Stop Losing, Start Protecting

Aug 14, 2024

Posted by & filed under Credit, Uniform Commercial Code.

Written By: NCS Credit

UCC FILINGS REDUCE FINANCIAL RISK FOR BUSINESSES

Every time you extend credit to your customer, you assume some calculated risk, right? And, as a diligent credit professional, you take steps to mitigate that risk.

You scrutinize credit applications, analyze and review credit history (the amount of outstanding debt, payment behaviors) and you contact credit references. To limit exposure, you negotiate lower credit lines, pay for credit insurance, or require cash in advance, but there’s a popular, simple, low-cost protection you may have overlooked: UCC filings.

WHAT IS ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE?

Article 9 of the Uniform Commercial Code (UCC) governs secured transactions in personal property and provides an opportunity for trade creditors, like you, to secure accounts receivable, inventory or equipment by leveraging the personal property assets of your customer.… Read the rest

Fraud in B2B Trade Explained

Aug 30, 2024

Posted by & filed under Credit.

Kendall Payton, editorial associate

B2B payment fraud is an urgent matter for credit professionals because of its scale of risk. Fraud can contribute to severe financial losses and even reputational damage for businesses. However, fraudulent activity is not always easy to catch. In fact, nearly half of all businesses take at least one month to discover the fraud that conspired.

Why it matters: Because fraud can show up in any form, it is important to catch the red flags as soon as possible. Whether through cyberattacks such as email phishing, forged digital documents, identity theft and more—credit managers must know the impacts and amount of risk involved.
One of the biggest red flags of fraud that can lead to accounts receivable losses starts as small as one typo in an email.… Read the rest

A Big Win for Creditors of Small Business Debtors

Jun 25, 2024

Posted by & filed under Bankruptcy, Collections, Credit.

Bruce Nathan, partner & Mike Papandrea, counsel, Lowenstein Sandler LLP 

The “big” win: In a decision that helps balance Subchapter V’s pro-debtor provisions, the U.S. Court of Appeals for the Fifth Circuit recently held that the Bankruptcy Code’s exceptions to discharge apply to a corporate Subchapter V debtor with a nonconsensual plan (even though the exceptions do not apply to corporate debtors in “traditional” Chapter 11 cases). In doing so, the Fifth Circuit joined the only other Circuit-level court to address the issue (the U.S. Court of Appeals for the Fourth Circuit), bucking what appeared to be a growing trend among other, non-Circuit-level courts that have held the exceptions to discharge do not apply to corporate Subchapter V debtors.… Read the rest

Allianz Trade Economic Research – Executive Summary

May 23, 2024

Posted by & filed under Credit Insurance.

Written By: Allianz Trade Economic Research

The 2024 and 2025 global economic landscape remains one of a world grappling with sluggish growth and evolving geopolitical dynamics, while central banks and policymakers navigate through inflationary pressures and economic uncertainties.

Global GDP growth is expected to be modest, staying below 3% over the next couple of years. Advanced economies are projected to maintain a steady growth rate of 1.6% in 2024, whereas emerging markets will experience a slowdown, growing at around 4%. The economic gap between the US and Europe, which was significant in 2023, is anticipated to narrow. The US economy is forecasted to grow by 2.4% in 2024 and 1.7% in 2025, while the Eurozone will see slower growth at 0.7% in 2024, picking up to 1.5% in 2025.… Read the rest

Embracing AI in Credit Management: Enhancing Efficiency Without Replacing Jobs

May 23, 2024

Posted by & filed under AI, Collections, Construction, Lien Law.

Written By: Handle.com – A Preferred Partner of NACM CS

In today’s rapidly evolving financial landscape, artificial intelligence (AI) is not just a buzzword but a transformative force reshaping various industries, including credit management. As credit managers and accounts receivable professionals, it’s natural to approach new technologies with caution. However, AI stands not as a threat to replace jobs but as a powerful tool to enhance efficiency, accuracy, and decision-making in daily workflows. This article aims to demystify AI for beginners in the credit management field, illustrating its benefits and why it should be embraced, not feared.

Understanding AI in Credit Management

AI encompasses a range of technologies capable of performing tasks that typically require human intelligence.… Read the rest

Credit Card Surge Reshapes B2B Trade

May 23, 2024

Posted by & filed under Credit, Surcharging.

Jamilex Gotay, editorial associate, NACM

In recent years, credit cards have surged in popularity among customers within the B2B credit industry.

Why it matters: Knowing why this trend is happening is critical for B2B trade creditors as it holds the potential to alter financial strategies and influence business operations.

What they’re saying: “Severe inflationary pressures over the past three and a half years have driven margins down significantly, and more businesses have started to accept credit cards in B2B trade at a drastically accelerated rate,” Andrew Behlmann, partner at Lowenstein Sandler LLP (Roseland, NJ) said during a live NACM webinar, Just a Little off the Top: Strategies for Reducing the Growing Cost of B2B Credit Card Acceptance.… Read the rest