The Sunshine State welcomed NACM with just that—temperatures hovered around the mid-90s for the duration of this year's Credit Congress and picturesque blue skies beckoned attendees to venture out to the fairways of Rosen Shingle Creek's lush green golf course and nature trail. In the halls of one of the most impressive venues that has housed the association's annual expo and conference in recent memory, the session topics of downturns, tighter budgets and the future of the credit industry pervaded the schedule along with the ever-important credit management skills sessions. Before the official start of the conference, however, attendees just looking to begin their educational journey got a crash course on the certification program in Introduction to the NACM Certification Program, led this year by Georgette Bevan, CCE, NACM Business Credit Services in Utah. Bevan went through the ins and outs of the certification process, pausing to allow members of the captive audience to ask questions. She also offered attendees a list of reasons why an NACM certification was worth pursuing, for both the credit professionals and for their companies. "It improves your career opportunities and prepares you for greater job responsibility," she said, "and you'll have greater earnings; that's one of the true benefits of the certification program." Learn more about the certification program here.

The success awaiting companies that wade out into the international marketplace has been hailed as paramount to recovery and to the growth of enterprises. There are opportunities to discovery major clients and to bring home considerable profits, but firms must know how to remain competitive. The International Industry Day Session, International Customer Financing as a Sales Tool, was led by Alan Andrews, Global Trade & Equipment Finance Group, PNC Bank N.A. The presentation detailed how credit managers could support their company's international sales efforts with effective and efficient payment and financing tools. The program also went into detail of the abilities of the U.S. Export-Import Bank (Ex-Im Bank) and how to utilize a variety of the institute's offerings, such as insurance, guarantees, pre-export financing and private credit insurance.

From country to country, locally available credit has typically evaporated while the costs to obtain what little credit exists have skyrocketed. For example, in Brazil, the average credit card interest rate has topped 100% per annum while Argentine companies are simply unable to secure any kind of financing. Offering any sort of terms in these markets, explains Andrews, will likely be viewed favorably. Often, as experienced in the U.S., it's not that local banks don't have the money; it's that they are hesitant to lend it.

"I think it's true that U.S. borrowers are more likely to default and go bankrupt than international borrowers," said Andrews. "The thesis has always been that if you're selling internationally, it's more structured, so you'll always be more secured and more likely to get paid than domestically." Andrews later added that, at the same time, there are many more risks involved in selling internationally than domestically. To stay on top of the latest international trends, be sure to check out FCIB and their valuable educational offerings.

Hazel Walker, executive director of BNI, presented the Executive Forum on Monday, where the room of attendees was separated into four groups based on personality characteristics. In GEMS, each group was then given the name of one of these sparkling objects: Emeralds, Pearls, Rubies and Sapphires. Each group's personality traits were discussed with the objective of learning some tips on how to best work with people from the other groups. For instance, Sapphires tend to frustrate the Emeralds they work with because Sapphires don't worry about details, whereas Emeralds need very detailed information to feel informed enough to make the correct conclusions and decisions. Emeralds and Pearls work great together because they like to follow the rules and are slower in their decision making. Rubies, however, are at the opposite end of the spectrum from Pearls. Instead of being quiet and soft-spoken like Pearls, who struggle with being firm, Rubies are direct, they like to be in charge and don't like to be told what to do.

Walker provided communication tips which included:

• Be agreeable and non-threatening when talking to a Pearl, "How can I help?"
• Don't give Sapphires too many details, communicate in bullet points
• To reward an Emerald, give them a bonus, time off or promotions
• Use power words with Rubies, such as "You're in charge."

Walker also presented the session Developing and Leveraging Your Network on Tuesday.

As many businesses face difficulties, one of the first things to fall by the wayside is solid, diligent planning for the company's future. Resources are often limited in troubling economic times and those that still remain are often needed just to handle the daily struggles and new issues. However, according to Jay Clark of the JRC Group, Inc. in her presentation A Guide to Developing a Business Plan for the Credit Function, planning is one of the most important things a company can do, and expending the resources to do so, even in an economic downturn, is often worth it.

"Business planning is all about controlling change," she said, noting that when a plan is in place, there are often fewer sudden changes that catch companies off guard. "If things don't go exactly as you planned, there aren't too many complete surprises that are going to come up." In addition to discussing how to "plan for planning," Clark offered tips on keeping management informed on the planning group's progress, described how to organize and run meetings, and went through all of the considerations a planning group should take into account before setting accounting goals and asking any higher-ups for financial or human resources assistance.

"Do what we call a walk-a-mile. See what their life is like. Get to know them on a personal level," suggested Susan Archibeque, CCE, director of credit and assistant comptroller, Nicholas and Company, Inc. during Credit & Sales: Improving Cash Flow. "They can come across as being authoritative and ‘You have to do it my way.' But, I found you have to go in there with open arms and open eyes." She recommended that attendees approach their sales team and try to understand what it is that they love. Many times, conflicts are simply the result of personality clashes. (Remember those gems from the Executive Forum?)

The credit department also has to look at the sales team and understand the perceptions that exist on both sides. The reality is that both departments work for the same company and are parts of a single team. To try and smooth the relationship, credit and sales need to understand the goals and objectives of the company and establish a partnership to meet the company's future growth plans. By working as a teamed function, credit and sales can improve customer retention, increase profitability, reduce days sales outstanding, bad debt write-off, as well as achieve better operational efficiencies.

Alice McGregor Award winner (see Awards) and NACM past national chairman Stan DeGroot, CCE delivered a presentation entitled Ethics in Credit, a discussion-heavy session about one of the least-discussed topics in the everyday business world. "Lots of time, ethics, when it comes up, it's not an easy topic to talk about, but we all know the value of it," said DeGroot. "Ethics is about how we meet the challenge of doing the right thing when that will cost more than what we want to pay and there are two aspects: the first involves the ability to discern right from wrong and the second involves the commitment to do what is right, good and proper."

"Ethics entails action," he added. "It's not just a topic to mull or debate."

In his presentation, DeGroot also discussed some of the dichotomies or issues people and companies face with ethics, both in terms of ethical behavior and the motivation behind being ethical. In the end, it comes down to the golden rule and treating people how you'd want to be treated, DeGroot noted. "It may not always be easy," he said, "but using one rule creates an ethical predictability in your life. And if we have one guideline that we consistently try to keep in the forefront, we will be trusted."

The entire world is trying to come to terms with the financial crisis. Layoffs are piling up from coast-to-coast, and credit departments are continuing to face a future of reduced headcounts and increased workloads as corporate structures become flatter. Credit in the High Tech World focused on using technology to be the beast of burden for the credit department and to streamline tasks.

"What every one of you are doing in this room, is working harder with less people. Your company is not going to come to you and say, ‘I'm going to give you some more help,'" said Jim Montague, CCE, director of credit and treasury operations, Lippert Components, Inc. "The reality is that it's going to be the other way around and they're going to say, ‘We need to cut one person.'"

Montague stressed that credit management must adapt in order to survive. The newest technologies must be rolled into the function because the only way to cut costs and still remain competitive is to streamline all functions using the latest innovations. Montague believes there are four steps to this approach:

1. Attitude adjustment
2. Analyze administrative day-to-day operations
3. Analyze Management Operations
4. Continued Education

"Sometimes we can do a lot more with a lot less if we analyze the pieces of the department and apply some technology," said Montague, "because that's the only option at this point. You have to substitute technology for the people you have lost."

More coverage is in July/August issue of Business Credit. Check it out!