Credit Management in Australia - July 2016 by AICM

Volume 23, No 4 July 2016

The Publication for Credit and Financial Professionals

Global economy:

Where is it heading? Tips, updates and changes:  Human Resources  Credit Management  Legal  Economy  Training news

IN AUSTRALIA

DIRECTORS Australian President – G.L. Morris MICM CCE

NSW Division: Women in Credit Luncheon.

Australian VP, Legal Affairs – J.A. Neate MICM 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 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 PO Box 64, St Leonards NSW 1590 Tel: 1300 560 996, Fax: (02) 9906 5686 Email: nick@aicm.com.au

49 Qld Division: Linda Parry, Greg Young and Samantha Taylor.

EDITOR/PUBLISHER Nick Pilavidis | Email: nick@aicm.com.au CONTRIBUTING EDITORS Arthur Tchetchenian NSW Stacey Woodward Qld Gail Crowder SA Warren Meyers WA Donna Smith Vic/Tas ADVERTISING MANAGER John Field FICM, CCE, ACPM, Ph: 1300 560 996 Mob: 0412 732 831, Email: johnfield.aicmq@aicm.com.au

52 SA Division: Winter Warmer Night guests.

EDITING and 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 3, Suite 303, 1-9 Chandos Street, 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, 2016.

54 Vic/Tas Division: YCP Information Night.

JOIN US ON LINKEDIN

Click Here EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO: The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or email: nick@aicm.com.au CREDIT MANAGEMENT IN AUSTRALIA • July 2016

56 WA/NT Division: Breakfast Club

Volume 23, Number 3 – March 2016

Message From the President Portfolio Update, By Gregg Odlum In Memorium – Michael Murphy

Human Resources Salary increases unlikely to excite this year

4 6 6

18 8

Roger Mendelson

Symon Cook

32 Barry Urquhart

By David Crawley

Credit Management National Conference testimonials ACCC to commence excessive surcharge compliance role Reviewing your invoicing to best practice

Around the States

11 17 18

By Symon Cook

Legal Mistakes not to make when suing a debtor

New South Wales Queensland South Australia Victoria/Tasmania Western Australia/Northern Territory New Members

Promotions Credit Team of the Year

By Roger Mendelson

Unfair preferences and how to avoid them – Part 1, By Nick Cooper

Women in Credit

Authority to bind

Conference Program

By Peter Mills and Robert Gallagher

Don’t get your contract terms knocked out

2016 National Conference Credit Qualifications

John Fairgray and Luis Ormazabal

Technology Australia on the cusp of ‘digital greatness’

Economy A new world of commerce awaits

By Barry Urquhart

Brexit from a Credit managers point of view A U.S. Macro outlook

34 36

By Mark Zandi

Queensland economy shifts gears and pitches for a more balanced future

AICM Training news

Credit Management In Australia

Contact: JOHN FIELD FICM, CCE, ACPM

Ph: (02) 9906 4563

Fast track your credit career through Recognition of Prior Learning

Graduates

44 45

Calendar

For advertising opportunities in

Mob: 0412 732 831 E: johnfield.aicmq@aicm.com.au

46 49 52 54 56 58

5 7 10 12 59

aicm

From the President

Grant Morris CCE Australian President

ast issue I started the report with “Well, well, well. Just 12 months ago who would have thought we would have seen ……” and I can very nearly start the same way this month. Who would have really thought Brexit would happen? Who had made plans for just that eventuality? We have seen dramatic changes in share prices and currency exchange rates. We have seen major corporates react quickly to the changes like QANTAS offering triple frequent flyer points on the “Kangaroo Route” to London, which may be because of fears of a decline in Brits travelling due to the reduced spending power of the pound. Nothing has changed for us. We have been aware of the possibility for a long time and should have been making plans for just this eventuality. We must continue to be more attentive, professional and inquisitive. Be close to our customer’s business, know who their customers are and understand the weighting and location of their revenue base, the industries in which they operate and the geographical reach of their business. Basics are paramount. Policies, procedures and processes are not just documents that look good in a folder or on an Intranet page. They must be followed and they must be routinely reviewed for currency and relevance As credit professionals we must stay on top of our game through continued professional growth including formal training, networking, exchanging ideas and sharing concerns with our peers. This cannot be done alone and it is essential we train and develop our teams so there basic skills are honed and their abilities used to the max. They must assist with research and knowledge of our customer base as after all they are the ones in continual contact. Having their ear to the ground can provide tremendous early intelligence. Put simply, be aware of the area in which you operate, attend workshops, seminars and network meetings and as I have said on many occasions look forward. On the home front the Federal Election was a nail biter and it will be some little time before we know how smoothly or otherwise parliament will function over the next couple of years.

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

For some politicians July hasn’t been a great month but it is an absolute corker on the AICM calendar with most Divisions announcing their Young Credit Professional of the Year winner at a dinner in each mainland capital city. The award is sponsored by Dun & Bradstreet (thanks guys) and is a fantastic opportunity to showcase the talent of younger credit professionals and also recognise other achievers at the same time. It is a great opportunity to meet with your peers and discuss the credit environment. Nominations for the Credit Team of the Year close this month (31st July). The award is a great opportunity to showcase your teams talents and see them achieve recognition for themselves within your own organisation and on the national stage like past winners such as Caltex and Reece to name but two. Thanks to Veda for their sponsorship of this award. The National Conference is being held from October 12 – 14 at the new Sea World Conference and Convention Facility adjacent to Sea World Resort on the Gold Coast. The programme is out and provides you with the best information, education and networking experience that can be packed into 3 days. The cost of the conference is far less than what good organisations spend on the development of their employees so plan now to get yourself there and use it as motivation and reward for your staff ie offer to send them along as well when they hit their targets. I hope we see you at an AICM event soon as you support the Institute which supports you. Vale Mike Murphy CCE LICM I regret to advise Mike Murphy passed away on 26th May whilst on a cruise in Europe. Mike was the Group Credit Manager at BGC in Perth and a life member of the AICM. He joined the AICM in 1989, was elected to the Board in 2004 and served until 2010 including 4 years as our National President. Mike developed and delivered training to hundreds of credit professionals and presented at the national conference and numerous WA events. The AICM, its members and the credit industry benefited greatly from Mike’s passion for helping others learn more about the Credit Industry. RIP Mike. – Grant Morris grant.morris@coateshire.com.au Ph: 0407 405 198

Become the National Credit Team of the Year

Enter your team by 31 July 2016 for your chance to be awarded for credit excellence. At the 2016 AICM National Conference on the Gold Coast, each nominee for the national winner will receive: • Two conference registrations • Airfares and accommodation at the Seaworld Resort, Gold Coast • On-stage introduction prior to the announcement of the National Credit Team of the Year winner All three runners up will receive $500 each in AICM services of their choice. Applications and information is available at aicm.com.au Proudly sponsored by Veda.

All 4 National Finalists will each win a $1,000 Team Development Grant

The national winner will receive: • Professional development services worth $2,000, provided by AICM • Recognition in the AICM magazine, plus the AICM, Veda and Credit Network websites • The 2016 National Credit Team winner’s trophy

aicm Portfolio Update From the Finance Director On behalf of the Board, I would like to thank all of our members, partner, sponsors and supporters, as well as the CEO, Nick Pilavidis, and the dedicated AICM national office staff for delivering a strong year all-round in 2016. Our current financial position continues to strengthen, delivering a modest surplus enabling us to invest in the future of the institute, bring more value to members and partners along with providing high quality events to connect and continuously develop credit professionals nationwide. As we close in on the final month of the financial year we can reflect on some of the highlights for 2015/2016 that have driven such a great result; zz Positive membership growth, zz Moving the office to a new premises, providing better facilities including a large meeting room that has been used for NSW Council meetings and AICM training courses

reducing overall expenditure on venues, zz Introduction of the webinar series, providing further training opportunities and value to all members, zz Launching of the credit tool box training, providing some foundational and consistent training materials, zz Record attendance at the 2015 conference. As a result of the stronger financial position of the institute, two key initiatives have been launched with the aim of increasing membership value as well as boosting membership itself; zz Conference marketing campaign. As the conference is our biggest event each year, we have invested some money into a marketing campaign that will outlast this year and aim to boost the visibility of conference 2016 as well as provide some

materials to be used in future years. Keep your eye out at conference 2016, as some of the activities related to this will occur there. zz Member engagement manager. We are trialing this role at national office with the aim to proactively engage with members and partners to drive our Certificate/Diploma training, Membership, Sponsorship, Conference, Toolboxes and other activities. This enables us to go out to our members and sponsors rather than waiting for them to come to us. As we plan for 2017, the objectives will be much the same. Aiming to deliver a modest surplus whilst investing in the future to provide more value for our members and partners. – Greg Odlum NSW Director and Treasurer

In Memorium MICHAEL MURPHY LICM It is with a heavy heart we announce the passing of Mike Murphy on 26th May 2016. Mike joined the AICM in 1989 and served for in excess of 25years on the WA Division Council and the National Board, including 5 years as national President. He was well respected throughout the Credit Industry and delivered numerous qualification based and non-qualification based training sessions on our behalf. There will be literally hundreds of people from credit clerks to senior credit managers who have benefited from his insights and experience. Never one to pass up an opportunity to

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

network with his colleagues and peers, Mike was considered by many, as much, and usually more, a friend than a business associate. The respect and esteem in which Mike was held resulted in him being presented with the Basil Dunn award, Western Australia’s premier recognition of dedication to the AICM and its goals, and Life Membership of the AICM. In further recognition of his dedication to training in Credit Management, the AICM will be working toward setting up the Mike Murphy Scholarship Fund to further the education of deserving members. Mike passed away in his sleep whilst on a European river cruise with his wife Andrea. R.I.P. Mike, you will be missed by all.

Human Resources

Salary increases unlikely to excite this year By David Crawley, Regional Director of Hays Accountancy & Finance

David Crawley

Credit controllers are in high demand as business activity increases, but according to the 2016 Hays Salary Guide this is not translating into salary increases. Most core areas of transactional finance are experiencing strong levels of staffing demand across Australia, particularly credit control and payroll. However salaries are generally closely controlled with employers reluctant to offer substantial increases unless absolutely necessary to secure a candidate with skills in short supply. Our guide includes recruiting trends and typical salaries for credit control job functions in 14 locations across Australia and New Zealand. It reveals that just 22 per cent of credit control professionals can expect a salary increase of three per cent or more in their next review. Instead the vast majority (66 per cent) will receive an increase of less than three per cent. The final 12 per cent will receive no increase. Credit professionals working in the professional services industry are in for the greatest windfall, with 31 per cent of employers in this industry expecting to increase salaries by between three and six per cent, while a further 7 per cent expect to increase salaries above six per cent. This is closely followed by financial services, where 25 per cent of employers expect to increase salaries by between three and six per cent, and 5 per cent expect to increase above six per cent.

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

25 per cent of construction, property & engineering employers also expect to increase salaries by between three and six per cent, with 5 per cent expecting to increase above six per cent. In terms of typical salaries, a Credit Controller in Sydney, Canberra and Perth will typically receive $60,000. The typical salary is $55,000 in regional NSW, Melbourne, regional Victoria, and in Queensland’s Brisbane, Gold Coast & Sunshine Coast. It is $50,000 in regional Queensland, Adelaide, Darwin, Hobart and Launceston. For a Senior Credit Controller the typical salary increases to $65,000 in Sydney, Canberra, Queensland’s Brisbane, Gold Coast and Sunshine Coast, Hobart and Launceston, $70,000 in Perth, $60,000 in Melbourne, regional NSW, regional Victoria, and $55,000 in regional Queensland, Adelaide and Darwin. A Supervisor/Manager of one to five staff will typically receive $80,000 in Sydney, $75,000 in Perth and Queensland’s Brisbane, Gold Coast & Sunshine Coast, and $70,000 in Canberra and regional Victoria. These candidates typically receive $65,000 in Melbourne and regional NSW, and $60,000 in regional Queensland, Adelaide, Hobart, Launceston and Darwin. A Supervisor/Manager of more than five staff will typically receive $90,000 in Sydney and Perth, $85,000 in Melbourne and

Human Resources

Queensland’s Brisbane, Gold Coast and Sunshine Coast, $75,000 in Canberra, regional NSW and regional Victoria, and $65,000 in regional Queensland, Adelaide, Hobart, Launceston and Darwin. Finally, the typical salaries for an Accounts Receivable Officer are $55,000 in Sydney, Melbourne, regional Victoria, Perth and Canberra, $50,000 in Darwin and Queensland’s Brisbane, Gold Coast and Sunshine Coast, $48,000 in regional NSW, $47,000 in Hobart and Launceston, and $45,000 in Adelaide and regional Queensland. In other findings, almost twothirds of employers (64 per cent) experienced increased business activity over the past 12 months, with 70 per cent expecting further increased activity in the year ahead. Hiring intentions are also up. This year 26 per cent of employers expect to increase permanent staff levels in their accountancy and finance department, exceeding the 12 per cent who expect to decrease it. The use of temporary and contract staff will also increase in 15 per cent of accountancy

& finance departments, although 10 per cent expect their use of such resources to fall. In light of salary expectations it’s ironic that 32 per cent of employers say salary and benefits have a major impact on their employer brand, up from 25 per cent last year. 60 per cent say skill shortages will impact the effective operation of their OUR NE business or department. RECOGNXT CHALLENG E With employers for the most RESPON ISING AND D IN G TO part unwilling to loosen the purse & RECRU ITMENT SALARY strings, employees will start TRENDS The 2016 Hays Salar y Guide. to take matters into their own hands. 41 per cent of employees say they’ll ask for a pay rise in their next review. Another 25 hays.com .au | hays per cent are as yet undecided .net.nz about popping the salary question. Meanwhile staff turnover has already increased in 29 per cent of organisations. The Hays Salary Guide includes Get your copy of the 2016 Hays salary and recruiting trends for over Salary Guide by visiting www.hays. 1,000 roles in 14 locations in Australia com.au/salary, contacting your local and New Zealand. It is based on Hays office or downloading The Hays a survey of 2,752 organisations, Salary Guide 2016 iPhone app from representing over 2.6 million iTunes. n (2,686,179) employees.

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July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

See you at AICMâ&#x20AC;&#x2122;s

2016 National Conference

Credit Management

AICM National Conference 2016: Past attendees on why it’s an event not to miss We asked credit professionals who attended last year’s AICM National Conference what they learnt and how they’ve applied it to their day-to-day business. Here’s what they said.

Rhys Buzza MICM Reece Pty Ltd, Group Credit Manager

Joe Losinno MICM Ruralco Holdings Ltd, Credit Manager

I picked up a number of different strategies with regard to leadership as well as practical solutions available to implement with staff immediately. The conference always provides me with the tools I need to better manage my team and myself. It motivates me to seek out further learning opportunities and continually improve.

Last year’s conference taught me about the continually changing landscape of the credit world from legal changes to the challenges credit managers face every day. It gave me the opportunity to build my knowledge on all aspects of credit and the networking is also brilliant. The people I meet and the learnings from the seminars allow me to grow as a credit professional every year.

Karl Hill Results Legal, Partner I learnt just how much an impact the challenging market conditions are having on trade credit businesses and in particular, credit departments. This information led us to work more closely with our trade credit clients, supporting them in this challenging period. Gaining practical insights as to the market conditions and the broader trade credit landscape assists our team to provide better advice and assistance to our clients.

David Hunt Fujifilm Australia, National Credit Manager Last year saw us spoilt with a great presentation from ASIC and the ATO. Comments from senior panel members on the state of the economy were particularly enlightening. It’s actually hard to find yourself not using the information received during the conference. Geoffrey MacDonald’s presentation on Effective Terms of Trade, in particular, provided me with some great ideas for improving our terms and processes.

Georgia Barbera MICM CCE Rocla Pipeline Products, National Credit Manager At last year’s conference I learnt all facets of credit management, with a specific focus on the changing payment trends and the Fintech evolution, with its non-traditional assessment. This is key learning for all those who deal with SMEs. As a result, I’ve adopted change in my style of management and broadened my ideas with technology and change. It’s about working effectively with the right people and the right tools.

Do you want to join the likes of David, Karl, Rhys, Joe and Georgia this year? If so, you’re only a click away! The 2016 AICM National Conference, sponsored by Veda and supported by Austral, takes place on 12 October 2016 at Sea World Resort, Gold Coast, Queensland.

For more information and to register, click here July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

PROGRAM DAY 1

Wednesday 12th October 2016 LEADERSHIP FORUM (optional workshop prior to Conference opening)

9.00am 12.00pm

For experienced and aspiring managers, supervisors, team leaders and team members. Delivered by leadership experts to help you develop as effective leader and maximise the value of the credit function to the broader business.

Lunch (CCE’s & Forum delegates)

12.00 - 1.00pm

START OF CONFERENCE Time 1.30 - 1.45pm

Topic Conference opening

Description

Speaker/s Grant Morris MICM CCE AICM Australian President

President’s Address and welcome by Conference Premium Sponsor Veda

Nerida Caesar Veda Group Managing Director, Australia & New Zealand 1.45 - 2.45pm

Economic Key Note

Speaker TBC

Afternoon Tea

2.45 - 3.15pm 3.15 - 4.00pm

Leading Australian Economist analyses trends and what the expected impacts will be

Tough times aren’t going Away… Time to Act!

• Credit demand and market insights • Results from the credit manager survey • Credit manager Tips for 2016 and beyond

Moses Samaha MICM General Manager, Commercial and Property Solutions, Veda Debbie Leo MICM General Manager, Major Accounts, Veda

4.00 - 4.15pm

Credit Team of the Year Announcement

Meet the two National Finalist teams and find out who is the Credit Team of 2016

Grant Morris MICM CCE AICM Australian President Debbie Leo MICM General Manager, Major Accounts, Veda

4.15 - 5.00pm

5.00 - 6.00pm

An international perspective of Credit Management

Stay tuned for announcement of an exciting international speaker

Speaker TBC

Welcome Drinks

Premium Sponsor

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DAY 2

Thursday 13th October 2016

PROGRAM Continued

Time

Topic

Description

Speaker/s

9.00 - 9.45am

Data driven credit and collections strategies

Strategic insights on using data to improve performance

Mark Russell MICM Director, Dun & Bradstreet

9.45 - 10.00am

Young Credit Professional of the Year

Meet this year’s Finalists

Grant Morris MICM CCE AICM Australian President Mark Russell MICM Director, Dun & Bradstreet

10.00 10.45am

Is your opponent a North Korean?

Mr Pat Cavanagh Adjunct Professor of Law, UQ TC Beirne School of LawL BB, LLM (Hons)

Seven strategies for negotiating with hard bargainers

Morning Tea

10:45 - 11.15am

Start of Concurrent Sessions (choose one of the following options)

Time 11.15am 12.00pm

Topic

Description

INSOLVENCY

Update on recent developments and how they:

Lessons from 2016 insolvencies and case law

• Improve your options for recovery

Speaker/s Speaker TBC

• Change previous assumptions or decisions • Give you new options and strategies

KNOWLEDGE Evolution of payment technology and how to make it work for you SKILLS Problem solving: the number 1 skill you will need to thrive in the future

Case studies of solutions that streamlined customers payments, allocations and reconciliations

Speaker TBC

• Proven methods and processes specifically designed to help you solve your most challenging problems

Terry Ledlin MICM Special Counsel Ledlin Partners

• Fundamental steps, mind shifts and a new and different approach which will build a platform for critical thinking, creativity and, ultimately, innovation Continued over page

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Day 2 Continued

PROGRAM

Thursday 13th October 2016

Continued

Concurrent Sessions continued 12.00 12.45pm

INSOLVENCY Insolvency Law Reform – has the government got it right? KNOWLEDGE Common industry errors in PPSR registrations, and tips to protect your security interests SKILLS Importance of early intervention in a proactive risk management strategy

Like it or not insolvency touches the best of credit managers. Understanding the impacts on creditors of these imminent and proposed changes will keep you ahead of the pack and manage your risk

Robyn Erskine MICM Partner Brooke Bird Restructuring, Turnaround & Insolvency

Case studies where creditors have lost and how to ensure you don’t

Kim Powell MICM Founder EDX (part of the Veda Group)

The importance of investing in mitigating your bad risk exposure by creating a proactive risk management strategy.

Cynthia Thomas MICM National Collection and Sales Manager Austral Mercantile Collections Pty Ltd Bill Famelos QBE Trade Credit National Relationship Manager.

End of Concurrent Sessions

Lunch

12.45 - 2.00pm

Time 2.00 - 3.00pm

Topic Ways to curb phoenix activity

Description Illegal phoenix activity occurs because it’s cheap and easy, it’s profitable and hard to detect. This presentation will examine a range of solutions to address these facets.

Speakers Professor Helen Anderson Associate Dean Undergraduate, Melbourne Law School, The University of Melbourne

Afternoon Tea

3.00 - 3.30pm 3.30 - 4.45pm

How will the extension of unfair contracts legislation to small business affect you

4.45 - 5.00pm

AGM

7:00pm

Presidents Dinner, sponsored by Dun and Bradstreet.

Legislation that affects your dealings with small business comes into affect in November 2016. Understand the affects of legislation

Boyd Honor Senior Manager, Deposit Takers, Credit & Insurers ASIC

Featuring announcement of the YCP of the year and Presidents Trophy winners

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DAY 3

PROGRAM

Friday 14th October 2016

Continued Start of Concurrent Sessions (choose one of the following options)

Time 9.00 - 9.45am

Topic

Description

Speakers

How to help your customers cash flow

How to advise your customers on credit management strategies and debtor financing options

Speaker TBC

10 Things a Lawyer won’t tell you but you need to know

• When you don’t need a lawyer and can do it yourself

James Neate MICM Partner Lynch Meyer Lawyers

• How to save costs in briefing your lawyer and how do legal costs really work? • Keeping your lawyer and your matter under control.

Peter Mills MICM Special Counsel, Thomson Geer Lawyers

• Lawyering up- added costs v strategic benefit? 9.45 - 10.45am

Shared service centres and impacts on Credit Management

Understand the causes and impacts on this growing trend affecting the credit management profession

Speaker TBC

Credit insurance 101

How to assess if it’s right for you

Kirk Cheesman MICM Managing Director NCI

End of Concurrent Sessions

Morning Tea

10:45 - 11.15am

Start of Concurrent Sessions (choose one of the following options)

Time 11.15am 12.00pm

Topic

Description

INSOLVENCY

• How to limit the risk of a preference

Avoiding unfair preference claim

• Effectively responding to a liquidator’s demand

Speakers Karl Hill MICM Results Legal Managing DIrector

• Effectively resolving claims • Maximising the available defences (esp good faith and PPS defence) • Latest case law developments

KNOWLEDGE

• Practical steps to maximise recoveries

What to do when it all goes wrong

• Balancing getting paid with having a clean accurate and effective credit file

Joseph Scarcella MICM Partner Ashurst

• Credit Insurance • Other tips and tricks SKILLS

Arthur Tchetchenian MICM CCE National Credit Manager Transurban

TBC

Proving your worth value as a credit manager

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Day 3 Continued

PROGRAM

Friday 14th October 2016

Continued

Concurrent Sessions continued 12.00 12.45pm

LEGAL

• A crucial current checklist

“TERMINATOR” – Terms and conditions how to end all arguments ?

• Recent cases that give real traction

KNOWLEDGE

Trevor will demonstrate the basic functionality of modern collection and cash allocation software and how it can ensure the efficiency of your credit operation

Trevor Middleton Director at Cosyn Consulting

See how other credit professionals deal with the growing pressures.

Speaker TBC

Working smarter – there is an app for that SKILLS Managing expectations with less staff and how to reset expectations

James Devonish MICM CCE Senior Associate Lynch Meyer Lawyers

• Increase your “credit ammunition” to summarily deal with spurious defences

End of Concurrent Sessions

Lunch

12.45 - 2.00pm

Time 2.00 - 2.30pm

Topic

Description

Speaker/s

Implement your conference Using insights from the conference sessions, learn insights how to: • Develop action plans

Jane Calleja Learning & Development Manager, NCI

• Identify roadblocks • Process change management • Jane will help develop action plan 3.00 - 4.00pm

President Trophy Closing and Prize Draw End of Conference

For more information, visit aicm.com.au or

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Credit Management

ACCC to commence excessive surcharge compliance role on 1 September 2016 The Australian Competition and Consumer Commission will begin enforcing the ban on excessive surcharges for large merchants on 1 September 2016. Recently, the Reserve Bank of Australia Payments System Board (PSB) published its Standard which relates to surcharges by merchants when charging customers for the use of a credit or debit card. Surcharges will be excessive where they exceed the permitted cost of acceptance, as defined in the Standard. “In short, the new provisions will limit the amount businesses can surcharge customers for use of payment methods such as most credit and debit cards. The limit will

“In short, the new provisions will limit the amount businesses can surcharge customers for use of payment methods such as most credit and debit cards...”

be linked to the direct costs of the payment method such as bank fees and terminal costs,” ACCC Chairman Rod Sims said. The Standard defines what businesses are able to include in setting a surcharge and sets out a two-staged implementation, with the ban commencing on 1 September 2016 for ‘large merchants’ and 1 September 2017 for all other merchants. The Standard defines a ‘large merchant’ to be one that satisfies at least two of the following requirements: it has a consolidated gross revenue of $25 million or more, the value of its consolidated gross assets is $12.5 million or more, or it employs 50 or more employees. The Standard will apply to six card systems – EFTPOS, Debit MasterCard, MasterCard Credit, Visa Debit, Visa Credit and American Express cards issued by Australian banks. “The ACCC is finalising online guidance material for consumers and businesses, which will provide further information on the ACCC’s enforcement role, what businesses need to do in order to comply, and how consumers can make complaints if they believe a business has charged a payment surcharge that is excessive,” Mr Sims said. “We will focus on education and awareness in the early stages but won’t turn a blind eye to possible breaches, particularly for those large businesses clearly on notice of these changes.” The ban has no effect on businesses that choose not to impose a payment surcharge, such as the

many businesses in Australia that incorporate payment system costs into their overall prices. Material on the RBA’s website provides detailed information for businesses about the Standard, including how businesses can identify and quantify those costs that can be passed on to a consumer as a surcharge. The Standard is available at www.rba.gov.au

Background The new surcharging law arose out of a recommendation in the Report of the Financial System Inquiry (FSI) which had the objective of improving the efficiency and effectiveness of price signals and reducing the potential for cross-subsidisation between customer groups and merchant groups. The FSI received more than 5,000 submissions related to credit card surcharges, most of which called for surcharges to be banned. The Competition and Consumer Amendment (Payment Surcharges) Bill 2015 was introduced into the House of Representatives on 3 December 2015. It was passed by Parliament on 22 February 2016 and received Royal Assent on 25 February 2016. Nothing in the Standard alters the existing obligations of businesses to comply with the provisions of the Australian Consumer Law, as set out in the Competition and Consumer Act 2010, which deal with false and misleading representations about the price of goods or services. n ACCC press release, 26 May 2016 http:// www.accc.gov.au/media-release/accc-tocommence-excessive-surcharge-compliancerole-on-1-september-2016

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Credit Management

Reviewing your invoicing to best practice By Symon Cook

Symon Cook

Credit managers are often asked to review the invoicing process for efficiency and best practice. While we’re confident we’ve got the team and systems to best practice, Symon Cook, Neopost’s resident digital specialist, gives an overview of the 10 criteria he uses when being asked to assess a customer’s processes. One of the most defining features facing businesses today is the transition from paper-based processes to electronic workflows Across all businesses there are many common traits and potential improvements we could give our customers in their daily experience of interacting with the creditfunction. Relying on paper based invoice processes carries some challenges. There’s the risk of the invoice going missing, delays in postal delivery, the time element involved in manual handling and receipt of the invoice,along with print and postage costs. Digitisation enables the organisation to do things better, faster more accurately and in compliance with audit rules and regulations. It means less printing, less paper, fewer filing cabinets and none of the errors and delays associated with manual processes. We imagine a non-demand digital platform capable of distributing invoices, statements and other transactional documents in the manner that your customer prefers, whilst verifying delivery and archiving a copy in compliance with ATO rules. This vision sees invoices online,

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

automated, with minimal human intervention required.If you’re not there, fear not, this can be a reality. An online invoicing platform unlocks efficiencies within the accounting team, releasing valuable staff hours that can be redeployed to resolving customer disputes and ultimately, improving cash collection. I use the following 10 criteria when assessing a customer’s processes and whether they should consider an online solution: 1. Faster payment Electronic invoices can reduce day sales outstanding (DSO) by delivering invoices virtually instantly. This avoids the need to print post and wait for your customer to receive a hard copy, cutting up to 5 days from the invoicing process. 2. Visibility and peace of mind If a posted invoice goes astray, it may be weeks before you become aware. Modern e–invoicing solutions will not only show the invoice has been received but also that it’s been opened, providing certainty and reassurance 3. Cost reduction Remove paper, print, postage and filing costs. 4. Improved productivity Manual processes are inherently inefficient. By removing the need for manual data entry, e-invoices releases staff to focus on more productive tasks. 5. Fewer errors Automation reduces the need for manual data entry. The less data entry, the less risk of human error. 6. Satisfied Customers Are you sending your customers their

Credit Management

invoices in the manner according to their preference? Some customers will want to continue to receive paper based invoices. Others will prefer an e-invoice. Some companies nowadays will even refuse to pay an invoice unless it’s sent via email. Customers will pay their bill faster if it is sent in the manner they have requested. 7. Improved Cashflow E-invoicing empowers your accounting team to keep a close eye on cashflow and balance sheet. An up to date central view of incomings and outgoings help support good cashflow management. 8. Digital Records Many e-invoicing systems keep a digital record of invoices, statements and supporting documents making for on-demand easy retrieval of files 24/7. 9. End-to-End Automation Simplify and streamline. Automate the endto-end process of sending and receipting the invoice, at a time that suits the organisation. 10. Compliance E-Invoicing systems are highly compliant. As well as providing an audit trail of transactions, online systems create and store documents in formats compliant with local tax rules

“Digitisation enables the organisation to do things better, faster more accurately and in compliance with audit rules and regulations. It means less printing, less paper, fewer filing cabinets...” Transitioning to e-invoicing may seem like a daunting undertaking but actually, can be quite simple. In comparison to the often complex, cumbersome ERP systems that most organisations are used to, modern e-invoicing systems have been developed to offer user friendly dashboards, straight forward user interfaces and can take ‘clunky data’ and streamline the information into invoices and statements that make sense. When approached by for assistance for companies considering an e-invoice solution, we offer some basic advice. 1. Do a short survey with your customers, seeking their preference on receiving your invoice. 2. At your next invoice run, assess the amount of time your team

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spends printing invoices, manually removing invoices that need to be suppressed and measure the time it takes to fulfil invoices ready for mailing. Calculate the cost of the postage and the cost of the overall time generating the invoice run. In our experience, most customers who undertake this process, validate for themselves that an online option would be sensible to consider. Often more surprising, is how much further an e-invoicing system can improve the efficiency of your accounting function even if you’re already sending transactional documents via email. n Symon Cook is Neopost’s resident digital specialist and has worked in the print and mail industry for the past 22 years. Having been with Neopost for more than 8 years, Symon has been supporting our customers in the management of their physical and digital strategies.

In association with

Contact Nicky on (03) 9872 7243 Free call: 1800 641 617 www.prushka.com.au Offices across Australia

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

Mistakes not to make when suing a debtor ...and tips on what you should do By Roger Mendelson

There are some fundamental mistakes which are regularly made when a debtor is being sued for an unpaid debt. If you don’t make these mistakes, you will find that your success rate dramatically improves and you will then fully understand just what a powerful tool legal action is. For convenience, I will use Victorian names for processes.

Don’t sue if you don’t have a confirmed address for service

Roger Mendelson

So many legal actions fail at the first hurdle because the address of the debtor has not been properly confirmed or the debtor has moved and cannot be located. This problem adds to delay, can sometimes prove fatal if a new address has not been found and will always add to the cost. The lesson is to always immediately reconfirm the address before suing. If the debtor is relatively transient but has a regular job, write to him at work (obviously marking the envelope “private and confidential”) and advise him that you will be serving him at work, unless he makes contact with you to make a time to meet the process server. This is a valid tactic and it often results in payment being made at that stage. In many cases, work is a more reliable service address. You are entitled to serve the Complaint at work and the only downside to this is that service must be personal.

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Don’t issue a warrant of execution Unless you are aware of specific, valuable items which can be seized the success rate is extremely low. If the debtor runs a business and has got seizable assets (such as a restaurant) then the warrant can be effective but you should specifically direct the sheriff to those assets.

Don’t issue a summons for oral examination This is not an enforcement path but is often treated as if it is. Experienced debtors know exactly what to do and what to say with the result being that any information you do obtain is invariably worthless. The real time to find out about your debtor is before you sue, not after.

Avoid a defence Your aim in recovering a debt is to either end up with full payment prior to judgment being obtained or obtaining a default judgment. If there is a genuine dispute, legal action is often not the best way to resolve it and should be regarded as a last resort. There are steps you can take to significantly reduce the risk of a defence being lodged. Send a final letter to the debtor specifically requesting that he outline any dispute he has, in writing, within seven days and further advise that in the event where he fails to do this and he then ultimately lodges a defence, you will be seeking an order for

Legal

indemnity costs as opposed to part party costs. Indemnity costs will be approximately 40% higher.

Don’t miss part of the claim Many Complaints are issued for less than the full amount which can be properly claimed. Check your trading terms. It is probable that there will be a penalty interest clause and also a clause providing that in the event of default, all collection costs will be payable by the debtor. Spending a little time to cover all of these additional charges will often lift the amount claimed substantially.

Don’t wait until judgment You don’t want a judgment. You really want payment.

Your aim in recovering a debt is to either end up with full payment prior to judgment being obtained or obtaining a default judgment. After the Complaint is served, the clock is ticking and the debtor is under pressure. He should be called and encouraged to pay the full amount at that stage. If he can’t pay in full, enter an instalment arrangement but leave the judgment dangling, so that if he defaults, you can enter judgment for the balance plus costs. By not making the common mistakes detailed in this article, I guarantee that the net recovery you

achieve from legal action will be guaranteed to substantially lift. n The writer is CEO of Prushka Fast Debt Recovery Pty Ltd and is principal of Mendelsons National Debt Collection Lawyers Pty Ltd. Prushka acts for in excess of 53,000 small to medium size businesses across Australia and operates on the basis of NO RECOVERY – NO CHARGE. www.prushka. com.au. Free call 1800 641 617. The writer is also author of The Ten Mistakes Businesses Make and How to Avoid Them and Business Survival, both published by New Holland Publishers.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

Unfair preferences and how to avoid them By Nick Cooper* When a company enters liquidation, it is understandable that creditors often feel aggrieved. Firstly they are owed a debt which will usually become a bad debt. Secondly, they may be asked to refund some of the money they have worked hard to collect – when a Liquidator claims they have received an “unfair preference”. In this 3 part series, I will provide a practical summary of the law concerning unfair preference transactions. The topics to be covered are: • what is a preference payment? • what are the defences? • how can you reduce the chances of a preference claim?

Nick Cooper

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

Part 1 – What is a Preference Payment? The rationale for unfair preferences is that when a company is insolvent, by definition, the company will not be able to pay the full amount of its debts when due for payment. The governing law, which is the Corporations Act, encourages insolvent companies to pay all their creditors proportionally. It does this by penalising those creditors who have received a disproportionate share (an unfair preference). The creditor who has received the disproportionate share is required, subject to certain defences, to repay the amount they have received. It is the duty of the Liquidator to collect these preference payments and then distribute the monies proportionately to all the company’s creditors. “Unfair preferences” are defined under Section 588FA(1) of the Corporations Act as follows: What is unfair preference? A transaction is an unfair preference given by a company to a creditor of the company, if, and only if: (a) the company and the creditor are parties to the transaction (even if someone else is also a party); and (b) the transaction results in the creditor receiving from the company, in respect of an unsecured debt that the company owes to the creditor, more than the creditor would receive from the company in respect of the debt if the transaction were set aside and the creditor were to prove for the debt in a winding up of the company; even if the transaction is entered into, or is given effect to, or is required to be given effect to, because of an Order of an Australian court or a direction by an agency. There are several aspects of preferences which ought to be noted: a) Timeframe. The timeframe within which payments can be deemed to be preferences is within six (6) months before “commencement” of a liquidation. This period of time is referred to as the “relation-back period”. “Commencement” of a liquidation is defined in the Corporation Act and is not necessarily the day that a company enters liquidation. Where a company is in Voluntary Administration (or trading under a Deed of Company Arrangement)

Legal

and later enters liquidation, the “commencement” of liquidation is deemed to be the date that the company first entered Voluntary Administration (s. 513B). In the case of a liquidation ordered by the Court, it is six months before the filing of the application to Court to wind up the company (s. 9 definition of “relationback day”). The time period for transactions with related parties is four (4) years. Sometimes there is an issue as to whether or not a payment falls inside the relation-back period – if there was a delay between a cheque being drawn and presented. In the case Re: Transconsult Australia Pty Ltd (In liq) (1991) 9 ACLC 1052 – it was held that the date of a payment by cheque is the date on which the cheque was given to the creditor not the date that the proceeds of the cheque were made available to the creditor through the bank transfer system. b) Liquidation. The company must be in liquidation for a payment to be caught by the preference provisions. In other words, payments are not liable to be deemed preferences where a company enters Receivership (unless it enters liquidation at the same time) or enters Voluntary Administration and then enters a Deed of Company Arrangement that does not end in a liquidation. This is relevant if a debtor company enters Voluntary Administration and you as a creditor are given an option to vote for liquidation or for a Deed of Company Arrangement proposal. If you consider that you may have received a preference within the previous six months, this may influence your vote as you may be liable to repay the preference in the event of liquidation. c) Insolvency. A payment can only be deemed to be a preference if the company was insolvent at the time of the payment. It is important to note that even though there is a six (6) month timeframe for recovery of preferences, a company may not be insolvent throughout the entire six months. The Liquidator usually seeks to prove insolvency by preparing a report on the company’s financial position during the relation-back period. If defending a preference claim, it may be worthwhile scrutinising the Liquidator’s report and seeking an opinion on the company’s solvency from another Insolvency Practitioner. There have been several cases where a Liquidator has lost a preference claim on the basis that they have failed to prove that the company was insolvent at the time of the preference payment.

In the case of a liquidation ordered by the Court, it is six months before the filing of the application to Court to wind up the company d) Interest and costs. A Liquidator can claim interest on a preference payment and legal costs if the matter proceeds to trial and the Liquidator is successful. Conversely, if the Liquidator is unsuccessful, the creditor can claim some of their legal costs against the Liquidator. In the case Star v O’Brien [1996] 22 ACSR 434, it was held that interest on a preference claim runs from the date of the Liquidator’s letter of demand for payment. It should also be noted that legal costs awarded by a court to the successful party is usually on a “party/ party” basis rather than “solicitor/client” basis. This means that some costs cannot be claimed such as the cost of providing legal advice as opposed to preparation for a trial. The costs awarded are also calculated on a set scale of rates, which might be less than your solicitors’ standard charge out rates.

What the Liquidator must prove To successfully establish at trial that a payment is an unfair preference, a Liquidator must prove to the court the following matters: a) Insolvency. The Liquidator must prove that the company was insolvent at the time of the preference payment. This is usually done by the Liquidator preparing a report on the company’s financial position which demonstrates that the company was insolvent. “Insolvency” is explained in section 95A of the Corporations Act, as follows: (1) A person is solvent if, and only if, the person is able to pay all the person’s debts as and when they become due and payable. (2) A person who is not solvent is insolvent. Insolvency is a “cash flow test” rather than a “balance sheet test”. In other words, insolvency is not determined by examining a Balance Sheet but by examining a company’s cash inflows and cash outflows. A company is insolvent when the cash outflows will exceed both the: zz cash inflows; and zz the available cash funds and credit available on bank overdraft accounts, etc.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

There are a number of factors which will indicate insolvency, such as: ¾¾ high proportion of trade creditor aged 90 days or more; ¾¾ late lodgement or non-payment of amounts due on Business Activity Statements; ¾¾ late or non-payment of WorkCover levies; ¾¾ demands from suppliers for payment; ¾¾ legal action commenced by suppliers; ¾¾ negotiating repayment arrangements with suppliers; ¾¾ a deficiency in “working capital” generally calculated by deducting current liabilities from current assets as disclosed in the Balance Sheet. b) Debtor/Creditor Relationship. The Liquidator must prove that there was a debtor/creditor relationship at the time of the preference payment. In other words, the recipient of the payment must have been owed monies at the time of payment. This will usually be the case. However, there will not be a debtor/creditor relationship where payments are made on a cashon-delivery (“COD”) basis. Such COD payments can therefore never be preferences. c) Unsecured Creditor. The Liquidator must prove that the creditor who received the preference payment was an “unsecured” creditor. In other words, there cannot be a preference payment against a bank or other creditor who has valuable security over the company’s assets. Similarly, with the introduction of the Personal Property Securities Register (“PPSR”), suppliers of goods who have a valid PPSR registration are secured creditors and immune from preferences – but the value of their security against the value of the alleged preference payment must be considered. If a secured creditor receives a payment which exceeds the value of its security, then the portion of the creditor’s debt that is effectively unsecured is liable to be repaid as an unfair preference (section 588FA(2)). d) Preferential Effect. The wording of section 588FA(1)(b) suggests that a payment can only be a preference if the creditor was effectively preferred over other creditors of the company. The test is whether the transaction results in the creditor receiving from the company more than it would have received in respect of the debt if the transaction was set aside and the creditor were to prove for the debt in a winding up of the company. In the case Walsh v Natra (2000) 1 VR 523, it was held that preferential effect is demonstrated by comparing the return that the creditor received from the payment against the return the creditor would

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

receive in the winding up of the company conducted by the Liquidator. Preferential effect is important for one class of creditors, being landlords, who are in a privileged position with respect to preferences. It has been held in the case Re: Discovery Books Pty Ltd (1972) 20 FLR 470 that landlords do not necessarily receive a preference when a tenant pays rent – as the ultimate effect is that the company is allowed to continue trading from the rented premises. This is known as the “doctrine of ultimate effect”. e) Transaction. The Liquidator must prove that there was a “transaction”. Clearly when a creditor receives a payment, the payment itself is the transaction. There have been several cases in which the meaning of a “transaction” was important, including: zz Re Emanuel (No. 14) Pty Ltd (In liq) (1997) 24 ACSR 292 – it was held that the definition of “transaction” was sufficiently broad to catch an arrangement whereby a payment from a third party, rather than from the company which entered liquidation, to the creditor was liable to be repaid as a preference – given that the payment was authorised by the company. zz Bartercard Ltd v Wily (2001) 19 ACLC 1461 – it was held that a transaction existing in circumstances where a creditor terminated a franchise agreement and obtained the business (including goodwill and plant & equipment) of a franchisee. It was a transaction as the creditor set-off the value of the business against the debt owing to it. In the next article, I will discuss the defences and remedies that are available to creditors. n *Nick Cooper is a Partner of the Adelaide office of Worrells Solvency & Forensic Accountants. He is qualified as a Chartered Account and hold a Bachelor of Laws. He is an Official Liquidator and a Registered Trustee in Bankruptcy. Nick has worked in the insolvency practice for 20 years. He has acted as an Administrator, Liquidator and Receiver of companies in a diverse range of industries. He has acted on behalf of major banks and in respect of clients of many accounting firms. In his role as a Liquidator and as a Trustee in Bankruptcy, Nick is often involved in litigation to recover assets for the benefit of creditors.

The Liquidator must prove that the creditor who received the preference payment was an “unsecured” creditor.

Legal

Electronic contracts – what’s new? Part 2 – Authority to bind By Peter Mills and Robert Gallagher

Peter Mills

In Part 1 of this series (March 2016 issue), we looked at the Supreme Court decision in Stellard Pty Ltd & Anor (Stellard) v North Queensland Fuel Pty Ltd (NQF)1 (Stellard’s Case). The Court ruled that the name of an agent typed in an email was a “signature” which bound the company. We also looked at the implications for Credit Applications, Terms and Conditions of Trade (called T+C’s) and guarantees which need to be “signed”, whether foreign laws are relevant, and the need for proper processes and systems (both manual and online) for ensuring a signature is obtained. In Part 2 of this series, we look at who has sufficient “authority” to enter into an agreement or sign on behalf of a customer or guarantor and what happens if they do not have authority.

Authority to bind

Robert Gallagher

All contracts and documents, whether they are T+C’s or a guarantee, must be entered into by the person who is to be held liable (as customer or guarantor). If a person (including a company) is represented by a “duly authorised” agent it is critical that the agent has sufficient authority as an agent’s authority often will be limited to entering into only certain dealings. If an agent lacks sufficient authority, then no contract is formed and no rights can be enforced in contract eg a charging clause will not enforceable. The best course is to have the

right documents and systems in place to ensure that the necessary steps are taken to bind the correct parties. Whilst authority might be proven or other rights or remedies might be available eg against an agent acting without authority, these often involve complex disputes with uncertain results, as the cases below show. Stellard’s Case – sale of land and business by non-director zz The seller was a company (NQF). zz NQF’s apparent principal asset was land and a service station business located on it. zz All relevant email communications were with only NQF’s agents, some with the sales agent, and others with the director’s son, Drew. zz Drew was not a director of NQF according to ASIC records. No Power of Attorney appeared to have been registered granting him authority to deal with NQF’s interest in land. It was not alleged that any statement had ever been provided to Stellard by the directors of NQF to the effect that Drew had NQF’s authority to enter into any contract, although sales and marketing materials identified Drew as a contact for NQF. zz Importantly, NQF expressly admitted in Court documents that Drew was duly authorised to enter into the relevant contract. This meant that it was not necessary for Stellard to prove that Drew was NQF’s duly authorised agent.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

Generally a non-director would not be taken to have authority to grant an interest in land. Here, Stellard ran a complex Court case to prove its claim. Takeaway – on both sides of a deal get the paper work right and have all officers sign the documents so everyone has certainty. Auto Moto Corporation Case 2 – salesman had authority to buy and sell cars but had no authority to give a charge over the customer’s assets zz A supplier sold expensive imported cars to a car dealership. All discussions were conducted with a head salesman, who was not a director or shareholder. zz Cars were sold to the dealership on the basis that the supplier retained title until paid, and normally the supplier would receive payment on a sale occurring. zz Subsequently, as the debt owed grew to over $1 million, the supplier provided a written general security agreement (GSA) to the salesman, providing for the dealership to grant a charge over all of its assets to the supplier. zz A registration was lodged under the Personal Property Securities Act 2009 (PPSA) by the supplier based on the GSA. zz The GSA was not signed by the dealership’s directors nor was there any evidence that the directors had ever adopted, discussed or seen the GSA. zz The dealership went into liquidation. zz The Court held that: —— The salesman was the duly authorised agent of the

dealership to buy and sell cars and to grant retention of title security interests in the vehicles. —— This did not mean however that the salesman was also duly authorised to enter into the GSA. It was beyond the actual or implied authority of a salesman to grant a charge over the company’s assets at large. —— The GSA was not enforceable and so the PPSA registration made by the supplier was deregistered and the supplier was an unsecured creditor for over $1 million. Takeaway – obtain relevant ASIC and other searches to identify the director/s who are authorised to enter into agreements to give a charge over a customer’s real and personal property. Williams Group Australia (WGA) Case 3 – electronic signature not inserted by guarantor’s duly “authorised agent” and so guarantee not enforceable zz WGA was a building materials supplier. Its customer was IDH Modular (IDH). zz Mr B, Mr W and Mr C were IDH’s directors, and Ms H was its admin assistant. zz Mr A set up an electronic signing system for the directors to use called “Hellofax”. Hellofax permitted each user to upload a copy of their signature which could be applied to documents electronically. zz Mr B, Mr W and Mr C all uploaded copies of their signatures, and were provided with unique user

...obtain relevant ASIC and other searches to identify the director/s who are authorised to enter into agreements to give a charge over a customer’s real and personal property. 26

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

names and passwords to be able to access Hellofax. Only persons with the suitable user name and password could access the system and use the related signature. zz As further protection, whenever a document was to be signed using a director’s Hellofax, the relevant director would be emailed. After their signature had been applied, the relevant director was sent another email as to their signature having being applied to the document. zz Lastly, the Hellofax system also logged from where and when a user of the signature had accessed the system. zz Mr C never changed his user name or password. zz IDH went into liquidation owing WGA $1M. zz The evidence showed that Mr C’s signature had been placed on the guarantee by a person who had logged in at IDH’s Murwillumbah office, at a time when Mr R was not in Murwillumbah. It could not be proven who the person was who used his (unchanged) user name and password, or that Mr C had read the emails as to the use of his electronic signature. zz The Court held: —— There was no evidence that any person had been actually authorised to place Mr C’s signature to any document, or that Mr C had led WGA to believe that Mr C had granted such authority to others. Mr C’s failure to change his password was not sufficient; —— That since Mr C had not read the emails as to his signature being used, he could not be said to have ratified any unlawful use of his signature. The Court held that the guarantee was not enforceable against Mr C and he was not liable for the debt owed.

Legal

Takeaway – communicate directly in person with guarantors to make sure that they have signed the guarantee. Even though an electronic signature may be sufficient (such as in Stellard’s case) safeguards against fraud should be in place and perhaps more so when electronic dealings are relied on. Menzies Case4 – accountant handled all communications with banks and forged signature of client on loans, real property mortgages and guarantees – contracts not binding on client zz A client placed her trust in her accountant to assist in making a loan application. zz The accountant used her ID documents to forge her signature on numerous loans, personal guarantees and to grant mortgages over the client’s properties. zz All communication, bank statements and correspondence were sent via the accountant’s office. zz The client was not liable for the fraud of her accountant as he had no sufficient authority to bind her. Takeaway – good old fashioned fraud doesn’t have to be electronic or digital. Minimise risk by dealing with the person directly. Tai Hing Cotton Mill Ltd Case5 – HK$5M in cheques signed by customer’s employee who was not an authorised signatory on bank account – bank liable for entire loss zz The customer’s employee made off with the ill-gotten funds. zz The company did not complain to the bank for some time after receiving bank statements. zz Because of the terms of the contract between the bank and its customer, the bank was still liable for the employee’s fraud and was required to refund the HK$5M in full, despite the passage of time. Takeaways – credit providers are also providers of finance. Whilst cheques are used less today,

fraudulent ordering by employees of goods and obtaining of fraudulent refunds by them on customer accounts are possible exposures for suppliers under T+C’s. In credit documents it may be possible to provide that the customer and guarantors will be liable on the account and that any fraud or forgery by the customer’s employees will be at the risk of the customer, not the credit provider.

duly authorised officer or agent, or guarantees properly signed by the liable parties, you will not likely be able to enforce rights against the customer, guarantors or third parties, or lodge PPSA security interests or caveats. Review your contracts, T+C’s and guarantees to identify where the risk falls if a customer’s employees effect a fraud on the account.

Next Overview T+C’s and guarantees should be obtained with care, using reliable systems, processes and documents. Contracts, guarantees and other documents generally do not grant any contractual rights to a creditor if they are signed or entered into by an agent for the party to be held liable unless the agent acts with sufficient authority. Electronic “signature” systems and processes might seem fine and efficient, however they should be reviewed to ensure that they verify the lawful and authorised placement of signatures. Direct contact with directors and guarantors is especially important. If you fail to have contracts and T+ C’s signed by the party or a

Stay tuned for the final Part 3 of this series. In the final part, we will look at when parties are legally bound during negotiations, even if and when they say the dealings are “subject to contract”. n Written by: Peter Mills, Special Counsel pmills@tglaw.com.au, T +61 7 3338 7921 Robert Gallagher, Partner rgallagher@tglaw.com.au, T +61 7 3338 7920 FOOTNOTES: 1

Stellard Pty Ltd v North Queensland Fuel Pty Ltd [2015] QSC 119

Auto Moto Corporation Pty Ltd v. SMP Solutions Pty Ltd [2013] NSWSC 1403

Williams Group Australia Pty Ltd v. Crocker [2015] NSWSC 1907

Perpetual Trustees Victoria Ltd v Menzies [2012] NSWSC 1066

Tai Hing Cotton Mill Ltd v Liu Chong Hing Bank Ltd [1985] 3 WLR 317

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

Don’t get your contract terms knocked out John Fairgray and Luis Ormazabal* From 12 November 2016, if you work with small businesses and use standard form contracts, you must ensure that your contracts do not contain unfair terms or you risk having part, or all, of those terms knocked out. This article provides an overview to these changes.

The Treasury Legislation Amendments (Small Business and Unfair Contracts Terms) Act 2015 (the Act) On 12 November 2016, the Act will be enforced, amending the Australian Securities and Investments Commission Act 2001 and Competition and Consumer Act 2010 (more specifically Schedule 2 – The Australian Consumer Law). The purpose of the Act is to extend the existing unfair contract term provisions to small businesses entering into standard form contracts valued less than the prescribed threshold.

What does this mean for you? If you work with small businesses and intend on entering, renewing or varying your standard form contracts, which relate to such things as: 1. Unilateral variation of terms and conditions. For example, where you may amend the terms and conditions of a contract and publish them on your website without sufficient and/or reasonable notice to your customer; 2. Automatic rollover of the contract. For example when a contract expires and you automatically renew it for a further term, unless notice has been provided by your customer that they do not intend to extend the contract; or 3. Enforcing contingent fees. For example default fees and/or liquidated damages which are not disclosed at the time the contract is entered into,

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

then it is essential that you review your contracts before 12 November 2016, otherwise you run the risk that part, or all, of your contract terms may be knocked out by the Court.

What is a small business? A business is taken to be a small business where it employs fewer than 20 persons, excluding casual employees not employed on a regular or systematic basis. A head count approach will be used to calculate the number of employees.

What is a small business contract? A contract is a small business contract if either of the following applies: 1. The upfront price payable under the contract does not exceed $300,000.00; or 2. The contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.00.

Legal

“The onus of proof lies with you to show that your small business contract does not contain unfair terms.”

Is my small business contract a standard form contract? As stated above, the unfair contract provisions will affect standard form small business contracts. Whether a small business contract is a standard form contract will be a question to be decided case by case. In the past, the Courts, in deciding whether a contract is a standard form contract, have taken into account such matters as: 1. One of the parties has all or most of the bargaining power relating to the transaction; 2. If the contract was prepared by one party before any discussion occurred between the parties; 3. Another party was required to either accept or reject the terms of the contract; 4. Another party was given an effective opportunity to negotiate the terms of the contract; and 5. The terms of the contract and whether they take into account the specific characteristics of your

customer when entering into the contract with them. Therefore, a standard form contract is a contract which has been prepared by you and is not subject to negotiation, being when your customer has to either accept the terms of the contract or not i.e. on a ‘take it or leave it’ basis. Examples of standard form contracts in credit are where there is a supply of goods and services to consumers in industries such as telecommunications, finance, domestic building, gyms, rental agreements and utilities.

To which standard form small business contracts DOES the Act apply? The Act will apply to small business contracts that: 1. Have been renewed on or after 12 November 2016. As such, the Act applies from the renewal date; or 2. Have been varied on or after 12 November 2016. That is, the Act will apply to the term(s) varied on or after 12 November 2016.

To which standard form small business contracts DOES NOT the Act apply? Whilst most standard form small business contracts will be covered by the Act, there are some exceptions, these being: 1. Contracts entered into before 12 November 2016 (subject to any renewals or variations to the contract and/or terms and conditions); 2. If your customer is unable to allege that your terms of contract are unfair merely on the basis that they have changed their mind, or no longer require the goods and/ or services from you. This applies where you are supplying goods and services which are specifically defined in the contract; 3. Where the upfront price has been clearly stated in the contract at the time in which the contract was established; 4. Where there is a requirement or you are expressly permitted by a law to include a specific term.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Legal

For example, some legislation may permit the inclusion of terms as a matter of public policy to ensure specific transactions occur i.e. cooling- off periods in various industries and their relevant statutory provisions; 5. Terms that have been subject to genuine negotiations between you and your customer; 6. Shipping contracts (as they are subject to a comprehensive legal framework that deals with maritime contracts); 7. Contracts that are constitutions of companies, managed investment schemes or other kinds of bodies; or 8. Contracts in sectors exempt by the Minister, for example insurance contracts as they are regulated by the Insurance Contracts Act 1984.

Is my small business contract unfair? Generally, if a term is in a standard form contract it will be “unfair” if three tests are satisfied: 1. The term would cause a significant imbalance in the party’s rights and obligations arising under the contract; and 2. The term would cause detriment (whether financial or otherwise) to a party if it were applied or relied on; and 3. The contract term is not reasonably necessary in order to protect the legitimate interests of the party seeking to rely on it. In applying each of the three tests, a Court may take into account such matters as are relevant and is obliged to take into account:

1. The extent to which the term is transparent (that is, expressed in reasonably plain language, legible, presented clearly and readily available to any party affected by the term); and 2. The contract as a whole.

What powers will the Court have? The Court may declare that a term in a small business contract is unfair on the application of a party to the contract (subject to the relevant thresholds being met) or ASIC.

What happens if the Court determines that my term(s) to be unfair? If the Court finds that a term is unfair, then there are a range of orders that the Court may make, including: 1. Declaring that the term be deemed void; 2. Refusing to enforce some or all of the terms of a contract; 3. Directing you to refund money or to compensate your affected customer; and/ or 4. Directing you to continue providing goods and/or services to your customer at your expense. In the event that your term has been deemed ‘unfair’, and you continue to rely and enforce that term, then you could be engaging in false and misleading conduct by misrepresenting the enforceability of the term to your customers.

Who bears the onus of proof? The onus of proof lies with you to show that your small business contract does not contain unfair terms.

Consider whether there is going to be some uncertainty about the fairness of your contract terms and in the event there will be then include additional terms. 30

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

What you should do before 12 November 2016. Due to the significant impact that the Act may have to your business, you should: 1. Consider whether the Act applies to your contracts and whether there are any terms which should be amended, if you use standard form contracts in your business; 2. Obtain legal advice and have your contract terms reviewed, removed and/or amended where appropriate and in compliance with the Act; 3. Implement changes to your front end processes to ensure that if you are going to enter into, vary or renew a standard form contract with a small business customer on or after 12 November 2016, that it complies with the Act; 4. Consider whether there is going to be some uncertainty about the fairness of your contract terms and in the event there will be then include additional terms. For example, disclosure requirements as to your customers business or limitation of liability terms; and/or 5. Ensuring your contract, and its specific terms, are clear and transparent. n

Should your business require any assistance or advice regarding the impact of the Act to your business, please do not hesitate to contact BBW Lawyers; John Fairgray (Partner) E: jfairgray@bbwlaw.com.au, Luis Ormazabal (Associate) E: lormazabal@bbwlaw.com.au or Balveen Saini (Solicitor) E: bsaini@bbwlaw.com.au on 02 9210 9100. The AICM will be holding seminars in Brisbane, Sydney, Melbourne, Adelaide and Perth in August to ensure you understand the impacts for your business and are able to adjust for them. Email aicm@aicm.com to express your interest and ensure you are notified once dates are confirmed. Disclaimer: This is general commentary and should not be relied upon as if it were legal advice.

Technology

Australia on the cusp of ‘digital greatness’ Australia could soon become the FinTech Hub of Asia by eliminating regulatory red tape that has previously held the nation’s visionary start-up companies back, Tyro CEO Jost Stollmann said recently. Under changes announced by the Australian Government, start-up companies can now test and evolve their business models with customers in a regulatory ‘sandbox,’ without first having to obtain a financial services licence. The development will help encourage some of Australia’s best and brightest bankers to leave the comfort of the ‘big four’ banks and venture out on their own with disruptive new ideas. “Australia’s financial services sector is the largest contributor to the national economy, providing about $140 billion to GDP last year, and employing 450,000 people,” Mr Stollmann said. “The Australian Government’s package of measures will help unleash a new generation of entrepreneurs and investors who want to make everything we do quicker, easier and more productive. “FinTech investment around the world reached an estimated $30 billion, a jump of about seven-fold in only three years. “Australia needs to make itself FinTech friendly if it wants to set itself up for the next generation of economic growth. “If it does, Australia could become the FinTech Hub of Asia, servicing a market of more than three billion people, including a rampant Chinese economy.” At the recent World Economic

Forum it was noted that 90 per cent of the data we use today has been created in the past two years. Mr Stollmann said that FinTech was disrupting banking so quickly it was possible that one of Australia’s big four banks may no longer exist in a generation. “Australia is now creating an ecosystem of FinTech start-up companies that are working together to provide a 21st century suite of banking services for customers and businesses,” he said. “What that means is that the old and slow banks may be replaced by 100 smaller organisations working together. “It is possible that within 20 years one of the current big four banks will no longer be with us. The only question is, which one will it be?” While most banks have been reluctant to speak publicly about the challenges posed by FinTechs, Commonwealth Bank CEO Ian Narev told a gathering at The Centre for Independent Studies earlier this month that his organisation would

be ‘toast’ within 10 years if it didn’t innovate. Mr Narev refuted the notion that innovation and technology was only the domain of the start-up, describing Commonwealth Bank as the “big dog sleeping on the porch”. Early last year, Tyro took this a step further by opening Australia’s first FinTech Hub, designed to foster new ideas and help Australian entrepreneurs build their dreams. “FinTech is going to revolutionise how consumers and businesses interact in the future,” Mr Stollmann said. “But individual FinTech companies can’t thrive in an analogue world, we need to create a digital ecosystem for new ideas to grow and prosper. Mr Stollmann sits on the Federal Government’s FinTech Advisory Group that advises the government on how to improve Australia’s international competitiveness in the digital economy. n Adapted from Tyro press release dated 17/06/2016 https://tyro.com/press-releases/ australia-cusp-digital-greatness/

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Economy

A new world of commerce awaits By Barry Urquhart*

Once the economic headwinds abate and the downturn is over, a new, lean, efficient, cost-effective, technologydriven world of commerce will await. There will be no “going back to the good old days”. The jobs and careers lost during the mining, retail, construction and services contractions will not return. Managements, and Boards of Directors have learnt how to operate, develop and grow with reduced resources. Profit margins have been trimmed since the onset of the Global Financial Crisis (GFC) in August 2008. So too have organisation structures and the

Managements, and Boards of Directors have learnt how to operate, develop and grow with reduced resources. fixed costs of operating overheads centred on staff members. Therefore, future increases in demand, production, sales and revenue will trigger widespread positive leveraging in profits, dividends, share prices and business valuations, without the need for substantial increases in people. Higher productivity and lower unit costs-of-production will be rewarded. Self-worth will be enhanced for those capable, and trained, to capitalise on the future business landscape.

Look, no hands! Barry Urquhart

Autonomous vehicles will overwhelm and largely render obsolete the taxi

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

industry. Labour-intensive sectors, whose participants have little or no personal relationship skills, face a bleak, contracting and short future. In the new marketplace, the harsh climate and working conditions of remote mining sites will not be endured by large numbers of workers. Automated drilling machines, trucks and trains will be operated, monitored and controlled by a few select, professionally qualified specialists located in air-conditioned city-based offices. Union acceptance and endorsement of such rationalisations will have long-term structural consequences for its members.

Up in the air The military conflicts in Afghanistan, Iraq and Syria are already being influenced, if not won, from the air, with strikingly accurate, efficient armed drones, which are being “flown” by pilots and crews located half-way around the world in the safety and comfort of a foreign country. The need for “boots on the ground” to win a war has been slashed. Legal practices have addressed the decline in public- listings, acquisitions and mergers with a restructuring of firms, reductions in head-counts, surrendering floors of office space, and the outsourcing of para-legal duties to overseas. Career paths, and the pursuit of climbing corporate ladders have become more tenuous and shorter in term. Reportedly, over the past two years up to 26% of law graduates

Economy

from Australian universities have not secured full-time employment. Many are undertaking intern duties on limited stipends, or working pro-bono for a host of not-for-profit organisations. The lore of economics has supplanted the law of statutes.

Automated hospitality Automated registrations at accommodation–hotels are already revolutionising tourism and hospitability practices. Consumers are enjoying lower room tariffs and the avoidance of long queues at book-in and book-out. The take-up of similar developments will accelerate in any widespread economic upturn. Interactions with staff are still possible when ordering room service, eating in the restaurants and seeking local information from the concierge. The present is a transition period,

and the consuming public does not appear to have firm opinions or established preferences. Familiarity will doubtless breed acceptance. In all of these instances there are parallels to a visit to Disneyland in Anaheim, California, USA and taking a child’s fun-ride with the background music, “It’s a small, small world after all”. Sadly, many of those who have not prepared for the structural change will not enjoy joining the chorus line.

Make it public Disturbingly, for some, the potential of rationalisation of organisational structures and people- counts in the public sector will not be realised. It is potentially the most lucrative sector to effect greater efficiencies, to enhance productivity and to reduce staff numbers.

Overall, it is apparent that technological developments are enabling the automation of processes, and with it, the lowering of costs. It is important that at the interface with customers, clients, and guests there is always the capacity and option to engage with service providers. Thus, the silo-effect inherent in the concepts and phrases of omni-channel and multi-channel have quickly become redundant and replaced with an integrated, interactive and dynamic single channel. Greater productivity remains a key driver; customer satisfaction and fulfilment the goals. Get ready to participate, compete and win, in a new world of commerce. n *Barry Urquhart of Marketing Focus is an internationally respected business strategist, consumer behaviour analyst and conference keynote speaker.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Economy

Brexit from a Credit managers point of view Opinions of UK credit managers indicated Brexit was a genuine possibility.

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

Prior to the vote on a Brexit from the EU a survey of 300 Chartered Institute of Credit Management (CICM) members revealed that almost a third of credit managers planned to vote in favour of leaving the EU and almost a half believed that Brexit would have little or no impact on their business. 75% of the survey participants conduct international trade and these results (32 percent in

Economy

favour of leaving) were an increase from 12 months prior when only 21 percent intended to vote in favour of leaving the EU. 21 percent of participants were undecided in the latest survey. Philip King, Chief Executive of the CICM, says that while the shift in opnion has been marked, almost half (47 percent) were still in favour of staying as part of the union: “this means that only a small percentage of the undecided vote needs to be converted for the ‘stay’ campaign to carry the day” CICM members (like AICM members) work across all sectors and industries and the volumes and values of credit granted provide a primary indicator of the strength of the UK economy and actual levels of business being conducted. “At the moment they seem to be saying that leaving the EU will make little or no difference to their business – an opinion that has remained constant over the last 12 months” he continues. This suggests that the ‘stay’ campaign had not yet won the argument convincingly and the positive results of being part of the EU had not registered with CICM members. While the CICM remained neutral, the results of the survey are a good barometer for how many in the industry felt and with time running out we need to see more positive arguments from both sides. In hindsight the results of this survey reflects recent commentary post the vote that the ‘stay’ campaign was not able to convince the broader public of the benefits of staying in the EU (adapted from June 2016 article in Credit Management, the CICM magazine).

Brexit’s impact on Australia Paul Bloxham Chief Economist HSBC Bank Australia Limited, in a recent press release reflected on how the RBA will react to the Brexit.

Brexit has delivered a shock to global financial markets. Australia’s markets have, however, seen much smaller moves than elsewhere, particularly in Europe. This partly reflects that commodity prices have held up well with the iron ore price above its pre-Brexit referendum level. The AUD is down from USD0.76 to USD0.74, but the fall in the AUD is largely explained by strength of the USD. The market’s reaction seems consistent with the apparent limited economic significance of the UK for Australia. Britain takes only 2.8% of Australia’s exports and although financial connections are larger, recent net capital inflows to Australia have mostly come from Asia. In short, Australia’s economic story is much more about Asia than about Britain or Europe. To the extent that Brexit affects Australia, it is mostly through an impact it could have on growth in Australia’s

major trading partners in Asia. We see Brexit as unlikely to trigger a cash rate cut from the RBA this month. We see the election as unlikely to have market implications, although the desire to be apolitical could explain the central bank’s recent reluctance to give much policy guidance (see Australian Election Observer, 17 June 2016). More generally, Australia’s growth remains strong, business conditions are at high levels, jobs growth has continued and house prices are rising. Last weekend’s consumer confidence and housing auction clearance rates remained high, despite the Brexit vote. We expect continued solid growth, although inflation remains low. We continue to see the RBA’s next potential trigger as the Q2 CPI print, due on 27 July. Our central case sees a 25bp cash rate cut in August, after a low CPI print. n

To the extent that Brexit affects Australia, it is mostly through an impact it could have on growth in Australia’s major trading partners in Asia.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Economy

U.S. Macro Outlook: It’s a Job Machine GDP growth has come to a near standstill. Growth will be barely positive in the first quarter, after a paltry gain in the fourth quarter of last year. Job growth, however, remains robust, with no sign of slowing. The job numbers are a better representation of the reality of the economy’s performance and nearterm prospects. Measurement problems plague the GDP figures. Despite yeoman efforts by the Bureau of Economic Analysis, the source of the GDP data, there remains a significant residual seasonality problem. That is, GDP has a clear seasonal pattern, with the weakest growth not surprisingly during the winter months. But the BEA hasn’t been able to fully correct for this seasonality.

By Mark Zandi, Chief Economist Moody’s Analytics

Labour Force Surges With Stronger Job Market Labour force, ths, change yr ago, 3-mo MA 2,000 1,500 1,000 500 0 -500 -1,000 -1,500 08

Source: BLS, Moody’s Analytics

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

GDP Head Fake GDP also undergoes significant revision. The initial estimate of GDP for a quarter is revised by close to a percentage point on average in subsequent estimates as more source data, especially inventory and international trade statistics, become available. Big revisions also occur years later when more source data and methodological changes are incorporated into the GDP accounts. Even if the BEA got it exactly right, GDP growth would still likely be on the soft side, as productivity growth remains punk. While hard to prove, this can be traced in part most recently to the hit the energy and manufacturing sectors have taken. These are very productive industries, and output has been hammered more than employment. Productivity has also struggled since the financial crisis, as that wrenching period undermined business risk-taking, which is vital to innovation, and labor mobility, which is key to getting workers into the most productive jobs. Massive reworking of the financial system engineered by Dodd-Frank, and of the healthcare system by the Affordable Care Act, has also played a role. These, however, are more or less transitory constraints on productivity. The downdraft in energy and manufacturing will abate by year’s end and risk-taking and mobility are picking up. Adjustment to the new regulations in the financial and healthcare systems will be over soon.

Economy

Job Machine It is much easier to count jobs than GDP. While the Bureau of Labor Statistics estimates jobs based on a sample of businesses, once a year it makes sure its job counts are consistent with unemployment insurance records for all businesses. In recent years, the BLS estimate of the number of jobs has been dead on. The economy is a job machine. The string of monthly job gains is the longest on record, stretching all the way back to September 2010, and more than 200,000 jobs have been created on average each month during this time. This is twice the pace of job creation needed to absorb the growth in the working-age population. Lots of all kinds of jobs are being created. Job growth is strong across all pay scales, and nearly every occupation, industry and region of the country. The only blemishes are related to the plunge in oil prices and their impact on energy-related jobs, and the impact on trade-sensitive manufacturing jobs from the tough global economy and strong U.S. dollar.

Help Wanted Everything points to continued strong job gains in coming months. Layoffs remain at record lows, with weekly unemployment insurance claims— arguably the best realtime indicator of the economy’s strength—about as low as they ever go. Hiring isn’t quite as good as in the best of times past, but given the record number of open job positions, this is either because businesses are becoming pickier in who they hire, or more likely because they can’t find qualified workers. Arguably most encouraging of late is the surge in the number of workers quitting their jobs. People don’t leave jobs voluntarily unless they feel confident they can find new ones easily. High and rising “quits” are a tell that the economy is closing in on full employment. The sharp increase in labor force participation is also consistent with a

Financial Sector Weights Heavily on Productivity Labour productivity, 2009Q2=100 112

Nonfarm business

110

Nonfinancial corporate

108 106 104

Avg annual growth during recovery: Nonfarm business = 0.9% Nonfinancial corporate = 1.7%

102 100 98 09

Source: BLS, Moody’s Analytics

tightening job market. Participation is up an astounding 60 basis points in the past six months, as the labor force has expanded by a whopping 2.4 million over this period. In a typical year, the labor force will grow by no more than half that. Some of the increase in participation may be noise, as this number is derived from a small sample of households. But evidence that the increase is across all age groups suggests it is not a statistical mirage. Adding to this view is that most of the increase in participation is due to fewer workers leaving the workforce, and less due to those out of the workforce coming back in. While there is still an elevated number of workers out of the workforce who say they want a job and part-timers who want more hours, they are quickly being absorbed. At the current pace of job growth— if sustained, which seems likely—the economy will be at full employment by summer. While job growth is sure to slow after that, as it will be increasingly tough for businesses to fill jobs, the economywill be beyond full employment by this time next year. Wages Revival Wage growth is reviving in response. This is somewhat evident in the various wage data constructed by the BLS. Average

hourly earnings have picked up from closer to 2% per annum through most of the recovery, to just below 2.5% most recently. Compensation as measured in the labor productivity statistics shows a somewhat stronger increase, but the preferred employment cost index shows little increase. The BLS measures of wage growth are likely biased downward, even the ECI. The problem is that given the way the BLS measures wages, they are affected by the changing composition of workers leaving and coming into the workforce. With lots of higher-paid baby boomers leaving, and lower-paid millennials coming in, the BLS wage measures are being pushed down. Another likely factor is that marginal, lower- paid workers are finding jobs as the labor market tightens. Wage data collected by human resource company ADP and constructed by Moody’s Analytics affirm this. The data are able to track the wages of the same individuals over time and is thus not biased by the compositional issues plaguing the BLS data. The ADP-based data show that for workers who have stayed at the same job over the past year, wages are up a strong 4.8% through March of this year. This is

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

Economy

approximately 2 percentage points stronger than wage growth using the ADP data, but based on the BLS methodology for measuring wages. According to the ADP-based data, wage growth is also accelerating, consistent with a tightening job market. A year ago, wages for the same workers on the job more than a year were rising by 3.8%. This is a 100-basis point acceleration in wage growth in just the past year. Adding credence to the ADP-based data is that wage growth for all workers, including job switchers, is consistent with wage growth as measured by the BLS.

More Consumption, Fed Tightening An economy at full employment and with stronger wage growth will be a substantial tailwind to consumers. Not only will consumers have more income to spend, but their psyches should get a lift. People likely judge their financial well-being through the prism of their pay. Are their pay increases this year bigger than last, and are the increases beating inflation? For most of the recovery, the answers were no and no. Until now. With wage growth picking up, so too should consumer confidence. Continued strong consumer spending growth is vital to the U.S. economic recovery, and even to the global economy. A full-employment economy and stronger wage growth also imply that the Federal Reserve will soon resume its normalisation of monetary policy. The Fed raised rates off the zero lower bound in December but has been on hold since, given the weak global economy and turmoil in financial markets at the start of the year. But the Fed can’t wait much longer to resume increasing rates as its full-employment mandate has been nearly met. Inflation is still below the Fed’s target of 2%. But it won’t be for much longer, given the strengthening wage growth that

Strong Labour Market Internals Rate, % 4.5

Openings

Hiring

Quits

Layoffs

4.0 3.5 3.0 2.5 2.0 1.5 1.0 00

Source: BLS, Moody’s Analytics

Wage Pressures Develop Job holders, ADP wages per hr. % change yr ago 3.0

5.0

Based on BLS methodology (L)

2.5

4.8

Based on tracking individuals (R)

4.6

2.0

4.4

1.5

4.2 1.0

4.0

0.5

3.8

0.0

3.6 14Q4

15Q1

15Q2

15Q3

15Q4

16Q1

Source: ADP, Moody’s Analytics

will pressure businesses to raise prices more quickly. Reinforcing the case are sturdy rent growth and an anticipated pickup in healthcare inflation as some of the constraints resulting from healthcare reform fade. The longer the Fed fails to respond to the tightening job market, the greater the risks that it will need to raise rates more quickly next year and the year after in order to catch up. This is the classic dynamic that has done-in most other business cycles. The Fed can still forestall it, but not for much longer. n

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

Mark M. Zandi is chief economist of Moody’s Analytics, where he directs economic research. Moody’s Analytics, a subsidiary of Moody’s Corp., is a leading provider of economic research, data and analytical tools. Dr. Zandi is a co-founder of Economy.com, which Moody’s purchased in 2005. Dr. Zandi conducts regular briefings on the economy for corporate boards, trade associations, and policymakers at all levels. He is often quoted in national and global publications and interviewed by major news media outlets, and is a frequent guest on CNBC, NPR, CNN, Meet the Press, and various other national networks and news programs. Article sourced from Credit Research Foundation’s newsletter CRF News www.crfonline.org

Economy

Queensland economy shifts gears and pitches for a more balanced future Queensland’s five year budgetary forecasts place its growth firmly at the top of the state leader board as its economy shifts gear. And that’s the rub, according to Deloitte Access Economics’ Director Natasha Doherty. “As the economy transitions from mining to embrace a more balanced future, it doesn’t yet feel buoyant; despite total employment increasing with 72,000 additional jobs, primarily in the service sectors, replacing the more than 20,000 jobs lost from the mining sector over the last two years. “It does take time for balanced growth to translate into jobs and generate a ‘feel good’ factor and boost spending within the State itself. In fact state demand has been steadily shrinking for more than two years, and it will take time to turn that around,” Doherty said. Despite the obvious challenge that the biggest driver of growth is exports – LNG exports in particular – there is

every reason to be positive according to Doherty. “The economy is in better shape than many Queenslanders realise. As Treasurer Curtis brought down his second budget aimed at building ‘investment, infrastructure and innovation’ for FY17, Queensland’s growth is projected to be comfortably faster than that of Australia as a whole, and the fastest of any of the states,” she said. Deloitte Queensland Public Sector leader, Graeme Newton said: “Queensland has the potential to build out its diversified economy and today’s injection of $225 million to bring the Government’s investment in its Advance Queensland initiative to $405mn is a good base. Added to this the government’s commitment to the cross river rail, the Regional Action Plan and connectivity across S.E. Queensland, and the road ahead will significantly improve.

Source Deloitte Access Economics and State Treasury Departments 2016

“We know that improving the connections of people to jobs is a key enabler of economic growth, in addition to the obvious boost from construction. We need connected infrastructure, connected businesses and innovative research to better grow our businesses and communities. The right infrastructure and business incentives will enable this.” Deloitte Queensland Managing Partner John Greig added: “Investment in the knowledge economy is the insurance policy for our future. Business needs to engage and take advantage of the opportunities. I am confident that this budget is on the right track to encourage business investment, particularly for companies in the knowledge economy. The question we need to determine is, is it enough? “Business confidence will be an absolute key for realising jobs and growth and we need to ensure we have the right skills to make this happen. We will need to pull together to invest and grow these skills. As we pointed out in our Purpose of Place: reconsidered – the fifth edition of our Building the Lucky Country series – by collaborating to make place a driver of productivity and prosperity, Australia can unlock enormous potential. “In Queensland we have the opportunity to build a state where government, business, the research sector and communities join forces to develop a healthy, vibrant and more balanced future,” Greig said. n Deloitte press release 14 June

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Training News

Fast track your credit career through Recognition of Prior Learning Do you have skills and knowledge gained through career experience, prior training or study and even voluntary work, but you don’t have the piece of paper to prove it? Then Recognition of Prior Learning (RPL) could put you on the fast track to obtaining a Nationally Recognised Australian Qualification without having to complete each unit within a Qualification. Recognition is the term used to describe how an individual’s skill and knowledge can be formally recognised, resulting in either a qualification or a Statement of Attainment. There is often considerable confusion as to what the process

means, how an individual may access the process and the reliability of qualifications gained through this process. Recognition is often perceived to be an easier way to gain a qualification. However, it is usually time-consuming and is subject to the same level of rigorous assessment arising from participating in a training program. This Guide has been specifically developed to assist credit professionals to: zz Understand what recognition is. zz Guide them in determining if they wish to seek recognition. zz Address issues which colleagues or managers may raise concerning recognition

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

How do you access recognition? There are several recognition pathways available. Namely: zz Development of a portfolio of evidence. zz Seeking recognition of qualifications and nationally recognised Statements of Attainment issued by another Registered Training Organisation – Mutual Recognition. zz Credit transfer, which is the recognition of formal training previously undertaken. zz Undertake an assessment project. Each pathway has requirements, which must be met in order to achieve recognition. As well, there can be

aicm Training News an overlap between the pathways. Irrespective of the pathway selected, there are some ground rules which must be adhered to. These include: zz Compliance with training package requirements and the relevant unit of competence. zz Compliance with the NVR Standards.

Packages. Training Packages are endorsed by the State, Territory and Commonwealth Governments. AICM Learning Services is required to adhere to the Training Package rules.

Choosing your pathway

A threshold issue

In order to help you choose the most effective recognition pathway you should consider the functions you are required to perform in the workplace.

Irrespective of the pathway you select to gain recognition, it must be against a unit of competence, which sets out the key performance criteria required in the workplace in relation to the skill and knowledge described in a unit of competence. Units of competence are developed by industry training advisory bodies based on the industry’s needs. They are packaged together to form a qualification. The rules for how units may be combined into qualifications are set out in Training

Sample Job role Typically a credit officer, who has been working in the profession for several years, possibly undertaking a team leader role, would be responsible for: zz Interpreting corporate policy on the provision of credit and advising customers/sales staff as appropriate. zz Following up with debtors for timely collection of payments. zz Investigating credit worthiness

zz zz zz

of potential customers prior to granting credit. Determining if securities are required based upon the assessment of credit worthiness. Maintaining records in relation to customers’ accounts. Ensuring that their work is in compliance with company policy procedures and legal requirements. Resolving disputes with customers concerning their accounts. Initiating legal recovery. Reporting to management on the status of accounts and financial indicators against predetermined criteria.

These job roles are reflected in the units of competence listed in the table below. To complete this qualification you must complete the 9 core units and 3 elective units.

FNS40115 CERTIFICATE IV IN CREDIT MANAGEMENT C=Core E=Elective

Unit Code

Unit Description

FNSCRD401

Assess credit applications

FNSCRD402

Establish and maintain appropriate security

FNSRSK401

Implement risk management strategies

FNSINC401

Apply principles of professional practice to work in the financial services industry

FNSORG401

Conduct individual work within a compliance framework

FNSCRD405

Manage overdue customer accounts

FNSCUS402

Resolve disputes

BSBCUE203

Conduct customer engagement

BSBCMM301

Process customer complaints

FNSCRD403

Manage and recover bad and doubtful debt

FNSCRD404

Utilise the legal recovery process to recover outstanding debt

BSBCNV506

Establish and manage a trust account

BSBCUS403

Implement customer service standards

FNSCRD503

Promote understanding of the role and effective use of consumer credit

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Training News Legal

Please note that people undertaking a more senior/complex/responsible role(s) should consider seeking recognition at the Diploma level. zz There is often little consistency of job titles for credit professionals. Your position title maybe: zz Credit Officer zz Collection Officer zz Accounts Receivable Clerk zz Billing Clerk zz Finance Clerk zz Loss Recoveries Officer zz Recoveries Officer zz Credit Control Officer zz Customer Service Officer Because of the diversity of titles each application is assessed for recognition based on skill and experience, rather than job title.

zz Letters of appreciation from customers You will need to remove information such as names and addresses which could breach privacy and confidentiality. Label your documentation to show it relates to a particular unit of competence and present your documents chronologically, with the most recent evidence appearing first. AICM stores all records in a safe and secure environment. However, portfolios will be reviewed by independent assessors and may be examined by the Australian Skills Quality Authority (ASQA) for purposes of audit and accountability. The following case study may assist you when considering using a portfolio of evidence.

Pathway 1 – Portfolio of evidence

Case Study 1 – Alicia Alicia had worked for several years in a credit department. Alicia’s supervisor had consistently praised her approach for dealing with bad and doubtful debt. Alicia believed she could complete the unit FNSCRD403 Manage and recover bad and doubtful debts by portfolio of evidence as a first step towards gaining her FNS40115 Certificate IV in Credit Management. Alicia contacted the AICM Office and she was advised the name and contact details of her assessor together with any documentation she needed. Alicia and her assessor discussed her decision to attempt FNSCRD403A Manage and recover bad and doubtful debt and a recognition plan was agreed upon including a suitable timeframe for Alicia to gather and compile her evidence. Alicia’s assessor was able to give her advice in preparing her evidence portfolio. Some examples of the types of evidence Alicia collected included: zz Reports she had prepared for her manager outlining her collection strategies in relation to accounts

If you decide to use the portfolio pathway you will need to compile a portfolio of evidence which confirms your ability to meet the requirements of a particular unit of competency. Examples of the types of evidence you could include are: zz Copies of reports you have prepared for management zz Copies of emails, faxes zz Copies of performance appraisals zz Supervisor reports which acknowledge your skills and abilities zz Copies of workplace awards you may have received

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

which seemed likely to become bad/doubtful with reference to company policy. zz Examples of collection procedures she had developed and applied. zz An outline of her follow up procedures. zz An outline of communication strategies when dealing with these customers zz File notes, email and/or correspondence zz Feedback from her manager such as performance appraisals zz Her negotiation strategies, for example copies of repayment agreements Unfortunately, during the time Alicia was developing her portfolio of evidence her mother became ill. Alicia discussed this with her assessor and a new timeframe for completion was agreed. When Alicia completed her documentation she presented it to her assessor with the most recent evidence appearing first and with all of the evidence labelled to show how it related to the unit of competence. Alicia’s assessor evaluated her portfolio and applied the rules of evidence. Alicia was found to be competent and was awarded a nationally recognised Statement of Attainment. This meant that Alicia had gained one unit of the units required for her qualification.

Pathway 2 – Assessment task(s) This is often used when people do not have ready access to the evidence they need to confirm competence via the other pathways. For example, the person may have changed their employer, moved house and/or misplaced records. This assessment pathway is the most popular method for RPL as it fast tracks the pathway to completion of a unit or a qualification. This

aicm Training News process requires less documentation and has clear criteria. Generally this involves completing an assessment for the relevant unit of competency with validation that you have applied the skills and knowledge in your workplace. The validation is achieved by indirect evidence, for example a reference from their employer or testimonials from customers. If an employer is not able to validate or a person is unable to provide evidence from their workplace an assessor will contact you and conduct an interview. Case Study 2 – Johnny Johnny has worked in credit for the past 8 years, and now wants a formal qualification at Diploma level. After speaking with Debby at AICM Johnny: —— Completes assessments for 4 units and his employer validates that he applies this skills and knowledge within the completed units in his role. —— Attends face to face training for BSBRSK501 Manage risk and completes the assessment in in 6 weeks. The face to face sessions enable him to gain a deep understanding of core credit management skills and knowledge and also allowed Johnny to connect with other credit professionals focused on progressing their careers. —— Completes the remaining 7 units of competency online. At the AICM NSW Presidents Dinner Johnny is presented with his Diploma of Credit Management in recognition of his experience, skills and knowledge gained on the job and through AICM training.

Pathway 3 – Mutual Recognition Mutual Recognition is the recognition of Qualifications and Statements of Attainment issued by another Registered Training Organisation.

Legal

“Label your documentation to show it relates to a particular unit of competence and present your documents chronologically, with the most recent evidence appearing first.” Mutual Recognition of qualifications and Statements of Attainment are specifically provided for in the NVR Standards. What this means in practise is that a person who has gained a qualification or Statement of Attainment may request to have this recognised and count towards another qualification. Clearly there are some key issues to be considered: zz Training Packages Rules; zz The relevance to the qualification now being sought; zz The currency of the qualification for which recognition is sought. The following case study should clarify these concepts. Case Study 3 – Kylie Kylie started working as a personal assistant in a medium sized law firm. She was a keen and enthusiastic employee who wanted to learn and gain qualifications. Kylie enrolled in a Certificate IV in Business Services at a TAFE College. Whilst Kylie was undertaking this course her employers discovered that she had excellent rapport with the clients and she was very good at getting people to pay their outstanding accounts. Kylie’s manager offered her a promotion and transfer to the credit unit of the practice, which Kylie willingly accepted. However, this left Kylie with a dilemma: should she finish her Business Certificate or change to a qualification more relevant to her new role? Kylie contacted AICM and was delighted to discover that the

units in her Business course would be recognised by AICM and this would count towards her FNS40115 Certificate IV in Credit Management. The relevant units were BSBCUS403 Implement customer service standards and BSBCMM301 Process customer complaints. AICM was able to give mutual recognition because the TAFE Kylie attended issued her qualifications in accordance with the Training Package rules. Kylie’s qualifications were current because she had completed her training in the last three years. Kylie was so pleased she told her colleague Nathan about the AICM recognition program. Nathan commented that he had started a TAFE Course some years ago but had not completed the program. Nathan contacted AICM and discussed his situation. Nathan had completed the unit FNSCRD403A Manage and recover bad and doubtful debts in 2011; his assessor advised him that due to the RPL requirements this would not be sufficient to demonstrate currency of knowledge for the purpose of recognition (if the unit was completed within 3 years it would be sufficient). Nathan was able to provide evidence of attending an in-house training course, which addressed the main areas of change in relation to compliance, for example an introduction of the Debt Collection Guidelines in December 2010. In addition, Nathan’s supervisor confirmed in writing that the law firm held regular workshops to discuss recent decisions and legislative

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

aicm Training News Legal

change and participation was a requirement of Nathan’s performance management. As Nathan was able to demonstrate he had maintained the currency of his skill and knowledge, the unit was recognised. Nathan decided to enrol in the remainder of the FNS40115 Certificate IV in Credit Management program.

Pathway 4 – Credit Transfer Credit transfer is defined as being the recognition of formal training previously undertaken and which is deemed to be equivalent to a unit of competence. Credit transfer requires the consideration of documentation supplied by the training organisation where the person completed their study. Usually this documentation will relate to a course and/or subject. Unfortunately some training providers do not relate their course/ subject to the units of competence. When this occurs the Registered Training Organisation is required to make further inquiries as to the relationship and this will be informed by Implementation Guides developed by State Training Authorities. However they are guides only and if the relationship is unclear the person seeking recognition will be asked to provide further information. This may include information such as:

zz Course outlines zz Copies of assessments the person may have completed during the program Often people do not keep these documents and when this happens the person will usually be invited to complete an assessment to confirm competence. Another issue which may affect credit transfer is the ‘age’ of the course. Credit transfer for programs completed generally more than five years ago must be supported with evidence which confirms that the person has kept up to date in the subject area. For some subjects where there is a need to constantly keep up to date, a person may be requested to provide additional information to confirm the currency of their competence. The following case study may assist you in understanding credit transfer. Case Study 4 – Con Con had completed part of a Business Studies course at TAFE. Con is now working in a credit department and would like to gain the FNS40115 Certificate IV in Credit Management. Con is seeking recognition for the course he has already completed – “Managing Customer Service”. Con’s academic record lists the course but there is no reference to the unit of competence. The

Implementation Guide for Financial Services indicates that the course he has completed is equivalent to some aspects of the unit of competence BSBCUS403 Implement customer service standards. However, in discussion with his assessor Con explains that he did not keep any of his assessments. Together they consider the unit of competence and Con advises he believes his current role covers the content of the unit. Con decides to complete an assessment to support his claim for recognition of competence against the unit. A maximum of 3 years is allowed to complete a full qualification which allows flexibility around work, life and study. By taking advantage of your experience and prior learning you could obtain your qualification in less time than you may think. Contact the aicm to learn how quickly you could obtain your qualification in credit management.

Companies that AICM conducted in-house training: —— —— —— ——

Cleanaway Operations BOC Bendigo Bank Baiada

Statement of Attainments issued Lena Pham

NSW

FNSCRD502 Manage factoring and invoice discounting arrangements

Ilona Ter-Stepanova

QLD

FNSCRD401 Assess credit applications

Mei-Ha Edwards

QLD

FNSCRD405 Manage overdue accounts

Kerrie Adams

VIC

FNSORG401 Conduct individual work within a compliance framework and FNSINC401 Apply principles of professional practice to work in the financial services industry

Melissa Dinning

NSW

FNSCRD405 Manage overdue accounts

Nathan Smith

QLD

FNSCRD405 Manage overdue accounts

Ebony Lewis

FNSCRD403 Manage and recover bad and doubtful debts

Joshua Tseitlin

VIC

FNSCRD502 Manage factoring and invoice discounting arrangements

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

aicm Training News 2016 Face to Face Training Calendar – Melbourne, Brisbane and Sydney MELBOURNE: 22nd July – Dealing with Customers (E,4) 22nd & 23rd August – Manage Factoring and Invoice Discounting (E,D) 24th August – Manage People Performance (E,D) 12th September – Manage Organisational Change (E,D) 13th September – Process Customer Complaints and Conduct Customer Engagement (E,4) 26th October – Resolve Disputes (C,4)

20th September – Process Customer Complaints and Conduct Customer Engagement (E,4) 7th October – Resolve Disputes (C,4) 7th & 8th November – Manage Factoring and Invoice Discounting (E,D) 9th November – Establish and Maintain Appropriate Security (C,4) 12th & 13th December – Legal Compliance (C,4,D) 14th December – Legal Recovery of Outstanding Debt (C,4)

SYDNEY:

21st & 22nd November – Manage Factoring and Invoice Discounting (E,D)

11th July – Dealing with Customers (E,4)

23rd November – Establish and Maintain Appropriate Security (C,4)

17th & 18th August – Manage Factoring and Invoice Discounting (E,D)

BRISBANE: 8th July – Dealing with Customers (E,4) 8th & 9th August – Manage Factoring and Invoice Discounting (E,D) 10th August – Manage People Performance (E,D) 19th September – Manage Organisational Change (E,D)

19th August – Manage People Performance (E,D) 7th September – Manage Organisational Change (E,D) 8th September – Process Customer Complaints and Conduct Customer Engagement (E,4) 19th October – Resolve Disputes (C,4) 16th & 17th November – Manage Factoring and Invoice Discounting (E,D)

18th November – Establish and Maintain Appropriate Security (C,4) 5th & 6th December – Legal Compliance (C,4,D) 7th December – Legal Recovery of Outstanding Debt (C,4)

TABLE OF EXPLANATION: C= Core Unit E = Elective Unit D = Diploma 4 = Certificate IV

Important Information: You do not have to be a current AICM student undertaking a full qualification to attend any AICM face to face training. You may wish to undertake a program for your Professional Development, or enhance and update your current skills and knowledge. On the completion of the face to face training, you will be required to undertake the online assessment/s for the unit/s of competency, if you wish to receive a nationally recognised Statement of Attainment. Please register you interest early, as there is a minimum requirement of 8 students to conduct face to face training. Click here or call the AICM office for more information.

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

New South Wales

WINC Luncheon.

WINC Luncheon: Debbie Leo, Veda and MC.

WINC Luncheon: Maureen Bell, Keynote Speaker.

President’s Report - 2016/17 Year in Review

professionals which represents our membership. Each councillor has extensive on the job and academic qualifications in credit management and while this is important we agree that it is the regular interaction with our peers that is the best value activity we undertake to stay on top of the challenges that come our way and continue to develop. Connecting credit professionals is why we come together as a council which we aim to do by organising opportunities for all credit professionals to share their experiences with the only people that really understand the challenges of the profession fellow: Credit Managers, Credit Officers, Team Leaders and every other role that is involved with credit approvals and collections. Our tip for you is to attend every opportunity that comes your way. Even if a presentation is not exactly relevant you are likely to pick up at least one insight from the presentation and

The NSW council recently took time to reflect on the achievements of the past membership year, some of the highlights include: zz Hosting the 2015 National Conference, with record attendance zz Golf day also with record attendance zz Great professional development and networking sessions zz Sold out Pinnacle Awards dinner At the same time we started planning for 2016/17 and are excited to be planning even more ways for you to stay up to date, learn more and connect with fellow credit professionals. The NSW council is made up of a diverse range of credit 46

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

New South Wales AROUND THE STATES

Events Calendar

20th July

Reacting to Decisions VENUE: PARRAMATTA

4th August

YCPA Dinner

KIRRIBILLI CLUB

Friday 9th September

WINC Luncheon.

Golf Day

OATLANDS GOLF COURSE

9th-12th September 2016

Online CCE Exam Tuesday 11th October 2016

National Golf Day GOLD COAST

12th-14th October 2016

AICM 2016 National Conference SEAWORLD, GOLD COAST

Thursday 17th November 2016

YCP Barefoot Bowling VENUE: TBC

WINC Luncheon.

Thursday 8th December 2016

multiple from talking to fellow credit professionals. An example of the great opportunities is the Women In Credit Luncheon held in May, this was an inspiring session with over 100 women (and some men) leaving with tips on how to harness the power of their voice and new connections. At the time of writing our YCP committee was reviewing the great pool of YCP applicants to select the finalists. Congratulations to all that applied and good luck to all the finalists. Make sure you register for the YCP Dinner on 4 August to see who wins and to be inspired by our Olympic themed speaker. Thank you to Dun and Bradstreet for their support. Finally, the Credit Team of the Year applications close on 1 July so don’t delay and have your team apply. Everyone that has applied in the past has found that the process of applying is a great team building and motivating experience, there are also some great prizes for finalist and the winner. – Arthur Tchetchenian

WINC Luncheon On the 20th May we hosted the first NSW WINC event for 2016. The event was a delicious luncheon held at the Kirribilli Club overlooking the beautiful Sydney harbour. Maureen Bell, from GoldMind was our wonderful guest speaker. Maureen

Masterclass and Pinnacle Awards VENUE: TBC

is a Senior Performance Specialist who delivers Learning & Development, Facilitation and Consulting Services designed to help businesses discover the riches in their people by utilising brain science methodologies to enhance engagement, learning retention and workplace application. Maureen has almost two decades of leadership training and staff development experience. First starting at Flight Centre Travel Group as a Sales Consultant, Maureen’s passion and aptitude for training saw her progress to Human Resource Manager for Flight Centre USA within just eight years. She has also consulted to a wide range of external corporate clients with a focus on sales, communication and presentation training, and leadership, team and people development. As a Facilitator and Consultant, Maureen is particularly skilled at being able to engage with a range of different personalities, ensuring each person is inspired to successfully collaborate, and supported to build their own internal drive. Maureen had us all up on our feet, practising what we were learning as we went along, and challenging us to get out of our comfort zone with exercises and tongue twisters. July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

New South Wales

WINC Luncheon.

The Australian Institute of Credit Management welcomes our Partners for 2016. National Partners

Divisional Partners WINC Luncheon.

The key take away point of the event was the importance of harnessing the power of your voice by using the 3 steps – (1) The 5 P’s – Pace, Pitch, Projection, Pause, Pronunciation (2) Tone (3) Words. It was thoroughly engaging and we all walked away having learnt something new. Our WINC days also support Safe Steps organisation. We heard from Rashmi, about the important work Safe Steps does to aid the prevention and elimination of violence against women and children by providing immediate response that informs, protects and connects women and children so they are safe. Safe Steps is also works to build the voice of women and children to influence research, policy, service provision and the wider community to eliminate violence. Thanks to all of the wonderful raffle sponsors who generously donated prizes which helped to raise over $1,500 for Safe Steps. To view more of the great work that Safe Steps do visit www.safesteps.org.au. Thank you also to our important WINC event sponsors, Veda (premium sponsor), Results Legal and NCI (supporting Sponsors). Thank you for supporting the AICM WINC events and we look forward to seeing you all at the upcoming AICM events especially our future WINC events. If you’d like to provide more feedback on the event and suggest ideas for future events, please contact the AICM office. 48

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

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.

Queensland

CNN – Decia Guttormsen presenting.

Linda Parry, Greg Young and Samantha Taylor.

CNN – Decia, Ruthven and Simon.

President’s Report Credit Network Night (CNN) events are a valuable opportunity for AICM members to not only gain important technical knowledge from expert speakers, but also to speak with their fellow members and our Partners about what changes are likely to occur in credit and affect both our own and our customers’ businesses. Firstly (as always), the ongoing support in 2016 from our Partners, Veda, Dun & Bradstreet, Austral Mercantile, Vincents, Results Legal and Randstad is greatly appreciated. The engagement and commitment by their people make us all proud to be AICM members. In the next half year month, the major key events occur in our AICM Queensland Calendar (plus CNN and YNN) are:

20 July – Afternoon Workshop for credit officers A new event, and as a segway for members and credit teams attending the evening’s main event, an afternoon workshop will cover various topics for members who find it hard to get into

AROUND THE STATES

YNN – Kate Row and guests.

the CBD regularly. These are “The Legal Process – Secured vs Unsecured Credit Processes”; “Maximising professional relationships using technology and Linkedin” and “Writing a Credit Policy – what you should include in your policy and the process of creating and reviewing.” Members have kindly donated their time and Thomson Geer’s conference room facilities make this a great value workshop.

20 July – The Main Event – the Dun & Bradstreet Young Credit Professional Awards. To be held at the Rydges Southbank this year. Again, we have excellent candidates and the judging looks like being even harder. We thank our judges for giving up of their valuable time in support of developing, encouraging and recognising our young members, as they progress their careers. we have been fortunate enough to have prizes donated by Vincents and other members, and it proves to be a fun event both socially and professionally. Make sure you book your tables ASAP!! July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

Queensland

Emma Beal and Melinda Grob.

Events Calendar

20th July 2016

AICM AGM

RYDGES SOUTH BANK

20th July 2016

Workshop & Awards Dinner – Young Credit Professionals RYDGES SOUTH BANK

August 2016

Personal Development

Felicity Ford and Val Baynes.

Our AGM will also occur on 20 July. Do not be afraid to put your hand up for a council position or to even share or assist on a council position (which has worked very well this year). I can say that being a councillor is possibly the best thing that I have ever done. The councillor remuneration has been doubled this year, so no more excuses. Feel free to give myself or any of the councillors a call about how to be more engaged.

9 September – Qld WINC Luncheon, With generous support from our Premium Sponsors Veda, and supporting sponsors Results Legal and NCI. Julie McNamara (Patane Lawyers) will likely have to knock back late comers.

Magistrates Court Visit & Procedures MAGISTRATES COURT

15th August 2016

Credit Toolbox – Risk Assessment RANDSTAD

9th September 2016

Women in Credit Luncheon CUSTOMS HOUSE

9th-12th September 2016

Online CCE Exam 14th September 2016

Personal Development Breakfast Q& A – Credit Network Forum 11th October 2016

National Golf Day

11 – 14 October – Qld Golf Day and National Conference, Gold Coast State council look forward to seeing you all again this year. Greg Young has done another brilliant job in securing Hope Island Golf Course; John Playfair is leading the organising of some additional benefits for attendees, and Toni Sawyer has been prepared to drop her usually high fashion standards to fit out state councillors with “hi-vis and eye catching” Hawaiian shirts. Felicity Ford (of National Partner Austral Mercantile) had a blinder of a quarter for new membership. Queensland looks like getting its hands on that President’s Award for membership and YCP this year. In times when professional membership can be seen as a burden by some employers, Felicity has done a stellar job following the fantastic groundwork by Melinda Grob. Thank you all again for your support to the Queensland council, and making the AICM informative and “fun” for its members. – Peter Mills MICM, President

GOLD COAST

12th – 14th October 2016

AICM National Conference SEAWORLD GOLD COAST

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

CNN – 11 May AICM Qld members were recently treated to an excellent CNN presentation by Val Baynes, the National Insurance Recoveries Manager of our National Partner Austral Mercantile (a division of QBE). Originally from Galway, Ireland, Val provided valuable

Queensland On the 8 June Queensland held another successful CNN with engaging presentations by Decia Guttormsen – AR Manager University of Queensland, Ruthven Underhill – National Credit Manager Boom Logistics and Simon Dawson – National Franchisee Credit Manager Parmalat Australia. With an on the couch style panel discussion chaired by our own President Peter Mills, they each covered how they handle time management, prioritising, reporting deadlines, staff and the general daily demands of a credit department. It was an insightful and engaging event with plenty of opportunities for guests to network with fellow credit colleagues. A big thank you to Decia, Ruthven and Simon for giving their time to this event.

Membership Report

Peter Mills, Ruthven Underhill, Decia Guttorsmen, Simon Dawson and Felicity Ford.

insights into Privacy Compliance gained from his international experience working for insurers and banks in Europe, where privacy compliance programs can run into the hundreds of millions of dollars. Val’s concise explanation of how and when to make telephone contact under the ACCC/ ASIC Guidelines for Debt Collectors was extremely helpful. His practical tips and examples included what days, times, locations and regularity are suitable for making phone calls in the debt recovery process. Val also shared his views on some of the principal tools for creditors being paid in a reasonable time and minimal steps, the main one of which is to ensure that you use credit professionals who are trained in and work day to day with the relevant compliance and credit laws and procedures. On a personal side, Val also shared his love of Rugby, and how he had started the Sydney’s Irish Rugby Football Club only a short time after arriving in Australia some 5 years ago. Thank you again Val. All AICM members are reminded that their companies should support AICM Partners at every possible opportunity. Without these Partners’ support, many events would not be possible. – Peter Mills

For the month of May we had a record number of new members for Queensland – 44!! A big thank you goes to our Felicity Ford from Austral for driving the Queensland membership and getting this result. We are absolutely thrilled with this and we cannot wait to see everyone at our next event which is being held at Vincent’s on the 13th July for a personal development breakfast with the topic on Insolvency and remember to book your table at this year’s YCP dinner on the 20th July being held at Rydges in South Bank.

The Australian Institute of Credit Management welcomes our Partners for 2016. National Partners

Divisional Partners

Youth Networking Night (YNN) - Friday 20 May Queensland hosted yet another successful Youth Networking Night (YNN) on Friday 20 May. We had 2 young inspiring speakers: Kate Row – one of only two Australians in 2015 awarded the Queens Young Leader Award for her involvements in a range of youth leadership projects; and Tara-Jay Rimmer – CEO of The Van That Can and voted in the top 10 Emerging Leaders and top 20 Female Entrepreneurs under 40. We heard their stories telling us how they got to where they are today, and how one little decision can change your entire career path. Their stores were great encouragement for our young credit professionals in the audience and it was great to see the increased number of YCP applications flow through on the Monday after the event.

Official Division Supporting Sponsors

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.

– Melinda Grob

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

CNN – 8 June

AROUND THE STATES

South Australia

Winter Warmer Night.

President’s Report Although we are having never ending rain in our state, it has not dampened our spirits! SA is continually razzing up with some great functions at the moment. Well done to the councillors for all the hard work they have put in over the months to make every event a success! We are very lucky to have such a proactive and innovative council who work extremely well together. Our first Credit Symposium was extremely well put together with a cast of expert speakers, including some from interstate, that attracted a good crowd of credit professionals. Darryl Gobbett is always a big draw card. His insight as Chief Economist, particularly focusing on South Australia, keeps everyone abreast of where we are heading and what to look out for. Well done Professional Development team! Winter Warmer’s evening was cosy and well received. The Unley was the perfect venue on a cold night and had yummy hot finger food! The attendees mingled well around the fire and surrounding tables. YCP candidates were encouraged to speak with their peers and associates to receive the best advice on what is required to be a successful applicant. Good luck to our SA candidates! The launch of our first Women In Credit luncheon was 52

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

a huge success. All the hours of liaising with speakers and coordinating sponsors and donations paid off and ensured an inspirational day. We fully appreciate the time and presence put in by Veda, Results Legal and NCI. Having Amanda, from national office, was very much appreciated also. Our chosen charity, Dress for Success was eye opening and made us all aware of how fortunate we are with our chosen professions. The Quiz Night is back in town in July! Look out for the flyer shortly and rally your friends, family and work mates to come to this fun night. A great way to end a busy working week. On behalf of the SA councillors we would like to extend our deepest sympathies to the family and associates who knew the late Mike Murphy. His past presidency in WA and tireless input into the education of credit professionals will not be forgotten. We are very sadden to hear of his passing. Remember your feedback and input on events is important to the councillors. Take special care over the coming months on the wet and dangerous roads. See you soon at one of the great upcoming events. – Gail Crowder, SA Division President

South Australia AROUND THE STATES

Events Calendar

22nd July 2016

Function – Quiz Night 11th August 2016

YCPA Dinner

14th September 2016

Mock Court – Preferences 6th October 2016

Winter Warmer Night.

Breakfast

12th – 14th October 2016

AICM National Conference SEAWORLD GOLD COAST

9th November 2016

Meeting of Creditors 24th November 2016

End of Year Event

The Australian Institute of Credit Management welcomes our Partners for 2016. Winter Warmer Night speaker, Michael Seychell.

National Partners

Functions Report The SA Division’s second social function of the year was a network night held at the revamped Unley Hotel on Thursday 26 May. This bright and airy interior, complimented by a warm cosy fire, provided a unique venue for the event to “welcome in winter”. The food was first rate and enjoyed by all. Attendees mingled freely and caught up with fellow professionals. President Gail Crowder welcomed members and thanked them for attending. Our YCP Chair, Nick Pontikinas, and Dun & Bradstreet State Manager, Michael Seychell, spoke about the upcoming YCP award. Nick and Michael encouraged members under 30 to consider nominating and the not-soyoung members to encourage work colleagues under 30 to nominate! The next function to be held by the SA Division is a Quiz night on Friday 22 July at the Unley Community Hall. We look forward to seeing many of our members and their family and friends attend this event which is always a lot of fun with plenty of raffle prizes to be won. Look forward to see you there. – Trevor Goodwin and Gail Crowder, Functions

Divisional Partners

Official Division Supporting Sponsors

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

Victoria/Tasmania

YCP Information Night: Members and Guests throw questions from the floor.

Paul Broadfoot from NICH Economics presents at June Network.

YCP Information Night.

Former YCPs.

President’s Report The Vic/Tas division continues to roll out new initiatives and updated network sessions. A YCP Information Night was held early May, with great success and helped the YCP participants to make up their minds as they questioned past YPCA’s state finalists on their journey to become a YCPA. Good luck to all who have applied and who have made it to the interview stage for the final announcement at the Young credit professional award dinner to be held at the Melbourne Town Hall on the 21 July. At the awards dinner we will announce the Vic/Tas YCP of 2016 who will then go on to represent Vic/Tas at the national conference in October on the Gold Coast. The network nights have been well attended and have been great value to the people attending with relevant and updated information on the latest trends and also information, especially on the PPSR which is a continually evolving area for credit professionals. I am also very pleased to announce there will be upcoming events to be held both in Tasmania and the Victorian country centres. Stay tuned for the flyers so you can lock in the date. 54

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

Well done to all the members who successfully sat for the CCE exam in March, good luck in completing their paper in readiness for the final stage to become a CCE. Just a reminder to all the members who want to become a CCE the next exam is set for the early September. I would also encourage any member who would like to submit a credit related article to please do so to aicm@aicm.com.au where the team will review the document for publication. This is a great way to share your thoughts and insights with your peers. We look forward to seeing you at our upcoming professional Network and Social events, we have some great speakers lined up and great opportunity to meet industry peers and other credit professionals.

Women in Credit (WINC) Luncheon Invitations out soon – 2 September 2016 Mark your calendars now as this year’s WINC luncheon will be even better than last year We have Francesca Thorne, founder and CEO of the Australian Women’s Network as our inspirational speaker on

Victoria/Tasmania AROUND THE STATES

AndrewMcLellan Presents on PPSR.

Members and Guests at PPSR Update Breakfast.

the day and will be raising funds for a great charity helping women in need. The WINC Luncheon is an opportunity for women at all levels and ages to be inspired and informed to achieve their potential in credit and life. These events have been developed out of a growing need to focus on the specific challenges women face in the Credit Industry. This has all been made possible with support from our Premium Sponsor, Veda and supporting sponsors NCI and Results Legal.

Events Calendar

21st July 2016

Awards Dinner: Young Credit Professional VENUE: MELBOURNE TOWN HALL

27th July 2016

The Australian Institute of Credit Management welcomes our Partners for 2016. National Partners

Tas Network Event 18th August 2016

Network Event, Topic: Time Management Skills 25th August 2016

Youth Networking

Topic: The future and direction of debt recovery 2nd September 2016

WINC Luncheon

Divisional Partners

VENUE: RACV CLUB

9th-12th September 2016

Online CCE Exam 22nd September 2016

Seminar/Workshop Topic: See you in Court!

Professional Partners

12th-14th October

National Conference 28th October 2016

Youth Networking – Trivia Night

Official Division Supporting Sponsors

11th November 2016

CCE Breakfast 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.

17th November 2016

Network Event, Topic: Telephone Techniques 1st December

End of Year Function – Pinnacle Awards

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

Western Australia/Northern Territory

AICM Breakfast Club.

President’s Report - Winter in the West

WA AICM Breakfast Club

Not sure where to begin, so many thoughts and things going on here in Perth. It has been almost 12 months since I commenced as State President. I want to take this opportunity to thank all councilors for their faith, support and energy. It has been a very busy year for us and I look forward to what happens next. During May, we were very lucky to have a brilliant breakfast presentation. Our great friends at Austral gave us some tips on growing and developing our teams while working better with the people around us. It was amazing to see so many people discussing common issues and what things we could take back to the office from the morning’s topic. The cool weather didn’t stop the word getting out about the 2016 YCP Awards. We had several expressions of interest from potential candidates. WA Council thanks Dun & Bradstreet for their continued support of the YCP initiative. We look forward to introducing our finalists at the YCP Gala Dinner at Crown on 16 July. All members of the WA Credit Community are invited to celebrate this fantastic event with Council. Place your bets and book your spot today. Sadly there will be one spot not filled at our event this year. Our esteemed colleague Mike Murphy will be missing. Mike’s contribution to the WA council and the AICM is immeasurable. His passion to educate was most evident. His ability to get the message across simply and effectively made working with Mike on council very easy. The more I listened the more I learned, from someone who had been there and done that…and didn’t need to brag about it. He will never be far from our thoughts. A brief look into Spring and Summer: the re-launch of the Women in Credit here in Perth. We have secured guest speakers for our event in September. We are very excited to do this with the support of another good friends of the AICM in Veda, NCI and Results Legal. We can’t wait. We plan to present a Breakfast Club and a Toolbox before the end of the year to round out things before our Christmas on the Bay to bring things to a close. Until next time, stay well and never forget the AICM is here for all members. 56

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

Driving culture and getting your teams working better together We held another successful breakfast club in May with Cynthia Thomas, National Sales Manager at Austral taking the stage to talk about driving culture change and building successful teams. Those who attended found the content relevant and engaging. This was evidenced by the feedback from Martin Bigg at Capricorn who said “The topic of installing a good culture and increasing employee engagement is certainly not a new one for Capricorn and many of ideas and concepts presented by Cynthia were familiar as I believe they would be to a large proportion of managers. “Yet Cynthia raised a simple but very significant point. Managers often find that the busy nature of their roles mean that the warm and fuzzy side of management is put to one side as we focus our business objectives. However, investing the time in building a strong culture and working on keeping your employees engaged goes a long way to helping us achieve those very objectives. To put this in my own words, you have to work hard to make it easy.” Watch out for the next Breakfast Club and be sure to secure your place as tickets sell fast. – Lisa Marr

Women in Credit (WINC) Luncheon Invitations out soon – 16 September 2016 This year we are taking our WINC luncheon to the next level securing a panel of 3 guest speakers in September. Each speaker, a successful and inspirational woman will share their experiences in business and their road to success. We have Linda Murray, a high energy professional coach and speaker specialising in leadership and developing peak performing female executives and business owners. Linda’s approach to coaching is a fusion of humanistic skills and commercial savvy stemming from her background in Psychology, owning businesses since age 23 and an unwavering passion for people. Julie Rynski, General Manager SME Banking and Connect NOW at Westpac. With a long management career at Westpac

Western Australia/NT AROUND THE STATES

Events Calendar

16 September 2016

WINC Luncheon

VENUE: MATILDA BAY

October 2016

Sponsors Lunch VENUE: TBC

12th – 14th October 2016

AICM National Conference

AICM Breakfast Club.

SEAWORLD GOLD COAST

8th December 2016

End of Year Event VENUE: TBC

The Australian Institute of Credit Management welcomes our Partners for 2016. National Partners

Mike Murphy. Divisional Partners

Julie also sits on the Board of Directors for the Global Banking Alliance for Women and is on the Advisory Board for the Big Issue. Lisa Stedman, Chief Operating Officer at Pioneer Credit Ltd. Lisa joined Pioneer Credit in 2011 as Head of Operations and has held nationally accredited training and management roles prior to Pioneer. The luncheon, sponsored by VEDA, NCI and Results Legal is definitely the most anticipated AICM event this year. Invitations will be sent out soon.

Official Division Supporting Sponsors

July 2016 • CREDIT MANAGEMENT IN AUSTRALIA

AROUND THE STATES

New Members NEW MEMBERS The Institute welcomes the following credit professionals who were recently admitted to membership in May and June 2016.

New Zealand

Queensland

Victoria/Tasmania

Matthew Chamberlain Fletcher Building Limited

Jos Basson CLH Lawyers Talitha Bere Tradelink Tanya Boggs Finance One Peta Breed University Of Queensland Sheree Brittain Hastings Deering (Aust) Ltd Maree Brooks University Of Queensland Maxine Browne Transurban Dwayne Bungay Transurban Fiona Burfield Finance One Leanne Buttress-Grove DHL Express (Australia Samantha Camerlengo Collection House Limited Che-Jung Alvin Chang Transurban Catherine Clapton Cairns Hardware Company Pty Ltd Melanie Davis Crane Distribution Issam El-Merebi Transurban Toni Faulkner Transurban Kyriaki Koula Fotinos Lloyd-Jones Transurban Maureen Greaves Crane Distribution Nicola Hart Tradelink Leanne Healy Crane Distribution Meghan Holman Finance One Delia Human University Of Queensland Cassandra Jones Finance One Tina Keenan Transurban Greg Khan The Energy Network Greg Kotzadamis University Of Queensland Bobbie Langdon Tradelink Jonathan Lillas DHL Express (Australia Paul Lister Century Yuasa Batteries Pty Ltd Kate Long Finance One Michelle McDonald Bradnam’s Windows & Doors Debbie Meyer Finance One Kelly Morden Tradelink Arash Najafz DHL Express (Australia Linda Parry Australian Receivables Ltd Lynette Pearce Transurban Samantha Pearce Tradelink Bronwyn Reimer Tradelink Kasey Leigh Sinardi Finance One Jesse Stevenson Finance One Samantha Vale N/A Jade Wellington University Of Queensland Walter Zumaeta Transurban

Fawaduddin Abro Shannon Burge Janine Cations Surinder Chopra Abhimanyu Choudhary Karandeep Chugh Peter Constantinou Leonie De-Simone Sean Devota Erick Di Girolamo Bryan Edge Judy Eldridge Namal Fernando Mark Gaetani Gordon Gallagher Joyce Gin Maree Green Fungai Gurure Anna Hatzidakis Bridget Hume Lars Inki Mariana Ivanova Edwar Kartio Eugene Kavunousky Harita Khosla Jessica Lara Anthony Lee Alberto Leung Joseph Livne Denise Lopresti Mark Loriente Joi Mathiopoulos Perry Mathiopoulos Deborah Maxwell Siddhartho Mukherjee Sean Muller Lara Murdoch Van Nguyen Caroline O’Donnell Joel Pacetti Nancy Pantano Meghna Pillai Jonathan Praeger Seema Saini Christine Samarasinsha Samuel Shand Shane Smith Kathryn Stephens Marina Tilley Robert Tonkin Jane Trask Rob Turner Dean Walkeden Melissa Yong Michael Yu Effie Zervakos

New South Wales Mark Adamson Kazi Arifuzzaman Nicola Bailey Sarah Batzloff Arpan Baxi Paul Brandalise Alana Buckley Christina Campbell Nedeljka Canak Alex Clark Abraham Dower Dominic Dragicevic David Edney Amanda Fazio Lee-Anne Freeman Paramita Ganguli Belinda Glare Grant Hackleton Ian Hawden Melisa Iovanescu David Jovanov Piyare Karakurt George Karindjias Sophia Kwiet Jaspreet Lamba Claire Latham Averne Myles Loos Richard Lyne Paul Lysaght Dajana Malnersic Kire Markovski Alison Massey Rachel McKinnon Theresa McLean Valerie McMahon Fetaowmi Moelau Karlie Moore Luis Ormazabal Vicki Pereyra Stephen Polczynski Corinne Rugolo Tonierose Sabado Monique Schmitz Alicia Seargeant Harjaan Sekhon Prakash Singh Craig Storkey Michelle Sy Katrin Tange Kylie Tate Karol Tello Alvardo Louise Thomas Kathleen Thompson Leanne Van Brussel Archana Venkatesh Tanya Vermeij Trent Vieira Carol Wardi Terri-Ann Whiting Narelle Williams Laura Willis Amanda Young

NewsCorp Australia Sony DADC Australia Pty Ltd Polczynski Lawyers DHL Express (Australia Metcash Pty Ltd IP Solved (Holdings) Pty Ltd Transurban SR Law Transurban Aravanis Swift Recovery Australia Pty Ltd Polczynski Lawyers Polczynski Lawyers SR Law NewsCorp Australia Americold Logistics Rivalea (Australia) Pty Ltd CLH Lawyers Veda NewsCorp Australia Veda NewsCorp Australia Ezy-Way Finance SR Law Talent International Pty Ltd Polczynski Lawyers N/A Polczynski Lawyers Law In Order Pty Ltd Polczynski Lawyers Australian Temporary Fencing Pty Ltd Vinidex Pty Ltd Transurban DHL Express (Australia Americold Logistics Sony DADC Australia Pty Ltd Sony DADC Australia Pty Ltd BBW Lawyers Sony DADC Australia Pty Ltd Polczynski Lawyers Brickworks Limited NewsCorp Australia SR Law SR Law LG Electronics Australia Pty Ltd Budget Repair Macquarie Bank Limited Transurban Transurban Polczynski Lawyers Transurban Transurban Americold Logistics NewsCorp Australia Metcash Pty Ltd DHL Express (Australia ACM Group Ltd Remondis Americold Logistics DHL Express (Australia Polczynski Lawyers Jirsch Sutherland

South Australia Karan Bhatia Cassandra Burfoot Nick Christpoulos Nancy Duong Erin Freebairn Jason Heidt Roger Kuchel Travis Olsen Matthew Ormsby Stuart Starr

CREDIT MANAGEMENT IN AUSTRALIA • July 2016

National Credit Insurance Lynch Meyer Lawyers Pernod Ricard Winemakers Pty Ltd CCC Financial Solutions Group Lynch Meyer Lawyers BRI Ferrier The Collections Coach BRI Ferrier BRI Ferrier BRI Ferrier

Australian Receivables Ltd Transurban Visy Board Pty Ltd Viva Energy Australia Pty Ltd Goodyear & Dunlop Tyres Pty Ltd Transurban Goodyear & Dunlop Tyres Pty Ltd Roberts Ltd Home Timber & Hardware Group Pty Ltd Visy Industries BR&C Agents Visy Board Pty Ltd Goodyear & Dunlop Tyres Pty Ltd Roberts Ltd Hibar Court Pty Ltd Viva Energy Australia Pty Ltd Roberts Ltd Transurban Hallmark Cards Australia Home Timber & Hardware Group Pty Ltd Transurban HTH Group Pty Ltd Transurban Goodyear & Dunlop Tyres Pty Ltd Goodyear & Dunlop Tyres Pty Ltd Goodyear & Dunlop Tyres Pty Ltd Visy Board Pty Ltd Transurban Australian Receivables Ltd Viva Energy Australia Pty Ltd Goodyear & Dunlop Tyres Pty Ltd Transurban Viva Energy Australia Pty Ltd HTH Stores Pty Ltd Transurban Transurban Reece Pty Ltd Transurban Lander & Rogers Veda United Petroleum Pty Ltd Transurban Veda Transurban Viva Energy Australia Pty Ltd Transurban Transurban Home Timber & Hardware Group Pty Ltd Transurban Transurban Transurban Australian Receivables Ltd Allianz Australia Insurance Limited Viva Energy Australia Pty Ltd Transurban Visy Board Pty Ltd

Western Australia Rachel Beck Aisling Conlon Zekiya Jasaroska Tracey Newton Jo-Anne Western

Perth Energy Pty Ltd Perth Energy Pty Ltd Capricorn Society Ltd Capricorn Society Ltd Boral

Want to progress your credit career? (or improve results from your credit staff)

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A qualification course can help you achieve your targets. Offered nation wide, you can study in your own time (24/7) with support available. RPL credits could fast-track your qualification: If you have industry experience or prior education, you may be eligible for Recognition of Prior Learning. Employer Grants: You may qualify for a training grant.

Find the qualification course that best suits your needs: Diploma of Credit Management

Certificate IV in Credit Management

Mercantile Agents Training

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All aspects of enforcing payment obligations & obligations of mercantile agent & debt collection activities.

Or start small with a single unit: Each qualification is made up of a number of single units. You can start by completing one unit at a time, contributing to the relevant full qualification course, should you decide to complete all of the units in due course. Stop putting it off & take the frst step:

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Call 02 9906 4563 or vist

aicm.com.au

aicm.com.au Level 3, Suite 303, 1-9 Chandos Street St Leonards NSW 2065 PO Box 64, St Leonards, NSW, 1590 Phone: 1300 560 996 | Fax: 02 9906 5686

Thanks to our National and Divisional Partners