Credit Management in Australia July 2015 by AICM

Volume 22, No 5 July 2015

The Publication for Credit and Financial Professionals

IN AUSTRALIA

Credit teams LEAD YOUR TEAM TO BE THE BEST FIND OUT THE LATEST ON:

 Leadership & High Performance  Credit Management  Personal Property Security  Training news Check our website ... www.aicm.com.au

See page 52 for Conference Program

DIRECTORS Australian President – G.L. Morris MICM CCE Australian VP, Legal Affairs – J.A. Neate MICM

QLD Division: AICM QLD Council – Brian Kay, Peter Mills, Peter Ryan, Toni Sawyer, Julie McNamara, Melinda Grob, Stacey Woodward and Roger Masamvu.

Professional Development – S.D. Mitchinson LICM YCPA & CCE – G.C. Young MICM CCE Member Services – J.G. Hurst FICM CCE Finance – G. Odlum MICM CCE CHIEF EXECUTIVE OFFICER N. Pilavidis MICM CCE Level 1, 619 Pacific Highway, St Leonards NSW 2065 Tel: (02) 9906 4563, Fax: (02) 9906 5686 Email: nick@aicm.com.au

38 NSW Division: Women in Credit Inaugural Lunch

EDITOR/PUBLISHER Nick Pilavidis | Email: nick@aicm.com.au CONTRIBUTING EDITORS Colin Magee NSW Stacey Woodward QLD Gail Crowder SA Warren Meyers WA Donna Smith VIC/TAS ADVERTISING MANAGER Tony Paul | Association Media Tel: 0401 917 799 | Email: tony@associationmedia.com.au

42 SA Division: Audience at mock trial.

EDITING & PRODUCTION Anthea Vandertouw | Ferncliff Productions Tel: 0408 290 440 | Email: ferncliff1@bigpond.com THE EDITOR reserves the right to alter or omit any article or advertisement submitted and requires idemnity from the advertisers and contributors against damages or liabilities that may arise from material published. CREDIT MANAGEMENT IN AUSTRALIA is published by the Australian Institute of Credit Management, Level 1, 619 Pacific Highway, St Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of Australian Institute of Credit Management, which does not expect or invite any person to act or rely on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2015.

46 VIC/TAS Division: A stellar turnout to the June Breakfast at Parkview Hotel Melbourne.

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Click Here EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO: The Editor, Level 1, 619 Pacific Highway St Leonards NSW 2065 or Email: nick@aicm.com.au CREDIT MANAGEMENT IN AUSTRALIA • July 2015

49 WA Division: Members at the Breakfast.

Volume 22, Number 5 – July 2015

Message From the President

Leadership and High Performance Teach your team about appreciation

By Linda Murray

The future of Credit Management

Proactive team work

Linda Murray

10 Vicki Writer

Adrian Heath

By Adrian Heath

Why positivity is great for productivity and profitability

By Vicki Writer

Moving the credit function out of the back office

Peter Mills

Credit Management Construction industry alert

16 18

By Andrew Spring

Slow economy, fast payments

Andrew Spring

Chris Humby

By Peter Mills and Chris Humby

ATO ‘bank’ begins calling in the ‘loan book’

Around the States Queensland New South Wales South Australia Victoria/Tasmania

By Darin Milner

Western Australia/Northern Territory

Legal The principles of reciprocity and data exchange (PRDE) and what it means for AICM members

New Members

By Elsa Markula

PPS Protecting what your business owns with the PPSR

By Moses Samaha

PPS Fees

Court of Appeal allows Retention of Title Claim

By John Bennett and Daniel Turk

ASSOCIATION MEDIA For Advertising Opportunities in Credit Management In Australia

AICM Training news

CALL Tony Paul

Women In Credit

Can we Help

Phone: 0401 917 799

Credit Network top post all your problems answered

Conference program

35 38 42 46 49 51

Email: tony@associationmedia.com.au

aicm

From the President

Grant Morris CCE Australian President

t’s an exciting time of the year for many reasons.

in Sydney in October? A very comprehensive and

Most businesses celebrate (if that’s the right word

worthwhile programme is now out. June 30 registrations

for you then great) their end of financial year which

already exceed those for the same time last year and the

is a time to draw a line in the sand, look back at

discounted hotel registrations expire shortly. Put simply

the results that have been achieved, report those results to management, boards and owners; take some learnings

you should act now. Last issue I got on my soap box about companies

from those results and then take a deep breath and get

under external control and preference payments. We have

ready to plough ahead into the new year.

received a strong supportive response, but would like

If like my team you have had a good year (the Boxing Kangaroo has flown high in our office 10 months this year

more. If you recall I spoke about 1. The recovery of preferential payments and those

as they have recorded the lowest DSO for that month 10

Liquidator recovered funds not being paid in dividends

times and three times lowered their best ever result – onya

to unsecured creditors.

team) then congratulations to you. If not then take some time to reflect on where you can improve and how you might make those improvements. You should consider formal training for you and your team such as certificate courses, less formal training such as Credit Toolbox sessions and regular network sessions where you can both learn something new and pick up tips as you network with other credit professionals. All

2. Should unsecured creditors who are genuinely at arms length be subject to preference claims? 3. The 3 year “statute of limitations” on making preference claims is too long and should be shortened to a year or less. 4. Spurious and inflated preference claims from Liquidators ie claiming $700K and settling for $10K. 5. Fees charged by Administrators, Liquidators and

available from the AICM – so renew or take up membership

Receivers & Managers ie specifically annual increases of

and kick goals.

5 – 10% and more.

It’s also exciting as this month the Division finalists

We intend to take these issues up with the A-G and ARITA

are selected in the DnB sponsored AICM Young Credit

and ask you to show your support by sending Nick

Professional of the Year Award and the winners, who will

(our CEO) or I an email simply saying you support

represent the Division in the national final, are announced.

positive changes in these areas. The emails/links are

There was a record level of interest this year and I wish

grant.morris@coateshire.com.au and nick@aicm.com.au.

the best of luck to all who are participating. I look forward to seeing the Division winners at the AICM National Conference in Sydney in October, attendance at which is part of their prize. We at AICM are also excited as we have now launched

Our recently launched monthly newsletter seems to have hit the mark. Please let us know what you think. All the best for FY16 and I hope to see you at an AICM event soon as you support the Institute which supports you.

our quest to find this year’s Credit Team of the Year which is sponsored by Veda. The two finalists also win travel, accommodation and attendance at the National

– Grant Morris

Conference in Sydney in October.

grant.morris@coateshire.com.au

Did I mention we have our National Conference

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Ph: 0407 405 198

See you at AICMâ&#x20AC;&#x2122;s

2015 Sofitel Sydney Wentworth Hotel 14th - 16th October 2015

Click here

for early bird registration

2015 National Conference

Leadership and High Performance

Teach your team about appreciation By Linda Murray*

Research shows that employees who say they have more supportive supervisors are 67% more engaged...

Do your team members seem to be a little short on good humour lately? It’s possible that they are feeling undervalued and taken for granted by you and the leadership team. You know how that feels. You spend hours on a report or work the weekend to meet a special deadline, and there is no acknowledgement of your effort or what it cost you. In fact, you are lucky to be given a thank you at all. As much as you know that we shouldn’t rely on a thank you for doing your job, it’s nice to hear it sometimes, isn’t it?

What appreciation does to the brain Research shows that employees

Linda Murray

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

who say they have more supportive supervisors are 67% more engaged, and 53% report they would stay longer at their company if they felt more appreciation from their boss. The feeling of appreciation has a powerful effect on the brain. It causes the release of dopamine inside the brain, the ‘feel good’ hormone. We learn that we’ll feel good if we do a good job and are rewarded with appreciation from our managers and team members. When it feels good, we repeat the activity in order to experience the pleasure again.

What appreciation does to the behaviour We know that when people feel good about what they are doing, they

Leadership and High Performance

As much as you know that we shouldn’t rely on a thank you for doing your job, it’s nice to hear it sometimes, isn’t it? are less stressed. When they are less stressed, there are fewer health issues and far less absenteeism. In addition, 81% of employees say they’re motivated to work harder when their boss shows appreciation for their work. In terms of the organisation’s bottom line, we know that it will save money by not having to recruit new staff, and that engaged employees are 43% more productive. In fact, organisations with highly engaged employees achieve twice the annual net income of those who don’t. Isn’t it worth saying thanks now and then to achieve that sort of result?

The Future of Credit Management The AICM Board recently made amendments to its Membership Policies aimed at helping members develop the next generation of Credit Professionals, specifically those who will join the work force in 2033 and beyond, like NSW Director Gregg Oddlum’s first daughter, Grace Maree Odlum who arrived in May 2015.

How to model appreciation for the team As leader, it is up to you to show your teams how to appreciate each other and the best way to do that is by modelling the behaviour you want them to demonstrate. It’s up to you to set the pattern and shift the focus to the positive. Of course you can say ‘thank you’ and ‘well done’ but you can do more than that. You can give feedback to people on a job well done. We know that formal and informal feedback which focuses on performance strengths have been linked to a 36% increase in performance. When you show your team that your attention is on the positives, that’s where they will place their own attention. They will learn to look for the good things about what they and other team members are doing. The more they see you model this behaviour, the more they will imitate you. The beauty of it is that once you have the ball rolling, their brains will respond and help you to boost and reinforce the happiness of the team. Start changing the atmosphere within your organisation by praising the work your team does and thanking them for it. The effort will pay off. u *Linda Murray is Business Coach, Executive Coach & Mentor for high performing professional women and was inspirational as one of the speakers at the NSW Women in Credit Luncheon. M: 0405 322 005 www.athenacoaching.com.au

If you are taking an extended break from Credit Management for maternity, maternity, a sabbatical or any other planned break you may apply for a break in your membership without affecting your Membership continuity. The break will apply from the commencement of the next membership period and does not allow for a refund of fees already paid. For example if you are a current financial member and expect to take 18 months maternity leave from January 2016 you will not need to pay for the 2017/2018 membership fee. Members will not be entitled to vote at meetings, hold office or receive member’s discounts during an approved membership break but will receive all other member benefits. Membership breaks of over 2 years will not be approved unless it can be shown that currency of knowledge is maintained.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Leadership and High Performance

Proactive teamwork By Adrian Heath* Are you tired of dealing with last minute urgent tasks foisted on you and your team by other areas of the organisation? You want the organisation to succeed so you and your team work hard and late to complete these tasks. There is a cost though. Your team’s energy is depleted, other tasks don’t get done (usually yours), the stress levels are very high and thats just in the short term. In the long term, your team doesn’t get to complete its own projects, people burn out, people leave. Sound familiar? The solution is the shift from reactivity to proactivity. Instead of reacting to the urgent requests of other areas of the organisation, the key is to be proactively connected to them so that you know what is occurring now and what each area is aiming to achieve in the future. That way you can anticipate the demands on your team and plan accordingly, influence the success of other’s projects

“Instead of reacting to the urgent requests of other areas of the organisation, the key is to be proactively connected to them...”

through your expert knowledge and deliver that success in a manner that means your team are energised and inspired by the experience. Metaphor time – It’s just like trees growing in the forests, they don’t grow independently, they actually need each other and they are connected by the Mycelium (fungal strands) in the soil. Incredibly, the trees use this mycelium network to exchange nutrients and help each other to grow. So the shift from reactive to proactive can take place if you: 1) grow the strands between your team and other teams in the organisation at multiple levels and 2) effectively communicate that you wish to be involved earlier in projects that will effect your team, that way you will deliver more effectively on their needs and help them to deliver success. You will then experience the nutrient exchange and your own team’s projects will become more successfully delivered as well. This also applies to you if your team is customer facing, the more embedded and connected with your customer you are, the more proactive you can be. If you are curious to know more about mycelium – nature’s internet – then make time to watch “6 ways mushrooms can save the world” 18 minute video here. u

*Adrian Heath is Director of Evolution Learning. He partners with major Australian and international companies, teams and individuals to enable them to achieve their true potential. Adrian will be speaking at the National Conference as part of the Leadership Forum

Adrian Heath

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Leadership and High Performance

Why positivity is great for productivity and profitability By Vicki Writer*

Vicki Writer

Why is it that human beings only ever achieve about 10% of their potential? There are many answers and I have heard a number of them from the participants that have attended my trainings or presentations. Fear, lack of knowledge, lack of confidence, don’t know how? I tell my students that all of these are very true, however where in life do we receive an instruction manual on how to get the best out of ourselves or that of our teams? When I went to school – there was no instruction manual. When I started working there was no instruction manual. We simply do not get an instruction manual for how to achieve our full potential. I have been doing some research into the emerging science of Positive Psychology and my findings have been fascinating. I would love to now introduce you to the work of Barbara Frederickson. Her work has had a profound impact on me and her research features quite heavily in my teachings specifically around peak performance and leadership. Frederickson determined that there is a positivity ratio and that ratio is 3:1. That is we need three positive

emotions or feelings to every one negative. We either spiral upwards or we spiral downwards. Because the brains primary filtering architecture is pessimistic by design (we tend to look for all of the things that didn’t go so well rather than what did), we need to work very hard at finding the things in our life that have gone well. We need to ensure we utilise this knowledge that we have through Frederickson and maintain and build our positivity ratio of 3:1. We literally need to train our brain to look for all of the good things, the wins that have happened in our day or week and we need to write them down. We need to give ourselves every opportunity of feeling good about ourselves and to acknowledge our wins – no matter how big or small. If we train our brain to look for the positives (because it usually doesn’t happen this way given the way our brain works), we can increase our wellbeing and set ourselves up for happiness and ultimately success. Barbara Frederickson teamed up with Mathematician Marcial Losada and his work focused on peak performing teams. His work was

We literally need to train our brain to look for all of the good things, the wins that have happened in our day or week and we need to write them down.

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Leadership and High Performance

closely aligned to that of Frederickson and he determined that peak performing teams have a ratio of 6:1. Losada and his team would go into organisations and sit behind one – way mirrors in boardrooms and listen to the language that was being used by the team members. They determined the ratio of positive to negative statements (positive = supportive and encouraging comments) to (negative = sarcasm and disapproval comments). Losada and his team determined that peak performing teams have a ratio of six positive statements to every one negative. If you lead a team at work, how would your team rate when it comes to the work of Marcial Losada? There is work now being done

...if there is a ratio of greater than 3:1 positive emotions then the business is considered to be economically sound. over in Europe that measures a country’s prosperity based on the levels of Hypertension (stress) of the people who reside in that country. How interesting! There are even some suggestions that doctors and economists may need to work together to define future economic policy. To take this one step further, I have to look at the correlation that Frederickson has made between profitability and positive wellbeing in

MARKET LEADING

the workplace. She says that if there is a ratio of greater than 3:1 positive emotions then the business is considered to be economically sound. If the ratio is less than that, then the business is likely to be financially in trouble. There is a definite correlation between happiness (wellbeing) and the success of a business (its prosperity) and this is why engagement and culture is so critical when it comes to building a successful and profitable business.

LEGAL

TRADE CREDIT SPECIALISTS

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Leadership and High Performance

The research suggests that the connection between happiness and goal accomplishment (success) has now been proven to be undeniable. In-fact the connection is so profound that we are encouraged to gauge how happy we are and look for ways to improve our wellbeing in order to perform at optimum levels. What makes you feel good? People who feel good about themselves produce good results and people who produce good results feel good about themselves. The symptoms are reciprocal. Our emotional states are contagious. If you surround yourself with people who are positive and who feel good about themselves, you too, will feel good about yourself. If you choose to spend time with people who are negative and pessimistic, the chances of you feeling the same way are very high. Our social circle and

who we choose to spend time with will have dramatic impacts on the amount of well being that we have and what we go on to achieve in our life and in business. Be conscious and deliberate about building your positivity muscle. A simple tool that I use each night before I go to sleep is what I call The Achievement Journal. I am deliberately looking for three things in my day that went well – big or small and personal or business. I am strategically and very consciously looking for any small achievement or win that builds and enhances my positivity ratio which in turn has dramatic impacts on my wellbeing and my results. Could you implement something similar into your own life? What about having your team members bring their own wins and achievements and share these with others in the team

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

remembering that our emotional states are contagious? Set yourself a goal to look for at-least three things each day that went well and track your results. You will be amazed at what you can achieve. If you found value in this article and you are interested in learning more about achievement, you can visit the website www.the360solution. com.au and purchase a copy of my book The 360° Solution – strategies, tools and concepts to help you design a conscious, deliberate and achievable plan for the life you want to live. u *Vicki Writer is Founder of The 360° Solution™. Tel: (02) 4385 8885 M: +61 414 426 029 Email: vicki.writer@the360solution.com.au www.the360solution.com.au Vicki will be speaking at the National Conference as part of the Leadership Forum.

Leadership and High Performance

Moving the credit function out of the back office

Simply documenting a policy and posting a list of training courses will not create an engaged and high performing team.

Many businesses understand the importance of the credit function as a vital component of a high performance business, while others are yet to unlock the potential of their Credit Department. Credit Management teams touch every part of the organisation, this gives Credit Professionals a great opportunity to contribute to the achievement of the businesses objectives. By focusing on achieving a high performance culture, developing a roadmap and connections across the organisation the credit function can move from being considered a back office function to one that shapes the business agenda. Whether you are trying to get the credit function on the map in your business, want to improve the standing further or are looking for ways you can help the business even more, focusing on these three key areas will ensure your credit function moves from a back office function to one recognised for the value it adds to the business.

1. Developing an active People Policy It is important for credit functions to develop a people policy encompassing: zz Forecasting staff requirements. zz Qualities and skills required for high performance. zz Values of the Credit Team. zz Strategies to educate, develop, retain, reward and recognise high performance. A thorough people policy will ensure

the mechanisms and opportunities are in place necessary to achieve high performance. Great Credit Teams take the people policy further and create an active approach to staff and team development. An active approach is one where development of the staff is part of every day and every role. It is not just a quarterly review process or the sole responsibility of the manager. Simply documenting a policy and posting a list of training courses will not create an engaged and high performing team. When leaders include a focus on developing team members in all daily activities this results in a fully engaged team which consistently exceeds their job requirements and targets in a positive and supportive way. While a plan and policy are the foundations of a high performing team, actively living, is the most vital component.

2. Develop a roadmap Your organisation is likely to have a roadmap, plan or strategy and it is important for the Credit Department to have its own roadmap. This may be as simple as documenting a currently agreed plan. Your roadmap should: —— Align with the organisations roadmap, plan or strategy. —— Be communicated with all stakeholders within and external to the credit team. —— Focus on a uniting common purpose for all to strive toward.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Leadership and High Performance

Including the team members and other divisions in the formulation of your roadmap will ensure a greater buy-in and commitment to the plan. Once the roadmap has been documented it is important to communicate this to each team member. Often just showing the team that there is a plan to address issues will increase job satisfaction but showing them how their roles contribute to the achievement of the plan and what this will mean once it is achieved is the foundation of a truly high performing team. A team that believes in the roadmap will ensure it is achieved with maximum efficiency.

3. High Performance Teams Manage upwards and across their organisation It is a fact that relying solely on the Credit Department to deliver improved performance will not give the best result, and Credit Professionals need to do more to manage stakeholders if we are to improve performance. Once your team is engaged, actively involved in their development and understand the roadmap great results and achievements will start to flow and the Credit Team will start to be noticed. It is also likely that to achieve real change and ideal results for the business the credit team often require changes or at least

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

assistance from other departments such as the IT department, operational areas or sales. This is where it becomes vital to manage up and across the organisation. Managing up or across requires developing strong working relationships and understanding of other department’s goals challenges and roadmaps. By involving peers in your roadmap you would have already started to form many of the necessary relationships, now the focus becomes more on understanding their challenges, priorities and roadmaps. Managing across the organisation with peers will ensure you are able to get help and assistance to resolve issues and

Leadership and High Performance

queries. Managing up will ensure your plans are supported due to them being aligned to superiors and organisational goals. A good way to achieve relationships and understandings across divisions is by equating credit metrics to those more relevant to the peer you are talking to e.g.: zz relate DSO reductions to financial measures such as increased cash flow and reduced borrowing costs. zz Bad debts to average number of sales required to recover the loss. zz Billing issues to number of hours of Sales representative’s time taken in resolving and how many new sales could have been achieved in this time. While these 3 key areas require investment of time and energy, a

A good way to achieve relationships and understandings across divisions is by equating credit metrics to those more relevant to the peer you are talking to team with an active development culture, clear roadmap and strong relationships will see the benefits flow on and on. The leader will no longer be the sole driving force looking for improvements, the team will feel more engaged and valued hence reducing turn over, new entrants quickly adapt to the team culture and take ownership of their own induction. This all allows

the leader to focus on adding more value to the credit function and business. By focusing and continually reviewing these three criteria you will be well on the way to ensuring the Credit Department is never considered a back office function again and is in a position to drive the performance of the organisation. u

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July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Credit Management

Trust account requirements for NSW projects over $20m to commence 1 May 2015 By Chris Humby and Peter Mills*

A common concern among subcontractors in the building and construction industry is that retention money is sometimes not returned by head contractors. The Building and Construction Industry Security of Payment Amendment (Retention Money Trust Account) Regulation 2015 (NSW) (Regulation) seeks to deal with this. The Regulation applies to certain contractors, subcontractors and suppliers in the building and construction industry. Members should consider the implications of the Regulation. Members should also consider if the new laws give rise to “proceeds” which can be perfected against under the Personal Property Securities Act 2009 (PPSA) for any recovery process.

The Regulation Chris Humby

Peter Mills

The Regulation gives effect to one of many recommendations by Bruce Collins QC in his report “Inquiry into Construction Industry Insolvency in NSW” in November 2012. The Regulation provides that from 1 May 2015, head contractors on construction projects with a value of at least $20M will be required to hold retention money in trust for subcontractors, in a separate trust account. Traditionally, these reflect a percentage of each invoice issued by a subcontractor for services and/or goods supplied. The Regulation limits the use of retention money and creates new record keeping and reporting obligations for head contractors. The

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

changes will apply to subcontracts entered into by a head contractor, where the head contract was entered into after 1 May 2015. A summary of the changes is as follows.

Application The Regulation applies to retention money held by a “head contractor”, being the person who will carry out “construction work” or supply “related goods and services” for the principal under a construction contract. “Construction work” and “related goods and services” are defined under the Building and Construction Industry Security of Payment Act 1999 (NSW) (SOP Act). The SOP Act does not apply to some contracts, such as contracts for residential building work for a party who proposes to live in the property. Some mining work is also excluded from the definition of “construction work” under the SOP Act. These changes will not affect contracts which do not fall within the broad compass of a “construction contract” under the SOP Act.

$20 million threshold The $20 million threshold is calculated by reference to the amount of consideration payable under the head contract. If the value of the contract reaches the $20 million threshold by variations, then subsequent subcontracts entered into by the head contractor will be subject to the trust account requirements. If the $20 million threshold is

Credit Management

reached after entry into the head contract, then the trust account requirements under the Regulation do not apply to subcontracts entered into before the $20 million threshold was reached.

Trust account requirements The Regulation provides that retention money held by a head contractor must be held in trust for the subcontractor in a trust account with an “approved ADI”, an authorised deposit-taking institution, as in banks, building societies and credit unions. The head contractor can choose to establish the trust account for a particular subcontractor, a particular project or for more than one project by the head contractor. The account name must include the name of the head contractor and the words “trust account”. The head contractor must tell the deposit-taking institution that the purpose of the account is as a trust account under the Regulation. The head contractor must notify the Chief Executive of the Office of Finance and Services (Chief Executive) certain details of the trust account.

Withdrawals from trust account A head contractor may only withdraw money from the trust account: a. For the purpose of payment of the money in accordance with the terms of the subcontract; b. As agreed in writing between the head contractor and the subcontractor; or c. In accordance with the order of a court or tribunal. A head contractor may not use retention money held in a trust account to pay the head contractor’s debts, albeit the head contractor may still have recourse to the retention money if the head contractor is permitted to do so by the subcontract. Unless otherwise agreed, interest on retention money is also held on trust for the subcontractor.

It is an offence to withdraw retention money from a trust account otherwise than by cheque or electronic funds transfer. It is an offence to withdraw retention money from a trust account otherwise than by cheque or electronic funds transfer.

Record keeping and reporting The Regulation obliges a head contractor to keep records in relation to the retention money trust account. A head contractor is required to keep records of money paid in and out of the trust account, and retain such records for at least three years after the account is closed. The Chief Executive has the power to request information from the head contractor, subcontractor or approved ADI, including in respect of the value of the construction project. A head contractor must annually provide to the Chief Executive: a. An annual review report; and b. A retention account statement. The annual review report must be certified by a registered company auditor. The retention account statement must be in the form set out in the Regulation. Upon submission, a fee of $1,500 must be paid to the Chief Executive.

PPSA The Regulation was intended to benefit subcontractors, rather than sub-subcontractors, such as suppliers. However, suppliers may also benefit from the Regulation, as the retention money held in trust may give rise to “proceeds” which can be perfected against under the PPSA. Of relevance to suppliers to subcontractors: zz A supplier may have a claim against the retention money held in the head contractor’s trust

account for the subcontractor, if the supplier has properly documented, perfected and provided timely notice of its security interest under the PPSA. This may require the supplier to seek an order from the Court to this effect. zz A supplier might also obtain a greater payment more quickly (rather than through other unsecured debt recovery options), and despite the appointment of a liquidator to the subcontractor or head contractor.

Implications Subcontractors on large projects will now have the additional protections for retention money under the Regulation. Head contractors must familiarise themselves with the Regulation and consider, for projects that will meet the $20 million threshold, appropriate amendments to their subcontracts. In light of the Regulation, head contractors are also likely to consider insisting on other forms of security, such as bank guarantees, to avoid the trust account requirements. Members should contact Peter or Chris to discuss their situation, and how the Regulation affects them. u *Chris Humby is a senior associate in the construction team at Thomson Geer, Brisbane. He has expertise in building, construction and engineering law as well as construction contract drafting and advice and commercial dispute resolution. E: chumby@tglaw.com.au P: +61 7 3338 7909 *Peter Mills is a special counsel with Thomson Geer and is currently the Vice-President (Qld Division) of the AICM. Peter specialises in recoveries and compliance under the PPSA and its implications. E: pmills@tglaw.com.au P: +61 7 3338 7921

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Credit Management

ATO ‘bank’ begins calling in the ‘loan book’ By Andrew Spring*

If you have noticed an increase in the ATO’s enforcement activity in recent months, then this communication will not come as a surprise. In this Alert we discuss how our recent dealings, along with our analysis of the ATO’s enforcement behaviour, has identified a significant increase in the ATO’s enforcement activity when dealing with tardy taxpayers. It seems that the ATO are sending a clear message that they will increase their activities to identify and recover unpaid taxes, improve their internal systems to capture more information on the taxpayer and initiate enforcement activities at an earlier stage. As an example, Figure 1 below shows the increase in the ATO initiated winding up applications during the last six (6) months through the Federal Court of Australia: We have also seen an increase in

Andrew Spring

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

the use of the ATO’s other powers to recover outstanding amounts, which include: zz Garnishee notices; and zz Director’s penalty notices. Some other trends that we have identified are: zz With the increased corporate winding up applications, the ATO have been reluctant to consent to an adjournment of the winding up proceedings, to provide the taxpayer with further time to get their affairs in order; zz When discussing a payment arrangement for a corporate entity, the ATO have recently started referencing a director’s personal compliance history where previously the affairs were considered independently; zz The utilisation of grouping provisions when undertaking legal enforcement.

Credit Management

All of the above activity is consistent with comments made by the Commissioner recently when presenting to the Tax Institute’s 30th National Convention. During this speech, which is available online (www.ato.gov.au), Commissioner Jordan discussed the shift in the ATO’s approach to Debt Management i.e. collecting unpaid taxes – calculated by the ATO at $19.5 billion in 2013/14 (up from $14.5 billion in 2009/10). The Commissioner advised that the ATO’s new approach includes: zz A more flexible and tailored approach to payment arrangements; zz Earlier intervention to prevent the escalation of debts; zz A focus on a business’s viability;

zz L egal enforcement at an earlier stage – with the Commissioner offering an example by way of average debt at legal enforcement for both bankruptcy proceedings and corporate winding up proceedings.

The reasons that lead to a strained relationship with the ATO are rarely straightforward and may include procedural complexity, economic conditions, extraordinary events or a simple inability to get a “straight” answer. u ATO initiated Other creditor initiated (average debt) (average debt)

Bankruptcy proceedings

$300,000

$35,000

Corporate winding up proceedings

$340,000

$93,000

zz Updated communication techniques – including simpler letters and utilising electronic communication techniques, including email, SMS and myGov channels.

*Andrew Spring is a Partner at Jirsch Sutherland. E: AndrewS@jirschsutherland.com.au P: (02) 9236 8333, F: (02) 9236 8334 www.jirschsutherland.com.au

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July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Credit Management

Slow economy, fast payments

Invoice payment times reach record pace in 2015 Despite an Australian economy growing at a moderate 2.3 per cent according to March quarter figures released by the ABS last month, the latest data on trade payments reveals that businesses are paying their invoices at the fastest rate on record. Dun & Bradstreet’s Trade Payments Analysis reveals that average invoice payment times were 50.4 days during the first quarter of the year, down from 56 days a year earlier. While payment times slowed marginally quarter-on-quarter, the current rate is the fastest measured by Dun & Bradstreet for a Q1 period in the eightyear history of the data. The sharp drop in payment times over the past 12-months has been driven by a jump in the percentage of

invoices settled within 30 days, which lifted from 44 per cent to 56 per cent. According to Darin Milner, Director of Risk Management Solutions at Dun & Bradstreet, the latest findings reflect the positive impact of low interest rates on cash flow and the improved efficiency of the business sector in the post-GFC environment. “The lower cost of debt is certainly helping businesses to manage their repayments and control their cash flow in an operating environment of soft demand,” said Mr Milner. “The protracted recovery since the global financial crisis has also forced businesses to become leaner and more efficient operations, with a greater flexibility in payment terms and conditions to improve

the likelihood of timely payment. “Despite the improvement, Darin Milner 44 per cent of commercial invoices in Australia are still being paid late, which withholds significant amounts of money from the financial system and places financial strain on supply chains,” he added. According to Dun & Bradstreet’s latest Business Expectations Survey, 46 per cent of businesses would choose to miss a payment to a trade supplier if without enough money to cover all of their expenses. The survey also found that 34 per cent of businesses have had a customer

Average invoice payment times: Australia 58 56

No. of days

54 52 50 50.4 days 48

20 06 20 Q4 0 20 7 Q 07 1 20 Q 0 2 20 7 Q 07 3 20 Q4 0 20 8 Q 08 1 20 Q 0 2 20 8 Q 08 3 20 Q 0 4 20 9 Q 1 0 20 9 Q 09 2 20 Q 09 3 20 Q4 1 20 0 Q 10 1 20 Q 10 2 20 Q 10 3 20 Q4 11 20 Q1 11 20 Q2 11 20 Q3 11 20 Q4 1 20 2 Q 12 1 20 Q2 12 20 Q3 12 20 Q4 1 20 3 Q 13 1 20 Q2 13 20 Q 13 3 20 Q4 1 20 4 Q 14 1 20 Q2 14 20 Q 14 3 20 Q4 15 Q 1

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Credit Management

or supplier become insolvent or otherwise unable to pay them during the past year. The findings underscore the challenge facing businesses to ensure prompt payment for their goods and services. Despite more limited financial reserves, businesses with between one and five employees paid their accounts in an average of 47.2 days during the first quarter of the year, three days faster than the national average. In comparison, those companies with more than 500 employees paid their bills more than a week later, at an average of 55.1 days. Although improving by four days from the year before, the ACT recorded the slowest average payment time of 53.3 days. Meanwhile, businesses in Tasmania were the fastest to pay their invoices, averaging 46.6 days during Q1 2015, down from 54.9 days at the same time last year. Across the country, businesses operating in the utilities sector were the slowest to pay their invoices, averaging 55.2 days, down from 57.5

“...44 per cent of commercial invoices in Australia are still being paid late, which withholds significant amounts of money from the financial system and places financial strain on supply chains...” days last year although up on the 51.9 days in the previous quarter. The retail and mining sectors were next slowest, averaging 52.6 days and 52.2 days respectively. At the other end of the scale, businesses in the fishing industry averaged 43.7 days to complete their payments during Q1 2015. Businesses in agriculture and forestry averaged the next fastest payment times, at 45.7 days and 46.5 days respectively. According to Stephen Koukoulas, Economic Adviser to Dun & Bradstreet the improvement in trade payment times indicates healthy finances within the business sector. “With firms paying their bills faster

than the historical average, cash flow appears strong,” said Mr Koukoulas. “The extremely low level of interest rates is certainly assisting, with the current period of very low wages growth helping many businesses build a stronger financial position. “We will be watching with interest to see whether businesses can maintain lower payment times, or whether the slight quarter-onquarter uptick develops into a trend given the soft economic performance expected for the remainder of 2015,” Mr Koukoulas noted. u The full report is available by clicking here. www.dnb.com.au

Archer Capital acquires Dun & Bradstreet Australia and New Zealand In a change of ownership set to bring new investment and a local focus to its operations, Dun & Bradstreet has divested its Australia & New Zealand business to local private equity firm Archer Capital – via its newly formed Credit Data Solutions business. Announced last month, the transaction sees the Australia & New Zealand business become a partner within Dun & Bradstreet’s expansive Worldwide Network and maintain its access to the Dun & Bradstreet brand and the world’s largest commercial database. The change of ownership acknowledged the unique nature of the Australia & New Zealand business; which was only market in the Dun & Bradstreet global organisation with a consumer bureau and debt-recovery line, in addition to its traditional operations in commercial risk management, and sales & marketing. The strength of the integrated offering was recognised by Archer Capital, one of Australia’s leading private equity firms, with a track record for developing strong, innovative organisations.

“We believe there are many opportunities to invest in and grow each of these businesses,” says Archer Capital’s Frank Heckes. “We are looking forward to working closely with the Australia & New Zealand team and to being a valuable member of Dun & Bradstreet’s Worldwide Network.” The Worldwide Network is an alliance of Dun & Bradstreet and nearly 25 leading business information providers across four continents. All of the partners in the Worldwide Network are fully a part of the Dun & Bradstreet family, leverage the strength of the brand, invest in data quality and develop innovative ways to deliver solutions to customers when and where they need it, on a global, real-time basis. Within this network, Dun & Bradstreet–Australia & New Zealand will continue to deliver its integrated offering and existing services: Risk Management Solutions, Consumer Risk Solutions, Debt Management Solutions, Sales & Marketing Solutions, Decision Intellect and Milton Graham Lawyers. u

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

The Principles of Reciprocity and Data Exchange (PRDE) and what it means for AICM members By Elsa Markula* Access to credit reporting information can have a critical impact both on lending decisions and the ongoing management of credit accounts. Borrowers may either inadvertently or deliberately underdisclose their liabilities, in which case the onus will fall on the lender to ‘fill in the blanks’ from other, possibly unreliable, sources. The use of comprehensive credit reporting information makes a lenders’ job a lot easier, as this information provides an impartial, easily accessible source of accurate information about a borrower. For AICM members operating in a commercial environment, consumer information still has its role to play1. Commercial credit will often be advanced on the basis of a personal or directors’ guarantee, and that individual’s capacity to repay can be a significant factor in the credit decision. In Australia, legislation allowing comprehensive credit reporting commenced operation in March 2014. Comprehensive credit reporting refers to two new data sets: consumer credit liability information (CCLI) and repayment history information (RHI). RHI can only be accessed by Australian Credit Licence (ACL) holders, which may exclude a number of AICM members. However, CCLI can be accessed by all credit providers, and provides valuable information about the consumer credit accounts held by a borrower, including the responsible credit provider, type of account, limit, date opened and date closed, and terms and conditions for

the account. In a fully functioning credit reporting system, CCLI would include information about both traditional financial credit accounts, as well as telecommunications and utilities accounts. To date, there has been limited exchange of comprehensive credit reporting information by lenders. There are a multitude of reasons for this, not least of which is the need for a set of rules to govern the exchange of this data. The Australian Retail Credit Association (ARCA) has drafted the Principles of Reciprocity and Data Exchange (PRDE) as this set of rules. It is a voluntary set of rules, and was developed over a two year period by ARCA Members. The PRDE is not yet operational, and is currently subject to an authorisation process by the Australian Competition and Consumer Commission (ACCC). This authorisation process commenced in February 2015, and ARCA hopes it will be concluded, and the PRDE operational, by about October or November 2015. The rules in the PRDE are structured under six principles. The way these principles work is relatively straightforward:

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

zz The PRDE sets up a data exchange of the new types of data (CCLI and RHI) which will only be accessible to other PRDE signatories. An organisation becomes a signatory by signing the PRDE deed poll, and notifying the PRDE administrator and their credit reporting body (CRB) (for credit providers), and their customers (for CRBs). zz Under the PRDE, information is structured in three tiers: negative (which includes defaults, bankruptcies, judgements etc), partial (which includes negative plus CCLI) and comprehensive (which includes negative and partial plus RHI). Once an organisation nominates a tier level, it can only exchange information at that tier level. It is also required to contribute all of its available information at that tier level within 12 months (with a requirement to provide 50% of its available information as soon as it starts participating in the exchange). One of the flow-on effects of this will be that the contribution of negative information will improve – as all signatories will have a minimum requirement to contribute all of their defaults across all of their portfolios.

Legal

zz The PRDE information exchange is exclusive. This means that only signatories will have access to other signatory information (at partial and comprehensive tier levels). Negative information can be shared outside of the signatory base, without restriction. zz Signatories will know who else has signed, what level they are exchanging information and the date they should each be at full levels of contribution. This transparency provides the basis for the compliance framework. zz The compliance framework enables all signatories to raise issues of non-compliant conduct against all other signatories. When an issue is raised, it will be dealt with in a series of stages. In the initial stages, signatories will be encouraged to resolve issues between themselves. If that doesn’t occur, a dispute can progress through to peer review and, in exceptional cases, it may progress to review and determination by an independent eminent person. Outcomes of disputes (other than those agreed between signatories in the very early stages) will be published to the entire signatory network. For AICM members, the impact of the PRDE will be twofold: 1. As set out above, better contribution of negative information within the credit reporting system, regardless of whether the AICM member is a PRDE signatory or not; and 2. For those AICM members who opt to become PRDE signatories, an ability to access more consumer credit information for use in both commercial and consumer credit lending decisions. So what do AICM members need to do, on signing the PRDE, to get access to this information? To access this information2, AICM members will need to be able to reciprocate by contributing the same tier of information they are seeking

to access. However, this requirement to contribute only applies to the available information held by the AICM member – so if the member does not generate the information it is seeking to access, this does not prevent it from participating in this exchange. The proviso to this is that, if the AICM member does ever generate that information – it must be able to contribute it to the PRDE exchange. The best means to illustrate how this works is by means of an example: Bob’s Tyres and Imports (BTI) has a process that requires, when setting up a trade account for a new client, that it runs a credit report for any negative information on that client’s consumer file. BTI has heard about the PRDE exchange and wants to participate at partial tier level (which would mean knowing, for any new client, the amount and extent of all of their existing consumer credit accounts). However, BTI doesn’t provide consumer credit: it only provides commercial trade accounts for trade creditors. If BTI does ever offer consumer credit, it understands that under the PRDE, it will be required to contribute information about those consumer credit accounts. In the meantime, BTI will be able to receive a credit report with both negative and partial information for its clients. Again, it should be borne in mind that AICM members are unlikely to be able to participate at comprehensive tier – as this will mean the AICM member must have an Australian Credit Licence (ACL) issued by the Australian Securities and Investments Commission (ASIC). However, AICM members will be able to access CCLI, which is valuable information about the type and extent of a borrower’s current liabilities. Why is this valuable information? Experience in overseas markets has shown that information about a borrower’s current liabilities results in better credit decisions – because a lender is able to use this information to more accurately assess a potential borrower’s risk, and make a decision

which reflects this assessment. It also leads to efficiencies in ongoing account management and collections, as a lender can better assess the likelihood of a borrower experiencing and self-curing any delinquencies. So what else would an AICM member need to do to participate in the PRDE exchange? Pay an annual fee to the administrator of the PRDE exchange, which for smaller organisations will likely be an amount between $1,000 and $1,500. Be included in the register of signatories, which will be accessible to other signatories. In turn, this may mean being subject to any complaint of non-compliance with the PRDE bought by another signatory. Be satisfied that it is contributing all of its available consumer credit information. If it does have some consumer credit accounts, these will need to form part of its exchange of data (although noting if offering consumer credit accounts, it will also no longer be exempt from the External Dispute Resolution (EDR) scheme requirement – which will mean both being PRDE compliant, as well as being a member of an EDR scheme). In summary, participation in the PRDE exchange looks likely to result in considerable benefits for AICM members, not least of which will be the ability to make credit decisions and manage credit accounts based on better client information. u *Elsa Markula is Legal and Regulatory Affairs Manager, ARCA. For more information, please contact Robert Falvo, ARCA’s Industry Engagement Manager. Email: rfalvo@arca.asn. au; Tel: (03) 9863 7861. FOOTNOTES 1 It should also be noted that in accessing this personal information, an organisation (whether a commercial credit provider or consumer credit provider) will be subject to requirements under the Privacy Act, and Privacy Credit Reporting Code in respect to the use and disclosure of that information. As noted in footnote 1 above, at all times, any access to credit reporting information will also need to be in accordance with the Privacy Act and Privacy Credit Reporting Code requirements.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

PPS

Protecting what your business owns with the PPSR By Moses Samaha* If you’re a business that leases, rents or sells goods under terms, you need to register securities on the PPSR to avoid being left out of pocket and even out of business. Because what you think you own could end up in someone else’s hands.

The Federal Government’s Personal Property Securities Register (PPSR) requires any company, big or small, to register their interests in goods on a national online register. Your retention of title, rental or lease agreements are effectively worthless unless you’ve taken that extra step to register and secure your interest on the PPSR.

The changing nature of ownership Many businesses face disappointment and stress when faced with looking to recoup their goods or finances when a customer goes into liquidation. The biggest stumbling block for businesses is the concept of ownership – what businesses believe it means and how that’s all changed. To enforce ownership now requires that extra step of registering on the PPSR. And businesses with lease agreements are especially exposed unless they’ve registered their security interest. Example: Company A leases an excavator to Company B for 12 months. Company B go belly up and a liquidator is appointed. If that excavator is on Company B’s property then that excavator falls into the liquidator’s hands if Company A hasn’t registered the excavator on the PPSR. It doesn’t matter what the lease says; ownership means very little now that the PPSR is in full force.

How to integrate the PPSR into your business

Moses Samaha

Adopting a new set of systems and procedures, including changes to your sales contracts, terms and conditions of sale, invoices and invoicing procedures is what is required to protect your business. The best way to move forward is:

CREDIT MANAGEMENT IN AUSTRALIA • May 2015

1. Weigh up the costs and benefits The cost of registering your interest against goods or personal property depends on the item and how long you want to secure your interest in that item. Businesses can ask themselves “how many bad debts have I suffered in the past 12 months, two years or even five years, and are these debts sustainable?” A one-off $50,000 debt could be immediately detrimental to a small company. 2. Consult a professional adviser If you do decide to register your security interests on the PPSR, it’s important to set up your business processes and systems beforehand. This is where a risk adviser comes in handy, especially for an SME. As an SME, it’s not always financially practical to take on a full-time credit manager, but an affordable alternative is to hire a credit manager on a consultancy basis. Employing a professional credit manager to set up PPSR-related business systems and procedures can then be managed by internal staff who don’t have years of credit experience. Veda, a trusted source of commercial credit information, assists thousands of businesses each year by providing data intelligence, including PPSR insights, through its dedicated VedaCheck web portal. VedaCheck is an easy-to-use online portal that businesses can access for their individual or bulk PPSR search and registration requirements. Since 2012, Veda has processed more than 5 million PPSR transactions for over 4,000 businesses. u *Moses Samaha is General Manager, Commercial Credit for Veda. www.veda.com.au

PPS

PPSA Registration Costs Registering your security interests makes financial sense for most business and from 1 July it will make even more sense with the government reducing the fees. AFSA (Australian Financial Security Authority) administers the register and charges fees under the Australian Government’s policy that the costs of the PPSR operation be cost recovered. All fees for activities, except Develop a special purpose report for Account Holders, have been reduced by 15%. This reduction is a result of AFSA finalising repayments to the Government for the initial investment in the register. The table below summaries the reduction in some of the common fees. In an statement outlining the approach taken by AFSA in setting fees AFSA noted the following: “The fees that have been charged since the implementation of the PPSR on 30 January 2012 have included a repayment to the Government for the

initial investment in the register. The final repayment will be made in the 2014-15 financial year. AFSA is seeking to reduce the fees charged in line with the cessation of the repayment. AFSA states that “The charges imposed for registrations and searches are designed to cover the costs of operating and maintaining the PPSR. The PPSR is available online on a 24/7 basis with personal assistance available through the National Service Centre. In determining the price for each activity, AFSA seeks to equitably allocate the PPSR’s operating costs. The majority of expenditure attributable to operating the register relates to information and communication technology (ICT) which is primarily composed of: zz ICT personnel dedicated specifically to PPSR operations zz a number of ICT personnel who dedicate a portion of their time to the PPSR

zz PPSR ICT infrastructure operating costs zz amortisation of software developed or purchased specifically to operate the PPSR. In addition to ICT, costs are attributed for support staff from the National Service Centre, as well as PPSR-related administration such as, the PPS Registrar, legal and communications. Indirect costs such as finance and human resource management are allocated using a cost-driver appropriate to the given function. The price for each activity is assessed on the utilisation of the allocated resources and attributed on the basis of the level of resources required to deliver on the forecast volume.” u To read more about the cost recovery activities and a full list of the PPSR fees visit: https://www.ppsr.gov.au/fees

Current Fees

Proposed Fees

$140.00

$119.00

$8.00

$6.80

$40.00

$34.00

Discharge Financing Statement

$0.00

Minor amendment to Financing Statement or a change of free text description of collateral (where change of details do not impact on end date, result in additional grantor)

$4.00

$3.40

All fees for activities, except Develop a special purpose report for Account Holders, have been reduced by 15%.

May 2015 • CREDIT MANAGEMENT IN AUSTRALIA

PPS

Court of Appeal allows Retention of Title Claim Summary

By John Bennett and Daniel Turk*

The Supreme Court of Victoria Court of Appeal has handed down a decision in favour of a supplier of goods on credit, enabling it to enforce its retention of title (‘ROT’) rights. The decision overturns an earlier Supreme Court decision upon which it was found that the supplier’s ROT terms of trade contained on its invoices were not part of the agreement signed by the purchaser and could not be enforced. The decision is particularly helpful for trade credit suppliers who trade on ROT terms as it provides some level of clarity as to the time an agreement is entered with a customer. In this instance the credit application is an offer by a customer which was accepted by the supplier when agreeing to an order for goods. The Court incorporated the ROT terms written on the invoices, into the agreement although they were not contained in the credit application.

John Bennett

Background On 3 September 2009, Swan Services Pty Ltd (In Liquidation) (‘Swan’) signed and lodged with Central Cleaning Supplies (Aust) Pty Ltd (‘Central’) a credit application which provided: The supply of goods by [Central] is governed by [Central’s] Standard Terms and Conditions as in force from time to time. The Standard Terms and Conditions override any terms and conditions of purchase used by [Swan].

Daniel Turk

Central invoiced Swan for each supply. The invoice for the first supply was

CREDIT MANAGEMENT IN AUSTRALIA • May 2015

dated 4 September 2009. Each Central invoice included a ROT clause providing: CONDITION OF SALE: Goods the subject of this sale remain the property of Central…until the whole of purchase price has been paid by the Purchaser to Central in full. In May 2013, Swan was placed in external administration. Central sought to enforce the ROT clause in its invoices and reclaim its goods. The liquidator of Swan resisted this claim under the Personal Property Securities Act 2009 (Cth) (‘PPSA’). Pursuant to the PPSA, an agreement to sell goods subject to ROT creates a security interest in the goods.1 From 30 January 2012, such security interests need to be registered on the Personal Property Securities Register. If today a ROT supplier has not registered and its customer enters administration, the supplier loses its ROT.2 Central never registered its ROT security interest. However this was not necessarily fatal to its claim. Central could still enforce its ROT if it had a ‘transitional security agreement’ being an agreement in force before 30 January 2012.3 ROT provisions arising from such agreements were automatically protected by the PPSA without having to be registered for a period of 24 months after 30 January 2012.4

Decision The Court of Appeal held that signing the credit application did not create a contract between the parties.

PPS

Rather, it was an offer by Swan to acquire equipment from Central on an ongoing basis subject to Central’s ‘Standard Terms and Conditions as in force from time to time’. Central accepted this offer by delivering equipment ordered by Swan and sending an invoice dated 4 September 2009 confirming that the supply was on 30 day credit. This established a supply agreement between Central and Swan which included Central’s ‘Standard Terms and Conditions’. Those terms and conditions included the ROT clause because on the evidence it was incontrovertibly Central’s standard terms – the ROT clause appeared in identical terms on every invoice before the Court. The Court of Appeal found each ROT clause applied only to the invoiced goods the subject of the particular supply. However, the result of the Court’s contractual analysis was: zz Swan undertook in the credit application to be bound by Central’s standard terms; zz the ROT clause existed as a standard term when the credit agreement became binding on Swan, being the date on which Swan received the first invoice; and zz under that agreement, Swan

A Court will treat a credit application signed by a potential customer as an offer by the customer which is later accepted by the supplier. accepted that all future supplies of equipment would be governed by ROT. Accordingly an agreement came into force providing for the grant of a security interest in relation to all future supplies. This agreement was a transitional security agreement and Central could enforce its ROT clause.

Implications A Court will treat a credit application signed by a potential customer as an offer by the customer which is later accepted by the supplier. This is important as the date of agreement (being acceptance) is relevant for claims under the PPSA. The outcome depended very much on the facts. Circumstances may exist where the credit application is contractual and governs all the supply arrangements between the parties. In such

circumstances the document itself would need to provide for ROT. The decision suggests that the Court is willing to take a commercial approach in respect of ROT claims. It is consistent with the recognition in the PPSA that ROT agreements do not always come about by the customer ‘signing off’ on the ROT terms.5 u *John Bennett is a Lawyer for Turks Legal. *Daniel Turk is a Partner at Turks Legal. T: (02) 8257 5727, M: 0408 667 220, Email: daniel.turk@turkslegal.com.au Sydney: (02) 8257 5700 Melbourne: (03) 8600 5000 www.turkslegal.com.au FOOTNOTES: 1 PPSA ss 12(1) and 12(2)(d). 2 PPSA s 267. 3 PPSA s 322(1). 4 PPSA s 322(1). 5 PPSA s 20(2); Anthony Duggan and David Brown, Australian Personal Property Securities Law (LexisNexis Butterworths Australia, 2012), 85, [4.29].

Connect with the right people for trade credit solutions. When it comes to credit risk management, navigating the different options requires specialist expertise. And that’s what you get with NCI: • 30 years experience • Superior service • National coverage • Long-term partnerships • Innovative solutions • NCINet online access To find out how all this can benefit you and your clients, visit www.nci.com.au, email info@nci.com.au or telephone 1300 654 500 (Aust) and 0800 442 556 (NZ). National Credit Insurance (Brokers) Pty Ltd ABN 68 008 090 702 AFS Licence No 233817

May 2015 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Training News Why obtaining Qualifications in Credit Management is important Ensuring suitable qualifications are held by Credit Professionals is a fundamental requirement as they are the custodians of many businesses largest asset (the Accounts Receivable Ledger) and ensure an efficient sale to payment process by mitigating the risks of slow cash flow and bad debts. The skills and knowledge required to be a proficient Credit Professional have been impacted by today’s complex business world and times of high corporate insolvency and bankruptcy. This emphasises the importance of effective risk assessment, the timely monitoring and collection of receivables and the skills and knowledge of those tasked with these responsibilities.

AICM’s learning services mission statement: “to provide the training to individuals working in the credit function in order to develop their career, skills and knowledge. This will help businesses ensure the most important part of their business is adequately skilled to meet the demands of this function” The Credit Function is a highly specialized function requiring specific knowledge and skills including Risk Analysis, Accounting, Dispute resolution, Legal, Insolvency, debt collection and general business skills. Each individual needs to possess the full knowledge and skill set in order to ensure the efficient operation of the Credit Function and business. To learn more about AICM Learning services Click here

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

HAVE YOU CONSIDERED FUNDED TRAINEESHIPS FOR YOUR EMPLOYEES? ABOUT TRAINEESHIPS Traineeships are employment arrangements where the Commonwealth and state and territory Governments support and encourage the training of new and existing employees.

EMPLOYER INCENTIVES UNDER NEW WORKER TRAINEESHIPS By enrolling eligible new employees into Traineeships, employers maybe entitled to receive up to $4000 in Commonwealth Employer Incentive payments for full-time staff and $1500 for part-time staff. In some states other significant benefits such as payroll tax exemptions are available, making traineeships a great value way to employ new staff.

FOR EMPLOYEES OF ANY AGE Traineeships are suitable for all employees no matter what their age is. AICM qualification materials are based on work place skills, so no matter how old your employees are, they will still benefit from the training. AICM has worked with employers of all sizes within the Credit Industry to utilise Government funded traineeship opportunities to meet staff training needs.

NEW WORKER ELIGIBILITY FOR TRAINEESHIPS Australian Apprenticeship Centres determines the eligibility of employees for New Worker Traineeships. The eligibility of employees to participate in Traineeships and the employers’ entitlement to Incentives is generally determined by the following criteria: zz the employee must be an Australian Citizen or Permanent Resident zz the employee cannot already hold a formal qualification zz New Worker Traineeships requires the employee to register a Trainee within 3 months of starting work. Longer periods apply for part-time employees.

aicm Training News In certain circumstances the course may still be funded where the employee has a formal qualification. Contact us to arrange specific advice from an Australian Apprenticeships Centre.

WHAT INCENTIVES MAY BE AVAILABLE? In total, employers may be entitled to up to $4000 for each eligible full-time employee and $1500 for part-time employees. The payments for full-time employees are spread across the training period as follows: zz $1500 upon commencement and registration of the traineeship (this takes approx - 6 months) zz $2500 upon completion of the traineeship period and training course. Payment for part-time employees occurs after you advise that the part-time employee has successfully completed their traineeship.

DETERMINING ELIGIBILITY FOR INCENTIVES

an Australian Apprenticeships Centre representative to officially assess and determine eligibility and entitlements.

TESTIMONIAL “Certificate IV in Credit Management has taught me invaluable knowledge, to assist me in my current role as the Credit Controller. It’s been a great exposure to the industry, to share and learn from the other participants”. – Diana Sullivan MICM, Trade Credit Controller at Haymes Paint

RECENT GRADUATES —— —— —— —— —— —— —— —— —— ——

Ruth Erika Donna Willcocks Diana Sullivan Tian Zeng Sarah Blackah Rebecca Harris Kaliopi Leddicoat John Minieri Grace Zhao Don Lekamge

AICM will arrange an Australian Apprenticeships Centre to assess your exact entitlement to incentives and the amount of incentives and when they are payable. Eligibility of employers for traineeship incentives, and the amount of incentives available, will be assessed and determined by an Australian Apprenticeships Centre. Eligibility and incentives will vary depending on the characteristics of your employee, the qualification chosen and successful completion of the course by your employee.

THE ROLE OF AICM IN TRAINEESHIP DELIVERY The role of AICM is to listen and provide qualifications that are relevant to your workplace and staff development needs. We provide the assistance and structured course materials to ensure that the employee completes the training components of the Traineeship. AICM have a long and successful history of working with employers to implement Traineeship programs successfully nationally! Helpful information on supervising your Trainee: https://www.youtube.com/user/DETSTSNSW A complete guide to Traineeships (NSW) http://www. training.nsw.gov.au/forms_documents/apprenticeships_ traineeships/fullguide.pdf

WHAT IS THE NEXT STEP TO GET STARTED? Simply email debby@aicm.com.au or phone 02-99064563. Remember – you will know your entitlements to Incentives before any enrolments are done! We will arrange for

KEEP THESE DATES: Sydney zz 13th & 14th August Factoring and invoice discounting zz 22nd September – Assess credit applications Brisbane zz 16th July – Manage bad and doubtful debts zz 18th & 19th – August Factoring and invoice discounting zz 11th – September Assess credit applications Melbourne zz 6th & 7th August – Factoring and invoice discounting zz 18th September – Assess credit applications

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

Women in Credit

WINC – women in credit inaugural lunch – Friday May 15 2015 Women in credit (WINC) finally arrived with a bang in May and we had a fantastic lunch with some amazing speakers, sponsors and giveaways. The WINC initiative has been established by a working committee of the NSW Division Council and members comprising: zz Treacy Sheehan, MD Trace Personnel zz Debbie Leo, General Manager, Major Accounts Veda zz Susan Day, National Credit Manager, Manassen Food Group zz Beth Gray, National Credit Manager, Red Bull Australia Pty Ltd The Working Committee hopes to provide informative events which help Credit Professionals at all levels and ages. For example, sharing tips on how to progress the careers for the younger members and how to prepare for life after credit for members planning retirement. We intend to make this initiative national with different events across the states. We are currently in the process of organising the Brisbane and Melbourne events. The inaugural event was developed out of a growing need to focus on the specific challenges Women face in the Credit Industry and was designed to give Women some tips on how to tackle some of the general challenges for women in business in an inspiring and relatable manner. The Sydney event was held at KPMG Head Office with a fantastic line up of speakers including: zz Holly Kramer – CEO of Best & Less zz Yolanda Vega – Chief Executive of Australian Women Chamber of Commerce & Industry zz Linda Murray – Athena Coaching zz Debbie Leo MICM – General Manager of Major Accounts Veda The speakers were insightful and the room was mesmerised by the powerful words and advice each lady provided on life, career and succession planning with helpful antidotes of professional and personal success. It was an afternoon of takeaways with everyone finding something that resonated and inspired them.

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Some of the takeaways worth mentioning included: Holly Kramer, CEO of Best and Less —— Work hard. Success relies on the basics and working hard can’t be overlooked. —— Take Risks. Establish a stable financial basis so you can take risks in your career. —— Network. Luncheons, seminars, conferences are a great way to develop your networks and learn from others. Don’t just focus on networking with those in more senior spheres but also those at other levels, professions and industries. Linda Murray – Athena Coaching —— Put your strengths as a women on the table —— When faced with “choice points” in your life, take responsibility and step into it —— Only 2% of fears come true so have a go. Linda has provided the following links for more information on some of the points she covered: • White paper “The Stiletto Approach: What Winning Women Do” go to http://www.athenacoaching.com.au/ and down load the white paper • The Video Interview with Linda Murray and Elise Mah Chut about Personal Brand (http://www.athenacoaching. com.au/video-library/)

Women in Credit

Yolanda Vega Yolanda is very passionate about breaking down discrimination toward Women and others, she recommends: —— To Never Burn your Bridge —— To know what you can and can’t do To learn more about the Australian Women Chamber of Commerce and Industry go to http://www.awcci.org.au/

Dress for Success The WINC committee feels very passionately about supporting a charity and decided Dress for Success would be our initial charity nationally. We were also delighted to hear from Robyn D Szoeke about the great work Dress for Success does to promote the economic independence of disadvantaged women by providing professional attire, a network of support and the career development tools to help women thrive in work and in life. Dress for Success Sydney is recognised by our stakeholders as a highly professional & compassionate

organisation making a difference for disadvantaged women building confidence and optimising their potential to achieve self-sufficiency and financial independence. Dress for Success Sydney is a registered charity that improves the employability of women in need in NSW by providing; free of charge, professional clothing, a network of support and the career development tools to help women achieve selfsufficiency. They endeavour to dress over 2000 women per year. Together $1,600 was raised which will go toward Dress for Success and to Support Holly in her CEO Vinnies Sleep out. We would like to thank all of the clients and friends of WINC and the institute that provided fabulous giveaways to make our raffle and the goody bags a big treat for all. We would also like to say a special thanks to Debbie Leo for her stellar Master of Ceremonies and the major sponsor – Veda and also The Lucky door prize donated from Australian Receivable Collections (ARC).

Next events for WINC Make sure you lock the dates into your diaries now ladies and gents. Melbourne Friday 11th September 2015 Brisbane Friday 18th September 2015 Please also let us know if you have any further ideas to make these events an ongoing success. Photographs by Jarryde Paterson www.jarrydepaterson.com

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Can We Help? In this issue of “Can we Help” we look at another way the AICM is helping Credit Professionals by featuring the Credit Network. The AICM is fully supportive of the Credit Network which has been formed with the support of Veda, NCI and Results Legal.

All your problems answered Credit Network is the go to place for answers and support from other credit professionals. The creditnetwork. com.au has a wealth of relevant, practical information for credit professionals. The interactive forum allows credit professionals to list and respond to posts specific to credit related issues. Below are some examples of recent posts and the prompt, informative responses that followed. Do we need to include the PPSR in our terms and conditions? Does the customer need to agree to have them registered? Does anyone has a good line to add to our T&Cs? Many thanks! Username: Olivia Name: Olivia Cave Role: Credit Manager Industry: Building And Construction Posted: 25/05/2015 11:07 AM

Q 1. If you want to register on the PPSR, you need to have a valid security interest. The usual way to create a security interest in trade credit is to include one in your T&C’s. Q 2. No, you don’t need consent to register. You do, however, need a registrable security interest (which usually arises under your T&C’s). Q. 3 In trade credit, the main security interests to protect under PPSA are retention of title rights. It isn’t quite as simple as including 1 or 2 PPSA clauses as the terms need to work together. Key aspects though include contracting out of notice requirements (to the extent possible) and drafting the RoT clauses in a way which maximise your PMSI claim (particularly in how your “all moneys” security operates). Name: Karl Hill Role: Managing Director Industry: Legal AICM Member Posted: 28/05/2015 4:02 PM

What happens if there is a change of trustee for a trust? Is the new trustee liable for all old and new debts? Username: Amy Beigoff Name: Amy Beigoff Role: National Credit Manager Industry: Building And Construction Posted: 21/05/2015 10:51 AM

Hi Amy In general, an incoming trustee of a trust will only be liable for the debts of the trust from the date of its appointment as a trustee. It is the trustee who was acting at the time the debt is incurred who will be liable for the debt, and will remain liable despite the retiring trustee’s resignation. The issue of liability (between the outgoing and incoming trustees) is often covered in the deed of resignation and appointment of trustee which is an agreement between the retiring trustee, the incoming trustee and the appointer (executor) of the trust. The deed should contain a clause which releases the retiring trustee of any liabilities upon performance of certain conditions (eg. paying off all existing liabilities as at the date of execution of the deed). However, please note that such an agreement does not, absent the agreement of the creditor, effect the liability of the retiring trustee for the debt to the creditor. Usually, at law, the former trustee will have the right to realise trust assets to pay unsatisfied debts and liabilities despite its removal as a trustee. This response is general in nature. If you require further advice, you should seek tailored legal advice. There may be other recovery avenues open to you, such as indirectly enforcing the retiring trustee’s right of indemnity (another topic in itself). This may give you a secured position for the debt. I hope this helps. David Chen, Results Legal Name: David Chen Role: Solicitor Industry: Legal Posted: 21/05/2015 11:14 AM

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

aicm Can We Help? Some options might also depend on the terms of the trust deed and whether you have a suitable perfected security interest and whether the former trustee went into liquidation or bankruptcy. Generally, you can still sue the former trustee for the debt; you can sue the new trustee to enforce the security interest and/or you can enforce the security interest without suing and/or lodge a caveat or possibly prescribed interest over trust property and/or sue the new trustee to enforce an equitable lien which is subrogated to you over the trust property. I did an AICM Paper on thes and have done several court actions and recoveries using these. Sometimes you are better off than if no change of trustee had occurred. Cheers Name: Peter Mills Role: Solicitor Industry: Legal AICM Member Posted: 21/05/2015 9:05 PM

Hi All, Occasionally we have customers that stop buying from us having gone to an opposition company. When pressed for payment, the customer sometimes start paying minimal monthly amounts that can take 1-2 years to settle. Obviously this is unacceptable & I’ve sent Final Demands with mention of a default listing without response. I can’t justify legal action because of the amount involved & if I list a default they may stop payments altogether. Damned if I do & damned if I don’t, your thoughts please? Rodney Username: Rodney Jarvis Name: Rodney Jarvis Role: National Credit Manager Industry: Automotive AICM Member Posted: 02/06/2015 11:06 AM

Rod, my thoughts are that I would take a punt and lodge the default report. This is of course after advising them in writing that this will stay on their credit files for 5 years, and may affect tehir ability to obtain credit in the future. If everyone took this course of action, credit files would be of more value when assessing, and the professional debtors may eventually get the message. FrankV Name: Frank Vredenbregt Role: National Credit Manager Industry: Automotive AICM Member Posted: 02/06/2015 7:38 PM

Hi Rod, This is a great example of the tough positions Credit Managers are placed in every day. Defaulting has a number of things going for it e.g. you are contributing to better information about this customers unprofessional behaviour, it will lessen the chance of them shopping around between the different suppliers and has a great chance of leading to prompt payment. On the other hand if they are meeting the obligations of a repayment arrangement why upset the apple cart. However it sounds like this is not the case so not defaulting or taking action means that the disruption will continue for your company, your industry or the broader Credit Industry. Not to mention the growing risk of insolvency this behaviour indicates. That’s my opinion and I hope it helps. Name: Nick Pilavidis Role: Chief Executive Officer Industry: Industry Body & Training Provider AICM Member Posted:03/06/2015 10:23 AM

Hi Rodney. This happens to us all the time. Advising debtor that you are prepared to take the matter to small claims court , coupled with the notification that you will default their credit file and that all cost associated with the summons will be added to their debt usually brings about the desired result, Danielle R Name: Danielle Robinson Role: National Credit Manager Industry: Manufacturing & Distribution Posted: 12/06/2015 12:27 PM

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Can We Help? Hi All, As a general rule, we never like to off set amounts owed, however when a debtor is also a creditor, and the debtor is struggling to pay their outstanding debts, do we have a right to automatically off set the funds owed to them, or do we need to have a formal agreement between both parties (in writing) for this to occur? Are there any repercussions in the event of insolvency if an off set occurs? Thanks, Username: JulieHaigh Username: JulieHaigh Role: National Credit Manager Industry: Mining Posted: 03/06/2015 9:26 AM

Replies Hi Julie, in short; 1. It’s better to have a clause in your credit documentation to set-off; 2. If no credit documentation or terms, then at general law you may be able to set-off; 3. Yes there may be insolvency repercussions, e.g. preference payment, but there may also be a legitimate defence. Feel free to give us a call for an obligation free discussion. Regards, Julie McNamara, National Credit Consultant, Patane Lawyers. Name: Julie McNamara Role: National Credit Manager Industry: Legal Posted: 03/06/2015 11:05 AM

Julie I would offset and take the chance IF an insolvency issue came up. You could always seek a settlement in satisfaction of, if you fell into the category of preference payment. Regards, Name: Ralph Ziccarello Role: Credit Manager Industry: Building Supply & Manufacture AICM Member Posted: 08/06/2015 5:39 PM

Click here to go to the Credit Network

All articles contain general information only. They are not legal advice. You should seek your own legal advice if faced with a similar situation.

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Queensland

President’s Report June already and some of you are in financial year end mode, where does the time go? Young Credit Professional judging for the Queensland Division is underway in the next couple of weeks, the presentation of the Dun & Bradstreet Queensland Young Credit Professional for 2015 will be held on the 22nd July at Customs House. This event is certainly one of the highlights of our calendar and I would urge you to attend, bring your team in supporting the “up and coming” in our industry. This is a very popular event so book early. At the request of some of our members we have an alternate venue which is Customs House, one of Brisbane’s heritage icons, is located on the river in the CBD. It is owned and operated by The University of Queensland as a cultural, educational and heritage facility. Behind the grand Corinthian columns you will find exquisite boardrooms, a stunning ballroom, seminar rooms, a licensed restaurant and UQ Information Office. Customs House is regarded as one of Brisbane’s premier function and features beautiful heritage surroundings, outside on the terrace overlooks the Brisbane River and the Story Bridge You will be stimulated by a presence of the past and will enjoy the splendor of this magnificent building’s origin. I invite you to take advantage of this venue by attending the next CNN held there. This year has seen the reintroduction of our Toolbox series of credit related topics, a national standard offering of the basics of credit control. These sessions are excellent for someone new to credit or for those that have been around for a while who need a refresher on the relevant practice and legislation. These can be tailored to suit your business and be presented in-house with a particular focus on your policies and procedures. Please enquire with local councilors or with Head Office. I feel that Queensland Council has built a very strong

Nick Pilavidis, Roger Masamvu, Peter Mills and Peter Ryan.

platform to continue to provide specialist education to its members and interested persons for the times ahead. Yours in credit. – Brian Kay CCE

Upcoming Events YOUNG CREDIT PROFESSIONAL OF THE YEAR Judging for the Queensland Division YCP of the year is underway in the next couple of weeks and the presentation of the Dun & Bradstreet Queensland Young Credit Professional for 2015 will be held on the 22nd July at Customs House. This event is certainly one of the highlights of our calendar and I would urge you to attend, bring your team in supporting the “up and coming” in our industry. This is a very popular event so book early.

GOLF The Queensland Division Wincollect Annual Golf Day is on Friday 21st August 2015 at the Wynnum Golf Course 64 Stradbroke Avenue. Time: 11am registration Tee off starts at 12pm Cost: Individual - $95 Team of 4 - $380 Hole - $750

EDUCATIONAL TOOLBOXES This year has seen the reintroduction of our Toolbox series of credit related topics, a national standard offering of the basics of credit control. These sessions are excellent for someone new to credit or for those that have been around for a while who need a refresher on the relevant practice and legislation. These can be tailored to suit your business and be presented in-house with a particular focus on your policies July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

The QLD AICM Council – Brian Kay, Peter Mills, Peter Ryan, Toni Sawyer, Julie McNamara, Melinda Grob, Stacey Woodward and Roger Masamvu.

AROUND THE STATES

Queensland

Re-enactment of an Enforcement Hearing

Events Calendar

8 July

CNN – Trivia Night, VENUE: TBA

Nick Pilavidis and Murray Walter.

Annual Golf Day

and procedures. Please enquire with local councilors or with Head Office. I feel that Queensland Council has built a very strong platform to continue to provide specialist education to its members and interested persons for the times ahead.

19 August

CHRISTMAS FUNCTION

22 July

AGM & YCP Awards, VENUE: TBA August

Credit Tool Box – Leadership & Management Skills (Part 3 & 4) Part 3 and 4 each a Half Day Seminar VENUE: TBA

8 September

CNN – Identity Theft & Fraud

This year promises to be a very special End of Year function, a time to catch up with friends and see the old year out. Last Year we were at Toowong in The Regatta Hotel, this year we are by the Brisbane River with the Story Bridge as a backdrop in the stately heritage listed Customs House. The date is Wednesday 25th November so ensure that you put that in your diaries.

Speaker: Fraud Squad Qld Police 11 – 14 September

CCE Exam 16 September

Credit Tool Box – Insolvency Issues (Part 5) VENUE: TBA

CNN 13th May 2015 – Data Protection Last month we enjoyed our latest CNN at a new venue, Customs House along Queen St in Brisbane. Not only did we enjoy a fantastic view of the Story Bridge and the Brisbane River we also got to enjoy an interesting presentation from Murray Walter (Dun & Bradstreet) on Data Protection.

October

CNN – People in Credit, Challenges & case study VENUE: TBA

14 - 16 October

National Conference – Sydney VENUE: SOFITEL WENTWORTH HOTEL - SYDNEY

November

End of Year Event VENUE: TBA

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

CNN 10th June 2015 – Re-enactment of Enforcement Hearing Queensland’s June CNN covered the topic of Debtor Enforcement Hearings. Peter Ryan commenced by eloquently outlining the purpose of Enforcement Hearings in the collection process; the type of questions that could and should be asked and the ability of the court to compel such responses. Armed with the overview of the process, an entertaining reenactment ensued which not only showed the process but also that anything can happen and that you need to think on your feet, particularly when actors start to ad lib. Rick Jones judiciously

Queensland AROUND THE STATES

QLD president Brian Kay opening CNN on 10 June. Above and below: A new venue and new view – Customs House.

played the part of the judge, Peter Ryan that of the examining officer add to the mix a rather belligerent debtor who acted like the love child of Brian May and Gordon Ramsey. A most educational and humourous look at Enforcement proceedings.

Councillor Introduction Stacey Woodward CCE Qualifications: Certificate IV in Credit Management 50% completed Current Position: Credit Officer – QLD Major Mining Employer: Hastings Deering How long at that company: 5 months

The Australian Institute of Credit Management welcomes our Partners for 2015.

Credit/professional background: My credit career started with Boral Construction Materials in 2011 as a Credit Officer looking after the QLD/NT Trade accounts, I then progressed into the QLD/NT Major accounts role in 2013.

National Partners

Why I volunteer on the AICM council/Goals as Councillor: I currently sit on the QLD council looking after the Media portfolio. I love being part of something that I am passionate about and am always looking to learn new things.

Divisional Partners

Achievements with AICM (inc how much time on council): QLD National finalist for the 2014 Young Credit Professional of the year award, have been involved with the council for 9 months. Value I have gained through volunteering with AICM: Since taking on the media portfolio on the QLD council, I will be expanding my social media marketing skills with an online course due to start in June. My passions aside from Credit/work: Scuba diving and travelling the world – I usually plan trips that combine the two! Contact details: Feel free to connect with me via LinkedIn or aicm@aicm.com.au

Our National and Divisional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

New South Wales

Women in Credit Inaugural Lunch

President’s Report

support of our Partners we would really struggle to exist. They are always promoting our events and also have their staff and clients attending next to everything we put on. Next time you attend an event spend some time with our Partners and see what benefits they can bring to your companies and or yourselves.

Hello to all our members. We have had some fantastic events in NSW since the last magazine with next to all of them being sold out with over 200 people attending events in May alone. The individual reports on these events are as per below. It was great seeing so many people learning, enjoying themselves and networking, it was also refreshing seeing all the different Credit Managers attending these events and we look forward to seeing you all at our upcoming networking nights leading into this year’s conference at the Sofitel Wentworth Sydney. We are in the process of our YCP judging and it has been fantastic to see so many quality candidates apply. I am looking forward to meeting all of our finalists at the Gala dinner at Kirribilli Club on the 16th July for the announcement of our 2015 State champion who will go on to represent NSW in the attempt to bring the National YCP title back to NSW again. I want to make a special mention to all of our partners this issue. I know I do this each month however they have been a big part in helping us achieve the great events lately and without the 38

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Our National Partners are: Veda, Dun and Bradstreet and Austral Mercantile. Our State Partners are: Ampac, Results Legal, Randstad, NCML and OnGuard. Our Supporting Sponsors are: Baycorp and Byron Thomas. In closing I would like to thank my council for a sensational year, these councillors do some unbelievable work behind the scenes making all of our events so successful and ensuring we provide the professional development Credit Professionals need in this challenging role also want to thank Nick & his staff at Head Office for all of their support. I look forward to seeing you at the events as well as this years National Conference in Sydney

New South Wales AROUND THE STATES

Trivia night.

In Memoriam It is with great sadness that we note the passing of Murray Godfrey after his battle with cancer. With a career spanning more than 25 years Murray was known and respected through the insolvency profession. His presence and jovial laugh will be sadly missed in Veritas Advisory. He was a great supporter of the AICM presenting at many Network Nights, Symposiums and Seminars. Our thoughts and prayers go out to his wife Maggie and son David.

City Youth Network Night, 21 May 2015 The NSW Council hosted the City Youth Networking Night at the Windsor Hotel. It was a Trivia themed night and the quiz master was revved up and ready to take on the 120 members and guests who registered for the event. We had participants of all ages, being past and present winners of Young Credit Professional Award, Credit Team of the Year and Pinnacle recipients. Amongst the familiar faces were some very distinguished guests from the National Board including James Neate (National Vice President and SA Director), Grant Morris (National President) and Nick Pilavidis (CEO). As the night progressed the competition definitely fired up, as only a few points came between the teams. However for a second year in a row Maximillian took out first place and continued to be the reigning champions. Our generous event supporters went above and beyond to make the night possible, and to ensure that everybody had a memorable evening. The NSW Council are thankful to the generosity of SLF Lawyers, Veritas Recruitment, Performance Education, Startrack

Trivia night.

and Recoveries National for their support at this particular event. The next City Youth Networking Night is Barefoot Bowls scheduled for 8 October 2015 – so lock it into your diaries.

City Network Meeting – Summary Judgement Process On 23 April Curwoods Lawyers hosted the City Network lunchtime presentation which was attended by AICM members and staff from Curwoods. Sam Pearlman talked on the summary judgment process and its application to the recovery industry. Approximately 50 people attended for lunch. The presentation provided some great insights on how to get a quicker and cost efficient result by short cutting disputes intended to frustrate and delay the legal recovery process. This was followed by attendees enjoying the impressive art work on display and reflecting on how using the summary judgement process could work in situations regularly faced by Credit Professionals. July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

New South Wales

City Network Meeting hosted by Curwoods Lawyers.

Events Calendar

16 July

YCPA Awards Night VENUE: SOFITEL

11 August

City Networking Night

Speaker: to be confirmed Subject: Forecasting Cash Flow 11 – 14 September

CCE Exam

20 September

City Networking Night – Wine tasting VENUE: CITY VENUE

8 October

City Youth Network Night – Barefoot Bowling VENUE: PADDINGTON

13 October

NSW/National Golf Day VENUE: OATLANDS GOLF COURSE

13 October

Harbour Cruise VENUE: SYDNEY HARBOUR

14 – 16 October

AICM 2015 National Conference 2015 Master Class/Credit Symposium and Pinnacle VENUE: SOFITEL

17 November

Awards Dinner Featuring: TBA VENUE: PULLMAN HOTEL

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

City Network Meeting hosted by Curwoods Lawyers.

Councillor Introduction TREACY SHEEHAN, Trace Personnel Treacy ran the recruitment arm of the group of companies specialising in debtor risk management and administration from 1998 until 2001 where she gained her knowledge of recruitment and specialising in the niche area of debtor finance/credit/ invoice finance. Trace Personnel was set up in 2001 with Treacy’s passion for creating a positive environment for employees, which led to great ongoing experience for clients and candidates alike. This has been clearly embedded into the company’s mission statement which is “To approach recruitment in a fresh, personal way that is ethical & mutually rewarding”. Trace Personnel is celebrating 14 years of success. As the Managing Director of Trace Personnel and a director of Fresh Catering (a Sydney based catering company), Treacy is also a member of the Recruitment & Consulting Services Association (RCSA) and an active Councillor of the Australian Institute of Credit Management (AICM) having recently assisted in setting up a Women in Credit network (WINC) designed to attract women to an exciting career in credit and finance. Treacy is also an affiliate member of Debtor Invoice Finance Association (DIFA). Treacy is also a member of the Institute of Company Directors (AICD) and has an Advanced Diploma of Marketing Management and a background in sales and marketing spanning 25 years within the hospitality and recruitment industry. Being in the Credit Industry for some time, now has enabled me to work with people in all areas of the Credit Industry in NSW and around the country.

New South Wales

Economic update by Michael Witts of ING.

I joined the AICM 17 years ago and have helped out nationally with anything I could from Trace Personnel sponsoring, to organising events and assisting in State and National Conferences. For the last 3 years, working as a councillor with NSW, I have focused on organising the NSW Division events which has been great to help co-ordinate some exciting events and to see an increase in the attendances from some fabulous speakers we organise. I am particularly excited to be part of the team driving the Women In Credit (WINC) events nationally as I hope to show other women that the Credit Profession is one we can succeed in.”

In the words of Ariana Huffington – a great woman and author – ‘We need to accept that we won›t always make the right decisions, that we’ll screw up royally sometime –

Treacy’s Success Tips include Take risks and believe in yourself. Having run a business for over 14 years now, I continually strive to be the best I can be. Some days it works other days, not so much……. My philosophy to success is ‘take the risk to do it, be it and make it happen’ – the worst thing that will or could possibly happen is you will fail and need to renegotiate success as you see it, it may take many twists and turns, so see the setbacks as stepping stones to your goal – for everyone success is different but if you never try you will never get to your goal.You may fall off the bike but you get right back up and start again. I’ve had many setbacks along the way and much trauma so the bottom line of ‘believe in yourself and your goal’ is where my next tip comes in – don’t ever let someone sway you on your self-worth and confidence and if they do – they shouldn’t be in your life. It’s important to listen to critical and constructive criticism, and as individuals I would encourage this as we don’t know everything, however, know oneself and believe in oneself and never let anyone make you feel worthless. My final piece of advice is to be humble, kind and thank people along the way – the great secretary you’ve had, the lovely and inspiring boss, the business partner, the mentor. It’s a battle out there most days so be kind and humble to those that help along your journey.

AROUND THE STATES

Economic update by Michael Witts of ING.

understanding that failure is not the opposite of success, it’s part of success’.

The Australian Institute of Credit Management welcomes our Partners for 2015. National Partners

Divisional Partners

Professional Partner

Official Division Supporting Sponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry please consider them when you require assistance.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

South Australia

Josh Richards, Hunt & Hunt Lawyers.

Audience in the docks.

Magistrate, Plaintiff and Defence Counsellors.

Rodney Reliable AKA Trevor Goodwin.

President’s Report The SA Division is now entering into the busy time of the year. All councillors are working together to prepare for the Annual Award’s Night, YCP judging and the Quiz Night! Our Networking evening, held at Proof, turned out to be a winner. The venue was quirky, original, intimate and enchanting. They turned on amazing scrumptious food and wines that kept everyone networking well into the evening. Credit Focus’s Mock Court was professional, informative, entertaining and humorous. Hunt and Hunt hosted the after networking event overlooking the city lights of Adelaide – what a beautiful view and setting it was. The functions team are finalising the Quiz Night, with a different venue – the Unley Community Hall, cosy for a winter’s night. Lots of fun to be had with our wonderful SA businesses donating prizes and everyone rallying around their friends and colleagues to bring their highest intellect with them! With the YCP nominations locked in, SA has some great new applicants for the judging panel to interview. Let’s hope we have another outstanding candidate to take to the national conference in October. We currently have two candidates for CCE. We understand how difficult it is to find the time to complete the studies whilst juggling pressuring roles in the workforce and home 42

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

lives, so we certainly give strong encouragement to both candidates over the next few months whilst they complete their accreditation. New members are always being sought to grow the AICM in SA. We urge members to bring along your colleagues and contacts in the credit industry to events, particularly the Credit Focus mornings, as here they can meet people within their industry and share their experiences and knowledge. Thank you to the strong council we have in SA, we continue to brain storm and support one another from event to event. Ideas are bounced around the monthly meetings and it is warming to see and hear everyone working as a team. Don’t be a stranger to the councillors as we are here for you, our members, at all times! Trust you are all coping with the pressures of the EOFY… Look forward to seeing you at a function soon. – Gail Crowder SA Division President

Credit Symposium, 20 February 2015 The SA Division held its annual Credit Symposium early this year at the beautiful Hahndorf Resort in the Adelaide Hills. We were fortunate to have a truly exceptional line up of speakers. The

South Australia AROUND THE STATES

Magistrate Milazzo.

Gail Crowder SA President with Magistrate Milazzo.

day started with an in-depth look at the state of the economy by Travis Adams, from Prescott Securities. Travis, a Senior Analyst, provided a technical analysis of the global and local economies and gave the attendees some cause for cautious optimism, after noting the rebounding USA economy and its flow-on effects for Australia. James Neate, from Lynch Meyer Lawyers, in his usual informative and entertaining style, provided timely advice on electronic personal guarantees and the tips and traps for obtaining an enforceable electronic guarantee. Simon Read, from EDX, gave a useful and engaging presentation on enforcing PPSA rights with clear real life examples of PPSA success stories that he had been involved with. Jane Calleja, of National Credit (Insurance Brokers) Pty Ltd, gave an energetic presentation on effective leadership skills, which generated widespread audience participation and discussion. After a delicious lunch in the adjoining “5245 Restaurant”, Mark Gare of McGrathNicol presented on identity fraud and data security risks. Mark, a forensic expert in electronic data, provided insight into the flourishing crime of identity fraud and how organisations are exposed and what they can do. From there, Eric Milne of Fujitsu General (Australia) Pty Ltd, gave a unique and very interesting presentation on credit hypotheticals. Lastly, Sharon Ferrier of Persuasive Presentations gave a presentation on effective communication and gave all the attending credit professionals excellent tips on how to influence the boss and most importantly, the sales team! The day finished with EDX sponsored networking drinks in the adjoining bar, which was a welcome way to relax at the end of a busy schedule. Overall it was a fantastic day with many attendees saying it was the best symposium yet! The SA Council thanks all the presenters, who gave of their time and particularly Eric Milne and Simon Read who both flew from interstate for the symposium. – James Devonish, Professional Development Chairperson

Credit Focus, 12 March 2015 The 2015 Credit Focus calendar started off with an enthralling presentation by Maris Rudaks of BRI Ferrier on the topic, “10 things a Liquidator or Bankruptcy Trustee will not tell you!” Maris, a very knowledgeable and experienced insolvency practitioner, gave some great tips on how creditors can better

Josh Richards, Hunt & Hunt Lawyers, Magistrate Milazzo and Melanie Bird, Hunt & Hunt Lawyers.

advocate their position and also avoid pitfalls when dealing with liquidators and bankruptcy trustees. Maris gave insightful practical examples and interesting hypothetical scenarios. The attendees were left with a greater appreciation of creditors rights in situations where their customers enter liquidation or bankruptcy. Maris helpfully provided each member of the audience with a takeaway USB stick containing a “soft copy” of his presentation so that the attendees would not lose the tips and insights he provided on the day. The session was well attended with 30 credit professionals attending. The presentation generated a lot of questions and open discussion. Our thanks go to BRI Ferrier and Maris Rudaks for the presentation. – James Devonish and Anne Wilkins, Credit Focus Committee

Credit Focus Report, May 2015 May Credit Focus – Mock Court Trial – with Josh Richards and Melanie Bird from Hunt & Hunt Lawyers and Magistrate Simon Milazzo. I must say this presentation was very well received and everyone played their part well – including Rodney July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

South Australia

Events Calendar

9 July

Credit Focus – The basics of credit

Speaker: Trevor Goodwin Subject: Processes – Risk analysing customers

VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH

August

Awards Dinner 2015 VENUE: TBA

13 August

Networking after the Mock Trial at Hunt & Hunt Lawyers.

Credit Focus – Trading trusts

Subject: Credit approval, liability and recovery action VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH

10 September

Credit Focus – Bad debts and ways to avoid them Subject: Processes – Risk analysing customers VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH

11 – 14 September

CCE Exam 8 October

Credit Focus VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH

14 – 16 October

AICM 2015 National Conference

Yulia Petrenko and Nick Cooper from Worrells.

VENUE: SOFITEL SYDNEY WENTWORTH

12 November

Credit Focus – PPSR and retention of title implications Speaker: TBA Subject: Protecting your security interest VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH

4 December

Network evening and Christmas break up

Reliable! (aka Trevor Goodwin). Magistrate Milazzo addressed all attendees on the trial process. With the absence of the Court Clerk and Orderly, Magistrate Milazzo showed his multitasking skills by taking notes, registering names, swearing in witnesses and handing in the paperwork as evidence. Once the formal introductions were over Josh played the Defendant and Melanie the Plaintiff. Josh put his defence forward in saying “I did not receive the goods”. He went on to say that “The fruit and vegetables were damaged and I did not receive the invoices”. Melanie showed the court the invoices and the proof of delivery of the said goods, which were signed by Con Spiros (aka, Josh Richards). After handing these to the Magistrate they were entered as evidence. 44

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Rodney Reliable was called as the witness. He testified that he is an employee of Cheap Couriers and delivered the fruit and vegetables. He then stated that, in fact, “Yes, Con did sign the delivery dockets himself”. Magistrate Milazzo then asked questions of both parties and read all the evidence. He made his decision for the Plaintiff. Con was not a happy chappy! Magistrate Milazzo stated that he always endeavours to finalize the hearing on the day. Points of interest made by Magistrate Milazzo were: He likes the “Hot-tub” approach – this is where everyone from both sides is in the tub together. He asks all of them questions to try and resolves issues quickly and effectively. Magistrate Milazzo has shared his approach with other Magistrates here in SA. Four (4) important points/tips from Magistrate Milazzo are: to have all your documents in order; look through your case the day before; make sure your witnesses are debriefed early with all details of when and where to be; understand your case. We then went to Hunt & Hunt Lawyers for drinks and finger food and a chance to discuss the Mock Court Trial. It was lovely to see most attendees were able to come back and network. The view was just amazing from the 10th floor looking straight down King William Street towards Victoria Square. – Anne Wilkins FICM CCE, Credit Focus Portfolio

South Australia

Credit Focus Report, June 2015 June Credit Focus – Liquidation Case Study – with experienced presenters Nick Cooper and Yulia Petrenko from Worrells Solvency & Forensic Accountants. Their presentation covered all the “needs to know” of liquidation. I must say “Oh Mr Hart what a mess”. The case study was “Bedroom Bazurka and Faulty Towels” which is currently not resolved and expected to be ongoing for some time. Nick pointed out that the Liquidator has to make the judgement call on whether or not it is feasible to pursue the debt. He also went on to explain that the $28,000 debt turned into $500,000, this being the cost for chasing the debt! The Liquidator clearly breached due care and diligence responsibility by spending excessive money to try and recover the debt. Not all the audience were aware that the creditor can pursue the directors if they believe the Liquidator is not effectively recovering the debt. This is certainly a tip to take home for the day. There were some great questions raised and everyone left with more knowledge about the step-by-step procedures. This case study was well presented by Nick and easily understood by all in attendance. Yulia’s presentation was also well received with her overall knowledge on liquidations. – Anne Wilkins FICM CCE, Credit Focus Portfolio

Amanda Campbell and AJ Jaramillo.

President Gail Crowder welcomed all in attendance and informed members of our upcoming events. Josh Richards welcomed two new members in Jayne Gurney and Irene Baird from Bendigo and Adelaide Bank and handed them their Membership certificates. The Functions committee is keen to try new and trendy venues, such as Proof, as it turned out to be a real winner. These venues are starting to pop up around Adelaide so we will continue to seek them out for future events. The committee is now busily planning our next social function, which is a Quiz night on June 26th. This is always a great night with a lot of fun and humour. We look forward to seeing a good crowd attend. – Trevor Goodwin, Functions

The Australian Institute of Credit Management welcomes our Partners for 2015. National Partners

Divisional Partners

Function Magazine Report The SA Division held a successful Network Night on May 7th at a funky but rustic bar called Proof. It proved to be a great venue with 30 attendees. They all made full use of both the indoor and outdoor/rooftop facility on a cold wintery evening. It had a cosy feel, which enabled people to mix well together. The food provided by Proof was scrumptious and plentiful and just perfect for this cocktail function. It was pleasing to hear that SA may have some additional YCP candidates, which have come to our attention. We will certainly be following them up and giving them lots of encouragement and support from the committee and members.

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

Nick Cooper, Yulia Petrenko, Rebecca Young, Antony Disciscio, and Montgomery Wolf.

AROUND THE STATES

Victoria/Tasmania

Intent consideration from participants at the PPSA breakfast.

Lionel Meehan (Ashurst Lawyers) presents on PPSA.

A stellar turnout to the June Breakfast at Parkview Hotel Melbourne.

Members and guests at the PPSA Breakfast.

President’s Report This year we had another fantastic level of interest in the Vic/ Tas Young Credit Professional Award. Over 22 Young Credit Professionals registered their interest with 14 applications submitted. From the 14 applicants 5 finalists will be selected to proceed to the interviews. The Victorian and Tasmanian Council would like to wish all the participates the very best at their interviews with the successful candidate announced at the YCPA Gala dinner at the InterContinental The Rialto Melbourne on the 8th of July 2015, with the successful candidate will be invited to participate in the National YCPA in Sydney at the National Conference in October. It has been fantastic to see great numbers at our events over recent months and it has been very pleasing to see many new faces and we look forward to seeing many more at the upcoming events. We invite all our members to participate where possible by attending network events and seminars as you will learn something new, get an update or make a valuable connection with one of your fellow Credit Professionals. The Vic/Tas council is currently in the planning stages for the 2016 calendar so, as always if there is a topic or seminar you would like included in next year’s calendar of events please get in contact with us via our email address vic@aicm.com.au. These events are for your benefit so don’t hesitate to let us know your preferences on the what, where and when of future events. With women making up 50% of our membership we have formed a committee to bring you a Women In Credit Forum to be held on 11 September 2015. This will be a not to be missed event for Women and Men with inspirational female speakers so stay tuned for further announcements on Women in Credit forum to held late in the year in the Melbourne CDB. – Lou Caldararo, VIC/TAS State President 46

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Network Night – The Successful Restructure of a Distressed Business APRIL 2015 Robyn Erskine Partner at Brooke Bird Restructuring and Insolvency Specialists, and longtime committee member, delivered an informative presentation on the vexed issues of business restructure as it plays out in the world of credit. Robyn is the immediate Past President of ARITA (Australian Restructuring Insolvency and Turnaround Association) and has over 25 years’ experience as an insolvency practitioner. Since the changes to legislation that makes directors more accountable for company debts and as the Australian Taxation Office ramps up proceedings against companies in default on their tax obligations, it seems that restructure and turnaround are now the buzz words within the industry. Robyn examined some of the indicators and elements required within a struggling business to make it a candidate for a successful restructure. She also covered in some detail the reasons why are we seeing so few restructures, and some of the reasons why suppliers should be supporting restructures. Not every business can be restructured as it depends greatly on the position of the business and the cooperation of the directors. However if restructure is successful creditors may walk away with a percentage of payment in their pocket, which may be better than nothing which is likely if restructure isn’t attempted. Ultimately the key to dealing with any failing business is in making sure that you have assessed and addressed your risk at the commencement of the relationship by getting solid legal advice about credit applications, the right terms and conditions for your business including PPSA, and directors guarantees and the like, rather than being at the end losing in a liquidation.

Victoria/Tasmania

Young Credit Professional (YCP) in Focus – Amaran Navaratnam (Runner up 2014 VIC/TAS YCP Awards) Members and guests at April Network Night.

Active Participation at the April Network Night.

Network Breakfast – PPSA made easy for Credit Managers JUNE 2015 Lionel Meehan, Partner at Ashurst Lawyers, provided members and guests with another comprehensive look into the PPSA (Personal Properties Securities Act). Lionel is well placed to help businesses navigate the world of PPS, as he has literally written a book called “The PPS Guide”, and he delivered another excellent presentation covering a recap on registering purchase money security interests (PMSIS), sales in ordinary business – cutting off security interests, and an update on the 3-year review of PPSA. This attendee’s experience, despite repeated education on the PPSA subject, is that much mystery still shrouds this very complex piece of legislation, and that the goal posts continue to move as more new cases are tested in the courts. Lionel broached an interesting scenario involving selling goods to a parent company whereby terms and conditions and PPS Registrations are perfected with the parent company, however unbeknown to the supplier the parent company onsells the goods to a subsidiary, where no customer agreement is in place, so PPSR is not perfected for the 2nd exchange of goods, thus nullifying the suppliers PPS rights. Lionel advises that suppliers are limited in what they can do to prevent such a scenario but instilled in participants that it is all the more reason to be diligent in your preparation and risk assessment with your customers to ensure that when a liquidation event occurs you are as protected as you can be. The golden advice for credit professionals, when it comes to PPSA, is to make sure that you get the right legal advice and continue to educate yourself as much as possible because

The YCP applications have closed for 2015, but with our current applicants in the YCP Awards having lodged their applications and submissions, and currently working on their presentations for the 2015 awards, we thought it appropriate to take a look at the process and examine the benefits to young credit professionals in becoming involved in the YCP Awards program. Perhaps you can think about involving yourself in next years’ awards. And who better to ask than last year’s VIC/TAS runner up Amaran Navaratnam from Recoveriescorp, who has actively become involved on the committee of the AICM VIC/TAS Division since his running in the 2014 awards. Already an up and comer within Recoveriescorp, Amaran always attended to his role with energy and enthusiasm, which drew the attention of senior management, who nominated him to represent Recoveriescorp in the 2014 YCP awards. After completing and submitting an application, including work references and confirmation of employment, Amaran had to complete a further submission for the awards process and was guided through that process by Louie Tzakopoulos, National Credit Manager, Wurth Australia, who is the YCP Chair on the VIC/TAS Division Committee and a former state winner of the YCPA. Amaran describes being nervous after making his submission, but exceptionally pleased with the level of assistance and support that he received from Louie guiding him through that process. He bore the burden of uncertainty as he awaited news of his being short listed for the interview process, which he says came at great relief. He said that he was also incredibly nervous before performing his presentation in front of the panel of judges, all credit professionals of standing here in Victoria, but he said like anything worthwhile the key for him was being well prepared, so he knew that he had done everything that he could to prepare, and he felt comfortable in that knowledge walking into the interview. He said that he spoke confidently and passionately about his employment with Recoveriescorp and the credit industry as a whole, and of the wonderful experience the YCP process has been for him. In the 2014 YCP Awards, Amaran was awarded the Tony Mammone award for runner up. He says since that July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

it’s here to stay and trying to navigate it without the right legal advice can be very much to your detriment. We will continue to educate our members on PPSA and hope to include another event on this topic later in the year.

AROUND THE STATES

Victoria/Tasmania time he hasn’t needed to look back. After the YCP awards night he was awarded by Recoveriescorp the prestigious “Employee of the Year” Award as well as being presented a “Customer Excellence” award by one of his clients. Amaran said that he has always been ambitious and has always been enthusiastic for whichever company he worked, but that because his employer has taken an interest in him and rewarded him for his active participation he has become more involved at work and taken on more responsibility within the company. Amaran is now involved with training staff, assisting the project team with testing new projects and he has been appointed chairman of Recoveriescorp’s Business Process Review Committee, and has recently joined the Business Development team on secondment. He said that being involved in this process has made him feel valued and recognized and

Events Calendar

MELBOURNE NETWORK EVENTS

(1 CCE Point for each Network Evening)

21 July 2015

PPSA made easy for Credit Managers (Breakfast Session) Speaker: Lionel Meehan, Partner at Ashurst Lawyers

has resulted in exponential growth in his career development. Amaran expressed his sincere gratitude to Recoveriescorp for nominating him, and the AICM for their consideration, and to both for recognising his credit skills and passion towards the credit industry. He said that he highly recommends YCP’s to get active and become involved in the program, whether it is by self-nomination or nomination by their manager, they are representing themselves as well as their company and their state. Amaran went further to say that the YCPA process offers a great vehicle for career development, recognition within the industry and with your employer, and that the AICM hosts a plethora of networking sessions and credit seminars on diverse topics giving all YCP’s a competitive edge with industry knowledge. If you want to get ahead get involved, he says, you won’t regret it. Thank you to Amaran for taking the time to provide us with this valuable insight into the YCP Awards process, and good luck to the 2015 applicants.

Suggestion Box As a Credit Professional if there is a topic that we have not recently covered that you would like covered or a social event you would like us to try please email dsmith@relrec.com.au and we will raise it at the next committee meeting for consideration.

20 August 2015

What defines a good Leader? (Breakfast Session) Jason McCutcheon, Proprietor Biscom Caption

The Australian Institute of Credit Management welcomes our Partners for 2015.

19 November 201

ABC of Financials

National Partners

YOUTH NETWORKING 17 September 2015, Trivia Night HALF DAY SEMINARS (3 CCE points for each Seminar) 10 August 2015, See you in Court! Speaker: Tracey Rothwell – Rothwell Lawyers

Divisional Partners

CCE EVENTS (1 CCE Point for each CCE event) 26 November 2015: CCE Breakfast (7.15am – 9.00am) CCE EXAMS 11 – 14 September 2015

DINNERS & FUNCTIONS 8 July 2015: YCPA Dinner

Professional Partners

14 – 16 October 2015:

AICM National Conference VENUE: SOFITEL SYDNEY WENTWORTH

4 December 2015

Christmas Party River Cruise (Subject to numbers)

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

Western Australia/NT AROUND THE STATES

WA Members at the Breakfast.

Dino Travaglini – Breakfast Club Speaker.

Finally, I urge all WA members to participate as much as they can in the various functions and events that form part of the yearly calendar and as I have said on many occasions “Everything the WA Council strives to do is for the benefit of the WA members” I will be continuing to focus on my ‘real’ job as Managing Director of AMPAC Debt Recovery (WA) and I will be staying on as a member of the Institute, so I look forward to networking with as many of you as possible in the years ahead.

WA Members Sharron, Meredith and Cara.

President’s Report It is with some sadness that I am writing this report as it will be my final report as I step down from my tenure as WA President, after 4 years in the role. I think it is time for a change and the thing I am most pleased with is that the incoming President will have the opportunity to work with a very supportive local Council which includes some seasoned long term professionals and a number of new faces who are bringing renewed energy and creativity to their portfolios. Like any voluntary role within a National membership driven framework there are challenges and rewards and I can assure you I have experienced and enjoyed both. Working together for a common purpose in a dynamic environment is never just straight forward but when everything comes together and objectives and outcomes are achieved, it is very rewarding in deed. It would be remiss of me not to mention the ongoing support of the National Office and my thanks go out to Nick and his team. I am looking forward to catching up with a number of our WA members in my last ‘official’ capacity at our Gala Dinner in July, where we will introduce the WA Young Credit Professional Finalists for 2015 and celebrate the announcement of the winner.

– Colin Phillis MICM, WA AICM President 2015

The Credit Breakfast Club On Friday 12 June, the WA Division held a breakfast function at the Matilda Bay restaurant. The topic was Practical Aspects in the Recovery of Property in Bankruptcy, presented by Dino Travaglini of Cor Cordis. The event was well attended and the subject matter was very relevant to the current economic climate we find ourselves in WA. Dino has 20+ years of experience working as a bankruptcy trustee and imparted some valuable knowledge on how to use this often misunderstood collection tool.

WA Events and Seminars First half of 2015 has seen a number of sessions full of content to help you in your daily roles. It has also been great to see a lot of new faces and experienced faces taking the time to keep July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

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Western Australia/Northern Territory up their professional development and develop their contacts. March 2015 – PPSA: Practical and Useful information regarding the Act. Simon Read from EDX WA presented plenty of practical information and food for thought concerning lodgement dates, cost, timing, product identity and retention of title. While valid claims with all boxes ticked are processed quicker in an insolvency situation that does not hinder claims with insufficient information it just means they take longer to process. Simon’s advice to creditors enforcing their PPS rights in an insolvency situation is to get in early and check, check and then check again.

The WA Division hosted this year’s sponsor luncheon at the Blue Duck Café in North Cottesloe the Café that Alan Bond had his daily coffee at when at home. The event was well attended by both our National and State Divisional Partners. These events are run to thank our partners for the very valuable part they play in helping us drive our Institute forward. The afternoon was well received as was the venue. – Kevin Allen MICM, Sponsorship Porfolio

Young Credit Professional Award 2015

Up coming events August 2015 – Mining and Mining Services is on the agenda for the next Breakfast Club. What’s making businesses in these industries a bit riskier? October 2015 – High Tea for the Credit Conscious – This will be a great opportunity to catch up on all the movements since last year’s event and perhaps a glass of bubbles or two Other upcoming functions include the YCP Gala Dinner in July, our next instalment in the Credit Toolbox series in August. – Lisa Marr MICM & Rowan McClarty MICM, Functions Portfolio Chairpersons

Applications have closed, judging is finished, and the winner has been chosen… Now we just have to wait for the winner to be announced at the WA Gala Dinner on the 16th July! We are very excited to have the WA Gala dinner at a new and exciting venue this year. The Perth Convention and Exhibition Centre is a premier venue in WA and has hosted events such as the Lexus Ball and Telethon. Planning is well under way, and we hope the WA Credit Community will make it an event to remember. – Tamera Russell MICM, YCP Chairperson

The Australian Institute of Credit Management welcomes our Partners for 2015.

Membership While we faced a challenging environment across Australia and specifically in WA at the moment this is when your membership and participation in the AICM is all the more important. With the WA economy especially sensitive to the Mining industry we are definitely in a trough at the moment but there is some confidence about that says the tide will change, as it does, and it will come back strong. We have also been hit by another wave of centralisation of WA-based credit operations to the Eastern States. As a Westralian I’ve been here before and I am confident that it will come back around the value of people on the ground in Perth to keep their business share recognised. With these times in Western Australia people are realizing that while Social Media is essential the value of “old skool” methods like Face to Face meet ups facilitated by Associations are becoming even more vital. The additional dimensions of learning that can be achieved by attending seminars and breakfast club meetings with your peers cannot be replicated via Social MediaSo I invite WA and Eastern States members to look at the person sitting next to you at work and invite them along to the next AICM seminar and breakfast and encourage them to join one of the best associations one could join. – Warren Myers MICM, Membership Chairperson 50

WA Division Annual Sponsor/Partners Luncheon

CREDIT MANAGEMENT IN AUSTRALIA • July 2015

National Partners

Divisional Partners

New Members The Institute welcomes the following credit professionals who were recently admitted to membership in April, May and June 2015.

NEW SOUTH WALES

QUEENSLAND

Philip Aldridge Brenda Antrobus Warwick Brazier Jeffrey Brown Florencia Cochrane Haley Condon Simone Conley Sarah Jane Dave Melissa Dinning Brian Engel Jennifer Evans Gregory Everingham Mary-Lisa Falealoto Maria Fay Maria Frank Sazid Hasan Wendy Heal Julie Hunt Kshama Jason Laura Kelly Sethea Keo Tracey Lewis Helen Matthews Pamela McLoughlin Leslea Morrison Andrew Ng Maria Nicolaidis Shane Northam Sara Obeid Allison Parry Rebecca Pillai Manel Pillai Aleksandar Popic Emanuel Poulos Peter Quinn David Schilling Rowena Silva Das Andrew Smith Mitchell Sobel Mia Soravia Jacinta Steinke Matthew Stillone Jocelin Vieira Anne Vojcena Carol Wards Lindsay Westaway Laura Willis Kim Wrobel

Janice Bedford Michael Costello Tandy Day Felicity Ford Karen Fuller David Hibbins Emma Hill Evelyn Hughes Hayley Kuhn Kayleen Nicholson Reshma Patel Polima Rudra Lynda Shorley Louise Thomson Kayla Woods

Dun & Bradstreet Benedict Industries Caltex Australia Petroleum Pty Ltd Matthews Folbigg Caltex Australia Petroleum Pty Ltd Matthews Folbigg Voyages Indigenous Tourism Australia Caltex Australia Petroleum Pty Ltd Ecolab Pty Ltd Snap-On Tools (Aust) Pty Ltd Caltex Australia Petroleum Pty Ltd Benedict Industries Benedict Industries Caltex Australia Petroleum Pty Ltd Benedict Industries Coates Hire Operations Pty Ltd Caltex Australia Petroleum Pty Ltd Caltex Australia Petroleum Pty Ltd Caltex Australia Petroleum Pty Ltd Benedict Industries Ingredion ANZ Pty Ltd Dun & Bradstreet Benedict Industries Caltex Australia Petroleum Pty Ltd Caltex Australia Petroleum Pty Ltd Matthews Folbigg Caltex Australia Petroleum Pty Ltd Metcash Pty Ltd Coates Hire Operations Pty Ltd Cavalier Bremworth Ecolab Pty Ltd Ecolab Pty Ltd Caltex Australia Petroleum Pty Ltd Ashurst Australia Coates Hire Operations Pty Ltd QBE Insurance Aust. Ltd Ecolab Pty Ltd Dun & Bradstreet Caltex Australia Petroleum Pty Ltd Coates Hire Operations Pty Ltd Ricoh Sydney City Toyota Coates Hire Operations Pty Ltd Snap-On Tools (Aust) Pty Ltd Kennards Hire Dun & Bradstreet Matthews Folbigg Dun & Bradstreet

VICTORIA/TASMANIA Sally Adams Joel Cox Lorita Danielson-Upumoni Stephen Eddie Catrina Galanti Stephanie Iacobucci Kian Jackson Sharon Jansen Seetha Kris Karishma Madhwani Lee Monlinaro Eoin O’Baoill Debbie Piening Bree Roberts Nick Rogers George Salmanis Stefanie Scardamaglia Paul Sharp Zoe Smith Jordan Stephen Jessica Zabel

CGU Silver Chef Ltd REA Group Dun & Bradstreet Austral Mercantile Reece Plumbing Securepay Spicers Paper Impact Fertilisers Insurance Australia Group Spicers Paper Dun & Bradstreet Caltex Australia Petroleum Pty Ltd Dun & Bradstreet Dun & Bradstreet Dun & Bradstreet Reece Plumbing Dun & Bradstreet Recoveriescorp Dun & Bradstreet Reece Plumbing

SOUTH AUSTRALIA Julie Agostino Pam Gauci Heath Rodda David Scrymgour

Orrcon Steel Leader Computers Pty Ltd Insurance Australia Group Leader Computers Pty Ltd

WESTERN AUSTRALIA Joanna Tomlinson Yuan Tian Linda Docherty

Caltex Australia Petroleum Pty Ltd Caltex Australia Petroleum Pty Ltd Caltex Australia Petroleum Pty Ltd Austral Mercantile Collections – Secured Funding Solutions Ltd Hyne Timber Caltex Australia Petroleum Pty Ltd Dun & Bradstreet Caltex Australia Petroleum Pty Ltd Grant Thornton Australia Ltd Dun & Bradstreet Caltex Australia Petroleum Pty Ltd Vinidex Pty Ltd The Laminex Group

Dun & Bradstreet Caltex Australia Petroleum Pty Ltd Laminex Australia

July 2015 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

NEW MEMBERS

2015 NATIONAL CONFERENCE

2015 NATIONAL CONFERENCE Registration Book

PREMIUM SPONSOR

14-16 October 2015 SUPPORTING SPONSOR

Sofitel Sydney Wentworth

PROGRAM Click here for full registration book 52

Click here to register online

2015 NATIONAL CONFERENCE Registration Book

Leadership Forum Wednesday 14th October 2015 – 9:00 am - 12:00pm, Registration: 8:30am The Leadership Forum is a new addition to the AICM National Conference for 2015 in recognition of the leadership role Credit Professionals need to take within the Credit Function and within the Business. Combined with the credit specific learning and updates you will gain from the conference the Leadership Forum will give you the ability to put this knowledge to the most effective use. The two sessions will be delivered by Leadership experts who have helped good managers become exceptional leaders, professionally and personally.

The Leadership Forum is designed for experienced and aspiring leaders, managers, supervisors, team leaders and team members. The benefits of the workshop include: zz Gain control over your team’s outcomes. zz Build team adaptability and build on your current level of success. zz Save you time which will allow you to have a more strategic approach. zz Increase team engagement, effectiveness and results. zz Help your team to improve their abilities and connection to the rest of the business.

TOPIC 1:

TOPIC 2:

The Bridge from Management to Leadership

From Great to Exceptional – Leading from the inside out

Presented by Adrian Heath Evolution Learning

Presented by Vicki Writer The 360 Solution

OVERVIEW How to generate the patterns of success in your team by learning how to move the levers that create selfgenerating high performance.

OVERVIEW As a leader in the 21st Century, we need to be armed with a set of strategies that help bring out the best in ourselves as well as our team. This presentation is the introduction to the instruction manual that most of us were never given when it comes to achieving our full potential and the potential of our teams. What if you could really understand what someone meant when they spoke to you? Even better, what if you could predict their behavior based on what they said? Better still, what if you could influence their behavior by how you respond? You will gain very valuable insights into the way your brain works and why you do what you do. You will learn the intricacies of human thought and behavior and be given a set of strategies that will help you achieve any goal in life. You will gain an understanding of why we make the choices that we do and how our behaviours have become conditioned over time. This presentation will transform the way you think & how you communicate. It will provide you with a set of practical strategies for unlocking the potential for change and achieving extraordinary results in life and business.

LEARNING OUTCOMES –– Be able to identify the Patterns that are creating your current team outcomes. –– Learn the Patterns that create superior team outcomes. –– The difference between Leadership and Management and how they are a lethal combination. –– Leading team engagement through Purpose, Vision and Values. –– Leadership strategies, skills and mindsets.

2015 NATIONAL CONFERENCE Registration Book

National Conference Professional Development Workshop Wednesday 14th October 2015 – 9:00 am - 12:00pm, Registration: 8:30am The Workshop is a unique opportunity for Credit Professionals to get practical tips and insights into the Credit Management Profession. It is designed for Credit Professionals at all levels looking to expand their knowledge, check their understanding or a practical update. This year’s workshop includes 3 sessions featuring requirements for quality credit management, what great credit managers do and a case study putting it all into action.

Workshop objectives zz Understand the requirements for effective control of the Credit Management function zz Be effective in a constantly changing environment zz Discover the key tasks that can improve your performance zz How to implement theory to achieve wins for your business.

1. 6 Facets of Credit Management Presented by John Field, FICM CCE ACPM Learn about the 6 areas required for a quality credit operation and what you need to do in each of these facets to contribute to a continually improving and high performance credit function.

2. Insights of What Great Credit Managers Do Presented by Panel of Credit Managers A panel of Credit Managers who control some of the largest Accounts Receivable ledgers and teams in the country will share the tips that have helped them accelerate their careers and that allow them to prove the value of the credit operation to their business.

3. Credit Management in Action – “What Would You Do?” Presented by Eric Milne, LICM CCE Understanding the requirements of a credit operation and what it takes to be a great credit manager will only help if you know how to put it into action. In this session Eric Milne, National Credit Manager at Fujitsu General (Aust) Pty Ltd, will present a hypothetical “What Would You Do” case study. This will be put you in the hot seat assessing a scenario based on real life experiences. Eric will pose a series of complex day to day Credit Management decisions for discussion and debate with perhaps with a surprise twist at the end?

2015 NATIONAL CONFERENCE Registration Book

Conference Program Wednesday 14th October 2015 Time

Topic

Description

Speaker

12:00 – 1:00 pm

CCE Lunch

CCE’s are welcome to attend a luncheon featuring presentation of Re-certifications and new CCE’s. Paul Bloxham will provide an Economic update.

Paul Bloxham – Chief Economist at HSBC

1:30 to 1:45 pm

Conference Opening

Presidental Address Welcome by Conference Premium Sponsor

Grant Morris MICM CCE – AICM Australian President Nerida Caesar – Chief Executive Officer, Veda

1:45 – 2:45 pm

State of the Economy

2:45 – 3:15 pm

Afternoon Tea

3:15 – 4:00 pm

Credit Management of the Future

How to: See More. Know More. Do More

Moses Samaha – General Manager, Commercial and Property Solutions, Veda

4:00 – 4:15 pm

Credit Team of the Year Announcement and Presentation

Meet the 2 Natitional Finalist teams and find out who will be the Credit Team of 2015

Grant Morris MICM CCE – AICM Australian President

4:15 – 5:00 pm

Fintech Evolution

The future of financial services sector

Panel of Fintech innovation experts

7:00 pm

Welcome Drinks

SPEAKERS:

Stephen Koukoulas – Managing Director, Market Economics Pty Ltd Paul Bloxham – Chief Economist at HSBC Michael Witts – Treasurer at ING Direct Justin Fabo – Senior Economist, ANZ

Debbie Leo MICM – General Manager, Major Accounts, Veda

Thursday 15th October 2015 Time

Topic

Description

Speaker

9:00 – 9:45 am

SMEs: understanding the segment and how to mitigate risk

- Explores the recent rise and focus on SME’s in Australia - How credit providers are trying to capture this market - How Credit professionals can promote growth yet mitigate risk

Darin Milner MICM – Director Risk Management Solutions, Dun & Bradstreet

9:45 – 10:00 am

Young Credit Professional of the Year

Meet this years Finalists

Grant Morris MICM CCE – AICM Australian President Darin Milner MICM – Director Risk Management Solutions, Dun & Bradstreet

2015 NATIONAL CONFERENCE Registration Book

Thursday 15th October 2015

cont’d

Time

Topic

Description

Speaker

10:00 – 10:45 am

Global Trends in Credit Management and their application in Australia

1. Global and local trade credit trends since the GFC 2. Implications for the Australian trade credit market 3. Why is trade credit relevant to you? 4. Market leading innovations – future proofing your business

Victor Walter – Chief Financial Officer

10:45 – 11:15 am

Morning Tea Parallel Sessions Stream 1

11:15 – 12:00 pm Parallel Sessions

12:00 – 12:45 pm Parallel Sessions

Stream 2

Stream 3

Customer Information, Business Asset: Privacy Law Compliance or Good Practice?

Effective Terms of Trade and how they interact with your organisation’s politics

• Key aspects of the Privacy Act impacting the credit function of AICM members • Identification of areas of risk and strategies to manage • Realising growth through a data management culture

• What needs to be covered to for effective Terms. • How to ensure these are adopted by your business.

Helen Gordon – Regional Director & Corporate Lawyer, Australian Finance Conference

Geoffrey McDonald MICM – Barrister at Law

Joseph Scarcella MICM – Partner, Ashurst Lawyers

Comprehensive Credit Reporting and What it means for the future of Credit Management

DIY Legals • When to DIY and When not to • Pitfalls • How to do it well

Getting the best results from your collections agency before referral and after • Tips for Credit Professionals from a Mercantile agent’s perspective

Matt Gijselman – Head of Government, Regulatory & Industry Affairs Australian Retail Credit Association

Sam Pearlman MICM – Partner Curwoods Lawyers

12:45 – 2:00 pm

Lunch

2:00 – 3:00 pm

ATO and ASIC – Pheonix activity

Rebecca Ross – Solicitor, Gavin Parsons and Associates Pty Ltd

Dealing with customers in financial distress, Warning Signs of Insolvency • Payment plans and settlements (how to do them properly) • enforcement of any securities and priority risks • Impact of director guarantees (eg Bankruptcy issues) • Voluntary Administration/ Liquidation risks

Val Baynes MICM – National Commercial Collections Manager, Austral Mercantile Collections Pty Ltd Cynthia Thomas MICM – National Sales Manager, Austral Mercantile Collections Pty Ltd

Developments on Pheonix activity and enforcement.

Michael Seddon – National Director for Pheonix, ATO Adrian Brown – Senior Executive Leader, Insolvency Practioners Team ASIC

3:00 – 3:30 pm

Afternoon Tea

3:30 – 4:45 pm

High Impact Initiatives in Credit

See how 3 National Credit Managers identified, planned, and implemented High Impact Inniatives

Grant Morris MICM CCE – National Credit Manager, Coates Hire Alison Beythien MICM CCE – National Credit Manager, Holcim Australia Pty Ltd Karl Hill MICM – Managing Director Results Legal

4:45 – 5:00 pm

Annual General Meeting

7:00 pm

Presidents dinner YCPA announcement, Presidents Trophy

2015 NATIONAL CONFERENCE Registration Book

Friday 16th October 2015 Time

Topic

Description

Speaker

9:00 – 9:45 am

Improving the quality of the business environment

• Initiatives to improve the operating environment for small business • Model behaviours for government and business (including payment behaviour) • the benefits of mediation to resolve small businesses disputes.

Mark Brennan – Australian Small Business Commissioner

9:45 – 10:45 am

Personal Properties Securities – What is working and what is not

Bruce will explain some of the changes recommended by his review of the PPSA and Kim will examine what this means for Credit Professionals

Bruce Whittaker – Senior Consultant, Ashurst

10:45 – 11:15am

Kim Powell MICM – Director, EDX Australia Pty Ltd

Morning Tea Parallel Sessions Stream 1

11:15 – 12:00 pm Parallel Sessions

Trends and Challenges of Small Business Understand the drivers and challenges faced by small business so you can achieve better results when assessing risk, managing accounts, enforcing recovery or assisting sales to identify good sales opportunities.

Stream 2 DIY Legals • When to DIY and When not to • Pitfalls • How to do it well Sam Pearlman MICM – Partner, Curwoods Lawyers

Colin Porter – Managing Director, CreditorWatch

12:00 – 12:45 pm Parallel Sessions

How to address poor performance legally and effectively Examples of performance management from a Credit Manager with insights of the legal requirements from a Human Resources Lawyer. Simon Holloway MICM – National Credit Manager, SAB Miller Veronica Siow – Employment Relations Partner, Allens Linklaters

Stream 3 Getting the best results from your collections agency before referral and after • Tips for Credit Professionals from a Mercantile Agent’s perspective Val Baynes MICM – National Commercial Collections Manager, Austral Mercantile Collections Pty Ltd Cynthia Thomas MICM – National Sales Manager Austral Mercantile Collections Pty Ltd

Effective Terms of Trade and how they interact with your organisation’s politics

Rebecca Ross – Solicitor, Gavin Parsons and Associates Pty Ltd

Geoffrey McDonald MICM – Barrister at Law

Joseph Scarcella MICM – Partner

– Industry Leaders and specialists debate the key credit issues of our time. – Q &A meets forensic cross examination as industry conundrum are dissected to reveal insight.

Chaired by James Neate, MC

• What needs to be covered to for effective Terms. • How to ensure these are adopted by your business.

12:45 – 2:00 pm

Lunch

2:00 – 2:30 pm

Credit Maximus, the Great Credit Debate

3:00 – 4:00 pm

President’s Trophy Presentation, Closing Ceremony and Prize Draw