In 2022, six out of 10 companies were targeted by fraud attempts in the U.S., according to data from TrustPair. 55% of companies targeted by fraud attempts indicated changes in supplier information on legitimate payment as how the fraud was perpetrated. Fraudsters send an email impersonating a supplier and asking to change their bank account information for example.

Commercial bankruptcies have skyrocketed since the historical lows during the height of the pandemic. At 236 corporate bankruptcy filings so far this year, the number is higher than the first four months of any year since 2010 and more than double 2022 levels, according to S&P Global Market Intelligence. They forecast that the U.S. default rate will rise to 4.25% by the beginning of next year, up from 2.5% currently—or to 6.5% if there is a serious recession.

NACM’s Credit Managers’ Index slipped 1.6 points in May to 52.2, nearly erasing three months of improvement. This indicates the economy could collapse under the mounting pressure of lingering debt ceiling issues, interest rate hikes and continued stress in the banking sector, said NACM Economist Amy Crews Cutts, Ph.D., CBE.

Key performance indicators (KPIs) are a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs help determine a company’s strategic, financial and operational achievements, especially compared to those of other businesses within the same sector. With the various forms of KPIs available, companies can improve their performance and meet long-term goals. A wide range of formulas exist to measure the ever-expanding list of tasks that fall under the responsibility of credit departments.

The Bipartisan Infrastructure Deal passed in 2021 provided a multibillion-dollar investment of roughly $1.2 billion into infrastructure and waterways, repair and maintenance backlogs, reductions in emissions and other low-carbon technologies. This deal has greatly impacted the construction industry and economy today.

In-person customer visits have existed since the birth of credit management as a method of gathering information, collecting payment and building customer relationships. But with the advances in technology and a global pandemic, in-person customer visits may become a thing of the past.

Treasury officials have warned lawmakers to come to an agreement prior to the X-date of when reserves will run dry. The X-date depends on both tax collections and government payments, and if there is not enough money to provide for the country’s financial obligations, the likelihood of a default is very high.

Lien rights grant legal authority for contractors, subcontractors and suppliers to file a mechanic’s lien against the owner’s property or, in the case of a government project, the right to make a bond claim. It is also a security to force payment. But statutory changes like with Texas’ recent property code make it harder to protect those lien rights. In order to protect their lien rights, credit professionals must inform their customers of statutory changes immediately.