March 2011 Business Credit Journal by NACM Oregon

NACM Oregon Business Credit Journal

In This Issue Troubled Company.............. Cover President's Message...................2 International Corner...................3 Testimonials..............................4 Legal Corner..............................5 Member Profile..........................6 Employee Placement Service.......9 NOF Scholarship Funds............. 10 Education........................... 11-12 Webinars................................. 13 Welcome New Members........... 14 Contacts.................................. 17

March 2011

Spotting The Signs of a Troubled Company By Barry Elms

here is a saying that if you owe the bank $5,000 you have a problem. If you owe the bank $5 million they have a problem.

I guess, based on that principle, right now everybody has a problem because the banks are not lending money and credit is tight. Many of your customers may be suffering financial difficulties because of the credit crunch and the lingering recession, causing them to become past due and even in some cases file for bankruptcyl; creating a vicious circle of debt that delays the recovery of our struggling economy. Now, I don’t want to sound like an agent of doom and misery, because some businesses are already beginning to recover from the recession, even Ford Motor Company, despite the woes of the auto industry posted a profit for the last quarter of 2009. But despite the positive signs of some industries here is a sobering statistic. Over 60,000 companies filed for bankruptcy in 2009, an increase of over 40% from the previous year. If you consider that in dramatic terms that is one company failing every 2 minutes of the working day! They may not be your customers, but they could be your customers’ customers, which ultimately will affect your cash flow. To compound the problem there is no easy categorization of companies that fail. All industries are involved and companies of all ages from new start ups to long-standing businesses are failing in equal numbers. With that across the board statistic there is no easy way to determine which of your customers will ...continued on page 16

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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March 2011

NACM Oregon Business Credit Journal Be Aware!

Message

It has come to our attention that letters are being sent from people who are fraudulently representing themselves as Equifax and requesting companies provide information about their banking account and their signatures. It uses as its hook a statement that the business recently registered as a prospective contractor for procurements listed by the U.S. Federal Government. Financial statements are required to get a credit rating, and that Equifax has received a credit rating request from the government on the business. Disregard any such request as they are not legitimate.

Northeast Office Space Flexible space (932 to 3,066 square feet) to meet diverse needs. Quick access to I-84 and one block from the MAX. Building facilities include free parking and classroom. Available immediately (see attachment. For more information, contact Tom Becic at Melvin Mark Companies at 503.223.9203.

from the President The annual meeting is fast

approaching – April 28 – and we have planned an exceptional program. The day starts with Wanda Borges, Esq., who will give a morning seminar on bankruptcy. Wanda will review issues of importance to the trade creditor and cover the latest case law. Then, the annual meeting and luncheon will take place, including a presentation by Chris Kuehl, the NACM National economist, on the current business environment and its direction. After lunch, Wanda will present a seminar on the Legal Environment of Credit, in which she’ll discuss antitrust, defamation, UCC, and other matters of interest to trade creditors. Watch for more information and don’t miss these unique offerings! On May 5, Barry Elms will return to Portland for an NACM Oregon seminar. More information is provided in this issue of the BCJ. Space is limited – register today! The Credit Congress will be held at Opryland in Nashville, May 22-26. NACM Oregon will invite its delegation to a get-acquainted dinner on Sunday evening, after the opening reception. Then, the delegates will have three days of education and training from nationally recognized authorities. If you’ve been to a Credit Congress, you know. If not, I encourage you to take a look at the materials in the latest issue of Business Credit magazine and consider joining us. Clara Nemeth has joined the NACM Oregon staff as a Collection Sales Representative. If you need help with delinquent accounts, please give Clara a call at 971.230.1144 to learn more about NACM Oregon collection services. Best wishes for a prosperous 2011! 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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March 2011

NACM Oregon Business Credit Journal International Corner by Alice Knight Last month I attended the ICTF Roundtable in New York. I met one of my colleagues from the East Coast and the first words out of his mouth were not “Hi! How are you?” or “What are you doing in New York?” but “I got my money out of Egypt!” The world of international business and credit is a world of change. This change is often sudden and sometimes violent. It affects our business and we have no control over the events. The best we can do is to be aware of the events that affect us and be prepared to react quickly to changing world conditions. What systems need to be in place to be able to react quickly to changing conditions? 1.

Have a system in place to know what countries your company deals with. This is not as simple as it sounds. On the sales side you will know the country of the debtor but what about the debtor’s financing, the destination of the product, and any possible transshipment points? Think about the supply side also. If you buy goods from Tunisia for shipment to Turkey you might have a problem with unshipped orders, expired L/C’s, etc.

2. Have a system in place to get daily updates concerning the

identified countries. Many banks have daily email updates on international affairs. The international section of a major newspaper will also keep you current. We are online with two banks, get daily or weekly updates from several credit groups and credit insurance providers. I skim the international section of the Wall Street Journal every day for current information. 3.

Have a system in place to track shipments and documents. Know what products you have on the water so that you can divert them from a serious trouble spot if necessary. Another colleague I saw in New York was able to divert a shipment on its way to the Ivory Coast because of the turmoil there. Know the last ship date and the expiration date on L/C’s from troubled countries.

Have a system in place to track sudden changes in foreign exchange rates. Any negative U.S. $ Mexican peso rate change will translate into delayed payments for most of our Mexican accounts. If you sell in U.S. $ payments from countries with low U.S. $ reserves will likely slow in response to a negative rate movement. Be especially watchful for any indications of restrictions on the flow of US $ out of the debtor country.

It is important to remember that it is not just foreign events that need a quick response. Unusual domestic happenings also require quick actions. Early in the year when the Midwest was hit with heavy snow we were

notified that a major port was closed. The first order of business was to determine what orders, shipments, last ship dates, and L/C expiration dates might be affected. It was determined that we had several days before things were critical but careful follow up was done to be sure that deadlines were met. In another example we had a million dollar plus L/C with some amendment issues and an expiration date during the week of our snowstorm here in Portland. Over and above duty was given by our documentation area to get to the office from Estacada, ensure everything was complete, and get the documents to the bank on time. It is important to know what events will affect your company and how they will affect it. But you must also have the authority to react quickly to mitigate these affects. If it takes two weeks to get the authorized signers to divert a shipment to another port of call it is all probably wasted effort.

Alice Knight is Vice President of Finance & Administration for Paper Products Marketing, Inc. Ms. Knight has more than 35 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.

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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March 2011

NACM Oregon Business Credit Journal Testimonials Tamie Sperling, Credit Manager Norlift of Oregon, Inc. NACM Oregon is very resourceful. You can always call with a question and someone is always able to get an answer for you.

Garrett Blakley, Corporate Credit Manager Louisiana Pacific Corporation

Laura Smith, Credit Manager General Tool & Supply Co. I feel the services that General Tool & Supply receives from NaCM Oregon is priceless. The staff at NACM is friendly, helpful, and extremely knowledgeable. At anytime I need assistance with a question or concern it is handled within a timely manner.

Rita Peters, Accounting Manager Carol Spring, A/R Quimby Corporation The NACM Oregon employees are awesome. They go beyond. The educational opportunities we receive through NACM/CFDD are wonderful.

Thanks for your reminder note and for all the support you personally provide to administer our business relationship. I’ve enjoyed getting to know Kathy Linscott and Kristin McBride at the credit manager meetings and appreciate their support as well. Adam has been helpful to me on questions with the NACM portal (a really nice tool - for me especially with the “Ask the Expert” section). You are all professional representatives of the NACM brand. LP-Credit looks forward to continuing our positive relationship with you in 2011 and beyond.

“100 Best Companies to Work For in Oregon” Each year Oregon Business Magazine ranks the “100 Best Companies to Work For in Oregon.” The rankings are based on employee surveys and a benefits report from each company. The size category is based on the number of Oregon employees. We are pleased to recognize the following members who made this list for 2011: Large Companies Express Employment Professionals Levi Strauss & Co. Milgard Manufacturing, Inc. Medium Companies DePaul Industries Farleigh Wada Witt The Steel Yard, Inc. Trane Oregon Small Companies Matrix Networks Riverview Community Bank

Barbara Anderson, Credit Manager E C Company NACM Oregon is an excellent resource of peer support regarding industry-related issues.

Sue Jones, Office Manager Grating Pacific, LLC NACM Oregon provides a great opportunity for group members to get together.

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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March 2011

NACM Oregon Business Credit Journal Legal Corner by William G. Fig

Bad News for Contractors—Washington Loses Economic Loss Rule

n two recent cases, the Supreme Court of Washington held that Washington no longer follows the sometimes convoluted “Economic Loss Rule.” In Washington, the Economic Loss Rule has historically been an important legal tool in defending construction contractors (and in other business cases). The basic premise of the rule is that a claimant cannot sue a contractor in tort (e.g. for negligence) for purely economic loss damages (e.g. lost profits). To be able to sue in tort, the claimant had to suffer a personal injury or damage to property. To pursue economic loss damages, the claimant was limited to a breach of contract claim, which was believed to have less “upside” exposure than a tort claim. Moreover, a well-written contract will significantly limit the scope of recoverable economic loss damages. The new rule in Washington for determining whether a claimant may recover economic loss damages is the “Independent Duty Doctrine.” Unfortunately, this doctrine is no less clear than the Economic Loss Rule. The Independent Duty Doctrine provides that the courts will engage in a case-by-case analysis to determine whether the defendant had an independent tort duty to the claimant. In performing its analysis the court will use “common sense, justice, policy and precedent.” The court cautioned applying the new doctrine outside the areas of damages to products sold, construction and the sale of real estate. However, this limitation provides no comfort to a contractor trying to manage or limit its risks through well-drafted contracts. The bottom line of the new Doctrine is that, in Washington, the contractor’s potential risk on a project has increased. The prudent contractor will check with its insurance agent to ensure it is covered should it face a tort claim under this new law.

William G. Fig, attorney, Sussman Shank, LLP, focuses his practice on business litigation, construction law, environmental litigation, and consumer debtor/creditor matters. Bill represents creditors, general contractors, subcontractors, and small- to mid-sized businesses. Mr. Fig has been active as a speaker and presenter at various NACM Oregon seminars. His email is billf@sussmanshank.com.

FTC, Fed Propose Changes To Risk-Based Pricing Rule Collections & Credit Risk Wednesday, March 2, 2011

The Federal Trade Commission and

the Federal Reserve are reviewing proposed amendments to the Risk-Based Pricing Rule requiring creditors, as of July 21, 2011, to disclose credit score information to consumers when a score is used in setting or adjusting credit terms. The FTC is seeking public comment on the amendments. Since January 1, the rule has required creditors to send consumers a “risk-based pricing” notice when, based on the consumer’s credit report, the creditor provides the consumer with less favorable credit terms than it provides to other consumers. Consumers who receive the notice can obtain a free credit report to check the report’s accuracy. As an alternative to providing the notice, the rule permits creditors to provide credit applicants with a free credit score and information about their score. The proposed amendments to the rule would reflect new requirements added by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed amendments would add content to risk-based pricing notices, provide new model notices and specify certain technical requirements regarding credit score disclosures. Risk-based pricing refers to the practice of setting or adjusting the price and other terms of credit provided to a particular consumer based on the consumer’s creditworthiness.

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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NACM Oregon Business Credit Journal

March 2011

Member Profile John Hardy Corporate Credit Manager Emerson Hardwood Company A passionate food culture, sport shoe companies, superconductor fabrication, and doing weird things to bicycles are just a few things Portland is known for these days. Yet only two of those things —food and bicycles— were around when Emerson Hardwoods was founded on the banks of the Willamette River in 1907. Originally founded by a Canadian lumberman, the business was sold to a family just six months after its creation. Three generations of that same family have owned Emerson for over a century. A few things have changed since that time. Originally selling both softwood and hardwood lumber, Emerson began specializing in hardwoods early in its history. During the residential building boom that followed World War II, Emerson branched out into the flooring market. With diversification into specialty hardwoods - carried at their Crosscut Hardwoods retail outlets - and their EM2 custom milling operation, their original saw mill roots might seem lost in the fog of history. But with the company’s original building location just across Front Avenue from their current headquarters, the past is never far away. With CEO, Jim Price, a 40-year veteran of the company, Emerson’s goal will continue to be providing customers with quality hardwoods. As Price jokes, as complicated as the business gets, it all comes down to one thing: “We’re in the pretty wood business.” For most of their customers, buying the pretty wood comes down to a matter of credit, which is where John Hardy and Ray Patton, Emerson’s Corporate Credit Manager and Assistant Credit Manager, respectively, come into the picture.

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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March 2011

NACM Oregon Business Credit Journal Member Profile...continued from page 6

Before starting at Emerson in 1998, Hardy worked for Platt Electric as a regional credit manager. In fact, he’s worked in credit departments since 1978, when he graduated from Oregon State University and started working for a local Portland finance company. His experience at the finance company led to another consumer credit job at JC Penney. In 1980, while working at Penney’s, Hardy first started taking classes through NACM. It wasn’t until he landed a job at Garden Food Service in their commercial credit department that Hardy truly enjoyed his work. “I like working with the people,” says Hardy. The business-to-business environment allowed him to build successful customer relationships. With his focus more on customer service, Hardy’s overall pragmatic approach makes sense. As he puts it, “We fix the problems.” Since his time studying psychology at OSU, pragmatism and people skills have always been a part of Hardy’s skill set. Ray Patton, who studied public relations in college, augments the team with his communication skills and long-time experiences in the credit field. Both Hardy and Patton like the customer service approach to managing credit. The two didn’t used to see much of their customers. The old credit

department offices were next to a retail store and had Hardy and Patton working behind a locked door. With their new office one door down from the main corporate offices, Hardy and Patton see a lot more of Emerson’s customers. All of Emerson’s commercial credit lines, which include wholesale, flooring, Crosscut Hardwoods, and the EM2 milling divisions, are managed through Hardy’s office. This means that every day Hardy is in communication with a mixture of furniture makers, flooring contractors, musical instrument craftsmen, and cabinet builders. Getting to know customers from these many different walks of life is what

Hardy enjoys so much about his job. Still, with such a strong focus on the customer, Hardy doesn’t lose sight of the wood. “I learned a lot about hardwoods in the woodshop in high school,” says Hardy. But he didn’t realize how many different ways people can use wood to make things. Before his time at Emerson, Hardy admits what many are guilty of: “Wood can be taken for granted.” Since starting in 1998, Hardy’s appreciation of what an artisan can do with wood has grown. Custom wood fixtures are everywhere in our lives, and as Hardy points out, “A lot of people have touched that wood.”

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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NACM Oregon Business Credit Journal 2011 Credit Congress & Expo

Join us in Nashville— Gaylord Opryland May 22-25! Welcome all!

March 2011

Experian Business Benchmark Report Experian’s Business Benchmark Report is a monthly view of how U.S. businesses are faring. Designed to monitor the progess of business recovery, the report shows four key indicators of business health, including commercial risk score, days beyond payment terms, percentage of dollars delinquent, and percentage of dollars severely delinquent. Findings from the fourth quarter report show that smaller businesses and large businesses have shown the largest increases in percentage of dollars delinquent in Q4, rising by as much as 22.5 percent and 18.1 percent, respectively, over Q3 numbers. Additionally, small businesses with 1 to 49 employees showed the most dramatic increases in percentage of dollars considered severely delinquent in Q4 2010, rising by as much as 25.9 percent compared with Q3 numbers.

Whether it’s the twang of old country melting into the unique beat of rockabilly or the soulful pulse of jazz, Nashville embraces it all. In May 2011, Nashville, known for its hospitality and charm, welcomes NACM and the 115th Credit Congress & Expo to the Gaylord Opryland Hotel.

To download the report, click here.

We invite you to join us as we savor the distinct and rich rhythms of Nashville. Uniting, educating, and empowering the business credit community, Credit Congress is the largest gathering of credit professionals in the country. Don’t miss this once-a-year opportunity! Let us wow you in the Music City, May 22-25, 2011.

The NACM Oregon delegation will meet for dinner on Sunday, May 22, after the Opening Reception. Please plan to join us! Rod Wheeland, CCE, CAE

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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NACM Oregon Business Credit Journal

March 2011

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.

Position Open: Credit Assistant (Tigard) Full Time Temporary (for approximately 4 months) Johnstone Supply, a leading HVAC/R wholesale distribution company is seeking a Full Time Temporary Credit Assistant to work for approximately 4 months. We are a member of the Johnstone Supply Co-op, operating 13 locations in Oregon, Washington, and California, headquartered in Tigard, Oregon. PRIMARY PURPOSE: Performs Accounts Receivable functions under the general supervision of the Credit Manager, including new account processing, customer service/ collection calls, posting checks, clerical support, account maintenance and special projects as needed. RESPONSIBILITIES: • • •

Ensures completion of all daily tasks (“a day’s work in a day”). Posts and reconciles A/R checks; sends payment reconciliation letters to customers. Sends credit applications to new customers; verifies completion of credit applications; pulls personal and business credit bureau reports; faxes trade references listed on credit applications; provides trade references upon request

• Verifies contractor licenses; collection calls. Basic familiarity with assembles customer files; reviews accounting principles plus knowledge completed files with Credit of computerized accounting system(s), Manager. ability to work with detail, and good • Processes NSF checks; prepares organizational skills. Additional 10-day notices and reviews with background in A/P, a plus. Credit Manager. • Inputs new account information Please e-mail your resume to and address changes. HR@johnstonenw.com or fax your • Conducts collection calls on resume to503.601.0812. assigned accounts; approves orders; facilitates invoice and Reference ID: 9500CreditManagerTemp statement mailing process, and delivers to post office. For more information about Johnstone • Maintains Tax Resale Certificates. Supply, please visit our website at • Demonstrates strong customer www.johnstonenw.com. service attitude. • Reconciles customer accounts Johnstone Supply represents hundreds • Bank deposits; picks up and of the highest quality manufacturers in distributes mail. the heating, ventilation, air • Assists the Credit Manager in all conditioning, and refrigeration other aspects of the Credit industry. We pride ourselves on the Department. long tenure of many of our employees, • Establishes and maintains job and we have been at the forefront procedures manual. in providing customers with the best • May work on special projects as service. Dedicated, highly trained needed. personnel have always set Johnstone Supply apart from its competitors. QUALIFICATIONS: High school diploma plus additional courses or experience in computer, word processing, spreadsheets, and 10-key by touch. One to two years of experience in accounts receivable. Must have excellent written and verbal communication skills. Willingness to learn all aspects of Credit/Collection department functions, and be comfortable with making customer

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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NACM Oregon Business Credit Journal

March 2011

2011 NAC M- Ore go n Fo u n d a t io n S c h o la rsh ip F u n d s 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. NACM National Credit Congress May 22-45, Gaylord Opryland Hotel, Nashville, Tennessee One (1), $700 scholarship. Deadline: March 25, 2011 CFDD Credit Conferences— Pacific Northwest Credit Conference September 21-24 Tukwila, Washington Seven (7), $350 scholarships for the general membership. Deadline: July 22, 2011 Phylliss Clark Scholarships Three (3) $350 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—Eugene/Springfield, Portland, and Salem/Albany is allowed one scholarship funding. Deadline: July 22, 2011 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. 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. 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

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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NACM Oregon Business Credit Journal

March 2011

NACM Oregon Annual Meeting Thursday, April 28, 2011 Doubletree Portland Lloyd Center Mark you calendar now for the 115th NACM Oregon Annual Meeting. The meeting will be held on April 28, 2011, at the Doubletree Portland Lloyd Center. “Bankruptcy Update” will be the topic of the morning educational session featuring Wanda Borges, Esq., from Borges & Associates. Wanda will follow up with an afternoon session, “Legal Environment of Credit.” The luncheon speaker will feature, Chris Kuehl, a widely respected economist with 125 appearances around the globe each year. Members may bring business they wish to discuss. The Board Chair will recognize membership tenure and Past Chairs. This event is a once-a-year opportunity to interact with NACM Oregon members from all industries in a social atmosphere. To preregister contact Elizabeth Heintz at 971.230.1120 or eheintz@nacmoregon.org. 

$40 Lunch only



$95 Lunch and morning session



$95 Lunch and afternoon session

Business Law I - Contracts

Barry Elms Is

April 6 - June 15, 2011 (11 weeks) 7:30 - 11 a.m.

Back In Town!

This course meets one of the requirements for the CBF designation. All members interested in achieving this designation are encouraged to register for this class. Contracts are the language of business. This class is devoted to contract law, from the formation of an agreement to your rights and remedies after a breach of the contract. But business law includes more than just contract law. We will explore the legal environment that any business may face, from constitutional protections to dealing with the legal percussions of a simple slip-and-fall case, and discuss ethical behavior and social responsibilities in a business context. Rod Wheeland, CCE, CAE, President, NACM Oregon and Brenda Terreault, JD, CBA, Collection Services Manager, NACM Oregon will lead this 11-week course on Wednesday’s starting April 6. $299/member, $425/nonmember (+ additional charge for book)



$195 All day

Join us May 5, 2011, Doubletree Hotel Portland 8:30 a.m. - 4 p.m., with a “NEW” presentation by Barry—

“10 Habits of Successful Credit Professionals” Barry Elms, president of Strategic Negotiations International, is acclaimed by many as America’s business coach on negotiation skills. During a speaking career that spans over 20 years, Barry has given over 2,000 presentations worldwide. His energetic style and dynamic message will keep you on the edge of your seat. Barry’s entertaining and inspiring material is appreciated by a portfolio of clients that includes, General motors, Ford Motor Credit, American Express, Verizon, Dell Computers, Shell Oil, The Federal Reserve, and many other leading companies. Watch your mail for more details.

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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March 2011

NACM Oregon Business Credit Journal 2011 Education Class Schedule Business Law I - Contracts April 6 - June 15, 2011 (11 weeks) NACM Oregon Classroom $299/member, $425/nonmember (+ additional charge for book) NACM Oregon Annual Meeting April 28, 2011, 8:30 a.m. - 4:30 p.m. Location Doubletree Portland Lloyd Center $40/lunch only $95/lunch and morning session $95/lunch and afternoon session $195 all day Morning Educational Session 8:30 - 11:30 a.m. “Bankruptcy Update,” presented by Wanda Borges, Esq., Borges & Associates Lunch 12 - 1 p.m. “Time for the Next Panic” Special Guest Speaker: NACM Economist, Chris Kuehl Afternoon Educational Session 1:30 - 4:30 p.m. “Legal Environment of Credit,” presented by Wanda Borges, Esq., Borges & Associates Barry Elms - 10 Habits of Successful Credit Professionals (New!!) May 5, 2011, 8:30 a.m. - 4 p.m. Location Doubletree Hotel Portland CEU: .65, Course Level: I $195/member, $275/nonmember

Certification Roadmap Introduction May 12, 2011, 11:30 a.m. - 1 p.m. NACM Oregon Classroom FREE! Lunch included Speaker: Marilyn Rea, CCE, Pacific Architectural Wood Products International Business Day August 24, 2011, 8:30 a.m. - 4 p.m. NACM Oregon Classroom 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

Other Activities

Credit Management Bootcamp 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

Credit Congress May 22-25, 2011 Nashville, TN

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

Western Region Credit Conference October 5-7, 2011 Las Vegas, NV

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.

PNWCC September 21-24, 2011 Tukwila, WA

NACM Oregon Open House December 14, 2011, 4 - 7 p.m. NACM Oregon Classroom 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 971.230.11820 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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March 2011

NACM Oregon Business Credit Journal The Business Credit Learning Center Season Pass for $475!

2011 Business Credit Learning Webinars Credit Analysis Ratios March 18, 2011, 9 - 10 a.m. PT Tax Return Analysis for Credit March 22, 2011, 9 - 10 a.m. PT Reducing Credit Card Processing Fees Through Optimal Interchange Qualification March 23, 2011, 2 - 3:30 p.m. EST Using and Making Letters of Credit Work for Your Export Sales March 24, 2011, 9 - 10 a.m. PT

Resolving Conflicts & Maintaining Relationships March 29, 2011, 9 - 10 a.m. PT Protect You & Your Company from Identity Theft and Business Fraud April 4, 2011, 9 - 10 a.m. PT Creating Credit Limit Guidelines April 12, 2011, 9 - 10 a.m. PT Valuable Data You Can Find in an Annual Report April 22, 2011, 9 - 10 a.m. PT

Phone Power Collections March 25, 2011, 9 - 10 a.m. PT

Webinar fee: $79 each - member; $109 each - nonmember The Business Credit Learning Center is offering more than 100 webinars throughout the year. Take advantage of ANY two webinars each member receives with their Basic Membership Package whether produced by NACM Oregon, CMA, or any other provider. NACM Oregon is offering a Business Credit Learning Center Season Pass for $475. This means the holder can register for any BCLC webinar and the charge will be waived. The pass is not transferable, although it can be used by any employee of the member company. For more information contact your account executive at 503.257.0802.

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 signup 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.

Construction Lien Webinar Series Construction Liens in Oregon March 31, 2011, 9 - 10:30 a.m. PT

Construction Liens in Oregon March 31, 2011, 9 - 10:30 a.m. PT

Construction Liens in Washington April 7, 2011, 9 - 10:30 a.m. PT

Miller & Little Miller Acts April 14, 2011, 9 - 10:30 a.m. PT

Webinar fee: $79 each or complete series for $275 (member) $109 each or complete series for $425 (nonmember)

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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March 2011

NACM Oregon Business Credit Journal

New Members Alpha Broadcasting, a radio broadcasting firm. Nicole Wyenberg 503.517.6000 1211 SW 5th Ave., Ste. 600 Portland OR 97204

Hunter-Davisson, Inc., HVAC contractors. Sierra Hanna 503.234.0477 1800 SE Pershing St. Portland OR 97202

Ash Grove Cement, cement manufacturer. Martha Anderson, CCE 503.207.2100 5 Centerpointe Dr., Ste. 350 Lake Oswego OR 97035-8682

Port of Vancouver USA, center for the transportation network of the Pacific Northwest. Julie Payne 360.693.3611 3103 NW Lower River Rd. Vancouver WA 98660

Biflex Intimates Group LLC, manufacturer of women’s sleepwear and apparel. Ian Hittman 212.696.3432 180 Madison Ave., Ste. 6 New York NY 10016-5267 Bridgetown Natural Foods LLC, food manufacturer. Roxanne Palmer 503.427.8900 11601 SE Foster Rd. Portland OR 97266 Gargoyle Logistics Inc., transportation services. Christina Bell 503.404.0150 30470 SW Parkway Ave., Ste. A Wilsonville OR 97070 Greenbrier Leasing Co., LLC, manufacturer of railroad freight car equipment. Maura Wodarski 503.684.7000 One Centerpointe Dr. Lake Oswego OR 97035

Symantec Corporation, manufacturer of security software for computers. Brandi Kelly 541.335.5026 555 International Way Springfield OR 97477 Thermo King Northwest, Inc., manufacturer of refrigeration and heating units. Tamara Valentine 503.907.1120 3235 NE 230th Ave. Fairview OR 97024 W C Cabinets, Inc., cabinet manufacturer. Carlyn Watson 541.485.7579 105 S Bertelsen Rd. Eugene OR 97402 Wellmade Floor Coverings, International, Inc., distributor of bamboo flooring. Annette Wolfe 503.582.0848 26300 SW 95th Ave., Ste. 103 Wilsonville OR 97070

Member Referral Rewards Is there another company that would be a good addition to your industry credit group? Do you have a customer who is struggling to collect on its past-due accounts, or is having trouble making payments to you? Do you interact with other credit representatives who may be interested in professional development? Every day you come in contact with businesses like this that could use NACM Oregon’s products and services. Whether a business needs access to credit reports, collection services, industry groups, or education, referring them to NACM Oregon is one of the best things you can do. Member Referral Rewards NACM Oregon rewards member representatives who refer businesses that become new members. Prizes for referring new members are as follows: First new member $100 Second new member $150 Third new member $200 The member representative with the most referrals for 2011 will receive $500. In case of a tie, winners will split the award. Ask your group secretary or call customer service for details at 971.230.1220. New members and those who refer them are listed in each issue of the Business Credit Journal.

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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NACM Oregon Business Credit Journal Signs of Troubled Company...continued from cover survive and which will fail, but there are ways to spot the signs of a company in trouble before they file for bankruptcy. By doing so, hopefully you will not be left with a bad debt when they fail, which directly impacts your bottom line. In my experience, any company in financial difficulty will demonstrate behavior patterns that can be observed by credit professionals on three different levels. They are: 1. How they treat you 2. How they treat other companies 3. How they treat themselves. By gathering data on all three levels of activity you can spot the signs of a company in trouble before it is too late and take remedial action to avoid getting caught with a bad debt some months in the future. What you need to do is create a check list of red flags in each of the three categories. If you have any reason to be concerned about the financial ability of any customer, you can then run them through the check list to see how many of the red flags they have. For example, under the heading of “How they treat you” there are several red flags that should cause you concern. Here are a few typical characteristics of a troubled company that you could identify with a quick review of their account: • • • • • •

Not returning calls Change in buying habits with you Short payments Deteriorating payments trends Surly attitude of employees Increased excuses

You will notice that I did not include NSF checks or mail returned on my list, because if that is happening it may already be too late, and our goal is to get ahead of the problem not behind it. However, it is not sufficient to simply analyze how they treat us. To get a full picture we need to take into account “How they treat other companies.” This second check list would possibly include the following items that can be

March 2011

found in a credit report, for example: • • • •

Increased credit inquiries Reduced credit rating Accounts out for collection Recent liens

If your customer displays any of the items on your second check list you, will need to move to the third area of analysis, “How they treat themselves.” Here are a number of behavior patterns that would give me pause in this category: • • • •

Lack of activity Poor state of premises Half empty offices No one in management available to speak with you

If you run your customer through these three check lists and they display several of the symptoms mentioned, then the chances are they are only a heartbeat away from going out of business and action should be taken on your part to protect your own company’s interest. In the most dramatic circumstances that may include suspending product or service. At the very least it should mean keeping a close eye on the customer from that point on and not allowing the situation to get any worse. As the saying goes, “an ounce of prevention is worth a pound of cure.” One final disclaimer here: My list is meant to be an example of possible signs of a company in trouble and is not to be considered a definitive list. To be sure that your analysis is accurate you should consider the specific aspects of your industry and your customer base and create a check list in each of the three categories that best reflects your business. I hope I have given you food for thought, and perhaps in a some small way helped you preserve that most precious of commodities—your company’s profits. Barry Elms is president of Strategic Negotiations International. Mr. Elms is a frequent speaker at NACM events nationwide. A full list of his seminars can be found on his web site at www.barryelmsseminars.com. Be sure to register for Barry’s seminar in Portland on May 5! See page 11 for more information.

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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March 2011

NACM Oregon Business Credit Journal Board of Directors

NACM Oregon

Chairman Sue Hein Rapid Bind, Inc. sue@rapidbind.com

Directors Linda Bishop, CCE, CICP Tektronix, Inc. linda.j.bishop@tek.com

Customer Service/ Credit Reporting 971.230.1220 services@nacmoregon.org

Industry Groups Richard Browning 971.230.1188 rbrowning@nacmoregon.org

Vice Chair Raeann Binau, CICP Airgas - Norpac, Inc. raeann.binau@airgas.com

Will Campbell Standard Supply Co. willc@standardsupplyco.com

Data Contribution Shannon Abnal 971.230.1166 sabnal@nacmoregon.org

Kristen McBride 971.230.1176 kmcbride@nacmoregon.org

Secretary Kimi Shelton-Muller, CCE EKC Consulting, LLC kimimuller@comcast.net Treasurer John Hardy Emerson Hardwood Co. jhardy@emersonhardwood.com Counselor Doug Jacobson, CCE xpedx douglas.jacobson@ipaper.com

Tony Ceniga Industrial Finishes & Systems t.ceniga@industrialfinishes.com Paula Cooley, CBA American Steel pcooley@american-steel.com Marsha Johnson, CCE TEC Equipment, Inc. mjohnson@tectrucks.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

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

7931 NE Halsey, Suite 200, Portland, Oregon 97213 Tel 503.257.0802 or 800.622.6985 â&#x20AC;˘ Fax 503.257.0247 â&#x20AC;˘ www.nacmoregon.org

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