eNews Archive

Even after checking every box—financials, references, payment history—there’s always that lingering question for every credit manager: What if? What if the customer fails to pay? What if circumstances suddenly change? For moments like these, letters of credit and bank guarantees aren’t just optional—they’re essential tools to protect a company in an unpredictable world.  Why it matters: Letters of credit and bank guarantees serve as financial safety nets for credit professionals navigating risk—something that’s all too common nowadays. But what exactly sets them apart, and how do yo…

This week marks the 106th anniversary of The Finance, Credit and International Business Association (FCIB). Founded in 1919, FCIB has been a trusted resource for international credit professionals, with certification programs that fortify designation seekers’ knowledge of international business, discussion groups that bring together a global network of members and invaluable resources that give insight into the world of credit.   Why it matters: As we celebrate over a century of leadership, innovation and an unwavering commitment to the credit profession, it is important that we acknowle…

Not every customer has a perfect credit score or strong balance sheet, but that doesn’t mean they aren’t worth doing business with. Marginal customers often stand in a gray area: high potential, but higher risk. The challenge is to identify whether open, unsecured credit can be extended to a marginal customer or whether other tools must be used to create guardrails around the transaction. Why it matters: Customers don’t become marginal overnight. It often happens gradually due to changing circumstances, financial stress or business instability. By knowing their customers, and using the r…

Imagine you’re a senior credit analyst at a mid-sized company. On Monday, you’re reviewing aging reports and finalizing credit limits for a new customer. By Wednesday, news drops that your company is being acquired by a larger competitor.  Suddenly, you’re pulled into meetings, asked to provide customer payment histories, risk exposure summaries and explain how your credit approval process works, quickly and accurately.  Now imagine that your credit manager, who typically handles these strategic tasks, is out on unexpected medical leave. There are no updated operating proced…

When most people think of a credit professional, they picture someone focused on collecting payments and monitoring customer balances or credit scores. In reality, the job extends far beyond credit and collections. From negotiating terms and managing customer relationships to training and developing their teams, credit professionals juggle many responsibilities. The higher their position, the more hats they wear.  Why it matters: The multi-faceted nature of the credit professional makes them an asset to the organization, facilitating communication, improving efficiency and mitigatin…

Working in credit brings new challenges each day, whether you are deciding on the ideal credit line for a risky customer or analyzing complicated financial statements. With the role of credit managers expanding each day with new responsibilities, outsourcing tasks within the credit department can be a key part of the risk mitigation strategy.   Why it matters: Collections function poses a myriad of problems for credit managers already busy with credit tasks, making it one of the first processes many departments may decide to outsource. Third-party collections enable efficient c…

Seasoned construction credit managers are no strangers to lien waivers. The forms serve as milestones on long projects, asking credit managers to continuously reevaluate the inherent risk of their continued involvement. Whether you are involved throughout the project or only for a brief stint, you may be asked to sign a lien waiver at some point, so it is critical that credit managers understand what they are signing.  A lien waiver is a document provided by a contractor, subcontractor or supplier that relinquishes their right to file a mechanic’s lien on a project. Serving as a qua…

The past several months has seen a buildup of pressure in Washington, D.C. that is threatening to explode over government funding, redistricting and an array of other issues. While some Members of Congress and Senators are calling for a reasonable bipartisan solution, they are being drowned out by firebrands in both parties that are looking to make a stand here and now. At its core, the situation is fairly cut and dried. Government funding expires on September 30th and Congress either needs to pass comprehensive government funding bill or a flatline continuing resolution (a temporary spe…