credit management in australia - december 2014 issue
DESCRIPTION
The first digital issue, featuring the National Conference ReviewTRANSCRIPT
The Publication for Credit and Financial Professionals I N A U S T R A L I A
www.aicm.com.au
Volume 22, No 2 December 2014
> Privacy> PPSA> Development> Credit
Management
2014 Conference Report & Photos
CREDIT MANAGEMENT IN AUSTRALIA • December 2014
QLD Division: Rachael Ryan, Sarah Mizon, Fiona Doherty, Scott Goodrick.
SA Division: Gail Crowder and Rebecca Edmiston.
VIC/TAS Division: Jason McCutcheon has members enthralled.
40
42
44
WA Division: Great tea and lovely venue.
NSW Division: Golf Day Winners – Charles Kinsella, Daniel Grace, Nick Pilavidis and Doug Rouessart.
46
48EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:The Editor, Level 1, 619 Pacific Highway, St Leonards NSW 2065or Email: [email protected]
DIRECTORS
Australian President – G.L. Morris MICM CCE
Australian VP, Law & Regulation – J.A. Neate MICM
Professional Development – S.D. Mitchinson LICM
YCPA & CCE – G.C. Young MICM
Member Services – J.G. Hurst FICM CCE
Finance – G. Odlum MICM CCE
CHIEF EXECUTIVE OFFICER
N. Pilavidis MICM CCELevel 1, 619 Pacific Highway, St Leonards NSW 2065Tel: (02) 9906 4563, Fax: (02) 9906 5686Email: [email protected]
EXECUTIVE SUPPORT
SA Division – Kerry HammillPO Box 2131, Felixstow SA 5070Tel: (08) 8365 9021, Fax: (08) 8365 9021, Email: [email protected]
EDITOR/PUBLISHER
Nick Pilavidis | Email: [email protected]
CONTRIBUTING EDITORS
Colin Magee NSWMurray Ashford QLDKerry Hammill SAWarren Meyers WADonna Smith VIC/TAS
ADVERTISING MANAGER
Tony PaulAssociation MediaTel: 0401 917 799Email: [email protected]
EDITING & PRODUCTION
Anthea VandertouwFerncliff ProductionsTel: 0408 290 440Email: [email protected]
THE EDITOR reserves the right to alter or omit any article or advertisement submitted and requires idemnity from the advertisers and contributors against damages or liabilities that may arise from material published. CREDIT MANAGEMENT IN AUSTRALIA is published by the Australian Institute of Credit Management, Level 1, 619 Pacific Highway, St Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of Australian Institute of Credit Management, which does not expect or invite any person to act or rely on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2014.
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA
Volume 22, Number 2 – December 2014
Message From the President 4
National Conference 6- Certified Credit Executive Dux 8- Young Credit Professionals of the Year 11 - Credit Team of the Year 12- President’s Trophy Award 14
Learned LegalSection 64 – PPSA Act 2012 15AICM - Can We Help 15
Credit ManagementDivergent trends set to trend in 2015 16By Stephen Koukoulas
Voluntary administrations to rise as record 18 numbers of ASX companies face collapseBy Antony Resnick and Gavin Robertson
Veda National Credit Manager’s Survey 20
PrivacyPrivacy Awareness 26By Debra Kruse and Michael Hartman
Privacy Act Participant Membership Promotion 27
PPSAThe Six Reasons 30By Kim Powell
Personal Property Securities and bailments, 32 consignments and a receiver’s lienBy Leigh Adams
DevelopmentTrust me I’m the boss 35By Daniel Kehoe
Daniel Kehoe
35
ASSOCIATION MEDIA
For Advertising Opportunities
in Credit Management In Australia
CALL Tony Paul
Phone: 0401 917 799
Email: [email protected]
AICM Training News- AICM Training News 36- Manage bad and doubtful debts 37- Factoring and invoice discounting 38- Unique Student Identifier 39
Around the StatesQueensland 40South Australia 42Victoria/Tasmania 44Western Australia/Northern Territory 46New South Wales 48New Members 51
Kim Powell Leigh Adams
30 32
Wishing you all a Merry Christmas and a Happy New Year
4 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
aicmf rom the p res iden t
Welcome to our first ever
online or soft copy magazine
which replaces the traditional
magazine we have been
mailing for 20 years. We hope you enjoy it as
we aim to deliver to you more timely news and
better event coverage at a reduced cost to the
AICM thus allowing us to divert funds to other
areas of benefit to credit professionals.
As the year draws to a close and a new year
commences it is opportune to reflect back on
2014 and look forward to what will be in 2015.
In March the Privacy Amendment
(Enhancing Privacy Protection) Act 2012 kicked
in. The Act required a credit provider to be
a member of an External Dispute Resolution
Scheme (EDR) and after lobbying by the AICM,
it’s members and supporters and other parties
this requirement was deferred for 12 months.
Unless further lobbying is successful, which is
unlikely as the major objection of cost has been
overcome, all credit providers will be required
to join an EDR Scheme in March 2015. We
have been in discussions with Raj Venga the
Ombudsman and CEO of Credit Ombudsman
Service (COSL) and COSL are now offering a
discounted membership to all AICM members
for the fixed annual cost of $850 incl GST in
year 1 and $650 incl GST in each subsequent
year. This is a considerable discount on
standard fees and covers all Privacy disputes
which may be lodged with COSL rather than
their standard additional fee for each dispute.
Put simply “get on board”. You can register
your interest at https://www.surveymonkey.
com/s/AICMCOSL to ensure you receive
registration forms when an announcement
is made regarding the extension of the
exemption.
Our October conference on the Gold Coast
was our most successful for many years with
the largest gathering of Credit Professionals for
a long time. There were over 200 companies
represented and some 3 dozen of those were
ASX100 companies. The sessions were well
attended and the dinner was a sell-out.
At the conference we announced the Veda
sponsored 2014 Credit Team of the Year which
is Reece Pty Ltd and the Dun & Bradstreet
sponsored 2014 Young Credit Professional of the
Year winner which, for the first time in AICM’s
history, was awarded jointly. The winners are
Rebecca Edmiston (Bendigo & Adelaide Bank
– SA/NT) and Anna Golubeva (Hilti Australia –
NSW). Congratulations to Rhys Buzza and the
team at Reece and Rebecca and Anna who were
very deserving winners of the awards in very
strong fields of finalists.
Our conference survey is still open and
I would encourage you to please complete
the survey and provide your thoughts and
suggestions towards the 2015 conference in
Sydney. The link is https://www.surveymonkey.
com/s/AICMConference
I would like to share with you part of my
address to delegates at the conference:
“Did you know that in the 3 years ended
June 2008 the average number of appointments
of Administrators, Liquidators and Receivers &
Managers was 12,390 and it was fairly steady
around that figure in each of those years. In
2009 , as a result of the GFC, it jumped to 15,567
a staggering 24% increase and has remained at
these increased levels over the following 4 years
closing in 2013 at 15,815.
In the year just gone ie to June 2014, the
number of appointments fell by nearly 2,000 or
12% to 13,985.
So all is good, or is it?
Perhaps we should not be complacent when
we see historical signs of improvement as our
role is to look forward. No-one ever signed
off on a deal for the supply of a product or
service knowing they wouldn’t be paid. A loss
is the future non payment for goods or services
provided previously and we must therefore look
forward, albeit not forgetting that history is a
good teacher.
CPA Australia analysed some 16,000 annual
reports of listed companies between 2005 and
2013. On reviewing the 2013 results they noted
11 per cent more companies attracted financial
distress warnings that year than during the GFC.
These reports are completed by independent
auditors, who are required to flag in a company’s
annual report if they believe there is “significant
uncertainty” in a company’s ability to continue
as a going concern.
The report shows that almost a third of ASX-
listed companies attracted “going concern”
warnings from their independent auditors.
Most of the warnings were concentrated in the
bottom 500 listed companies.
Put simply, 58 per cent of Australia’s smallest
Grant Morris CCEAustralian President
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 5
aicmf rom the p res iden t
500 listed companies in 2013 attracted going
concern warnings by auditors. This is something
CPA boss Alex Malley describes as a “sobering
reminder of the fragility of the Australian
economy and the challenges many businesses
face”.
Energy and mining companies are at the fore
with more than 40 per cent of these sectors
facing serious financial uncertainty. The report
notes going concern warnings also increased in
sectors including consumer staples, industrials,
healthcare and utilities.
The report makes sobering reading indeed,
and a good reason to be here this week and to be
a member of the AICM.”
We need to stay a step ahead of the game
and we need to not only be across legislative
changes but also lobby for change ourselves. On
7th November the Attorney General released its
draft Insolvency Law Reform Bill 2014 and noted
The draft Bill comprises a package of
proposals to amend and streamline the
Bankruptcy Act 1966 and the Corporations Act
2001. The proposed amendments will:
z remove unnecessary costs and increase
efficiency in insolvency administrations;
z enhance communication and transparency
between stakeholders;
z promote market competition on price and
quality;
z boost confidence in the professionalism and
competence of insolvency practitioners; and
z remove unnecessary costs from the
insolvency industry resulting in around $55.4
million per annum in compliance cost savings.
This Bill requires submissions by December
19 and is currently being reviewed by James
Neate, our Legal Affairs Director, with a view to
providing a submission on behalf of the AICM
and it’s members. I would encourage you to
provide any comments to James through our
CEO Nick Pilavidis at our office or nick@aicm.
com.au.
At the forefront of the AICM are our CCE’s
and I am pleased to be able to say that this year
11 have completed the exam and assignment
and become CCE’s. A special acknowledgement
to the 5 Credit Managers at Coates Hire who
took the step and this year became CCE’s (onya
Anthony, Denise, Kathy, Mel and Sev) and a word
of encouragement to others to encourage your
team leaders and managers to come on board
just like the 16 who sat the exam in September
and will shortly join the ranks.
Last month 2014’s top performers were
recognised at the second annual AICM Pinnacle
Awards. I congratulate the following winners:
– Credit Manager of the Year (teams > 10) -
Adam Clarke - Star Track
– Credit Manager of the Year (teams < 10)
Nicole Chesher - Ecolab
– Senior Credit Officer of the Year Imelda
Quiros - Coates Hire
– Legal Representative of the Year Paul
Hutchinson - Force Legal
– External Collector of the Year Andrew Smith -
Australian Recoveries & Collections
– Recruiter of the Year Vanessa Alkon -
Randstad
– High Five Award Sev Indrele - Coates Hire
Please take the time to read the various
articles and sections in this magazine including
“Around the States” to see what is happening
in your neck of the woods and an interesting
question raised in “AICM – Can We Help”.
I encourage you to submit your questions to
[email protected] and we will seek answers
from experts in the topic. By sharing your
questions you may obtain additional information
or a different perspective free of charge and you
will definitely help share some knowledge and
experience with your fellow Credit Professionals.
It has been a long and successful year for
the AICM with a successful national conference,
growth in membership and CCE’s and the
deferral of the requirement to join an EDR and
negotiation of a great deal with COSL for 2015
and beyond.
Max has been to Turkey and the Gold Coast
and like the rest of us is looking forward to the
Christmas break. Use the break to reflect back
on your achievements in 2014 but also use it to
plan what you are going to do bigger and better
in 2015 – perhaps obtain your CCE or encourage
a team mate to do so, undertake a Certificate
or Diploma qualification, enter the Credit Team
of the Year or Young Credit Professional of the
Year, include the Sydney conference in your
FY16 budget or help the AICM to put together
submissions for legislative reform to make your lot
better. Give it some thought and get on board.
I look forward to seeing you at an AICM
event soon as you support the Institute which
supports you.
6 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
2014 National Conference
Mark Robberds and Maurine Grant Debbie Leo and Jeff Hurst.
Nick leads the way. Thirsty work.
Our MC – James Neate. Exhibitor alley.
The 2014 National Conference was full of Great Sessions, Awards, Exhibitors and Networking opportunities.
Some Conference highlights include:
– Great Golf Day
– Informative presentations, Slides and photos are now on the Credit Network
http://www.creditnetwork.com.au
– Engaging exhibitors, featuring Video Games, Barista’s, ice cream, prizes and even a Cash Cow!
– Networking and Social event, the highlight being the Presidents Dinner sponsored by D&B.
– CCE Dux Award – David Haysom was the Dux of this year’s CCE candidates
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 7
2014 National Conference
The Girls from Results Legal Veda – let the games begin.
NCI – We are always ready to meet your needs.
The Cash Cow. (creditor)Watch – boys just want to have fun.
– Credit Team of the Year Winner – Congratulations to Reece Pty Ltd
– Young Credit Professional of the Year Winner – Congratulations to Anna Golubeva, NSW and
Rebecca Edmiston, SA
– President’s Trophy Winner – South Australia, Congratulations to Gail Crowder and the SA Council
The AICM is your Institute and The Conference is your Conference so your thoughts are vital to ensuring your
needs are met. Please complete the survey at https://www.surveymonkey.com/s/AICMConference or email
[email protected] with any thoughts, comments or Feedback. Please complete the survey whether or not you
attended as it will help us review and plan future conferences.
2014 National Conference
8 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Prior to the opening of the National Conference
it is tradition for all CCE’s to attend the annual
CCE Luncheon, where new CCE’s are welcomed
and CCE’s who have re-certified receive their
certificates. This year Peter Mills, Special Counsel,
PPS, Finance & Credit Recoveries, Herbert Greer
Solicitors spoke about the challenges of doing
business in Papua New Guinea and the South
Pacific.
Also at this lunch, it is traditional to announce
the Dux of the year. The Dux is chosen based on the
exam and essay that candidates submit as part of
the requirements to apply for CCE status. This year
the winner was David Haysom of Fuchs Lubricants
(Australasia) Pty Ltd.
As David was not able to attend the luncheon so
Terry Duffy of NCI presented Vic/Tas President Lou
Caldararo with a bottle of Grange Hermitage. When
David arrived at the conference an official handing
over ceremony took place with photographic
evidence taken to show that the bottle was
transferred with full contents.
Lou Caldararo and Terry Duffy from NCI.
Certified Credit Executive Dux
CCE Re-certifications – Class of ‘99.
Lou handing the prize to David Haysom.
CCE Re-certs – Class of ‘08.
Janelle Muegge – 2014 graduate.
2014 National Conference
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 9
Grant Morris, National President – Opening address.
Peter Mills addressing CCE Luncheon.
Darin Milner from D&B.
CCE’s at Luncheon.
A captured audience.
Tim Courtright, Veda – Welcome. Chris Caton – Conference Keynote Speaker.
2014 National Conference
10 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
EDX Australia.
Noble Systems.
The D&B Team.
CreditSoft Solutions.
Austral Mercantile.
AMPAC Debt Recovery.
NV Group
2014 National Conference
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 11
This year we had a record number
of expressions of interest and the
feedback from the judging panels
at Division and National levels was
that the quality of the candidates
was extremely high.
Mark Russell, Director at Dun
and Bradstreet, in announcing the
winners, commented that a handful
of points separated all 5 National
Finalists. Zero points separated the
top 2 with Rebecca Edmiston and
Anna Golubeva being announced
joint winners. It is the first year in
the almost 20 year history of the
award that we have two Australian
Young Credit Professional of the
year winners.
AICM and all of the candidates
thank Dun and Bradstreet for their
continued support of this award. Rebecca Edmiston and Anna Golubeva.
2014 Young Credit Professionals of the Year
The YCPA Finalists.
YCP Winners – current and past.Rebecca Edmiston. Anna Golubeva.
2014 National Conference
12 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Reece Pty Ltd and Recoveries Corporation Pty Ltd were
the top two National Finalists to attend the conference.
Grant Morris, AICM National President and Debbie Leo,
General Manager Major Accounts, Veda announced
Reece Pty Ltd as the 2014 Credit Team of the Year. This
year’s Judges were:
– Grant Morris, National President and National Credit
Manager at Coates Hire
– Simon Holloway, Credit Manager National Accounts
at Carlton and United Breweries
– Andrew Le Marchant, Credit Manager at Allens
Linklaters
We thank the Judges for their time in this year’s
judging and to Veda for their continued support of this
award, including making it possible for the judging to be
held face to face in both Sydney and Melbourne.
The Reece Team with Grant Morris and Debbie Leo.
Credit Team of the Year
Recoveries Corp representatives.The Reece Team celebrate.
2014 National Conference
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 13
Lou and Jeff – feeling the love.
2013 Credit Team game show. Cheers.
Delegates at the President’s Dinner.
Getting to know you! Let’s dance.
Elegant evening ahead. Hair, Hair, Where, Where!
14 CREDITMANAGEMENTINAUSTRALIA•December2014
2014NationalConference
SA President Gail Crowder.
President’s Trophy Award
Girls just want to have fun.
This will pack in my luggage.
Winners are grinners.
Each year the National President announces the
President’s Trophy which recognises the division
that has excelled with their engagement with their
members. This year’s winner was South Australia.
Congratulations to Gail Crowder, SA Division
President and the SA council.
Learned Legal
QuestionHardly a day goes by without receiving notification of the
appointment of an Administrator, Liquidator or Receiver and
Manager (ALRM) and then the reports flow through. I notice
the reports always include a not insubstantial amount of fees
paid to solicitors and wonder why this is so. Often the legal
fees are equal to the ALRM’s fees. This is a substantial drain
on funds and reduces or eliminates dividends to creditors.
Why do ALRM’s find the need to seek such legal advice? Are
they not knowledgeable in the handling of the appointments?
Why do they use solicitors to submit initial claims for alleged
preferential payments as this would seem to double the cost
ie the ALRM reviews the matter and then the Law Firm does
the same? Any negotiations which are subsequently entered
into then mean the Law firm has to tic tac with the ALRM for
decisions on whether to accept any offers made – a doubling
up of time and fees. I can understand why they might be
used to pursue payment but why doesn’t the ALRM make the
initial claim? How do they select the Law Firm? Are there any
commissions paid? Is this required to be reported? Why don’t
they negotiate reductions in fees especially for the volumes of
business they pass to them? I know the firms we use to assist
us with collection action are very competitive and commercial.
– National Credit Manager Sydney MICM CCE
ResponseA good series of questions. We will put to them to ARITA and
a number of Insolvency Firms and seek their comment.
AICM receives questions from Credit Managers that it puts to a panel of lawyers to answer. The brief is not only to answer the question but to look into the root cause of the problem
and contribute strategic thought.
It is not unusual for customers to seek to factor their accounts
to assist with the cash flow of their businesses.
Suppliers should seek to ensure that their Terms and
Conditions of Sale (‘Terms’) provide that customers cannot
factor their accounts without their consent. Terms should
provide that customers give suppliers a security interest under
the Personal Property Securities Act 2012 (‘PPSA’) in all present
and future inventory and accounts as original collateral.
This means that customers agree that the suppliers’ security
interest includes not only sale proceeds of stock but in the
accounts of customers and so requiring customers to obtain
the suppliers’ consent to factor the accounts.
Terms should further provide a negative pledge which
specifically provides that customers agree not to grant any
security interest in any accounts as original collateral under S.
64 of the PPSA.
By creating in Terms for suppliers a security interest in
accounts as original collateral and requiring customers not
to grant a security interest for financiers and factors in such
accounts then in the event customers do factor accounts
suppliers may give customers notice of default under Terms
and seek to seize unsold stock and incorporated product from
customers. However where accounts have been factored in
default of Terms, this does not prevent financiers or factors
from registering their security interest under S. 64 of the
PPSA with the Personal Property Securities Register. Such
registration will provide priority over the pmsi security interest
of suppliers concerning sale proceeds.
Section 120 of the PPSAOn occasion a supplier may become aware that the stock
supplied to a customer has been onsold to a third party and
the third party owes an amount to the customer on the stock.
Where the supplier has a security interest in the stock in the
form of an account the supplier may provide the third party
with a notice pursuant to S. 120 (3) of the PPSA requiring that
within 5 days of receiving the notice from the supplier, the
third party is to pay to the supplier the amount that the third
party owes to the customer on the stock. In the event that the
third party fails to do so, the supplier may commence Court
proceedings for orders that the third party pay the amount
owed to the customer to the supplier on the stock.
The use of S. 120 depends upon the supplier knowing that
the supplier’s stock has been supplied by the customer to a
third party and the third party owes an amount on the stock to
the customer.
Section 64 of the Personal Property Securities Act 2012 (‘the PPSA’)The Learned Legal section provides quick tips on specific areas of law that affect credit management.
aicm Can We Help?
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 15
Credit Management
16 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
This year is coming to an end
with the Australian economy
having experienced 12 months of
divergent trends. Overall, the rate
of economic growth has slowed, the
unemployment rate edged upwards
and inflation has eased, yet business
conditions have remained buoyant
despite the government announcing
budget tightening measures to
achieve a surplus.
The influence of global
economic and market conditions
on Australia have been generally
negative this year, highlighted by
sharp falls in commodity prices
and loose monetary policy settings
throughout the industrialised world.
Persistent weakness in the Eurozone
has created a drag on the global
economy, including China which
continues to experience a slowdown
in its performance.
The good news globally has
come from the United States,
which has registered sustained
GDP growth and an improvement
in employment to levels that were
last seen before the global financial
crisis unfolded.
The year’s mixed story has seen
the Reserve Bank of Australia hold
official interest rates at a record low
level throughout the year, while in
recent months the Australian dollar
has fallen to a five-year low.
For the credit industry and the
business sector more broadly, 2015
appears set to deliver continued
mixed news.
Despite the challenges of 2014,
the business sector is looking at next
year favourably. Dun & Bradstreet’s
(D&B) latest Business Expectations
Survey reveals that the corporate
sector is upbeat on expected sales,
profits and, to a slightly lesser extent,
employment and capital expenditure.
Encouragingly, there are signs that
the non-mining side of the economy
will lift its capital expenditure plans,
although more substantial investment
levels will be necessary to see overall
growth improve next year.
Businesses will also be looking for
an improvement from the consumer
side of the economy, which has been
problematic over the last 12-months.
Despite record-low interest rates,
consumers have been cautious in their
spending and borrowing (outside of
property), with weaknesses in the
labour market, a record low pace
for wages growth, and high levels
of household debt proving major
obstacles. Unsurprisingly, given these
conditions, D&B’s Consumer Financial
Stress Index has deteriorated over the
past year as more Australians struggle
to meet their current obligation or
take on new credit.
Summing up these economic
indicators, D&B is forecasting real GDP
growth in 2015 at around 2.5 per cent,
a little below the pace that is seen to
be consistent with strong activity.
With below-trend activity, the
unemployment rate is likely to edge
higher and could well exceed 6.5 per
cent by the middle of the year. As a
result, wages growth is set to slow
Divergent trends set to trend in 2015By Stephen Koukoulas, Economic Adviser to Dun & Bradstreet
For the credit industry and the business sector more broadly,
2015 appears set to deliver continued mixed news.
Stephen Koukoulas
Credit Management
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 17
to a new record low of around two
per cent. Inflation is forecast to ease
to around 2 per cent, with prices
contained by the combination of a
subdued economy, negative global
influences and weak wages growth.
In this economic climate and with
soft revenue growth, the government
will struggle with its fiscal policy objec-
tive of returning the budget to surplus.
Meanwhile, the RBA will most likely
continue with a period of steady mon-
etary policy – although if house price
growth eases, the central bank would
be inclined to be cut interest rates.
A wildcard for the economy next
year is the Australian dollar. Reflecting
the fall in commodity prices, the
dollar has so far eased from peak
levels around $US1.10 to around
$US0.87, with further falls to a range of
$US0.75–0.80 not out of the question.
At this level, the sections of the
economy that need to begin replacing
mining sector output will benefit,
including agriculture, manufacturing
and Australia’s sizeable services
industries. This outcome is significantly
more realistic following Australia’s free
trade agreement with China.
The bottom line is that the
Australian economy is subdued and
there may need to be more policy
stimulus in 2015. While the business
sector is optimistic and economic
fundamentals stable, growth will
remain below-trend in the near-term.
On the upside, following years of
slow economic progress since the
global financial crisis, businesses
are better placed to manage soft
conditions and also exploit the
opportunities that exist. Business-
to-business payment times are the
healthiest level since 2007, fewer
operations are concerned about
cashflow, and more startups are
commencing operations.
The consumer position, however,
has not improved and a divergence
has developed between business
and consumer outlooks. Whether
businesses drag consumers out of
their funk or whether the reverse
occurs next year could be the decisive
moment for the economy. u
The bottom line is that the Australian economy is subdued and there may need to be more policy stimulus in 2015.
Improve cashflow and reduce bad debtBeing able to quickly pin-point the financial risks
and opportunities across your customer base
is critical to effective risk management
and business growth.
Contact us to arrange a demonstration.
13 23 33 portfolioinsight.dnb.com.au
Portfolio Insight
Credit Management
18 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Voluntary administration rates for
listed companies look set to soar as
directors of growing numbers of small
and medium companies in financial
dire straits, opt for administration as
a potential lifeline for the business,
rather than face personal exposure
for insolvent trading.
Recent research from CPA
Australia* has shown that nearly a
third of all ASX-listed companies were
close to insolvent in 2013, including
more than half of the smallest
500 and 28 per cent of medium
companies. And of the more than
700 small and medium companies
in serious financial distress, those in
the energy and mining, consumer
staples, industrials, health care and
utilities sectors were at greatest risk of
collapse.
Specifically, it is small and medium
companies that are facing a perfect
storm of financial woes. The capital
markets have been brutal, making it
especially challenging for small caps
to fund working capital. Coupled with
low levels of consumer confidence,
falling commodity export prices and
stagnating household incomes, it’s
no wonder many listed entities are
struggling.
Directors who have exhausted
conventional funding options are
more likely to turn to voluntary
administration, causing an uptick
in voluntary administrations in the
months ahead. ASIC statistics for July
and August 2014, recorded an 8 per
cent rise in voluntary administrations
over the previous two months. This
upward trend should continue as more
directors opt for administration as
a final resort attempt to salvage the
business when the realisation dawns
that the company no longer has the
means to continue trading.
While voluntary administration is
sometimes regarded as a precursor to
liquidation, perceptions are changing
and more companies are proactively
using this as a positive tool to save the
business.
If initiated early enough and
the directors have a considered
plan for restructuring the business,
an administration can in fact be a
valuable lifeline, giving distressed
companies the maximum chance
of survival. There are many brands
and businesses which have emerged
successfully from the process
including Darrell Lea, St Hilliers Group,
Spring Gully Foods and many more.
Administrators can implement
many options that are not readily
available to the directors, including
capitalising debt using a deed
of company arrangement or
restructuring for the purposes of a
backdoor listing.
And for directors, administration
can be a viable strategy to save the
company because of the various
benefits available to the company and
directors.
The company gains a freeze on
its creditors, giving it vital breathing
space to restructure and preserve the
value of company assets, including
trading businesses, for the benefit of
all stakeholders. And where assets
sales are part of the solution, the
administrator will in most cases be
able to achieve a better result than
the directors because of their strong
Voluntary administrations to rise as record numbers of ASX companies face collapseBy Antony Resnick, principal BRI Ferrier and Gavin Robertson, principal M+K lawyers
Gavin Robertson
Antony Resnick
Credit Management
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 19
commercial reputation and ability
to inject competitive tension into
any bidding process. Additionally,
shareholder and director approval
are not required to carry out the sale
which can save significant time and
money.
Another of the major advantages
of a voluntary administration is that
directors are protected from exposure
to claims of insolvent trading
which can leave them vulnerable to
significant personal liabilities.
The law requires directors to
protect the interests of creditors.
They can be held personally liable
if they incur debts once a company
becomes insolvent. But by placing the
company in administration, directors
are protected from further liability and
the company can then efficiently carry
out a reconstruction.
The chances of rehabilitating
a company can be significantly
improved if companies act at the
earlier stages of financial distress.
Putting a company into administration
is a finely balanced decision but at
the end of the day, erring on the
side of being proactive can allow the
directors to preserve a measure of
control over the company’s destiny
and enhance their chances of saving
it through a reconstruction that
can mean the difference between
liquidation and a new lease on life. u
*Source: CPA Australia: Audit Reports in Australia 2005 – 2013: Preliminary findings (September 2014)
ABOUT THE AUTHORSAntony Resnick is a Principal of BRI Ferrier and is a Registered and Official Liquidator with 22 years’ experience attained internationally in a variety of industries
Gavin Robertson is a Principal of M+K Lawyers with particular expertise in mergers and acquisitions, corporate finance and governance.
Another of the major advantages of a voluntary administration is that directors are protected from exposure to claims of insolvent trading...
Looking for staff? Talk to us.We understand that good Credit staff can improve cash flow, productivity and your bottom line. Our Brisbane based team of specialists can help you with all your Credit staffing requirements by delivering multi-skilled and experienced professionals quickly, to locations all across the country.
Looking for work? Talk to us.Are you looking for your next career advancement in a Credit role? We take the time to understand your professional ambitions and help you find a rewarding role, be it permanent or casual.
Job types:
(07) 3251 2222
Finding the right credit staff can be easier.
• AccountsReceivable
• Credit• Collections• Recovery
www.workpac.com/administration-jobs
www.workpac.comA Smarter Alternative
Let us help you with your next Credit placement or role.
Call Doug Ventham or Tanya Llado today!
Credit Management
20 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
27%
EDR
DSO
45%
KEY FINDINGS
Economic conditions have
affected business sentiment,
with a majority of credit managers
reporting a negative impact from
general economic conditions to their
business
Veda National Credit Manager’s SurveySince the GFC Veda’s National Credit Manager Survey has provided valuable insights into credit risk management practices. The key findings from the 2014 Survey are summarised below:
86% of credit managers
consider default information to
be either very important or critical
when making a decision to extend
credit, up from 73% in 2013. At the same
time, the proportion of participants
willing to provide credit when an
adverse is present has fallen to 34%,
the lowest level seen in three years
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
That left a net balance of 27%
of participants reporting an
increase in the number of credit
applications over the past 6 months,
a strong rise in demand compared
with a net balance of only 13% in 2013
The introduction of changes
to the Privacy Act have had
minimal impact on how new credit
risk is assessed
27%
EDR
DSO
45%
27%
EDR
DSO
45%
27%
EDR
DSO
45%
There has been a substantial
improvement in expectations
of future economic conditions, with
27% of participants expecting a
positive impact compared with only
16% in last year’s survey
Credit managers have
tightened credit policies in
response to economic conditions,
although this is expected to relax in
the next six months
There has been an overall
improvement in Days Sales
Outstanding (DSO) performance with
the average DSO at 43.89, compared
with 44.91 in 2013
82% of participants feel that
membership of an external
dispute resolution (EDR) scheme
should not be mandatory, while
75% express some level of interest
in joining an EDR scheme that has a
primary focus on privacy issues only
Despite poor business
conditions, the number of
credit applications has risen for 45%
of credit managers and has fallen for
only 18% of credit managers over the
past year. This compares to 40% and
27% in last year’s survey, for rises and
falls in credit applications respectively
Payment terms have become
shorter compared with last
year’s survey, with average payment
terms estimated at 30.61 days in 2014,
compared with 33.65 days in 2013
60% of participants feel the
introduction of the Personal
Property Securities Register (PPSR)
has benefited their business and a
higher percentage of credit managers
are now using the PPSR
MANAGING CREDIT
Economic conditions are affecting the demand for credit and are having an impact on credit management processes.
In 2013, the generally negative
economic backdrop of the previous
12 months appeared to be slowing
the growth in credit applications,
but different economic conditions
across industries and regions had
differing influences on the demand
for credit.
The economic backdrop has
improved over the 12 months
preceding the 2014 survey, although
economic conditions continue
to present challenges to many
businesses. This means that the
management of credit outstanding
is of critical importance. Participants
reported that the frequency of
account reviews has remained
broadly unchanged from last year.
On balance, Day Sales Outstanding
(DSO) has improved for many
Credit Management
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 21
participants over the past year, almost to the levels
reported in 2012, with most participants reporting little
change. This is in contrast to 2013 where, on balance, DSO
deteriorated.
Demand for credit Survey participants reported varied conditions when it
came to the demand for credit. The survey results revealed
that:
z the demand for credit was rising for 45% of
respondents, up from 40% in 2013;
z the demand for credit was falling for 18% of
respondents, down from 27% in 2013; and
z 37% reported a neutral change in the demand for credit,
up from 33% in 2013.
That left a net balance of 27% of participants reporting
an increase in the number of credit applications over
the past six months, a strong rise in demand compared
with 2013.
As such, the survey results suggest that economic
conditions are now having a more uniform impact for firms
and households across the economy – compared with last
year’s survey, fewer participants saw a decline in credit
demand, while more participants are now seeing a rise in
credit demand.
However, varied conditions are still evident within
industries with some businesses seeing an increase,
and some a decrease. On balance, businesses in the
construction, finance and insurance, wholesale trade, retail
trade, and manufacturing industries reported seeing an
increase in the number of credit applications over the past
six months, while some industries with a small number
of respondents reported seeing a decrease, including
agriculture, utilities, government, and property and
business services industries.
It is also informative to consider the change in the net
results from 2013 to 2014. The net proportion of survey
respondents reporting an increase in credit applications
rose from 13% in 2013 to 27% in 2014. This suggests that the
extent to which the demand for credit is rising has gained
momentum since the last survey, when averaged across all
survey respondents.
This improvement in credit demand was seen across
most major industries, with the net balance of participants
reporting an increase in credit applications in the
construction, finance and insurance, manufacturing, mining,
retail trade, and wholesale trade industries. The net balance
reporting a positive change increased in all of these
industries except for mining, compared with last year’s
survey.
Chart 5.1: Net balance of participants reporting an increase in credit applications
These results are broadly consistent with what Veda has
seen on its bureau. Following a fall in trade credit enquires
in late 2013, growth in the number of trade credit enquires
picked up in early 2014, with growth in trade credit
enquiries still remaining positive in mid-2014.
Chart 5.2: Change in the number of credit applications over the last six months
Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)
Chart 5.1
Construction
12%
30%
13%
22%26%
30%
6%
18%
50%
31%
-10%-15%
Financeand
Insurance
Manufacturing Retailtrade
Wholesaletrade
Mining
-20
-10
10
0
20
30
40
50
2013 2014
Chart 5.1: Net balance of participants reporting an increase in credit applications
Significantdecrease
Moderatedecrease
Neutral
Moderateincrease
Significantincrease
0 10 20 30 40
7%
4%
20%
14%
33%
37%
29%
35%
11%
10%
2013
2014
Chart 5.2: Change in the number of credit applications over the last six months
0 10 20 30
2013
2014
13%
27%
Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)
0 5 353025201510
5000+
3001 to 5000
1001 to 3000
501 to 1000
251 to 500
151 to 250
101 to 150
51 to 100
1 to 50
4%
2%
5%
4%
14%
7%
3%
8%
11%
11%
11%
9%
7%
8%
12%
17%
33%
33%
2013
2014
Chart 5.4: Amount of new accounts opened in the last six months
Chart 5.1
Construction
12%
30%
13%
22%26%
30%
6%
18%
50%
31%
-10%-15%
Financeand
Insurance
Manufacturing Retailtrade
Wholesaletrade
Mining
-20
-10
10
0
20
30
40
50
2013 2014
Chart 5.1: Net balance of participants reporting an increase in credit applications
Significantdecrease
Moderatedecrease
Neutral
Moderateincrease
Significantincrease
0 10 20 30 40
7%
4%
20%
14%
33%
37%
29%
35%
11%
10%
2013
2014
Chart 5.2: Change in the number of credit applications over the last six months
0 10 20 30
2013
2014
13%
27%
Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)
0 5 353025201510
5000+
3001 to 5000
1001 to 3000
501 to 1000
251 to 500
151 to 250
101 to 150
51 to 100
1 to 50
4%
2%
5%
4%
14%
7%
3%
8%
11%
11%
11%
9%
7%
8%
12%
17%
33%
33%
2013
2014
Chart 5.4: Amount of new accounts opened in the last six months
Chart 5.1
Construction
12%
30%
13%
22%26%
30%
6%
18%
50%
31%
-10%-15%
Financeand
Insurance
Manufacturing Retailtrade
Wholesaletrade
Mining
-20
-10
10
0
20
30
40
50
2013 2014
Chart 5.1: Net balance of participants reporting an increase in credit applications
Significantdecrease
Moderatedecrease
Neutral
Moderateincrease
Significantincrease
0 10 20 30 40
7%
4%
20%
14%
33%
37%
29%
35%
11%
10%
2013
2014
Chart 5.2: Change in the number of credit applications over the last six months
0 10 20 30
2013
2014
13%
27%
Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)
0 5 353025201510
5000+
3001 to 5000
1001 to 3000
501 to 1000
251 to 500
151 to 250
101 to 150
51 to 100
1 to 50
4%
2%
5%
4%
14%
7%
3%
8%
11%
11%
11%
9%
7%
8%
12%
17%
33%
33%
2013
2014
Chart 5.4: Amount of new accounts opened in the last six months
The economic backdrop has improved over the 12 months preceding the 2014 survey, although economic conditions continue to present challenges to many businesses.
Credit Management
22 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Reflecting the broad nature of survey participants,
around one third of participants have opened less than
50 accounts in the last six months, while a further 46%
of participants opened between 50 and 500 accounts.
The remaining 21% of participants opened more than 500
accounts in the last six months.
This is broadly similar to the 2013 survey, although there
are now slightly more organisations opening between 50
and 500 accounts, and slightly fewer opening more than
500 accounts in the last six months.
Chart 5.4: Amount of new accounts opened in the last six months
Importance of default information Default information continues to be very important when
making a decision to extend credit.
In the 2014 survey, 87% of participants reported that
default information was either very important or of critical
importance when making a decision to extend credit, with a
further 10% reporting it as important.
There has been a substantial increase in those
considering default information to be either very
important or of critical importance. Compared with the
2013 survey, 73% of participants reported that default
information met these criteria, with a further 22%
reporting it as important. Some credit managers noted
that default information is being used as a preventative
measure to help manage additional risk. The increased
importance of default information is consistent with
elevated perceptions of risk amid the difficult economic
conditions still prevailing.
Chart 5.5: The importance of default information when making a decision to extend credit
In terms of the type of default or adverse information
considered as important to the credit decision process,
external administration or bankruptcy, director or
proprietor default, court writs and actions, and company/
business default, were all felt to be important by survey
respondents.
Every year, survey participants have continually
reported the importance of each type of default or adverse
information, and responses have varied by only a small
amount. Almost all participants indicate that every type of
default or adverse information is important.
Chart 5.6: Type of default or adverse information considered as important when considering extending credit
The 2014 survey reveals that the proportion of
participants who would provide credit if there was an
adverse present was at 34%. Over the previous three
years, the proportion of participants providing credit in
the presence of adverse increased significantly from just
above 30% in 2011 to 51% in 2012, and to 64% in 2013. The
proportion of participants willing to provide credit when an
adverse is present has therefore fallen to the lowest level
seen in three years. This is a reflection that credit policies
have continued to become tighter in 2014, and is consistent
with higher perceptions of risk among credit managers as
well as the increasing importance being placed on default
information reported earlier.
Chart 5.6: Type of default or adverse information considered as important when considering extending credit
Other
Externaladministrationor bankruptcy
Directoror proprietor
default
Court writsand actions
Company/business default
0 20 40 60 80 100
4%
96%
86%
98%
94%
Chart 5.5: The importance of default information when making a decision to extend credit
Critical
Veryimportant
Important
Slightlyimportant
Notimportant
0 10 20 30 40 50
34%
39%
39%
47%
22%
10%
4%
2%
1%
1%
2013
2014
Chart 5.6: Type of default or adverse information considered as important when considering extending credit
Other
Externaladministrationor bankruptcy
Directoror proprietor
default
Court writsand actions
Company/business default
0 20 40 60 80 100
4%
96%
86%
98%
94%
Chart 5.5: The importance of default information when making a decision to extend credit
Critical
Veryimportant
Important
Slightlyimportant
Notimportant
0 10 20 30 40 50
34%
39%
39%
47%
22%
10%
4%
2%
1%
1%
2013
2014
Chart 5.1
Construction
12%
30%
13%
22%26%
30%
6%
18%
50%
31%
-10%-15%
Financeand
Insurance
Manufacturing Retailtrade
Wholesaletrade
Mining
-20
-10
10
0
20
30
40
50
2013 2014
Chart 5.1: Net balance of participants reporting an increase in credit applications
Significantdecrease
Moderatedecrease
Neutral
Moderateincrease
Significantincrease
0 10 20 30 40
7%
4%
20%
14%
33%
37%
29%
35%
11%
10%
2013
2014
Chart 5.2: Change in the number of credit applications over the last six months
0 10 20 30
2013
2014
13%
27%
Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)
0 5 353025201510
5000+
3001 to 5000
1001 to 3000
501 to 1000
251 to 500
151 to 250
101 to 150
51 to 100
1 to 50
4%
2%
5%
4%
14%
7%
3%
8%
11%
11%
11%
9%
7%
8%
12%
17%
33%
33%
2013
2014
Chart 5.4: Amount of new accounts opened in the last six months
Credit Management
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 23
Chart 5.7: Providing credit when an adverse is present
Payment terms Most organisations request 30 days for payment.
81% of organisations represented in the survey provide
30 day payment terms, 27% request payment in 60 days,
and 58% operate with COD or other payment terms. The
average payment term, as weighted by the responses
shown in Chart 5.8 and factoring in non-standard responses
in the other category where possible, was estimated at
30.61 days in 2014 compared with 33.65 days in 2013. This
suggests that there has been an increase in the number
of credit managers requesting shorter payment terms,
reflecting the tightening of credit policies over the past six
to 12 months.
The survey results show that the standard payment
terms for most credit managers remains 30 days.
Chart 5.8: Payment terms offered
DSO activity Average DSO amongst survey participants has improved
over the past year, almost returning to the levels seen in
2012.
DSO showed an improvement in 2012, decreasing
from 44.89 in 2011 to 43.22 in 2012. In 2013, the average
number of DSO increased to 44.91. In 2014, the average
number of DSO has subsequently reduced to 43.89.
This improvement may be reflective of some improved
economic conditions for some businesses recently. It
may also be a reflection of the finding reported earlier
that fewer applications are now being approved when an
adverse is present.
Chart 5.9: Average current DSO performance (days)
Indeed, the survey findings on the proportion of
participants reporting a change in DSO are also consistent
with an overall improvement in DSO performance in 2014.
The proportion of participants reporting deterioration
in their DSO activity fell by 11 percentage points in 2014
while there was an increase of seven percentage points for
those reporting an improvement, compared with 2013. The
changes in the 2014 survey suggest that, on balance, DSO
performance improved in 2014.
Chart 5.10: DSO change over the past six months (%)
Key indicators of payment performance As in previous years, DSO is still the most commonplace
KPI for account receivables performance. This is closely
followed by past overdue, and accounts in each period. In
2013, bad and doubtful debts was the third most important
KPI, although the importance of accounts in each period
has increased substantially.
Chart 5.7: Providing credit when an adverse is present
Chart 5.7
2011 2012 2013 2014
0
10
20
60
50
40
30
70
31%
51%
64%
34%
Other
60 days
30 days
14 days
7 daysor less
No terms/COD
0 20 40 60 10080
25%
26%
24%
27%
73%
81%
16%
24%
19%
22%
24%
34%
2013
2014
Chart 5.7: Providing credit when an adverse is present
Chart 5.7
2011 2012 2013 2014
0
10
20
60
50
40
30
70
31%
51%
64%
34%
Other
60 days
30 days
14 days
7 daysor less
No terms/COD
0 20 40 60 10080
25%
26%
24%
27%
73%
81%
16%
24%
19%
22%
24%
34%
2013
2014
Chart 5.9: Average current DSO performance (days)
Chart 5.9
2011 2012 2013 2014
37
41
39
43
45
47
44.89%
43.22%
44.91%
43.89%
Deteriorated
Improved
No
0 10 20 30 40 6050
29%
18%
19%
26%
52%
56%
2013
2014
Chart 5.10: DSO change over the past six months (%)0 10 20 30 40 50 60 70
Degree to which yourROT security interests
Other
Dollars in each period
Bad and doubtful debts
Accounts in each periode.g. current, 30 days,
60 days, etc.
Past overdue
Day Sales Outstanding (DSO)
61%
66%
69%
51%
34%
12%
4%
3%
Chart 5.11: 2013 KPIs for account receivables/payment performance (%)
Chart 5.9: Average current DSO performance (days)
Chart 5.9
2011 2012 2013 2014
37
41
39
43
45
47
44.89%
43.22%
44.91%
43.89%
Deteriorated
Improved
No
0 10 20 30 40 6050
29%
18%
19%
26%
52%
56%
2013
2014
Chart 5.10: DSO change over the past six months (%)0 10 20 30 40 50 60 70
Degree to which yourROT security interests
Other
Dollars in each period
Bad and doubtful debts
Accounts in each periode.g. current, 30 days,
60 days, etc.
Past overdue
Day Sales Outstanding (DSO)
61%
66%
69%
51%
34%
12%
4%
3%
Chart 5.11: 2013 KPIs for account receivables/payment performance (%)
Credit Management
24 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
89%
87%
86%
71%
used ASIC information;
used company or business credit reports;
used information from an application form; and
used directors/proprietors histories and their other business relationships.
Proprietor or directorfinancial information
(e.g. income, expenses)
Property and assets ofthe proprietor or director
Property and assets ofthe company/business
PPSR grantorsearch results
Company orbusiness financial
information (e.g. revenue,profit, expenses, etc.)
Credit scores
Trade paymentinformation/references
Directors’ / proprietors’credit histories andtheir other business
relationships
Information froman application form
Company or businesscredit reports
ASIC information
0 20 40 60 80 100
30%
24%
32%
28%
38%
41%
33%
35%
49%
48%
54%
61%
56%
66%
75%
71%
84%
86%
82%
87%
80%
89%
2013
2014
Chart 5.12: Information types used to make decisions about credit policies for new customers (%)
89%
87%
86%
71%
used ASIC information;
used company or business credit reports;
used information from an application form; and
used directors/proprietors histories and their other business relationships.
Proprietor or directorfinancial information
(e.g. income, expenses)
Property and assets ofthe proprietor or director
Property and assets ofthe company/business
PPSR grantorsearch results
Company orbusiness financial
information (e.g. revenue,profit, expenses, etc.)
Credit scores
Trade paymentinformation/references
Directors’ / proprietors’credit histories andtheir other business
relationships
Information froman application form
Company or businesscredit reports
ASIC information
0 20 40 60 80 100
30%
24%
32%
28%
38%
41%
33%
35%
49%
48%
54%
61%
56%
66%
75%
71%
84%
86%
82%
87%
80%
89%
2013
2014
Chart 5.12: Information types used to make decisions about credit policies for new customers (%)
Chart 5.9: Average current DSO performance (days)
Chart 5.9
2011 2012 2013 2014
37
41
39
43
45
47
44.89%
43.22%
44.91%
43.89%
Deteriorated
Improved
No
0 10 20 30 40 6050
29%
18%
19%
26%
52%
56%
2013
2014
Chart 5.10: DSO change over the past six months (%)0 10 20 30 40 50 60 70
Degree to which yourROT security interests
Other
Dollars in each period
Bad and doubtful debts
Accounts in each periode.g. current, 30 days,
60 days, etc.
Past overdue
Day Sales Outstanding (DSO)
61%
66%
69%
51%
34%
12%
4%
3%
Chart 5.11: 2013 KPIs for account receivables/payment performance (%)Chart 5.11: 2013 KPIs for account receivables/payment performance (%)
Types of information used to help make decisions about credit policies The types of information most frequently used by survey
participants in their credit decision-making process were as
follows:
In addition to those key information types, the results
showed that credit managers also used a broad range of
other information types in their decision making.
These results have generally remained similar to prior
years. However, ASIC information and credit scores have
become increasingly important in the last two years, up
13 percentage points and 17 percentage points since 2012,
respectively. Directors’ or proprietors’ credit histories
and property and assets of companies have become
less important, down 10 percentage points and eight
percentage points since 2012, respectively. It is possible
that the changes to the Privacy Act have caused the
decline in the importance of director information. This
change will need to be monitored closely over the coming
year.
Chart 5.12: Information types used to make decisions about credit policies for new customers (%)
Account reviews Account review frequency
Account review frequency has remained broadly
unchanged from 2013. In 2014, 27% of respondents
conducted annual reviews of accounts, 12% conducted
quarterly reviews, and 7% conducted bi-annual reviews.
55% of credit managers conduct reviews at the request
of the customer, or have some other review arrangement.
These proportions were similar to those in 2012 and 2013.
Chart 5.13: When to complete account reviews (%)
Account review frequency has remained broadly unchanged from 2013.
At customer request/Other
Annually
Bi-annually
Quarterly
0 10 20 30 40 50 60
54%
55%
5%
7%
24%
27%
17%
12%
2013
2014
Chart 5.13: When to complete account reviews (%)
I do not usetriggers to
review accounts
PPSR alerts onnew registrationsagainst a grantor
Score movement
Tradepayment report
Other
Amountoutstanding
External alertse.g. external
administration,court actions
Past due
0 20 40 60 80 100
4%
7%
8%
9%
11%
10%
18%
21%
34%
27%
54%
65%
63%
65%
71%
80%
2013
2014
Chart 5.14: Triggers used to review accounts
Credit Management
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 25
creditnetwork.com.au
Proudly sPonsored by
Access a world of resources for credit professionals. See photos & presenter slides from the AICM National Conference.
creditprofessionals
online when ever you need support or info.
Connect with
Triggers for reviews Past due is the main trigger for conducting reviews.
80% of survey participants reported that a trigger used
to review accounts is when they are past due, while
65% reported the use of external alerts such as external
administration or court action, and 65% reported the use of
amount outstanding.
While the top three triggers for conducting reviews
remained the same from last year, some changes were
recorded in how common it was for particular triggers to
be used. Notably, more participants reported using amount
outstanding (up from 54% to 65% of participants), while
more participants reported using past due (up from 71% to
80%) as triggers. u
Chart 5.14: Triggers used to review accounts
Account review frequency has remained broadly unchanged from 2013.
At customer request/Other
Annually
Bi-annually
Quarterly
0 10 20 30 40 50 60
54%
55%
5%
7%
24%
27%
17%
12%
2013
2014
Chart 5.13: When to complete account reviews (%)
I do not usetriggers to
review accounts
PPSR alerts onnew registrationsagainst a grantor
Score movement
Tradepayment report
Other
Amountoutstanding
External alertse.g. external
administration,court actions
Past due
0 20 40 60 80 100
4%
7%
8%
9%
11%
10%
18%
21%
34%
27%
54%
65%
63%
65%
71%
80%
2013
2014
Chart 5.14: Triggers used to review accounts
Account review frequency has remained broadly unchanged from 2013.
At customer request/Other
Annually
Bi-annually
Quarterly
0 10 20 30 40 50 60
54%
55%
5%
7%
24%
27%
17%
12%
2013
2014
Chart 5.13: When to complete account reviews (%)
I do not usetriggers to
review accounts
PPSR alerts onnew registrationsagainst a grantor
Score movement
Tradepayment report
Other
Amountoutstanding
External alertse.g. external
administration,court actions
Past due
0 20 40 60 80 100
4%
7%
8%
9%
11%
10%
18%
21%
34%
27%
54%
65%
63%
65%
71%
80%
2013
2014
Chart 5.14: Triggers used to review accounts
The full survey can be found at www.creditnetwork.com.au
26 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Privacy
In Brief: Recent changes to the Privacy ActThe Privacy Amendment (Enhancing
Privacy Protection) Act 2012 was
signed into law on 12 December 2012
– and the changes made by that Act
commenced on 12 March 2014. It was
the most significant reform of the
Privacy Act 1988 since the privacy
regime was extended to cover private
sector businesses in 2001.
The 10 National Privacy
Principles were replaced with
13 Australian Privacy Principles
(APPs). In addition, the regulator
(the Privacy Commissioner) has
published extensive legally binding
APP guidelines. With respect to
“credit reporting”, the provisions in
Part IIIA of the Privacy Act which
deal with “credit reporting” have
been completely replaced with a
new Part IIIA that enables a more
“comprehensive” credit reporting
system and imposes more restrictions
and obligations on credit providers
(which includes trade credit
providers), credit reporting bodies
and others who deal with credit
related information (such as debt
collectors). A new legally binding
Credit Reporting Privacy Code (CR
code) has also been published.
In addition, the changes
introduced a significant new civil
penalty regime and the regulator,
has been given significant additional
powers, including the power to
accept and enforce Enforceable
Undertakings.
Key changes: the APPsPrivacy by design: APP 1 introduces
a positive obligation for businesses
to take reasonable steps in the
circumstances to have and implement
practices, procedures and systems
that will ensure compliance with the
APPs and enable them to deal with
inquiries or complaints about their
compliance. This is often referred to
as “privacy by design”. Businesses
may be able to demonstrate this,
for example, by developing and
maintaining training programs,
staff manuals, standard procedures
and other relevant documents that
demonstrate awareness of, and
compliance with, their obligations.
Businesses should also be able to
demonstrate that their systems, such
as their data management systems,
will enable them to comply with their
obligations.
This requirement for an internal
framework is perhaps the biggest
change and the one most often
overlooked.
In addition to the internally
documented practices, businesses
must update (and make publicly
available) a clearly expressed
external privacy policy about their
management of personal information
(and it must be kept up-to-date
policy)..
One way to think of this, is that
your external privacy policy explains
to the public and your customers
what you will do to protect their
privacy. On the other hand, your
internal framework tells your staff how
your privacy compliance program
will be implemented, monitored and
managed.
New potential liability for
overseas disclosures: There are
new restrictions on disclosing
personal information to overseas
recipients (which includes allowing
someone overseas to access personal
information that resides on systems
located in Australia). Businesses may
be deemed to be responsible for
(and held liable for) any breaches by
overseas recipients.
Privacy AwarenessBy Debra Kruse and Michael Hartman
Michael Hartman
Debra Kruse
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 27
Privacy
Increased notification
obligations: When collecting
personal information (whether
directly from an individual or from
a third party), businesses must take
reasonable steps in the circumstances
(if any) to notify additional matters
to individuals – or to otherwise
ensure individuals are aware of the
additional matters. These include
information about the business’
access, correction and complaints
processes (replicating much of what
is contained in their external APP
privacy policy), and also the location
of any likely overseas recipients of
individuals’ information.
Direct marketing: There are
additional restrictions and conditions
on direct marketing. These include
telling the individual, if they request,
the source of their information
used to direct market (when the
information is not collected directly
from the individual – for example,
when businesses buy marketing lists)
and conditions relating to opt-out
mechanisms.
Corrections: There are new
obligations in relation to correcting
personal information if either
the business is satisfied that the
information is inaccurate, out-of-date,
incomplete, irrelevant or misleading,
or the individual requests correction.
A business must notify others (that it
had previously provided the personal
information to) of any correction if the
individual asks them to.
Key changes: Part IIIA and the credit reporting systemPersonal information in the
context of commercial credit:
The new Part IIIA applies to credit
providers, including commercial
lenders and trade credit providers
who provide credit to individuals
(sole traders, partners, trustees)
or who take guarantees from
individuals for credit provided
to someone else (for example,
a director’s guarantee for credit
provided to a company).
We’ve got you covered
www.cosl.com.au
02 9273 8455
Under recent privacy law reforms, credit providers who want access to consumer credit reports must join an external dispute resolution (EDR) scheme recognised by the Office of the Australian Information Commissioner (OAIC). The Credit Ombudsman Service Limited (COSL) has been recognised by the OAIC.
An exemption from the EDR requirement until 11 March 2015 has meant that commercial credit providers have not had to join an EDR scheme. With that date fast approaching, commercial credit providers should be considering their next steps. Any commercial credit provider can join COSL.
If your core business is not related to financial services, we can also offer you a tailored membership option at a capped fee. The types of complaints we can deal with is also limited to privacy-related complaints. Contact us for further information.
Access to consumer credit
history: The types of consumer credit
related information that can be held
by a regulated credit reporting body
has been expanded. If a commercial
lender or trade credit provider
wants to access an individual’s
consumer credit history (from a
regulated credit reporting body) to
assist in their commercial lending
decision, the lender or trade credit
provider will be subject to all of the
restrictions in Part IIIA that include
highly prescriptive rules about the
collection, use and disclosure of
credit related personal information
by and to credit providers and credit
reporting bodies.
From both a reputational and
regulatory risk perspective it is
important you understand the privacy
management practices of those from
whom you obtain credit reports. In
particular, you need to understand if
any consumer credit history (including
information derived from such
information such as credit scores) is
included in credit reports that you get.
If so, certain obligations will apply to
your handling of that information.
Privacy by design: Similar to
APP 1, Part IIIA introduces a positive
obligation for commercial lenders
and trade credit providers to take
reasonable steps in the circumstances
to have and implement practices,
28 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
procedures and systems that will
ensure compliance with Part IIIA,
the new Credit Reporting Code
of Conduct and the Regulations
made under the Privacy Act and
enable them to deal with inquiries or
complaints about their compliance.
In addition to the privacy policy
required under APP1, commercial
lenders and trade credit providers
must have a clearly expressed and
up-to-date “credit reporting policy”
about their management of credit
related personal information (this can
be combined with the APP1 privacy
policy)
Mandatory EDR scheme
membership: This is a new
requirement. From 12 March 2015, a
commercial lender or a trade credit
provider will need to be a member
of a recognised external dispute
resolution scheme (EDR scheme) to
get consumer credit reports from
regulated credit reporting bodies.
A temporary exemption from this
requirement is currently in place as
a result of an exempting Regulation,
but will expire on 12 March 2015 unless
a further Regulation is made prior to
that date that has the effect of making
the exemption permanent.
It is not yet clear whether a
permanent exemption will be
granted, so it may be wise to consider
registering your interest to become
an EDR scheme member sooner
rather than later, as there may be a
last minute ‘rush’ of applications if
the final decision is that a permanent
exemption will not be put in place.
AICM members were recently
advised that Raj Venga, CEO
and Ombudsman of the Credit
Ombudsman Service Limited
(COSL), has announced an offer of
“Commercial Privacy Act Participant”
membership category for AICM
members who provide commercial
credit, but whose core business is not
the provision of financial services. This
will apply to businesses that extend
“trade credit” terms in connection
with their core business of providing
goods or services. The offer from
COSL will enable those businesses to
become members of COSL for a fixed
annual cost of $850 (inc GST) in the
first year, and $650 (inc GST) annually
thereafter. There will be no additional
COSL costs for handling complaints
made. You can register your
interest in this offer at https://www.
surveymonkey.com/s/AICMCOSL1
Additional notifications
obligations: In addition to the
requirements of the APPs, commercial
lenders and trade credit providers
must also notify individuals of
other matters, or otherwise ensure
individuals are aware of those matters,
which generally replicate the matters
set out in their “credit reporting
policy” about their collection and
handling of credit related personal
information. When a commercial
lender or trade credit provider intends
to get a consumer credit report,
the individual must be notified of
(or otherwise made aware of) the
name and contact details of the
relevant credit reporting body.
Access, corrections and
complaints: There are increased
obligations (over and above the
APP requirements) that apply to
access, corrections and complaints
with respect to certain credit related
personal information. The main
feature of the new correction and
complaint provisions is the ‘first-
contact” obligation, where the
obligation to resolve a correction
request or complaint lies with
the first credit reporting body or
credit provider that the individual
contacts.
Audit: Credit reporting bodies
have an obligation to monitor and
audit their customers’ compliance
with key elements under Part IIIA.
Key changes: penalties and powers Civil penalty: The Federal Court,
hearing proceedings brought by the
Privacy Commissioner, will have the
power to impose civil penalties of
up to $1.7 million for a breach by a
corporation of specific provisions of
Part IIIA or, more generally, for serious
or repeated interferences with the
privacy of an individual under the
APPs.
Compensation: If a court finds that
a business has breached a civil penalty
provision, any individual affected by
that breach can apply to the court for
compensation for any loss or damage
suffered (which can include injury to
the individual’s feelings or humiliation,
in addition to monetary loss).
Assessments: The Privacy
Commissioner can conduct an
assessment of whether personal
information held by a business is
being managed and maintained in
according to the APPs and Part IIIA
(which includes the Credit Reporting
Code of Conduct).
Investigations: The Privacy
Commissioner can initiate and
conduct investigations of a business’s
compliance with the Privacy Act on
its own initiative or as a result of a
complaint made by an individual.
Privacy
If a court finds that a business has breached a civil penalty provision, any individual affected by that breach can apply to the court for compensation for any loss or damage suffered (which can include injury to the individual’s feelings or humiliation, in addition to monetary loss).
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 29
At the conclusion of an investigation, the Privacy
Commissioner can make determinations that include
ordering compensation to individuals and ordering a
business to take specific action to prevent further repeats
of the acts or practices investigated.
Enforceable Undertakings: Significantly, the Privacy
Commissioner can accept Enforceable Undertakings
from businesses that they will take, or refrain from taking,
specific action to ensure compliance with the Privacy
Act, or to ensure that, in the future, they do not interfere
with the privacy of an individual. The undertakings are
enforceable by the Privacy Commissioner on application to
the Federal Court.
Note: There is no mandatory obligation to report
data breaches to either individuals or to the Privacy
Commissioner – yet. A Bill was tabled in tabled in May
2013 to make breach reporting mandatory. The Bill lapsed
when the federal election was called. However, there
appears to be bi-partisan support for the Bill and it may
be re-introduced into parliament and passed in the not too
distant future. u
This briefing was prepared by Debra Kruse and Michael Hartman, Principal Consultants, Inflexion Point Consulting.
www.inflexionpoint.com.au You can contact Debra at [email protected], or Michael at [email protected]
FOOTNOTE:1. Registration of interest does not commit you to membership. Your
registration will be followed up in early 2015 if it becomes clear that the temporary exemption will not be extended.
Privacy
Credit Managers: what you should do now As a result of the changes to the Privacy Act,
credit managers should consider whether their
credit application and privacy notice documents
meet the new requirements. For example, if you
obtain reports about individuals (credit applicants
or their guarantors) from credit reporting bodies
that include any information about the individual’s
consumer credit activities (or any information
derived from consumer credit activities, such
as credit scores), do your consents meet the
regulatory requirements?
Some other things to consider, (even if you
don’t obtain any consumer credit reports) - does
your credit function have:
z external policies and notifications that meet
the required transparency standard?;
z internal policies and procedures to ensure that
your use, disclosure and protection of personal
information meet the regulatory requirements?
And what about beyond the credit function?
The new Privacy Act requirements generally apply
to all personal information collected and held by
businesses. Do other functions in your business
have appropriate measures in place to meet the
new requirements?
As Australia’s only National PPSA advisers (it’s all we do), EDX understands the implications of the PPSA for you and your business.
We offer practical, no nonsense advice on how to deal and comply with the PPSA.
Of the many compliance reviews we’ve performed, more than 95% fail to appropriately or completely comply with the PPSA. At best this may limit the scope of the security interest and at worst invalidate the security interest altogether.
EDX’s PPSA Compliance Reviews are designed to review your PPSA policies and procedures and to identify anomalies in your application of the PPSA.
If you think you’re complying try our Free Desktop Compliance Review – we’ll conduct a high level review of your registrations and let you know how compliant you really are.
To request a Desktop Review or further advice on the PPSA please contact our National Office on – (03) 9866 4559 or through our website www.edxppsr.com.au
Complying with the Personal Property Securities Act?Are you really sure?
30 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
PPSA
trying to register when you start
to get worried about the account.
If your customer is using your
goods as inventory you lose the
super priority of your Purchased
Money Security Interest (PMSI)
for all goods delivered prior to
registration. If your customer is
not using your goods as inventory,
you would still only get the PMSI
priority for goods delivered during
the 15 business days prior to
registration on the PPSR.
2. The “6 month rule” – most people
are unaware that the Corporations
Act was changed to take account
of the PPSA, to prevent companies
with knowledge of imminent
insolvency fraudulently granting
security to related or preferred
parties. The rule can also catch the
innocent. The (abridged) rule is
that if (i) you register your security
interest more than 20 business
days after the security agreement
is created and (ii) your customer
becomes insolvent within 6 months
of registration then your security
interest will vest in the insolvent
company. In other words, you will
lose your goods. This means that
if you delay registration until you
become concerned about your
customer, you are taking on a 6
month risk with your highest risk
customer on the other side.
3. The hidden cost of monitoring –
if you do decide on credit limits as
your registration criteria, someone
in your organisation has got to
monitor this. You may have to
redesign your business processes
to tightly monitor your sales team
so that customers cannot go
above their limit. There may be a
direct cost in lost sales and there
is certainly the hidden staff costs
of monitoring the credit limits in
this way. And in any event, doesn’t
your staff have better things to do?
4. The scourge of unfair preference
claims – your team has done a
fantastic job and collected lump
sums on account from your
customer in the months leading
up to liquidation. It is then that the
liquidator comes knocking to claw
some of that money back under
the unfair preference regime in the
Corporations Act. If the claim is for
$30,000 or less, it is probably not
worth fighting in court. A properly
registered security interest is a
very good line of defence.
5. And then there are “shoot
throughs” – businesses with a
“long tail” of low value debtors will
be well aware of businesses which
sell their assets and disappear
without settling their debts. Even
if the location of the proprietor is
known, it is often not economic
to pursue him/her. This is where
registration can sometime provide
an unexpected benefit. If the
business is being sold it is common
practice for the purchaser’s
solicitor to complete a PPSR
search to see if the business assets
are encumbered. If your interest
is disclosed, the vendor has no
choice but to approach you with a
discharge request – which you will
gladly provide on full settlement of
your account.
6. Ledger integrity – is a task often
left until tomorrow (which never
comes). Everyone knows that
having accurate legal names for
customers and signed terms of
trade is best practice and increases
the chance of successful legal
action against slow payers. But it is
a task we often put off, particularly
for businesses with large ledgers
and mature companies who have
been trading for many years.
There may soon be no choice. As
Australia’s concern with terrorism
increases it is likely that the scope
The six reasonsBy Kim Powell
Kim Powell
Many businesses are reluctant to
register all their customers on the
PPSR, due to cost. The reluctance
may increase if they need to register
multiple security interests against
each customer to obtain the desired
level of protection.
This is understandable; if you have
5,000 customers, each requiring
dual registrations, the Registrar’s
fees alone are $80,000 for 7 year
registrations – and more if you opt for
a longer period. A typical response
is to select a credit limit and only
register customers with a higher limit,
or actual exposure.
If this is your policy, there are 6
reasons to reconsider. Let’s work
through an example where the
business has chosen not to register
against any customers with a credit
limit of less than $30,000.
1. Overtrading – it is well known
that overtrading is a primary
cause of insolvency. The customer
with a $25,000 limit manages
to get $75,000 of goods before
being placed on stop credit. Six
weeks later the company goes
into administration. It is no use
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 31
PPSA
of anti-money laundering and
counter terrorism initiatives will
be broadened to include many
more companies. At that point
“knowing your customer” will
become mandatory. Why wait for
the inevitable? Your PPSR project
requires you to have accurate
customer details and your ledger
integrity will be greatly improved
as a result.
Please do not think, “It won’t
happen to me.” The following example
demonstrates the risks of relying on
credit management alone, rather than
the PPSR.
Risky business: A true storyWe had one very frustrated business
approach us after losing out twice
with the same customer.
The business had failed to
register against its customer, but
was otherwise pretty good at
credit control. The customer had
been placed on “stop credit” and a
payment was offered to secure the
next delivery. The goods had been
delivered and had not even been
cleared from the loading dock when
receivers were appointed. The cheque
was dishonoured, the vendor could
not get any goods back and was
understandably annoyed.
Regrettably, they had no one
to blame but themselves. To make
matters worse, if the customer now
goes into liquidation, there is the risk
of earlier lump sum payments being
clawed back as preferences.
Striking the right balanceIf businesses wish to achieve a higher
level of protection after reading this,
there is normally some remedial work
that will be necessary on existing
customers, particularly to overcome the
adverse impact of the “six month rule”.
There will always be risk
in business and good credit
management is all about managing
the risk involved in extending credit.
The PPSA can be an excellent risk
management tool if used properly.
We hope this article will be of some
assistance when deciding your
registration policy. u
ABOUT THE AUTHOR: Kim Powell is co-founder of EDX a national firm specialising in PPS registration and consulting. EDX has its roots in New Zealand where similar legislation was enacted in 2002. In his earlier career, Kim has been an insolvency practitioner, headed the commercial credit recovery division of a major bank, as well as a period as a business banker advancing funds on a secured basis. This background made the PPSA a natural area of interest. Kim moved to Australia in 2010 to lead EDX’s entry in to the local market and is based in Melbourne Contact Kim: [email protected] or 0410 475 100.
AustrAliA wide
M a r k e t l e a d i n g l e g a l
Trade CrediT SpecialiStS
australia Wide
legal Recovery
Disputed Debts
privacy act advice
credit agreements
ppSa claims & advice
preference Defences
resultslegal.com.au 1300 757 534 legal recovery coMMercial disputes insolvency law
32 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
PPSA
The recent case of Re Arcabi Pty
Ltd; ex parte Theobald [2014] WASC
310, is an interesting insight as to
how the Courts will interpret the
interaction between the rights of
secured creditors under the Personal
Property Securities Act 2009 (the
Act) and the rights of an external
controller to a lien over property
(whether or not the subject of
such a security). It also clarifies the
application of the Act to bailments
and consignments.
FactsArcabi stored and sold rare coins and
bank notes (Goods). They were stored
in Albany WA (the Premises). The
Goods were owned by third parties
(Investors).
Arcabi defaulted on its loan
from Westpac (the Bank) and the
question for consideration was
whether the Bank’s receiver could
take the Investor’s Goods and sell
them and apply the proceeds to
reduce the indebtedness of Arcabi to
the Bank.
The Goods were of two types.
Firstly “Mixed Storage Goods”: the
arrangement here was that these
Goods were stored only, and the
Investors owning the Mixed Storage
Goods were charged a storage fee
and issued with an invoice.
The second type were
“Consignment only Goods”. These
Goods were part of an arrangement
between Arcabi and some Investors
whereby the Investor in each instance
requested Arcabi to sell the Goods on
consignment to third parties.
BailmentThe Court concluded that the
arrangement in relation to the Mixed
Storage Goods was a bailment. By way
of background, a bailment is where
a bailor delivers goods to a bailee
upon a promise, express or implied,
that they will be delivered back to the
bailor, or dealt with in a stipulated
way. If the bailment secured payment
or performance of an obligation, then
it gave rise to a security interest under
s 12 of the Act and enlivened the
operation of its priority provisions.
The Court accepted that there are
four factors indicative of a bailment
arrangement securing payment or
performance of an obligation, those
factors being:
(i) Where the bailment provides that
the ownership of Goods would
vest in the bailee on the expiry of
the bailment;
(ii) Where the bailee would have an
option or obligation (at any time)
to purchase the Goods;
(iii) Where the term of the
arrangement was likely to be for
the major part of the economic life
of the Goods;
(iv) Where the minimum payments
under the bailment amount
substantially to the cost of the
Goods.
None of these indicia applied in
this case.
But if the bailment was a PPS lease
under s13, then it would be deemed
to give rise to a security interest,
and the provisions of the Act would
therefore apply.
One of the requirements for a
Personal Property Securities and bailments, consignments and a receiver’s lien
By Leigh Adams
One of the requirements for a bailment to be a PPS lease is that the bailor must be regularly engaged in the business of bailing goods.
Leigh Adams
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 33
PPSA
bailment to be a PPS lease is that
the bailor must be regularly engaged
in the business of bailing goods.
However, the Investors were not
regularly engaged in the business
of bailing goods. They were in
the business of profiting from the
exchange of rare coins and bank notes.
The issue of the bailment was merely
incidental to this main purpose.
Consignment The Court then turned to the
Consignment Only Goods. Generally,
consignments are to be distinguished
from retention of title (RoT)
arrangements. RoT arrangements
provide for title to pass only when
full payment has been received. RoT
arrangements do secure payment or
performance of an obligation.
Nevertheless, if the consignment
in substance secured the payment or
performance of an obligation, then the
operation of the priority provisions of
the Act would be enlivened.
The Court looked at the 15
indicators relevant to determining
whether a consignment exists. They
are:
(a) the merchant is the agent of the
supplier;
(b) title to the goods remains in the
supplier;
(c) title passes directly from the
supplier to the ultimate purchaser
and does not pass through the
merchant;
(d) the merchant has no obligation to
pay for the goods until they are
sold to a third party;
(e) the supplier has the right to
demand the return of the goods at
any time;
(f) the merchant has the right to
return unsold goods to the
supplier;
(g) the merchant is required to
segregate the supplier’s goods
from his own;
(h) the merchant is required to
maintain separate records;
We’ll connect the dots when it comes to the right trade credit solution
• 28 years experience• National coverage• Innovative solutions
• Superior service• Long-term partnerships• NCINet online access
When it comes to credit risk management, navigating the different options requires specialist expertise. And that’s what you get with NCI:
To find out how you can protect your profitability whilst growing your business, visit www.nci.com.au, email [email protected] or telephone 1300 654 500
National Credit Insurance (Brokers) Pty LtdABN 68 008 090 702 AFS Licence No 233817 Adelaide | Melbourne | Sydney | Brisbane | Perth Auckland | Wellington | Singapore
34 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
PPSA
(i) the merchant is required to hold
sale proceeds on trust for the
supplier;
(j) the goods are shown as an asset
in the books and records of the
supplier and are not shown in the
books and records of the merchant
as an asset; and
(k) the supplier has the right to
stipulate a fixed or floor price.
The Court held that there was a
consignment. But the consignment
did not in substance secure payment
or performance of an obligation
because:
(i) the Goods were not held as
security for a debt as no moneys
were payable by Arcabi unless or
until it sold the Goods, but title by
that time would have passed to
the third party purchaser;
(ii) if an item was not sold then title
would remain with the Investor
and there was no obligation on the
part of Arcabi to pay the Investor;
(iii) the Investor remained entitled to
take back its consigned Goods –
even in circumstances where all
that was involved was a change of
mind on behalf of the Investor.
Conclusion for bailments and consignmentsThe Act did not apply and the
Investors were allowed to keep
their Goods, subject to some riders
explained in more detail below.
The case confirms that businesses
offering storage services including
businesses storing for example,
furniture for travellers, old &
completed files for professionals,
and other similar businesses like
those running bus depots, or indeed
retaining rare coins and notes of
investors for subsequent sale, will
likely not be subject to the provisions
of the Act.
It is interesting that the Court did
not consider the meaning of “value”
in s 13(3). Section 13(3) provides that
a bailment is only a PPS lease (and
therefore, a deemed security interest)
if the bailee provides “value” and
value is defined in s 10 to include any
consideration sufficient to support a
contract. To be consistent with the
Arcabi conclusion, “value” should
just mean ‘money’. In the Arcabi
case, it was the bailor who provided
the money. The bailee provided the
services. However, this issue is still
unresolved for the time being.
Receiver’s lien The Court then considered whether
the Receivers were entitled to an
indemnity in the form of a lien over
the Goods for the work undertaken by
them in relation to the Goods.
The Court noted the long
established legal principle that
whenever an external controller
is appointed, they have a right of
indemnity out of the company’s
property for their remuneration and
expenses. These principles extend to
an out of court receiver.
The Court also noted the Universal
Distributing case which established
that where an external controller
expends a material part of his time
and energy in recovering assets
enuring for priority creditors, and
where the controller’s duties must
be performed before a surplus might
arise to which the unsecured creditors
may participate, then the cost of
the work should be thrown upon the
proceeds of the assets and even if
no benefit to unsecured creditors
eventuates, a lien is not denied to the
controller.
On this basis, the Court held that
the Receivers were entitled to an
indemnity in the form of a lien over
the Goods for their work despite the
fact that a substantial amount of that
work related to identifying Goods
which were eventually held not to be
part of Arcabi’s assets.
The Court also held that the
Receivers were entitled to an
indemnity in respect to their costs and
expenses in arranging insurance in
relation to all Goods including those
owned by the Investors.
As for any unclaimed Goods,
the Court considered that the
Receivers were justified in treating
them as property of the Company
to which their lien would attach
if after appropriate advertising of
the intended sale and writing to
the relevant Investors, no relevant
response had been received.
Conclusion for Receiver’s lienIt is interesting that whilst the Court
clearly accepted the principle that
the Receivers were entitled to
exercise a lien over the Goods of
the Investors in respect to (i) their
costs of and incidental to identifying
those Goods and (ii) their costs and
expenses referrable to insuring the
Investors’ Goods, the orders only
fully implemented this principle in
respect to ‘(ii)’ but not ‘(i)’, in that the
Receivers’ lien for ‘(i)’ was applied
to the company’s assets (including
Investors’ Goods which were
unclaimed), but not to the Investor’s
Goods which were claimed.
One can only presume from this
result that there were enough funds
available to pay the Receivers without
having to further white-ant the equity
in the Investor’s Goods. u
Leigh Adams LawyersNorth SydneyPh: (02) 99640022
...the long established legal principle that whenever an external controller
is appointed, they have a right of indemnity out of the company’s property
for their remuneration and expenses.
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 35
Development
Respect the rights of all people.
Do this by listening to them and
acknowledging their point of view. You
may even present their perspective to
others. You don’t have to agree with
their point of view, but at least they will
feel they have had a good hearing.
Be seen to treat all people equally
and fairly. A hard one because no two
situations are the same. Ensure that
your processes are transparent and
consistently applied to all. Explain the
rationale for your thinking, how you
came to your conclusions, why you
followed a particular course of action.
Always do what you say you are
going to do. The moment you don’t
deliver as promised your credibility
starts to come into question. So don’t
make wild promises. Check what it is
that people really need and check that
you can deliver.
Speak confidently about what you
believe will and should happen.
Instil confidence in your ability and
the decisions you make. Provide a
sound rationale for why you believe
something should happen and the
reasons why something will happen.
Be prepared to listen to an opposing
view point and make a shift in your
thinking if what is presented makes
sense.
Make informed decisions. Know the
‘ins’ and ‘outs’ of a situation. Weighing
up the ‘for’ and ‘against’. Gather the
evidence and facts that will support
the decision you make. Don’t guess.
Don’t assume that others see the
situation as you do or have the same
knowledge as you.
Inform others of the reasons for your
decisions. Establish a credibility, a
rationale for your thoughts and just
how this decision evolved. Be aware
of the ramifications of decisions on
others.
Minimise the risk of failure. Seek
input from others about potential risks
and take steps to check that they are
minimised. If the things you do are
seen as being successful people will
trust your judgement and ability.
Provide counsel to those who seek
it. When asked for advice, give it. This
is not saying solve their problems
for them. It is about you assuming
the role of a mentor and assisting
them to make the all important
informed decision. Help them see the
range of choices and the possible
consequences.
Keep confidential conversations
between those who are authorised
to know. The quickest way to lose the
trust of someone is to breach their
confidence. This can be tricky because
in some situations you may feel others
should know of a problem about
which someone has come to you in
confidence. Whenever you feel this
to be the case, seek permission from
the person concerned to discuss this
matter with others.
Provide others with the space to
manage their own priorities. In other
words, keep your nose out of areas
where it doesn’t belong. Allow them
to be responsible for the outcome and
to achieve it in the best way possible.
You must be sure that they are
capable of doing the job. u
Daniel Kehoe: Author of the best-selling You Lead, They’ll Follow books, Daniel has worked as a management consultant since 1979 in Australia, Indonesia, Malaysia, Singapore, and UAE (Dubai, Abu Dhabi and Al Ain). He is a Fellow of the Institute of Management Consultants
Reprinted with permission
Trust me. I’m the boss.By Daniel Kehoe
The moment you don’t deliver as promised your credibility starts to come into question. So don’t make wild promises.
Daniel Kehoe
Trust is the basis of every effective
workplace relationship, be it with
your boss or the people you manage.
If the trust between people has died,
then so has the relationship.
Trust is also a key component of
being an effective leader. Some would
say the most important component. It
is difficult to get people to follow you
if trust is missing.
Some of the key elements of being
able to demonstrate trust start with
the following.
aicm Training News
36 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
Opportunities to continue your development in 20152015 is yet to get started; however, we
have received enrolments already for
our Sydney and Brisbane face to face
courses in February 2015. AICM will
be conducting training in both Sydney
and Brisbane in February for –
z 1 day training – Manage bad and
doubtful debts
This course covers all facets of the
collection process from invoice to
managing bad and doubtful debts
z 2 day training – Manage factoring
and invoice discounting
A must do course for anyone
working with factoring and/
or invoice discounting and is
endorsed by DIFA (Debtor and
Invoice Factoring Association)
See the following pages for more
information on these courses.
Additional public courses will
be offered throughout 2015 in
Sydney, Brisbane and Melbourne.
Please email Debby Manners at
[email protected] if there are
any specific units that you would
like to see tabled for training in 2015.
Whilst our public courses require a
minimum of 8 students to proceed,
our Online Learning platform is open
for immediate enrolment.
Recent Graduates AICM would like to acknowledge
and congratulate the following AICM
students that have successfully
completed their qualification/courses
in the past 3 months.
Laura Jenkins
Juliana Widjaja
Elizabeth Morris
Amanda Tarling
Emma Elphinstone
Michaela Novak
Kirstin Atkins
Aimee Martin
Nikole Vamarasi
Michael Honeybone
Bonnie Chapman
Kate Pattison
Matthew Robertson
Bineeta Kotak
Daniel Guarino
Suong Nguyen
Kalinga Perera
Carly Rae
Debra Briggs
Deepika Vyasnarayanan
AICM Training NewsWelcome to the first edition of AICM Training News. The AICM RTO is the Registered Training Organisation arm of your institute. Through these updates we aim to highlight the opportunities and benefits of undertaking individual courses or working towards a Certificate or Diploma in Credit Management.
Experience of Vanessa Betland, Team Leader Wyong Council, recent Graduate of the Diploma of Credit Management.
As someone who fell in to debt recovery and was quite successful I decided in 2011 I had rested on my laurels
long enough and needed to increase and formalise the knowledge around my inadvertently “chosen” career.
With the end goal in mind I started liaising with our peak industry body which resulted in the release of, and my
commencement in, the components that would result in attaining a Diploma of Credit Management (fancy). As
someone who had not formally studied after the completion of year 12, I was concerned that I had bitten of much
more than I could chew and made a solid decision to “chew faster” – this just had to be done, so off we went in June
2011 rather afraid but determined. After recently completing the required components, on track for my self-set
3 year completion timeframe I cannot thank and compliment the Institute, their staff and their education facilitators
enough. I FINISHED, I finished with a minimum of fuss and while maintaining the constraints of motherhood and
a very demanding full time role in credit management. To all who would like that qualification, whatever it may
be, and the knowledge and confidence that goes with it, sign up – the Institute of Credit Management Learning
Services know what they are doing and can and will hold your hand start to finish – YIPEE – onwards and upwards.
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 37
Anja Bonnard
Brian King
Nicolette Thomson
Michael Ludbey
Yvonne Harrison
Kellie Frahm
Nicholas Samojenko
Julie Cuskelly
Cindy McDonald
Jasmine Lynch
Rashmi Canagasabey
Vanessa Betland
New Regulatory requirementsThe past 3 months have been
exhausting and exciting with new
regulatory requirements being
introduced for Registered Training
Organisations as at 1st January. These
new changes will see the introduction
nationally of the New Unique Student
Identifier, which all existing and new
students will be required to register
for. How to register information has
been included in this edition of RTO
News. In addition from the 1st January
2015, new reporting processes have
been implemented for AVETMISS
Student Data Reporting, which we
have been working tirelessly with
our IT Management Team to ensure
that we have all of our data reporting
processes in place to meet our
reporting obligations. I can now report
that all AICM data has been validated
and all of our processes are in place
for 1st January 2015. u
Build the skills of your credit team.
This unit is beneficial to loans
officers, collections and credit
officers and credit team leaders.
This course ensures candidates
have the understanding and skills
of best practice in the area of debt
collection.
The ability to identify and
recover an overdue customer
account is a core requirement of
a credit professional.
Outcomes are covered within
this unit:
This course deals with the key
aspects of dealing with a debt that
has been categorised as bad or
doubtful including:
z The steps involved in reviewing
an account to determine if a
debt is likely to become bad or
doubtful
z Understanding the difference
between a bad and a doubtful
debt
z Methods for dealing with a
customer’s excuses for not
paying the outstanding amount
z Negotiating with the customer
to recover the outstanding
payment
z Monitoring and documenting the
outcome of the recovery action
Topics Covered:
Negotiating the recovery process
of an outstanding debt. The
importance of the reporting
function. Identify customer excuses
and reasons and strategies to
avoid payment. Commonly used
reports used in consumer and
commercial credit. Identifying a
bad and doubtful debt. Managing
the outsourced recovery process.
Strategies for minimising
uncollectable debt. Preparing
recommendation for write off.
z This unit will be offered face
to face in Brisbane on the 9th
February and Sydney on the
18th February 2015. Register
your interest early as these 1 day
public courses fill fast. Contact
Debby Manners on 02-9906
4563 for further information.
z Participants that undertake
and successfully complete
the assessment requirements
for FNSCRD403A Manage
bad and doubtful debts
which is a Core unit from the
FNSFNS40111 Certificate IV in
Credit Management will receive a
nationally recognised Statement
of Attainment.
Experience of Julie Cuskelly, Senior Credit Controller at Australian Liquor Marketers, Recent Graduate of the Certificate IV Credit ManagementI was given the opportunity to do this course and couldn’t be happier with
myself and my work colleagues who completed alongside me. I did not
think I would be doing assignments and having to study again at my age.
The skills and laws I have learnt from this course have improved my skills
and also helped me move forward in my job role and career. The help and
support we received from Tony Sawyer the whole time was a massive and
am proud to now call her a friend. The information gained throughout this
course I would recommend to anyone entering the Credit environment.
Manage bad and doubtful debts
aicm Training News
aicm Training News
38 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
There has been substantial growth in the use of
factoring and/or invoice discounting arrangements over
the past few years. This course is relevant to people
in all areas of business that provide factoring and/or
invoice discounting arrangements. This course is also
beneficial to businesses that may intend to undertake
such arrangements.
The following outcomes are covered within this unit.
z Differentiating between the types of factoring and
invoice discounting arrangements that may be
offered to prospective clients
z How to effectively communicate to clients the
different policies and procedures that the client
would need to follow depending upon the type of
product provided
z Strategies to ensure that clients understand how
legal assignment will vary depending on the type of
product
z What information should be provided to debtors
when an arrangement has been entered into with a
client
z The advice that should be given to debtors of the
debt recovery process that will be followed as a
result of the introduction of the factoring and/or
invoice discounting arrangement
z How to manage the relationship between the
client and the factor and/or invoice discounter and
establish ongoing monitoring procedures
Topics Covered:
The History of Factoring and Discounting,
Introduction to Factoring and Discounting, The
Approval Process, Verification, Securities, Risk
Monitoring and Maintenance, Why was the PPSA
Introduced.
z This unit will be offered face to face in Sydney,
Brisbane and Melbourne quarterly in 2015. Register
your interest early as these 2 day public courses
fill fast. Refer to the AICM website for dates, or
contact Debby Manners on 02-9906 4563 for
further information.
z Participants that undertake and successfully
complete the assessment requirements for
FNSCRD502A Manage factoring and invoice
discounting arrangements which is an Elective unit
from the FNS51511 Diploma of Credit Management,
will receive a nationally recognised Statement of
Attainment.
AICM are proud to deliver this unit in collaboration
with DIFA
Factoring and invoice discounting
aicm Training News
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 39
From the 1st January 2015 if you are undertaking nationally
recognised training delivered by AICM you will need to
have a Unique Student Identifier (USI).
A USI gives you access to your online USI account
which is made up of ten numbers and letters. It will look
something like this:
3AW88YH9U5.
A USI account will contain all your nationally recognised
training records and results from 1 January 2015 onwards. Your
results from 2015 will be available in your USI account in 2016.
When applying for a job or enrolling in further study, you
will often need to provide your training records and results.
One of the main benefits of the USI is that you will have easy
access to your training records and results throughout your
life. You can access your USI account online from a computer,
tablet or smart phone anywhere and anytime.
Do you need a USI?You will need a USI when you enrol or re-enrol in training
from 1st January 2015 if you are a:
z student enrolling in nationally recognised training for
the first time, for example certificate III, certificate IV or
diploma course;
z student’s continuing with nationally recognised training.
You are a continuing student if you are a student who has
already started your course in a previous year (and not yet
completed it) and will continue studying after 1 January 2015.
Once you create your USI you will need to give your
USI to each training organisation you study with so your
training outcomes can be linked and you will be able to:
z view and update your details in your USI account;
z give your training organisation permission to view and/
or update your USI account;
z give your training organisation view access to your
transcript;
z control access to your transcript; and
z view online and download your training records and
results in the form of a transcript which will help you
with job applications and enrolment in further training.
If you are an international, overseas or an offshore student
please visit usi.gov.au for more information.
How to get a USIIt is free and easy for you to create your own USI online.
While you may create your own USI, training organisations
are also able to create a USI for you.
Steps to create your USIThe following steps show how you can create a USI:
Step 1 Have at least one and preferably two forms of ID
ready from the list below:
– Driver’s Licence
– Medicare Card
– Australian Passport
– Visa (with Non-Australian Passport) for international
students
– Birth Certificate (Australian)
– Certificate Of Registration By Descent
– Citizenship Certificate
IMPORTANT: To make sure we keep all of your training
records together, the USI will be linked to your name as it
appears on the form of ID you used to create the USI. The
personal details entered when you create a USI must match
exactly with those on your form of ID. If you do not have
proof of ID from the list above, you can contact AICM on
(02) 99064563.
Step 2 Have your personal contact details ready (e.g. email
address, or mobile number, or address).
Step 3 Visit the USI website at: www.usi.gov.au
Step 4 Select the ‘Create a USI’ link and follow the steps.
Step 5 Agree to the Terms and Conditions.
Step 6 Follow the instructions to create a USI – it should
only take a few minutes. Upon completion, the USI will
be displayed on the screen. It will also be sent to your
preferred method of contact.
Step 7 You should then write down the USI and keep it
somewhere handy and safe. u
IMPORTANT STUDENT INFORMATION
Unique Student Identifier
aicma r o u n d t h e s t a t e s
40 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
queensland
President’s ReportMy report this month is being written from a secured bunker
just outside Brisbane’s city limits. The G20 Summit has
descended and leaders from around the world are meeting.
There are attack helicopters overhead, armoured motorcades
making their way to and fro the secret meeting place (the
Convention Centre in South Brisbane).
All of this is still nowhere as exciting as the AICM
National Conference that was held in October on the Gold
Coast, we farewelled our leader Terry Collins CEO and
welcomed Nick Piliavidis. Another magnificent preceding
Golf Day (Much Thanks Greg Young). With the Conference
proper under way, there were more ex-presidents than
the G20 but much less hair. The energy and hunger for
knowledge was exhibited by the high attendance figures,
even the morning session following the Presidents dinner.
So many things were highlights, the standard of the YCP
candidates was outstanding – thank goodness I do not
have to go up against them for a role. I loved James
Neate’s Master of Ceremonies performances, which
brought it all together and the very high caliber of the
speakers and presenters.
On behalf of Queensland Council I would like to thank
all the delegates, sponsors and booth holders for coming
to our part of the world. It was certainly a rewarding
experience for myself, and my fellow councilors. We look
forward to having you back when the conference comes
back to the Gold Coast.
As soon as Brisbane has emerged from the G20 and we
are not in lock-down, Queensland Council is holding our final
function for the year at the historic riverside Regatta Hotel in
Toowong. It promises to be a great opportunity to get together
with like-minded individuals and wrap up 2014.
If you have not attended our functions previously, 2015 is the
time to start. If you want to attend short sharp sessions
that will give you some insights and the opportunity to do some
networking after, our Monthly Credit Network Nights will be just
right for you. Look out for details.
I wish you all a safe and happy holiday break if you are
having one. If not, love what you do.
– Brian Kay FICM CCEAICM Queensland Council President
September 2014 Credit Network NightOur last event before National Conference was held in
Randstad’s Boardroom in their office in Queen Street.
This was a change of venue for us and quite a social event
was enjoyed by all. Thirty people attended to hear Alison
Jardie, who is a psychologist and a facilitator in Leadership
Development to give her presentation on leadership and
team building.
Alison presented an interesting, educational and often
motivational segment about issues which are relevant, not only
in the workplace, but also in our personal lives. To understand
the individual personalities of the team is an important
strategy to keep the team at peak performance and highly
motivated. Where gaps in performance or communication
become evident, the development of the team is critical.
Alison identified the ability to analyse the strategy of the team
to keep the team members participating at full capacity. These
strategies are naturally adaptable from the workplace to our
personal lives and our family commitments in an effort to build
a life with a little less stress!!!
Our thanks go to Alison, the Randstad crew for their
hospitality and the use of their venue.
Rachael Ryan, Sarah Mizon, Fiona Doherty, Scott Goodrick.
Stacey Woodward QLD YCPA 2014.
aicma r o u n d t h e s t a t e s
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 41
Ron Freier & Haley Kuhn.
queensland
The Australian Institute of Credit Management Queensland welcomes the following organisations as our
sponsors for 2014
The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive
relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit
industry and in so doing provide professional development opportunities for credit practitioners in Australia.
Introducing Queensland Council
QUEENSLAND DIRECTOR – GREG YOUNG BA, LLB, JP, MICM, MQLS
Greg is a Partner of Forbes Dowling
Lawyers in the Brisbane office at
North Quay. Greg has extensive
knowledge in the experience in the
areas of debt recovery, insolvency
and personal injury and specialises
in these areas of commercial
litigation, insolvency and personal
injury litigation. In a previous
life Greg obtained considerable
experience in these fields as a
Partner with McGillivrays.
In being able to handle these matters with some
considerable aplomb, Greg holds a Bachelor of Arts (Uni of
Qld), A Bachelor of Laws (QUT), is a Justice of the Peace,
is a QLD Law Society Accredited Specialist in Personal Injuries,
is a Member of the Institute of Credit Management and a
Member of the Queensland Law Society.
Greg joined AICM in 1997 and during this time has
been able to contribute his time to the development of
the Queensland Division. It was during Greg’s time as
Queensland President that Queensland won the ‘Presidents
Trophy’, which is awarded to the highest performing state.
Greg has been serving on council for ten years and his
quiet bearing and his wise council has guided the council
over many sensitive issues. At the present time Greg is
half way through his tenure as Queensland’s Director,
representing Queensland members and relevant matters
at National Board level.
For those who know Greg well, we would also add that he
specialises and practices regularly his golf with any and every
opportunity taken to practice or enhance his skills upon the
green and maybe an occasional visit to the 19th hole.
Karen Leggett and Julie McNamara.
QLD delegates.
aicma r o u n d t h e s t a t e s
42 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
south australia
President’s ReportNow in my second year as President of the SA Division I must
say it has proven to be an exciting challenge for me!
Supported by an enthusiastic committee, loyal sponsors
and members has enabled our State division to receive the
honourable “President’s Trophy” for 2014. Thank you to
all members for your dedication to the AICM and what we
continue to achieve each year.
I would like to take the opportunity to say how extremely
proud we are of Rebecca Edmiston, Team Manager – Legal
Mortgage Help Centre Third Party at Bendigo and Adelaide
Bank for being awarded joint winner of the YCP. Rebecca is
keen to work with the committee over the year ahead and we
look forward to her input.
Congratulations to Janelle Muegge for achieving her CCE
this year. We all understand it is hard to juggle the time to fit
this in whilst holding a full time position, so well done!
Our Annual Award’s Dinner was full of fun and frivolity with
our humorous James Neate, SA Director, hosting the evening.
Our special guest speaker was Nick Pilavidis, AICM CEO, who
shared his career highlights and thoughts for the future of the
AICM. What a star studded event it was with high attendance
from all sectors of the credit industry.
We continue to search for new presenters at our monthly
Credit Focus mornings and have worked hard to improve the
quality and contents for our attendees in 2015.
The end of year Christmas Networking evening will be held
at the Bombay Bicycle Club, quirky and unique with it’s animal
themes, particularly the elephants, delicious mixture of Indian
food and jungle noises! Guaranteed to be a super night and a
great way to toast 2014 and the festive break. In the meantime
the Functions committee are brainstorming some new events to
bring some spice to the New Year.
Currently the PD committee are busy putting together a
Credit Symposium for next year which will be held in March, in
the picturesque Adelaide Hills. Our annual Symposiums are a
full day event and prove to be very popular offering high calibre
speakers and great networking opportunities. We have also
been able to negotiate discounted rates for those attendees
who wish to stay on to enjoy “Adelaide Hills hospitality”
On behalf of the SA committee, members and sponsors we
would like to wish all of our national colleagues and friends a
very Safe and Merry Christmas. Ensure you take the time to
spend special moments with your loved ones and prepare for
another eventful and exciting year ahead. Look forward to
seeing you all soon!
– Gail Crowder, SA Division President
Credit Focus ReviewThe South Australian Division has had a very successful few
months with some excellent opportunities for our members
to gain valuable knowledge in the essential areas of Financial
Statements & their value presented by Des Monroe and his
team from BRI Ferrier in July, Risk Free Credit By Security
presented by Alice Carter of Lynch Meyer in August, Effective
Communication by Jane Calleja from NCI Insurance Brokers
September, & Credit Management 101 presented by Adrian
Stewart in November.
We are very fortunate to have all of these above mentioned
people and many more other Credit Professionals who are
willing to give their time to the institute to ensure that we are
able to continue offering a prime source of Credit Training and
networking opportunities that these events provide.
We are looking forward to an exciting program for 2015 with
many new topics & speakers combined with a few of the old
favourites which have been requested by you, “our members”
Wade Bekesi and Megan Bekesi.Gail Crowder and Rebecca Edmiston.
aicma r o u n d t h e s t a t e s
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 43
south australia
so please keep on contacting us with your suggestions and any
ideas as this is the best way for you to get the most out of your
membership.
– Lyn McKell, AICM South Australian DivisionCredit Focus Chair
GAIL CROWDER MICM
SA Division President
Having worked in the credit
industry for nearly 20 years,
Gail commenced her career
in one of the toughest areas
of collections, the transport
industry. These challenges
encouraged her to continue
to work in credit having
roles at Lux Ltd, Receivables
Management Ltd and then
7 years at Collection House
where she managed insurance
and commercial accounts. Gail was offered a newly created
role in Business Development and then went on to manage
several credit departments. At National Credit Management
she was the Business Development Manager for SA, WA and
was overseeing VIC for a short term. Gail continues to focus
on improving/building client and staff relations in the credit
industry. She has a strong enthusiasm for delivering the best
results possible! Her 3 children are her pride and joy and she
believes that good communication and understanding each
individuals needs is the the key to all relationships. She is
currently embracing her second year in the role of President
of the AICM, SA Division and thanks her dedicated and
professional committee !
WADE BEKESI MICM
Managing Director, Mercantile CPA
SA Division Councillor
Growing up in the middle class
Wester suburbs of Adelaide, I hated
school but had a real passion for
owning my own business one
day and helping other people
in business. I have hundreds of
books on business and finance
and through this have learnt the
two most important aspects of
business are sales and cash flow.
I started my career as in sales in 1999 and worked for
various small businesses for over 5 years. This included
working in sales and business development for Mercantile
Collection Services for 2 years. I then worked in the credit
management area of GE debt collection for 2 years before
being offered the opportunity to purchase Mercantile
Collection Services in 2006. This gave me the opportunity
to own my own business and help other businesses
by assisting them with their cash flow through debtor
management.
In 2012 we merged with Creditors Protection Agency
bringing experts in consumer and commercial debt collection
to the business, we are now known as Mercantile CPA and has
come a long way over the past 9 years and has grown year on
year. Over this time, I have learnt a great deal about managing
and running a business. I understand that there are many
aspects of running a successful and profitable business. One of
the most important aspects is cash flow. By offering affordable,
effective and efficient accounts receivable and debt collection
services I believe that we are helping business to prosper and
become more resilient in an increasingly more challenging
financial climate. I am glad to be part of the South Australian
AICM council and look forward to ensuring the growth of the
AICM members in South Australia.
Thursday 20 November 2014
Christmas FunctionVENUE: TBA
Events Calendar
The Australian Institute of Credit Management South Australia welcomes
the following organisations as our sponsors for 2014
The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive
relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit
industry and in so doing provide professional development opportunities for credit practitioners in Australia.
aicma r o u n d t h e s t a t e s
44 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
victoria/tasmania
President’s ReportIt was great to see some many old faces at this year’s National
Conference held at the Gold Coast, what was more pleasing
was the large number of first timers attending the conference.
Good to see the message is spreading and our future is the
credit profession is in good hands.
Congratulation to all the Victorian entrants for this year’s
Credit Team of the Year, Victoria had 3 out of the 4 finalists.
Congratulation to Rhys Buzza and his team at Reece for
winning this year’s Credit Team of the Year and Brooke
Lawrence and her team at Recoveries Corporation as a close
runner up, a special mention to Bianca Stephens and her
team at Seek for making it to the national finals. This is a great
recognition for the winning team but I believe that all the
participants would agree this process brings the team closure
together and it thrusts some of us outside our normal bounders
to strive for excellence. Therefore I would encourage as many
as you can to participate in next year’s Credit Team of the Year.
Congratulation to David Haysom from Fuchs Oils as this
year CCE Dux for 2015, great effort and well done. National
Credit Insurance (NCI) has been a great support of this event,
the bottle of Penfold Grange has always been well received by
the worthy winner. The CCE qualification will raise the level of
respect among colleagues in business, credit management and
the broader financial community. CCE is an important catalyst
to staff development. It will encourage managers and potential
managers to expand their knowledge beyond their particular
area of specialisation, whilst continuing to learn and grow in
the market place. CCE tells your employer you are motivated
and accomplished together with being up to date in your
knowledge of credit management skills.
It’s that time of year again and this year’s AICM Christmas
Party is going to be a night not to miss. Join your friends,
Credit Colleagues and staff at the Division’s End of Year Festive
Cocktail Party, being the credit industries Premiere Networking
opportunity for the year.
We’re trying something a little different this year, going for a
more relaxed environment and conducive to conversation and
catching up with all those important people you’d like to see
before year’s end.
We’re hoping to see a great turn out this year. Jump online
and check it out the venue at www.krimper.com.au and we’ll
see you there!
To our State partners Veda, DNB, Randstad, National
Collection Services, thank you for support and contribution
over the last 12 months and looking forward to a bigger and
better year in 2015.
Next year’s calendar is up on the web site we have new and
interesting topics and upcoming events therefore I will look
forward in see you in some and if not all of the events during
the year.
Many thanks to all the councillors for their support and
assistance over the last 12 months and we are looking forward
to bigger things in 2015.
Wishing everyone a happy and enjoyable festive season
and no doubt a well-deserved break over the holiday period.
– Lou Caldararo
September Networking BreakfastA great turn out to the September Networking Breakfast, where
Jason McCutcheon, recipient of the Swinburne University of
Technology Industry Engagement Award in 2010 and runner
up for Teacher of the Year at Box Hill TAFE in 2010 and 2012,
delivered and interesting and informative presentation on
Leadership and Career development for women. Jason
engaged in the topic of areas of career development where
women are not making the right moves to improve their
chances of advancement. Some of the areas Jason covered
were confidence, assertiveness, and resilience, reluctance
to self-promote, career choice, support, and over- analysis at
the expense of making decisions. Members and guests who
attended were delivered a male’s perspective as to some of
the issues that hold women back. Jason hoped that those
who attended came away with some positive action steps to
improve their career aspirations.
September Network Breakfast well attended.Jason McCutcheon has members enthralled.
aicma r o u n d t h e s t a t e s
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 45
victoria/tasmania
The Australian Institute of Credit Management Victoria/Tasmania welcomes
the following organisations as our sponsors for 2014
The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive
relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit
industry and in so doing provide professional development opportunities for credit practitioners in Australia.
Credit Team of the Year AwardThe VIC/TAS Divisional Committee on behalf of all the
members would like to congratulate Rhys Buzza and the
Team at Reece for their submission to and outstanding effort
in winning the AICM Credit Team of the Year award. Tony
Mackwell of VMIA, newly appointed to the VIC/TAS Division
Committee, recently interviewed Rhys on the Credit Team of
the Year Award, on how they found the process and benefits
to him and his team.
What has winning the award has meant for the team?
Winning the award has been a tremendous boost for the team.
Recognition for 18 months of incredibly hard work. Having the
team buy into and engage in a massive change program that
encompassed, people, technology and process and to get an
ultimate reward for that engagement is outstanding. Winning
the award has meant the Team has gained terrific recognition
and allowed them to grow their own profile in the industry. This
growth and the new networking opportunities will deliver new
and long lasting relationships that will benefit them for many
years to come.
What has winning the award has meant for the company?
Reece Pty Ltd has been incredibly supportive of the work the
team has been doing and the changes they have been driving
throughout the business. The Senior Leadership Team for
the business have personally taken an interest in the teams
progress and the teams endeavours with the award. Reece
Pty Ltd is a very proud company very driven to succeed and is
never complacent, the winning of the award is confirmation we
are going in the right direction.
What are your thoughts on the process?
The process itself was outstanding. The team were stretched
in many ways throughout the application and presentation
process. During the process the team developed, leaderships
skills, teamwork, communication, initiative, confidence and
professionalism. As a leader of the team, to be able to drive
The Reece Team with Grant Morris and Debbie Leo.
this development into the team in such a short period was
invaluable. The process itself is enough reason to have the
team undertake the award.
What has winning the award has meant to you personally?
For the Team to receive such an accolade is a very satisfying
moment and an achievement I will cherish for my career. To see
the development in the team, and to be acknowledged for our
achievements and to have a team that in my opinion contains
the very best young talent and the future leaders of our industry
is something I am very proud of.
Are there any other comments you would like to make?
I would encourage other managers and leaders to seriously
consider nominating for the award. It is a great way to review
and assess your teams achievements and development, it
provides outstanding development and learning opportunities
for team members and it provides exposure to the team and
tem members that cannot otherwise be obtained in such a
short time.
Tuesday 16th December
VIC/TAS Division 2014 Christmas Party @ Krimper (Guilford Lane)
COCKTAIL PARTY; RELAX WITH DRINKS, CANAPÉS AND PLENTY OF MINGLE TIME.
Events Calendar
aicma r o u n d t h e s t a t e s
46 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
western australia/nt
President’s ReportWelcome to my final report for the 2014 year. And what a year it
has been. Is it me or is it that the pace of life and in this context
our working life, just keeps picking up momentum. Just when
you think everything is moving along nicely along comes a new
or more dynamic way of doing things.
The AICM National Office now has a new CEO in the form
of Nick Pilavidis (by the way welcome aboard Nick), there is
no doubt that Nick will continue the growth and development
of our Institute. With Nick being the Young Credit professional
of the year in 2005 I am looking forward to see what initiatives
he will bring to the National Office.
This brings me to my main point of reference in this report:
I was reading some literature lately that caught my attention.
The topic being ‘how to communicate to a new generation,
or in other words how to grab the attention of a generation
of short attention spans? The new generations, X and Y are
‘Digital Natives’ (love those words) as they have spent their
entire lives immersed in technology – computers, video
games, smart phones, internet, facebook, hashtags, tweets,
twitters and so on and their ‘Native Speak’ is that of digital
language.
These new generations think and process information
fundamentally differently from their predecessors!
Digital natives are used to receiving information really
fast, they like parallel processes and they multi-task.
They function best when networked and thrive on instant
gratification and frequent rewards. Some may even say they
prefer games to ‘serious work’- ah you would have to brave
to say that and it would be at your peril because if you are
not able to keep up with these Natives then you are surely
going to fall behind.
Take your website for example – they say that you have
3 seconds to engage with the new generation when and if they
visit, if no engagement they have gone. Digital natives can
smell a hard sell so your company’s communication strategies
need to be about others, not just you and your product. They
need to be focused on building connections and the broader
community.
And this brings me to my final message – Our new CEO will
be focused on building connections for our Institute and he will
engage with the broader community….and we have to support
him in any way we can, otherwise we run the risk of being left
behind!
Enjoy your upcoming Christmas festivities and I look
forward to catching up with you at our Sundowner on the
4th December.
– Colin Phillis MICM – WA President
Young Credit Professional ReportHigh numbers of young and new people join the world of
Credit and Collections every day, be it by choice or by accident!
To maintain and continue to improve standards, each of us
has a responsibility to ensure the staff working around us are
‘on the ball’ and using best practises. Less Experienced or
less confident people often need a mentor or an encouraging
manager to help us find our way!
So if each of us proactively ensure to Forward and Share
relevant institute communications and events with others in
the industry, we can help build awareness of the AICM Institute
and the training and network of contacts it can provide. Let’s all
encourage self-development as the better the staff around us,
the better we can perform as a whole!
Previous YCP Award winners Kristy Shrigley, Rosanna
Maugeri and now Tamera Russell (2014 WA winner), are all
involved in boosting youth awareness and career progression.
Currently focussed on building alliances with other young
Great tea and lovely venue.
aicma r o u n d t h e s t a t e s
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 47
western australia/nt
The Australian Institute of Credit Management Western Australia/NT
welcomes the following organisations as our sponsors for 2014
The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive
relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit
industry and in so doing provide professional development opportunities for credit practitioners in Australia.
professional groups in WA ready for the 2015 YCP Award,
AICM is in the process of becoming an affiliate of Perth Young
Professionals (a membership group of Gen Y professionals
from various industries and sectors across WA) and other
groups such as the Young Finance Professionals and Young
Guns WA.
– Kristy Shrigley MICM – Media & Publications
Seminars and EventsAs our new Functions & Events managers, Steve Thomas
(NCI) and new council member Lisa Marr (Instant Waste)
have been very busy signing off on the new 2015 calendar of
events! With a lot of feedback received in recent months from
our WA members, we plan to take all that has been learned
and continue to improve the quality and attendance of these
events. Watch this space!
Inaugural “Ladies in Credit High Tea” – Friday 24th October 2014This 1st of what may be a series of events was held at The
Pagoda, South Perth recently and a good cross section of
industries represented. It was a great way to end the working
week and welcome the weekend. We are looking forward to
growing this event in 2015 and including the gentlemen, and
attracting some key speakers.
Check out our Facebook WA page for Photos of the event.
AICM Xmas Sundowner – Thursday 4th December 2014Hope to see you all at our social end of year function, held at
the ever popular South of Perth Yacht Club. There have been
some changes in 2014 so it is a great opportunity to meet your
council members and give us some feedback and suggestions
for 2015.
Keep an eye out in future issues of the AICM magazine for
a feature on each of our Councillors, who they are personally,
and more information on the AICM portfolio they manage.
Lisa Marr (Instant Waste Management) – WA 2015 Functions & Media co-chair.
Media and PublicationsThe WA AICM Facebook page has been up and running for a
while now, but this is really just for sharing photos. The name of
the page is AustralianInstituteOfCreditManagementaicm.
Pictures of AICM National events such as the conference
are available on our affiliate Credit Network website:
http://www.creditnetwork.com.au/
The Credit Network is a fantastic and free resource that
many of our AICM members have joined. With interactive
forums, presentation templates, fact sheets and more make
sure to check it out. Additionally, the national AICM – Australian
Institute of Credit Management Linkedin page is getting bigger
and bigger every day. Feel free to post submissions and
comments here for us to share.
Thursday 4 December 2014
XMAS Sundowner – Relax and NetworkVENUE – SOUTH OF PERTH YACHT CLUB
Events Calendar
aicma r o u n d t h e s t a t e s
48 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
new south wales
President’s Report
NSW GOLF DAY
We celebrated the re launch of the NSW Golf Day at Oatlands
Golf Course on 12th September. I would really like to say a big
thank you to all our sponsors for supporting this event, they were:
z Naming Day Sponsor: Australian Recoveries & Collections
(ARC) with (creditor)watch
z Drinks Cart Sponsor: Commercial Credit Services
z Putting Competition: Turks Legal
z Welcoming Pack: Trace Personnel
z BBQ Sponsor: Ampac Debt Recovery
z Premium Sponsors: IP Payments, Bing, Stone
Recruitment, Hall Chadwick,
Hymans Valuers & Auctioneers,
Veda and Wise McGrath
Hole Sponsors: Atradius, Byron Thomas Recruitment, EDX,
Cor Cordis, Debt Sale Brokers Australia P/L, Fortis Law Group,
TDX Group, Trace Personnel, Collexus P/L, Dun & Bradstreet
and Makinson d’Apice Lawyers.
We had just on 100 golfers that hit off just on Midday after a
lovely morning tea.
Jamie and Danielle from CCS headed around with the drinks
cart as well as selling raffle tickets for our chosen charity for
the day NeuRA, (Neuroscience Research Australia Foundation).
Len who attended the dinner on behalf of the charity was
overwhelmed with the $1500 we were able to donate to the
cause….a really huge thank you to everyone on the day for
making this happen.
Mark and David from Ampac kept everyone fed with some
beautiful garlic prawns whilst Will and Alison from Turks Legal
had the putting green decked out with cupcakes and bottles of
wine for a fantastically run putting competition that came down
to a playoff at the end of the day with Alistair Hewson taking
home the prize.
Chris, Matt and Patrick from (creditor)watch had the crowds
very interested running the “gambling hole” which was
eventually won by Steve Jardie who went home with his wallet
quite fatter than when he got there…
Kaeley from Stone Recruitment was making sure everyone
was prepared for the “19” happily supplying stubby holders to
all and a pro shop voucher for nearest the pin.We had our own
paparazzi for the day with the lovely Balveen Sani from BBW
making sure everyone was snapped “hitting that booming drive”…
Len Russell from Neuroscience Research Australia Foundation and Colin Magee.
Winners: Charles Kinsella, Daniel Grace, Nick Pilavidis and Doug Rouessart.
National President Grant Morris busy at work.
aicma r o u n d t h e s t a t e s
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 49
new south wales
Our lucky winners for the day were:
– First: Team (creditor)watch Charles Kinsella, Danial Grace,
Nick Pilavidis and Doug
Rouessart
– Second: Team Atradius Paul Daniele, Alister Hewson,
Mark Smith and Paul Morgan
– Third: Team Wise McGrath Matt Stokes, Simon Robinson,
Joe Kyayo and Kyle Grey
– Longest Drive Men: Lewis Greenup and Paul Mead
– Longest Drive Ladies: Louise Thomson (twice)
– Nearest the Pin Men: Steve Jardie and Kevin Hartin
– Straightest Drive Men: Andrew Smith
– Straightest Drive Women: Louise Thomson
– Raffle Winner: David Mann
– NAGA: Team Bing Nadine Butcher, Alexandra,
Mikey and John Gargen
We finished the day with drinks in the bar followed by a
lovely 3-course dinner. Big thanks to fellow organisers Andrew
Smith and Patrick Coghlan as well as Jennifer from the club.
Look forward to seeing you all there again next year.
– Colin Magee
Group photo on the putting green.
Drinks Cart Sponsor & raffle girls from Commercial Credit Services Jamie Kerry, Danielle Attard and Colin Magee.
Naming Sponsors ARC (Andrew Smith) and (creditor)watch (Colin Porter).
The Australian Institute of Credit Management New South Wales
welcomes the following organisations as our sponsors for 2014
The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive
relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit
industry and in so doing provide professional development opportunities for credit practitioners in Australia.
aicma r o u n d t h e s t a t e s
50 CREDIT MANAGEMENT IN AUSTRALIA • December 2014
new south wales
City Networking Night (Fraud – How to protect your company) – 16th SeptemberOver 40 people attended the KPMG boardroom to see Giles
Woodgate and Richard Rowley from Woodgate & Company
give us a very informative discussion on fraud, this was
followed by some drinks and canapés and plenty of good
networking done by the crowd at hand.
National Conference on the Gold Coast – October 15-17 October 2014It was good catching up with everyone at this years conference.
The program was great, and a fantastic President’s dinner was
enjoyed by all. Thank you to everyone involved. I, and the NSW
Council look forward to welcoming you all in Sydney in 2015
Lastly, Merry Christmas and a safe and happy new year to
all…hope Santa is kind to you.
Some of the teams...
aicma r o u n d t h e s t a t e s new members
December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 51
QUEENSLAND
Kelly Anderson Hastings Deering (Australia) Limited
Gerard Burns Credit Collection Services Australia
Suzanne Hammond Data #3 Limited
Gale Petersen Hastings Deering (Australia) Limited
Patrick Quinn Creevy Russell Lawyers
John Shanahan Gervase Consulting
Ashley Stanton Creevy Russell Lawyers
Stacey Woodward Boral Construction Materials
NEW SOUTH WALES
David Beynon Kessler Financial Services Australia Pty Ltd
Tara Blake Imperial Tobacco Australia Ltd
Damien Brunell Austral Mercantile Collections Pty Ltd
Janne Capra Imperial Tobacco Australia Ltd
Tracy Do Imperial Tobacco Australia Ltd
Terence Eames Ice Pay Pty Ltd
Laura Harrison-Clancy Imperial Tobacco Australia Ltd
Suzanne Ingold Imperial Tobacco Australia Ltd
Linda Jacob-Flores Imperial Tobacco Australia Ltd
Lissa King Imperial Tobacco Australia Ltd
Asher Macdonald Dimension Data Australia
David Mahbub Imperial Tobacco Australia Ltd
Samantha Olyve Imperial Tobacco Australia Ltd
Moses Sub Raju Dan Murphys
Peter Tennant Imperial Tobacco Australia Ltd
Stipe Vuleta Chamberlains Law Firm
Ken Ward Austral Mercantile Collections Pty Ltd
Donna Willcocks Onesteel Pty Ltd
Stephen Wright GWA Group Limited
VICTORIA/TASMANIA
Kerrie Adams NEC Australia Pty Ltd
Zoe Cortese Cummings Flavel McCormack
Naomi Gibson Connect East
Rebecca Harris Petrogas Pty Ltd
Michael Hartman Inflexion Point
Lita Kalava GWA Group Limited
Gary Sartor GWA Group Limited
Rosemarie Sicari GWA Group Limited
Lynn Whelan GWA Group Limited
SOUTH AUSTRALIA
Rebecca Edmiston Bendigo & Adelaide Bank
Stephen Flamer-Smith Bendigo & Adelaide Bank Ltd
Leah Hanisch CCC Financial Solutions Group
Emma Trebilcock CCC Financial Solutions Group
Phoebe Hu CCC Financial Solutions Group
Mai Huynh CCC Financial Solutions Group
Leah Hanisch CCC Financial Solutions Group
James Marsionis CCC Financial Solutions Group
WESTERN AUSTRALIA
Paul Abbott Wesfarmers Kleenheat Gas Pty Ltd
Christine Griffiths Architectural Ceiling Systems Pty Ltd
Pania Henry Wesfarmers Kleenheat Gas Pty Ltd
Beverley Husk WestFarmers Kleenhaet Gas Pty Ltd
Tammy Kurek Wesfarmers Kleenheat Gas Pty Ltd
Tenille Miller WestFarmers Kleenhaet Gas Pty Ltd
Andrea Profant Wesfarmers Kleenheat Gas Pty Ltd
Jo Ralph National Credit Insurance (Brokers) Pty Ltd
NEW MEMBERS
The Institute welcomes the following credit professionals who were recently admitted to membership in September and October 2014
Keeping you ahead of the game
As a market-leading provider of trade credit solutions, you will have the confidence you need to stay ahead of the game and make a real difference to your business.
With Veda you can:
• Improve credit application automation with online decisioning• Understand your customer’s payment history and reduce bad risk with DebtorIQ• Assess risk of higher value transactions with RAP Interactive
Taking control and staying ahead of the game has never been easier.
At Veda, we’re committed to helping you simplify business processes and make better decisions every single day.
For more information, contact David Jovanov on (02) 9278 7847 or visit veda.com.au/business