NACM Oregon
Business Credit Journal 2011 Legislative Session Both Historic and Histrionic
The new annual sessions and the House divided 30-30 for the first time made this session part of Oregon history on two accounts. Politically, the House makeup and the very close margins in the Senate (16 Democrats and 14 Republicans), led to “bipartisanship” being the term most used by the media, pundits and the legislators themselves.
July & August 2011
In This Issue
Legislative Session............................. 1 Chair’s Message................................. 3
But “bipartisanship” connotes a friendliness and agreement of important issues— a common sense, middle-of-the-road route to public policy. Publicly that may have been the image portrayed, but the drama behind the scenes seemed more along the lines of a hostage situation where bills advanced that one party did not like in order for them to see their own issues advance. This is strong-arm strategy, not a philosophical meeting of the minds. With about 4,000 bills this session, we had roughly the same amount as in past sessions, but, it seemed like more work because every bill was in play. When one party has overwhelming control of the legislature, many bills are automatically discounted. When you have the close margins we had this session, all issues were alive until the end. This year, we never knew what bill might pop back up because the legislator championing it insisted the bill move so that their vote could be counted on for another issue. All in all, the legislative leadership’s choreography of the process was masterful, the trading intense, and even the strong-arming effective in leading to significant changes for Oregon. Al Bernstein said “Success is often the result of taking a misstep in the right direction.” Despite some of the gaming and drama, I would rate this historic session a B+.
President’s Message........................... 3 New Member Introductory.................. 4 International Corner........................... 5 Member Profile.................................. 6 Testimonials...................................... 8 NOF Scholarship Funds..................... 10 Education ....................................... 11 BCLC Webinars................................ 12 Informational Corner........................ 13 Contacts.......................................... 17
Effect on NACM Members The 2011 legislative session was quite successful for NACM Oregon. We played a role in several bills that ended to our advantage; from thwarting efforts to change prompt pay law, to mitigating efforts to increase court fees, to increasing dishonored check fees, our efforts were worthwhile. Following is a partial listing of bills in which we were involved. I encourage you to contact me with any questions or concerns you might have.
Cindy Robert, zrgroup@aol.com, 503.260.3431. ...continue on page 14
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Members are the building blocks of the NACM Oregon community. What do as: • • •
you gain by belonging to NACM Oregon? You gain access to valuable benefits such Top-notch educational opportunities. Comprehensive credit reporting services. Collection services tailored for your specific needs and customers.
Recruit a member today and together we’ll build a stronger credit community. Find opportunities to reach out to your peers. Tell them how they can become part of the nation’s largest association of credit and collection professionals and connect with local members. Welcome someone new to the neighborhood and spread the word! Engage your colleagues in a discussion about why your membership with NACM Oregon is so beneficial and send us the prospect’s name today! We’ll follow up with them and continue the conversation. Please contact your account representative, Denise Redding at 971.230.1178, 866.359.1178 (dredding@nacmoregon.org), or Kristin Curtis at 971.230.1172, 866-674-1172 (kcurtis@nacmoregon.org). Continue to GROW with NACM Oregon!
Referral Form Your Name_____________________________________ Member # ____________________________ Organization _______________________________________________________________________ Phone Number__________________________________ Email _______________________________ Referral Name __________________________________ Title ________________________________ Organization ___________________________________ Website _____________________________ Address_______________________________________ Phone Number ________________________ Email _____________________________________________________________________________ How do you know this referral? ________________________________________________________ Have you discussed NACM Oregon membership with this person?
Yes
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Message from the Chairman
Message from the President
The beginning of summer has
Thanks to the sixty members who contributed to the Credit Managers Index in June. As you will see in the next Business Credit magazine, this indicator confirms what many of us noted over the last couple of months. See http://web.nacm.org/cmi/cmi.asp for more information about the CMI. International Business Day will take place at the Doubletree Portland Lloyd Center on Thursday, August 25. We will have several experts from across the country join us for a full day of educational sessions. Plan to join us. More details to come! We have been monitoring the various business credit reports in the market, and I have noted several seem to be relatively expensive and have old, tired trade clearances on them. The NACM National Trade Credit Report database has more than 7,000,000 current lines of credit experience. More than 20 NACM Affiliates across the country are contributing. In the West—Portland, Spokane, Los Angeles, Las Vegas, San Diego, and Denver contribute, and NACM Seattle will come aboard this month. Please contact your Account Executive or Customer Service to learn more about this.
started and we were fortunate to have sunny weather for the first of the summer holidays. Hopefully this is a sign that the summer days will continue to warm and allow all of us time outside. Wet and cold summers like this remind me of what my father use to say, “Pacific Northwesterners don’t tan; we rust.” NACM Oregon is our “Rust” protectant. The 2011 Business Credit Learning Center Webinar schedule is out. We still have six scheduled for July and six for August. Simply logon to www.businesscreditlearningcenter. com to create your user profile and to read complete webinar descriptions. When you’re finished, return to www.nacmoregon.org/events to sign up for the webinar(s). The 2011 On-Site Education Schedule is also available and my personal favorite for those of us in international is the International Business Day scheduled for August 25. The information for the Pacific Northwest Credit Conference is now available. The event is September 22-24 in Tukwila Washington, appropriately titled “Rainy Days & Credit Ways.” Check out the schedule and registration at www.pnwcc2011.com. So don’t let your credit skills RUST and take advantage of all the opportunities that NACM Oregon has to offer. I hope to see many of you at the upcoming events. Raeann Binau, CICP Airgas - Norpac Inc raeann.binau@airgas.com
Rod Wheeland, CCE, CAE Direct: 971.230.1158 rwheeland@nacmoregon.org
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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New Member Introduction NACM Oregon extends a warm welcome to the following new members: Affliction Holdings LLC AKA: Affliction, Inc.
Columbia Pacific Economic Development District
Ralph Perez
Karen Kent
562.598.0299 1799 Apollo Ct. Seal Beach CA 90740
503.397.3099 PO Box 534 Columbia City OR 97018
Founded in 2005, Affliction, Inc., offers apparel and accessories for men and women in the United States and internationally. The company sells its products online; through stores in Las Vegas, Los Angeles, Miami, and Moscow; and through others’ stores and other online retailers.
The Columbia-Pacific Economic Development District (Col-Pac) is a private non-profit organization established to assist in diversifying and strengthening the economy and livability of Northwest Oregon. The District covers all of Clatsop, Columbia, and Tillamook counties and the western part of Washington County.
Clackamas Federal Credit Union Kimo Rosa 503.722.5437 18600 SE McLoughlin Blvd. Milwaukie OR 97267-6723 Since 1957, Clackamas Federal Credit Union has been helping families in Clackamas County. What started as a credit union serving only Clackamas County employees, they are now open to anyone who lives or works in Clackamas County.
Contact Industries, Inc. Renee Gallino 503.802.4447 9200 SE Sunnybrook Blvd., Ste 200 Clackamas OR 97015 Since 1946, Contact Industries has been providing exceptional products using veneer and adhesive technology to manufacture profile wrapped components, moulding, and millwork using real wood veneers.
McKinney Trailer Rentals Meegan Zimmerman 503.205.9646 12008 NE Inverness Dr. Portland OR 97220 For more than 40 years, McKinney has been supplying the West Coast with trailers and containers to transport or store goods. McKinney covers the full range of trailer and container sizes and can customize equipment for you. McKinney provides in-house service, maintenance, and repair.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal International Corner by Alice Knight In May, I spent ten days in Costa Rica and El Salvador visiting customers. As noted, last month I visit countries and customers for three main reasons. 1.
To get a first-hand look at the economic and political climate of a country in order to set reasonable country credit limits.
2.
To get a personal look at current and potential customers, their operations, customers, other suppliers, and products. This is used to set customer credit limits.
3. To develop teamwork between sales and credit and to present united front to our customers and agents. Last month, I wrote about Costa Rica. This month it will be El Salvador. As with Costa Rica, it had been ten years since I visited El Salvador and like Costa Rica, I saw huge changes. El Salvador seemed to have grown and matured greatly during those ten years. Generally people were upbeat and positive. A number of customers had grown substantially and were optimistic about the future. There was building activity, infrastructure projects, and lots of advertising aimed at an emerging middle class. We heard many concerns about government policies and the effect on continued business development. The recently elected government is left of center and has not published clear policies. The hope in the business
community was that the approach would be pragmatic like Lula in Brazil and not overly nationalistic like Chavez in Venezuela. Some noted that they were moving profits out of the country instead of reinvesting in the company for now. Foreign investment has also slowed. The number one problem mentioned by everyone we visited was security. Of the twelve customers visited, three had been kidnapped for ransom. Several had grown children living in the United States because of safety concerns. All offices and plants had uniformed security guards with automatic weapons. Ten years ago we saw kids in ragged shorts with guns bigger than they were guarding restaurant parking lots. They have been replaced with uniformed professional-looking guards. I was told that there are more registered security guards in El Salvador than there are police officers. As in Costa Rica some of the commercial advertising business is down but companies have diversified into labels, tags, and boxes for multi-nationals manufacturing there. Text books for public and private universities are still a solid field. We had one past-due account that I was anxious to visit. Although the owner refused to come out and see us he did send his secretary out with a copy of wire transfer instructions to pay the account in full. The payment beat me back to the office.
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old friendships and make new ones and to see how adaptable these customers are in the face of challenging changing times. All the customers we visited seemed pleased that a finance person cared enough to come and visit them and their country. The unity of credit, sales, and local agents was evident to the customers as they saw us interact and support each other. This was a win-win situation for all and I highly recommend it.
Alice Knight is Vice President of Finance & Administration for Paper Products Marketing, Inc. Ms. Knight has more than 45 years' of experience in International Finance and is an active member of ICTF and NACM. She has served as Co-chair, Panel Member and Presenter at Annual Global Conferences, as President of FCIB Forest Products Group, and participated in FCIB Conferences in Mexico, Puerto Rico, Munich, and Brussels.
Were my three objectives met on this trip? Absolutely! I was able to access the economic, political, and business policies of these countries as they are today. I was able to renew
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal Member Profile Sandra Price Credit Manager URS Electronics, Inc. An experienced business man, Skip Twietmeyer isn’t a man who comes across as easily impressed. For decades he was the owner and CEO of URS Electronics, an electronics distribution company with deep roots in the Portland community. On top of that, Skip took the reigns of NACM for a year in 1973. But when Skip talks about Earl Meisner, the founder of URS, you sense the respect he has for the former owner. “He’s one of the few people I put on a pedestal.” Meisner founded United Radio Supply in 1935 on the corner of 9th and East Burnside when he took over a branch from a Seattle industrial electronics distributor. He had an electrical engineering degree from Stanford University and at the time was working for the predecessor of KGW. Though initially focusing on radio infrastructure, after World War II United Radio expanded into television industry supplies—including selling parts to radio and television dealers. In a response to industry growth, Meisner began expanding until they had several locations throughout the Northwest. They also supported the amateur radio community with the HAM Shack, a sister store placed kitty corner to their location on Burnside. In 1967, Skip and his partner, Charles Douglass, bought United Radio Supply. In 1972, Douglass retired and Skip became URS’s sole owner.
July & August 2011
Meisner may have retired, and the company may have moved from its original location, but his presence is still felt. Still ingrained at URS is Meisner’s management style, which Skip describes as hands-off yet empowering. “He hired people and let them run the company,” says Skip. With their average tenure at over twenty years, it seems to be a successful style of management. During the early 1980s URS phased out of the TV parts business and in 1985, to reflect their focus on electronics distribution, United Radio Supply changed its name to Pictured from l to r: Mark Twietmeyer, Skip Twietmeyer, and Sandy Price. URS Electronics. In 1986, Skip’s son, Mark, joined him at URS after receiving a degree in business from OSU and working nearly a decade at General Mills. Mark’s start at URS was actually a return to working for his dad. The first job he had as a kid was stamping advertising. While smiling at the memory, Mark says, “Rumor has it I got fired.” His “adult” experience at URS went a little differently. Starting out as Operations Manager, he transitioned to controller and eventually to outside sales for URS. “He was our number one sales person 80% of the time,” recalls Skip. Helping out in the family business, Skips’ wife, Elaine, was the credit manager until her eventual replacement came to URS in 1983. That year they hired Sandy Price, a California native who grew up in a family business. By 1988 she was ready to take over Elaine’s position as Credit Manager. Less than ten years later, Mark Twietmeyer was ready to take over as CEO and owner. His first day was April 1, 1997 and Mark won’t forget those first few months. “That day a four-story warehouse behind our building burned down. Three continued on page 7
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Mark, but managing existing customer accounts becomes the next challenge. Sandy Price is there to meet that challenge. “She stays on top of things,” says Mark. Her diligence and tenacity speaks for itself. Nearly 90% of URS’s clients are current. Even the boss knows to heed Sandy’s advice. “If Sandy says, No Sale Allowed, it means no sale.”
Wondering how you’re going to take Accounting to earn your CBA?
Member Profile, continued from page 6 months later the UPS drivers decided to strike.” Skip briefly came out of retirement to drive parts to Seattle area customers. The events of Mark’s first few months at the helm of URS prepared him for a what has been a bumpy yet ultimately successful tenure. By quickly adopting technology and good, old-fashioned logistics planning, the sprawl of URS is now centralized in their Northeast Couch Street headquarters. Consolidated at one location, URS is structured to handle whatever the economy throws at it. As Mark points out, where most generations see an average of two dramatic economic swings, he has seen four since taking over in 1997. While URS may not have its historic physical footprint, things don’t seem to be slowing down for the oldest electronics distributor in the Northwest. As Skip explains with a hint of pride in his voice, “Mark does more volume now out of this location than we ever did with 120 employees and seven locations.” A large part of that success can be traced to one of Earl Meisner’s philosophies. As Skip puts it, Meisner believed that “If you get good people you don’t have to worry about the day-to-day operations.” The challenge lies in finding those “good people.” Yet find one they did, when they hired and eventually promoted Sandy Price to Credit Manager. “Part of our success is picking the type of customers we play with,” says
Introduction to Accounting, BA111, will be offered online from September 26, to December 17, 2011, through Portland Community College. This course will meet NACM National’s requirement for certification. Course fees for residents are: $294.60 plus an additional book charge. New books are approximately $130.35, but be sure to look for used books, rentable books, or on Amazon for better pricing. If you request a “.edu” email address from PCC, you are eligible for student discounts on textbooks through Amazon. Registration begins July 6, 2011. For more information, please contact Elizabeth Heintz at eheintz@nacmoregon.org, or 971.230.1120. For questions about registering at Portland Community College, please visit www.pcc.edu or call 971.722.8888 (and choose option 2).
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal Get ready for the ...
July & August 2011
Check It Out! The NACM Trade Credit Report
2011 Pacific NW Credit Conference “Rainy Days and Credit Ways” S eptember 21 - 24, 2011 Doubletree Sui tes Tukwila, Washington For more information go to http://pnwcc2011.com/
Testimonials Krissy Johnson A/R Vancouver Bolt & Supply, Inc. I work for a small industrial business working collections. My rep, Kristin Curtis, trained me on how to run credit reports; I will be forever thankful. NACM Oregon is the first company we think of when it comes to collections. Julie Jenkins Office Manager Test Products International
Don’t forget to take the opportunity to check out the NACM Trade Credit Report from the NACM National Database? These business credit reports are compiled from payment data from accounts receivable records. They provide a credit score, present trade status, historical trending, past-due charting, flash information, and past inquires. This database, composed of contribution from 25 NACM Affiliates across the country, holds a substantial amount of credit experience, which is available to members through the NACM Trade Credit Report. Every member receives 25 free reports as part of their membership package, so we encourage you to take advantage of this great opportunity. We also offer an Unlimited Usage Contract for $1,975. Contact Barbara Salazar at 971.230.1182 or bsalazar@nacmoregon.org to obtain a User ID and Password. If you have an existing User ID and Password for the industry group or collection site, you may use the same login. Go to www.nacmoregon.org/login. For more information on NACM Trade Credit Reports call Adam Tenuta at 971.230.1184.
We use NACM Oregon services because they are so easy to work with—always reliable and personable.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Employee Placement Service This networking tool is offered free of charge to NACM Oregon members. You may include your resume in our resource pool, or utilize it to fill an opening in your credit, accounting, or collection department. To participate in this program, please call Barbara Salazar at 971.230.1182 or 866.359.1182. The following person is a candidate for possible openings in the credit community in the Northeast area. If the following “ad” is of interest to you, or if you’d like more information about the individual applicant, please call Barbara Salazar at 971.230.1182.
Seeking Position: I am a self-motivated, forwardthinking person who enjoys challenges. Seeking long-term employment where my abilities are utilized to achieve internal objectives. My background includes: all phases of credit/collection functions, corresponding with sales departments and customers, and financial statement analysis.
© New Yorker Cartoon 2006 Peter C. Vey from cartoonbank.com. All Rights Reserved.
Congratulations Congratulations to Sherrie Kuchta, TigerStop, LLC! Sherrie entered our “Meet the Collection Team” contest and was the big winner of the iPad2. Stay tuned for upcoming promotions on www.facebook.com/nacmoregon.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal 2011 NACM-Oregon Foundation Scholarship Funds The NACM-Oregon Foundation grants scholarships to credit professionals for continuing education, professional designations, and conference expenses. To apply for scholarship funds, or for more information, contact Lourdes (Lou) Rice, NOF Scholarship Committee Chair, Pacific Metal Company at 503.454.1051 or lrice@pacificmetal.com. The categories are as follows: CFDD Credit Conferences— Pacific Northwest Credit Conference September 21-24 Tukwila, Washington Eight (8), $345 scholarships for the general membership. Deadline: July 22, 2011 Phylliss Clark Scholarships Two (2) $345 scholarships. Applicants must be a CFDD member of the respective chapter and a first-time attendee to the Pacific Northwest Credit Conference. Each CFDD Chapter—Portland and Salem/ Albany is allowed one scholarship funding. Deadline: July 22, 2011 Early Registration Fee of $345
Phylliss Clark Memorial Fund The Phylliss Clark Memorial Fund was established in honor of the well-known and respected manager of the NACM Oregon education/communications department, who died in an auto accident Memorial Day weekend in 1993. Because of Phylliss Clark’s strong interest in and commitment to education, and her dedicated service to NACM and CFDD, it was determined that a fitting memorial would be to establish an endowment in her name, the earnings of which would be used to promote education of deserving credit professionals. Each year, earnings from the endowment are distributed as scholarships to selected members of the three Oregon-area Credit & Financial Development Division (CFDD) chapters to offset registration and attendance costs to the Pacific Northwest Credit Conference. In selecting these yearly scholarship recipients, special recognition is given to first-time attendees of the conference.
Submit applications to: Lourdes (Lou) A. Rice NOF Scholarship Chair Pacific Metal Co., 10700 SW Manhasset Dr., Tualatin, Oregon 97062 p: 503.454.1051, f: 503.454.1065, e: lrice@pacificmetal.com
Professional Certification Fees To establish your file with NACM National; reimbursement of exams fees after a passing grade; recertifications (NOF pays for 50% of the fee)—$1,500 total.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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2011 Education Class Schedule International Business Day ** New Date and Location ** August 25, 2011, 8:30 a.m. - 4 p.m. Doubletree Hotel Lloyd Center CEU: .65, Course Level: I $169/member, $199/nonmember Certification Roadmap Introduction September 8, 2011, 11:30 a.m. - 1 p.m. NACM Oregon Classroom FREE! Lunch included Speaker: Marilyn Rea, CCE, Pacific Architectural Wood Products Building Blocks to Successful Credit Management September 15, 8:30 a.m. - 4 p.m. NACM Oregon Classroom CEU: .65, Course Level: C $195/member, $275/nonmember Speakers: Rod Wheeland, CCE, CAE, NACM Oregon and Brenda Terreault, JD, CBA, NACM Oregon Principles of Accounting I, BA111 September 26 - December 17, 2011 Portland Community College Online (www.pcc.edu) $294.60 plus an additional book charge of $130.35 (new). Be sure to look for used or rentable books, or on Amazon.com for better pricing.
NACM Oregon Member Appreciation Breakfast October 26 2011, 7:30 - 9 a.m. CEU: .15, Course Level: I Location TBD $35/member, $65/nonmember Educational Session: Economic Update Special Guest Speaker: John Mitchell, Economist Other Activities Pacific Northwest Credit Conference September 21-24, 2011 Tukwila, WA www.pnwcc2011.com Western Region Credit Conference October 5-7, 2011 Las Vegas, NV NACM Oregon Open House December 14, 2011, 4 - 7 p.m. NACM Oregon Classroom
Course Levels C (core) – Classes that focus on credit concepts, techniques, and practical tips. They are designed for the newer credit department employee and the more experienced credit professional looking for a review. I (intermediate) – Classes assume basic knowledge of credit concepts and address specific issues and approaches to resolution. A (advanced) – Classes that assume significant knowledge and experience and address complete topics of interest to credit and financial professionals.
Registration To register for on-site classes, please visit www.nacmoregon.org/events. Go to the current course schedule, then click on “view details” to register. If you have any questions regarding these classes, please call Elizabeth Heintz at 971.230.1120 or email eheintz@nacmoregon.org.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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2011 Business Credit Learning Center Webinars Take Advantage of FACTA and the Red Flags July 14, 2011, 9 - 10 a.m. PT Sue the Bums! A Guide to Cost-Effective Litigation July 15, 2011, 9 - 10 a.m. PT Ratio Analysis July 19, 2011, 9 - 10 a.m. PT Coaching & Developing Your Team July 20, 2011, 12 - 1 p.m. PT Guarantees July 21, 2011, 9 - 10 a.m. PT Strategies of Effective Collections July 26, 2011, 9 - 10 a.m. PT To Serve or Not to Serve on a Creditors’ Committee—That is the Question! July 28, 2011, 9 - 10 a.m. PT
The Balance Sheet & Income Statement August 9, 2011, 9 - 10 a.m. PT
ANY Two Webinars
Your Customer Has Sold Their Business—Now What? August 17, 2011, 9 - 10 a.m. PT The 5 C’s of Credit August 19, 2011, 9 - 10 a.m. PT Business Law Basics August 23, 2011, 9 - 10 a.m. PT Doing Business with China: The Dragon and the Gift August 24, 2011, 9 - 10 a.m. PT Beating the Bankruptcy Preference: The Law, the Strategy, and Recent Developments That May Help You Keep Your Payments August 25, 2011, 9 - 10 a.m. PT
For a complete list of webinars and descriptions, please visit www.businesscreditlearningcenter.com.
Take advantage of ANY two webinars each member receives with their Basic Membership Package, whether produced by NACM Oregon or CMA, on the Business Credit Learning Center website. Webinars are valued at $79 each for members and $109 for nonmembers.
Webinar fee: $79 each - member; $109 each - nonmember Don’t have time to view the webinar “live?” You can still register and watch the webinar at your convenience as many times as you’d like for up to 60 days after the scheduled event! No credit card? No problem! Simply logon to www.businesscreditlearningcenter.com to create your user profile and to read complete webinar descriptions. When you are finished, return to www.nacmoregon.org/events to sign up for the webinar(s) of your choice, and we will bill you on your next invoice! If you have any questions on any of the webinars, call Elizabeth Heintz at 971.230.1120, or eheintz@nacmoregon.org. Schedules are subject to change.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Credit Technique Deduction Management by Michael C. Dennis
For many creditor companies, customer
Customers should be told that the creditor does not expect the disputed portion to be paid, but does expect and need immediate payment on the balance due that is not in dispute.
deductions are a serious and growing problem. Customer deductions can have a dramatic impact on a creditor company’s cash flow. Many companies need to re-think the way they manage customer deductions. More specifically, credit professionals need processes and procedures in place that (1) limit the number of errors their company makes that result in deductions being taken by its customers, and (b) formalize the process by which deductions are addressed and resolved.
When resolving customer deductions, some of your goals should be to:
Collectors can accelerate the process of collecting on deductions taken in error by using the following techniques:
• Keep copies of all documentation sent to customers.
• Request a detailed, written explanation of the problem from the customer, including supporting documentation as soon as a deduction is taken. • If the accounts payable department says that the buyer must approve repayment, ask to speak to the buyer. • Provide the buyer with all relevant documentation, and ask for immediate approval for repayment. • Follow up regularly (as you would with any other unpaid balance) until the decision-maker approves repayment. • Recognize that statistically more than 50% of the time a customer is correct when they take a deduction. Therefore, the most effective way to reduce the number of deductions is to reduce the number of errors your company makes.
• Try to send supporting documentation only once. • Follow up to be sure that any required documentation was received by the customer, since doing so will eliminate one excuse for delaying payment.
• Make careful and detailed notes of all discussions and commitments concerning outstanding deductions. • Follow up on customer commitments already made, and apparently broken, relating to repayment of deductions. • Be sure that the customer makes a payment commitment upon receipt of relevant supporting documentation explaining why a deduction should be repaid. Michael Dennis is a business credit consultant, speaker and webinar presenter. He is also the author of “1001 Collection Tools and Tips.” His website is at www.coveringcredit.com.
© 2011. Michael C. Dennis. All Rights Reserved. Mr. Dennis can be reached by email at: michaelcolindennis@gmail.com.
• Recognize that in order to reduce the number of deductions taken, the credit department must find and fix the root causes of internal errors such as pricing errors, picking errors, or packing errors. • Do not allow customers to delay large payments pending issuance of small credits.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal Legislative Session,
July & August 2011
continued from cover
Assignment of Document Support Passed HB 2677 Currently only a creditor or a creditor’s attorney may sign an assignment of judgment. Agents may complete all the procedural aspects of obtaining the judgment, but cannot then assign it for collection. House Bill 2077 would permit assignment by the agent. Dishonored Check Fee HB 2678 Increases bad check fee from $25 to $35.
Support
Passed
Execution No Position Passed HB 2692 ORS 18.618 exempts certain property from garnishment. House Bill 2692 adds an exemption for identification documents such as a driver’s license, passport, birth certificate or Social Security card. The bill also clarifies that these documents are not subject to execution and a writ of execution may not direct a sherrif to levy on an identification document except for the purpose of delivering the document pursuant to the terms of a judgment which compels the delivery of specific real or personal property. Court Fees Monitor Passed HB 2710 The introduced version of this bill included increases in court fees as high as 400%. Many meetings and negotiating led to amending in House Judiciary. Then, minutes before the bill’s hearing in the Capital Construction Subcommittee of Ways & Means, a need to raise money for the public safety budget led to changes even beyond the initial bill’s scope. Forces worked hard to amend in the full Ways & Means Committee and the resulting C-engrossed version of the bill meets our needs while still helping balance the budget. All increases we were involved with were modified to be fair and acceptable. Garnishment by Mail Monitor Failed HB 2547 Allowed notice of garnishment to be served by regular mail instead of certified mail, return receipt requested. $150 Floor Monitor Failed HB 2593 Provided that not less than $150 in debtor’s account is not subject to garnishment. Employee Protections Oppose Failed HB 2862 Extended certain employee protections to persons working for educational purposes and persons performing services without compensation. ...continue on page 15
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Homestead Exemption Oppose Failed HB 2921 Exempted entire value of homestead from sale on execution, lien of judgment or liability for debts of owner if debt arises directly from or as result of catastrophic or terminal illness or injury. No Private Collection Assignment Oppose Failed HB 3655 Deleted requirement that state agencies offer certain liquidated and delinquent accounts for assignment to private collection agency. Construction Lien Notices No Position Passed SB 382 Current ORS 87.018 requires that notices of liens against a mortgagee be expressed in writing and delivered in person or by registered or certified mail to the mortgagee. SB 382 maintains this requirement only if the name and address of the mortgagee appear in a mortgage of record or trust deed of record filed with the county clerk. The bill requires that the mortgagee’s address be recorded. The measure also requires notice to assignee of the mortgage or trust deed only if the name and address of the assignee were filed with the clerk, which has been a requirement under ORS 205.234 (1)(g) since January 1, 2008. The requirement that the name and address of the assignee mortgage or assignee trust deed beneficiary be recorded with the county clerk was enacted in 2007 (Senate Bill 613). Despite the requirement, not all assignees’ names and addresses are recorded with the county clerk, making it difficult for lien claimants to file notice under required timelines. Private Prompt Pay Fix Monitor Passed SB 384 The Oregon Private Prompt Payment Act, enacted in 2003, established payment terms that are to be included in construction contracts for private projects. SB 384 provides uniformity and consistency throughout the Act’s statutes to reflect current construction industry practices. The measure modifies the current 30-day billing requirement with a monthly billing cycle, reflecting the industry standard; corrects inconsistent language for terms such as “alternate” for “alternative” and “contract” for “construction contract;” clarifies the circumstances in which attorney fees for claims for “payment or interest” can be recovered; and corrects an omission in which the established time for final payment, the fourth of the four established prompt payment deadlines, currently does not have an opt-out provision. SB 384 also replaces the term “plans” with “drawings,” which is a more precise term that is widely used in the construction industry. 9% Interest Rate on Judgments Oppose Failed SB 516 Provided that nine percent rate of interest applies to judgments for payment of money, to awards in arbitration proceedings that court mandates and to mediated agreements that are subject to judgment for failure to comply with agreement.
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7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Damages for Unlawful Collection Oppose Failed SB 577 Established requirements for legal action brought by debt buyer to collect debt. Makes violation unlawful collection practice. Prompt Pay Oppose Failed SB 890 Required contracting agency to include condition in public contract under which contractor must pay subcontractors in timely fashion or risk action for damages or other relief from contracting agency or disqualification from future public contracts. Specified actions that contractor must undertake. This bill decimated the status quo and standard construction guidelines for payment of those involved in a project, and left the supplier odd-man-out with no pay required or assurances set forth. Garnishment Protection Monitor Passed SB 926 Through legislation passed in 2009 (Senate Bill 731), Oregon statute protects up to one month’s worth of electronicallydeposited state and federal benefits from garnishment, including Social Security, veterans’ benefits, unemployment, workers’ compensation, Temporary Assistance for Needy Families (TANF), state and federal retirement funds, and federal black lung benefits. On May 1, 2011, new federal regulations became effective, increasing the amount protected to two months’ worth of electronically-deposited benefits, but only applicable to Social Security, veterans’ benefits, federal retirement, and railroad retirement benefits. Exemption for Tools of Trade Neutral Passed SB 935 Current statute provides that in bankruptcy proceedings, tools of the trade (i.e., tools and implements) related to one’s profession and ability to earn a living, up to a $3,000 value, can be retained. This exemption was last amended in 1993. SB 935 increases the exemption value to $5,000. Prompt Pay II Oppose Failed SB 986 Attempted after the Senate floor death of SB 890. Required contractor to include clauses in public improvement contract with first-tier subcontractor under which contractor provides first-tier subcontractor with form first-tier subcontractor may use as invoice or other method to claim payment due from contractor, contractor uses same form and regular administrative procedures during term of subcontract unless contractor notifies first-tier subcontractor of change 45 days in advance, and contractor may not delay payment due first-tier subcontractor because of changes in form or regular administrative procedures. Cindy Robert is the founder and partner for Rainmakers LLP. She has been lobbying the Oregon State Legislature for more than 20 years. She is an expert in all aspects of government relations, legislative strategy, campaign development and advising, organizational development and governance structure, corporate partnership and leveraged packaging. In addition to her lobby work, Cindy served as the administrator for the Oregon Transit Association, a non-profit organization comprised of transit providers statewide. Ms. Robert is a Willamette University Graduate who also studied at American University in Washington, D.C.
7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 • Fax 503.257.0247 • www.nacmoregon.org
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Business Credit Journal Board of Directors Chairman Raeann Binau, CICP Airgas - Norpac, Inc. raeann.binau@airgas.com Vice Chair Kimi Shelton-Muller, CCE EKC Consulting, LLC kimimuller@comcast.net Secretary John Hardy Emerson Hardwood Co. jhardy@emersonhardwood.com Treasurer Marsha Johnson, CCE TEC Equipment, Inc. mjohnson@tectrucks.com Counselor Sue Hein Rapid Bind, Inc. sue@rapidbind.com
Directors Steve Amiel Electrical Distributing Inc./ BASCO stevea@edinw.com Linda Bishop, CCE, CICP Tektronix, Inc. linda.j.bishop@tek.com Will Campbell Standard Supply Co. willc@standardsupplyco.com Tony Ceniga Industrial Finishes & Systems t.ceniga@industrialfinishes.com Paula Cooley, CBA American Steel pcooley@american-steel.com Lori Jones, CCE Eoff Electric Supply Co. lori.jones@eoff.com Pat Swope, CCE, CICP Pacific Seafood Co., Inc. pswope@pacseafood.com President Rod Wheeland, CCE, CAE NACM Oregon rwheeland@nacmoregon.org
NACM Oregon Customer Service/ Credit Reporting 971.230.1220 services@nacmoregon.org
Industry Groups Richard Browning 971.230.1188 rbrowning@nacmoregon.org
Data Contribution Shannon Abnal 971.230.1166 sabnal@nacmoregon.org
Kristen McBride 971.230.1176 kmcbride@nacmoregon.org
Member Services Kristin Curtis 971.230.1172 kcurtis@nacmoregon.org
Collection Services Brenda Terreault 971.230.1196 bterreault@nacmoregon.org
Denise Redding 971.230.1178 dredding@nacmoregon.org
Billing Marmie Carpenter 971.230.1146 mcarpenter@nacmoregon.org
Collection Sales Clara Nemeth 971.230.1144 cnemeth@nacmoregon.org
Meeting Room Rental Elizabeth Heintz 971.230.1120 eheintz@nacmoregon.org
Education Elizabeth Heintz 971.230.1120 eheintz@nacmoregon.org
Newsletter Editor Barbara Salazar 971.230.1182 bsalazar@nacmoregon.org
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