and the UK. The share of respondents expecting an uptick in the export nonpayment risk has increased compared to our early 2022 survey, rising +11pps to 40% overall. The increase is widespread across countries but especially visible in the U.K. and Germany (both +16pps), while it is only +6pps in Italy.

Nearly 75% of respondents rated logistics hurdles and high transportation costs as having a moderate to significant impact on export activity in 2023, making it the top challenge in Germany, Italy and Poland. For companies in the U.S. and Spain, the top challenge is the cost and availability of financing. In contrast, for companies in the UK, high energy prices remain the top challenge to overcome this year. In France, companies are most concerned about non-payment risk.

The energy crisis is accelerating the green transition. Amid the economic slowdown and financing constraints, more than 80% of respondents say that they will prioritize business continuity over ESG commitments in 2023. However, companies have not entirely given up on ESG targets: most respondents (85%) are stepping up efforts to shift to green energy sources over the long-term, especially in Spain, the U.S. and France.

View the survey.