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Welcome to
Credit Today Online

Credit Today is the premier online portal for trade credit professionals.

This web site and all the resources within are for Members of Credit Today Online.

Overworked at Work? A Credit Professional's Dilemma
By David Schmidt
Overworked at Work? A Credit Professional's Dilemma When office culture is defined by budget cuts, doing more with less, and lean organizations, it's no surprise many people find themselves overwhelmed. Take stock of your and your department's activities. Have invoice volumes grown a significant percentage over the past year? Has the number of customers in your AR portfolio increased? If you feel it's more than you can handle, you have two options: Get more efficient, or talk to your boss. . . . keep reading

New Book Labels GAAP Financials 'Backward Looking,' But That's Probably What We Need
"If I could somehow be smart enough to know the very last sale I could make to a customer and collect for it, no one could afford to hire me." That was Tubular Steel Credit Manager Dave Zaehller's reply when we asked his opinion about "The End of Accounting and the Path Forward for Investors and Managers" by Baruch Lev and Feng Gu. . . . keep reading

Considerations When Automating the Credit Application Process
By Kathleen Dasal
Considerations When Automating the Credit Application Process Today's competitive market demands that businesses operate quickly and on reduced budgets. This forces them to seek out and implement innovative ways to do more with less. For credit and collections departments it means implementing a more effective operating model that is not dependent on increasing manpower but results in better policies, fewer human processes and errors, and ultimately lower costs. To accomplish these objectives, credit departments are moving toward process automation in many areas with the credit application process being of top consideration. . . . keep reading

Credit Today Benchmarking Survey: 2016 Credit Enhancement Use
by David Schmidt
Credit Today Benchmarking Survey: 2016 Credit Enhancement Use In this benchmarking survey we cover...
  • What percentage of credit organizations make use of credit enhancements to mitigate risk
  • The three most popular forms of credit enhancements
  • The average percent of debt that is recovered with a personal guarantee
  • The top reason organizations do not use credit enhancements more
  • What percentage of receivables overall are covered by some form of enhancements
. . .
keep reading

Almost Didn't Happen
Writing this from NACM's Credit Congress, this week's "tip" almost didn't happen.  As often happens with these things - and you, our readers, never see this - we often write something and then throw it out. ("nah, not the right tone;" "No - too basic." "No - too clunky." "no, needs a little more re . . . keep reading

Checking Out Your Credit Checkers
Tiger Woods pointed out that in golf everything moves but the ball. In credit, everything moves--everything. Are the reporting companies that you're relying on--or that you could be relying on--keeping up? Like this credit management veteran you should be checking up regularly. Learn...
  • This credit exec's 4-part scoring system for evaluating his credit reporting suppliers
  • How important price alone is as a factor in the evaluation process
  • Negotiation secrets of this pro that have enabled him to dramatically reduce the price on credit reporting contracts, while at the same time increasing both the quantity and quality of his data
. . .
keep reading

Credit Reports Can Be Misleading
Credit Reports Can Be Misleading Credit reports on the customer--a coal mining subsidiary of an enormous utility -- showed nothing much to worry about as they were part of a multi-billion dollar company. But reviewing a $700,000 order, this credit exec was uneasy. Digging further, he found that Warren Buffett, a major investor in the parent company, had commented that natural gas prices would have to double within 12 months for coal to be competitive. Natural gas prices were falling. Didn't that mean serious trouble for this company? . . . keep reading

Who's Your Freight Forwarder--and Why?
Who's Your Freight Forwarder--and Why? "Studies have found that freight forwarders, on average, do not do any better at preparing documents than exporters," notes Buddy Baker of Global Trade Risk Management Strategies, LLC.

"Some forwarders are better than others, but most are not letter of credit experts--their expertise is in booking freight." . . .
keep reading

Letters of Credit--Are You Paying Too Much?
Letters of Credit--Are You Paying Too Much? Letters of Credit (LCs) from in-country banks tend to be the preferred method of securing foreign credit sales. The security justifies the cost--but maybe not all of the costs. You may be paying dearly for LC processing services right here in the U.S that you don't need. . . . keep reading

Critical Steps to Take Before You Automate
May 23, 2016
Given the potential to improve productivity and performance, it's no wonder that 63 percent of organizations participating in our 2016 Outlook Survey said they plan on automating at least one segment of the order-to-cash process in 2016. But where to begin? . . . keep reading

Five Ways to Get People to Care About A/R Data
By Dave Schmidt
Five Ways to Get People to Care About A/R Data The sharing of information has become increasingly important. Successful organizations are proving over and over again that the internal sharing of meaningful data can, on its own accord, improve performance and provide a competitive edge. In this regard, A/R data is as valuable, if not more so, than any other class of corporate information. Learn:
  • what to share
  • why the format is so critical
  • how to make your data more valuable
  • what types of data you should focus on
  • who to involve, and why
. . .
keep reading

22 Items That Every Credit Policy Should Include
A thorough credit policy manual is a critical document for any well-run credit department. If you have been meaning to put one together, or need to update yours, here are 22 items that your policy should cover. . . . keep reading

The Proliferation of 'Phony Baloney' Financial Reports
May 12, 2016
It is widely understood that Generally Accepted Accounting Principles (GAAP) are often observed in the breach. But what is not so well understood is the extent of this breach and the speed at which it is expanding. In 2009, 72 percent of the companies in Standard & Poor's 500-stock index reported non-GAAP results, according to The Analyst's Accounting Observer (AAO). By last year AAO found that this had grown to 90 percent. . . . keep reading

A Trend toward Misleading Financial Statements?
A Trend toward Misleading Financial Statements? Last week, Fairway Group Holdings Corp, a grocery chain operating some 15 stores in the New York City area, that struggled financially since a 2013 IPO left it saddled with debt, filed for bankruptcy. For Senior Analyst Michael Infranco of F&D Reports, Fairway's death knell rang two years ago when he was studying the disclosures in the Company's prospectus. . . . keep reading

Survey: Top Automation Priorities for Credit Departments in 2016
Survey: Top Automation Priorities for Credit Departments in 2016 Here are a few numbers from our recent benchmarking survey on automation (see "Huge Opportunity Remains for Credit Organizations to Improve Performance through Automation"):
  • 77 percent of credit departments have automated some aspect of the order-to-cash process
  • Within that group, an average of just 2.3 of the 12 parts of the OTC process are automated. 
. . .
keep reading

A Terms Pushback Success Story For the Supplier--With a Little Help From the Government
Scott Blakeley, Esq.
A Terms Pushback Success Story For the Supplier--With a Little Help From the Government Credit teams for suppliers are experiencing more financially sound customers--especially their largest--disregarding supplier-set terms and unilaterally extending these terms with a so-called terms pushback strategy (TPS). While TPS allows the customer to preserve working capital, improve cash flow and grow inventory, the supplier's DSO and profit margin suffer. . . . keep reading

Webinar: Best of A/R: 4 Essentials from Top 100 Credit & A/R Transformations
Webinar: Best of A/R: 4 Essentials from Top 100 Credit & A/R Transformations Over 70% of Credit & Accounts Receivable teams are looking at technology solutions to reduce time-consuming, manual tasks and to shift resources to high-impact decision-making activities. However, only 39% of A/R transformation projects meet expectations. While technology can help fetch the low-hanging fruit with automation and high ROI, it can also result in a painful IT project and a negative impact on the business process. Join us as we consolidate the learnings from over 100 accounts receivable transformations and synthesize the best practices of credit and A/R teams that have achieved successful results with reduced DSO, improved team productivity and increased customer satisfaction. . . . keep reading

Pre-Litigation Checklist: What To Do Before Contacting Your Attorney
Pre-Litigation Checklist: What To Do Before Contacting Your Attorney Much time and money is spent in having lawyers research the information to which you have better access.

An essential element of winning a lawsuit, without spending excessive time and money in attorney's fees, is gathering the proper information yourself - before your attorney even enters the picture.

Use this handy checklist to make sure you've covered all your bases before you contact your attorney. . . .
keep reading

Sun Tzu's Art of War and Cost-Effective Collections Litigation
By Michael J. Niborski
Sun Tzu's Art of War and Cost-Effective Collections Litigation Over two thousand years ago, the Chinese philosopher Sun Tzu compiled a work entitled The Art of War, which has evolved as perhaps the most influential book of strategy in the world today. The Art of War, an analysis of competition and conflict on virtually every interpersonal level, is studied by politicians, military officers, executives and various other leaders around the world. A fundamental principle set forth in the book is that one who has an organized and visionary strategy while preparing for a conflict will be primed to win the conflict before it is even fought. . . . keep reading

Legal Case Study: Continuation Rejected -- Clerk of Court Rejects UCC Continuation Because Filing Had Already Been Continued
By Kristin Alford, April 26, 2016
Legal Case Study: Continuation Rejected -- Clerk of Court Rejects UCC Continuation Because Filing Had Already Been Continued Issue: What happens when you file a UCC-3 to continue your security interest and the county rejects the filing because "CONTINUATION ALREADY FILED ON 07/07/10 #091136583"? . . . keep reading

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