eNews Archive

With economic uncertainty mounting across the board, the agricultural industry continues to slump. With input costs rising and profits dropping, trade tensions add increased instability as they stifle previously high agricultural exports.   Why it matters: In the September Credit Managers’ Index (CMI) report, respondents noted that the agricultural industry is continuing to see stress with no relief in sight. The imbalance created by higher input costs and lower commodity prices is sinking the agricultural economy deeper, compounded with the unpredictability of international trade t…

In credit management, proper risk management begins with knowing your customer—from their legal name to their industry and risk tolerance. In global trade, it means digging deeper to understand who truly owns, controls and benefits from the customer.  Why it matters: International trade brings forth additional risks, driven by complex ownership structures, geopolitical tensions and regulatory scrutiny. A recent regulation from the Bureau of Industry and Security (BIS) introduces new layers of compliance, reshaping risk management and Know Your Customer (KYC) practices for global tra…

When most people think of a business filing bankruptcy, what they’re often picturing is a Chapter 7. This chapter of the U.S. Bankruptcy Code provides for liquidation, in other words, the sale or monetization of the debtor’s property and the distribution of any available net proceeds to creditors.   For businesses, Chapter 7 essentially means game over: a Chapter 7 trustee is appointed to take control of the debtor’s assets, and will then sell any tangible assets like inventory or real estate and pursue recoveries on account of intangible assets, such as preference claims and other …

California Governor Gavin Newsom signed SB 440, or the Private Works Change Order Fair Payment Act, into law on October 10. The law, which goes into effect at the start of 2026, introduces a newly structured process of resolving change-order and time-extension claims on private works of improvement.   The law, which passed unanimously in the State Assembly and Senate, was championed by contractor advocacy groups that believed the restructuring of the claims process could reduce litigation and help more companies get paid on time. Contractors are praising SB 440 for the fair and…

Anyone who has turned on the news in the past two weeks likely knows that Republican and Democratic leaders have been unable to reach an agreement on government funding as the now three-week government shutdown continues. Democrats are refusing to pass a ‘clean’ funding bill, demanding an extension of the expiring Obamacare tax credits, and Republicans are holding firm despite public polling in support of the subsidies sitting at over 70%. They argue that Congress has plenty of time to extend the subsidies. So, where does the truth lie? Unsurprisingly, somewhere in the middle. Insuran…

Salary benchmarking surveys are an important guidebook for any profession, as they track how individuals are compensated in their roles across different experience levels, industries and locations. Joining together, NACM Affiliates urge members to participate in their Credit Professionals Compensation Survey citing that participation will lead towards building an important and invaluable community resource. Spearheaded by NACM Connect in 2016, with all NACM affiliates joining over time, the survey collects valuable salary data from companies across the United States. As the survey p…

Lien and bond rights are essential tools for protecting payments in the construction industry. Whether you’re a general contractor (GC), subcontractor or material supplier, these legal rights provide leverage when payments are delayed or withheld. However, these rights and the processes to enforce them vary significantly from state to state.  For the state of Texas, lien laws changed significantly effective January 1, 2022, for projects with original contracts signed on or after this date, primarily streamlining the process for subcontractors and suppliers on private, non-residentia…

California Governor Gavin Newsom signed AB 1521 on October 1, formally defining “trade credit” in state law for the first time and clarifying SB 1286, a bill signed last year that created confusion when it offered small businesses consumer debt protections as it expanded on the Rosenthal Fair Debt Collection Practices Act.   Why it matters: SB 1286, in an effort to protect consumers from predatory debt collectors, created a headache for those with debtors in California who found that small-businesses shouldering up to $500,000 in commercial debt were offered consumer-style protectio…