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“If you have other things in your life — family, friends, good productive day work — these can interact with your writing and the sum will be all the richer.”

David Brin

 

Have you something to say about the current economic and geopolitical events have an influence on the credit risk of companies, sovereigns, local governments or public institutions? Or maybe you would like to share your experiences regarding credit risk management? CreditBlog of the Polish Institute of Credit Management is the perfect platform to do that!

Share with us at picm@picm.pl and we will publish the most interesting writings!

Maybe you would like to know more about the topic we published? Or comment on the subject we write? Reach us out at picm@picm.pl!

 


 

 Robert Dyrcz, PICM founder

 

The Future of B2B Credit – Know Your Customer

August 1st, 2017

Extending B2B credit is a strategy designed to increase sales and profits. However, if you get the B2B process wrong, you may encounter adverse outcomes.

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Andriy Sichka, Managing partner in A. Sichka Consulting and Development Director of the ACCEE

 

The credit culture (part II)

February 21st, 2017

The process of managing credit consists of about 50 tasks ranging from customers’ payment allocation as most simple and up to actualization of credit policy as the most complicated. It also includes assessment of customers’ risk, application of credit security and finding of optimal terms of trade. Logically it could be divided into three stages – Setup of customer’s terms, Control over accounts receivables and Assurance of payments (or Collection as more suitable for someone).

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 Robert Dyrcz, PICM founder

 

Accepting fraud is part of business

February 13th, 2017

Last week I was privedged to participate in the interesting discussion on fraud in Poland. The financial directors and managers shared they views on the rout causes of this occurrence and the ways to minimize the risks. Funny how people’s behaviours are similar, even from very far parts of the world, and very different cultures. Greed, emotions and lack of respect could hurt business relationships. These could lead also to a vital problem of each entrepreneur: fraud. Please look on Kim Radok’s point of view on that, which he shared with me lately.

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 Robert Dyrcz, PICM founder

 

4 trends shaping the future of corporate credit management - continued

January 29th, 2017

In the last entry I described three trends that I think will shape the future of credit risk management in the company. These were: increasing significance of the prevention, individual approach towards each client, and “multi-roles” which modern Credit Manager will be (or already is) required to assume. While speaking of the last trend, I mentioned the roles of a coach (an „explainer” of influence of credit risk on financial results of the company as a whole), of a salesman (focusing on helping the company gain the maximal profit from the biggest possible closed sale), and of an optimist (noticing opportunities even in the direst situation). The following ones are no less difficult.

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Andriy Sichka, Managing partner in A. Sichka Consulting and Development Director of the ACCEE

 

The credit culture (part I)

January 26th, 2017

Regardless size, type of product of geographical location, every business uses credit. Ability to use goods or services immediately and pay for them later helps to overcome customer’s lack of cash and facilitates the trade. However, solving one problem credit gives birth to two others – cost of financing and credit risk. This ambiguity creates the key dilemma – on one hand company needs credit to sell and needs to get cash on time to pay suppliers. Thus credit management is very far from being simple and calls for professionally organized, effective function. The following is an attempt to analyze some typical issues companies face in this respect and define key attributes of the successful credit management function.

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 Robert Dyrcz, PICM founder

 

4 trends shaping the future of corporate credit management

January 2nd, 2017

The beginning of the New Year is the time of making New Year’s resolutions, of summing up the past and also asking questions about the future. Is the profession of Credit Manager, which I’m practicing now, going to change, or is it going to stay the same as last year? If something changes, then what exactly? Am I ready for the change? What do I need to learn, and what should I eliminate from my everyday routine and habits of the job? Where should I look for inspiration, and where do I find knowledge necessary to keep up with the rapidly changing, modern, globalised world and its’ trends?

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Andriy Sichka, Managing partner in A. Sichka Consulting and Development Director of the ACCEE

 

Beware Of The Payment Terms Mousetrap

December 9th, 2016

Every financier knows that, if we set credit risk aside, deferred payment term is a technical equivalent of a discount. As such, payment terms are to be negotiated and fixed in the contract together with the price. Quite often, however, parties fix a price and then start to negotiate on the payment terms. This really is a mousetrap for a seller, as, in essence, he is invited to discuss the price when it is already fixed!

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Philip King - FCICM, Chief Executive of the Chartered Institute of Credit Management (CICM)


Lies, damn lies and Brexit!

October 20th, 2016

I’m getting frustrated by media comment suggesting that, because of one positive indicator or other, the impact of Brexit has been minimal, or that, because of a negative indicator, the reverse is true.

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Andriy Sichka, Managing partner in A. Sichka Consulting and Development Director of the ACCEE

 

Unite a Fragmented Credit Function

October 31st, 2016

Despite the fact that teamwork is being highlighted within the business world, the credit manager must still ensure that the whole department works together.

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Andriy Sichka, Managing partner in A. Sichka Consulting and Development Director of the ACCEE

 

True DSO: The new life of the fine old friend

August 31st, 2016

Is the current calculation of DSO, while widely used, still valuable in today's business world? Maybe a new way of measuring the health of the credit function is needed?

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Glen Bullivant, FCICM, President of Federation of European Credit Management Associations

 

The UK, the EU and FECMA

July 6th, 2016

Nobody ever actually said that the Titanic was unsinkable – the builders, Harland & Wolff, never made that claim, nor indeed did the owners, White Star Line. It has to be said, however, that when an article appeared in a trade magazine which reported that the arrangement of watertight compartments, bulkheads and automatic doors rendered the vessel practically unsinkable, it suited the shipping company’s marketing department not too loudly correct any subsequent misquote by the more popular Press. Hence, the myth was born, expanded, exaggerated and perpetrated far and wide. Say something often enough and it becomes true in the public consciousness, or to put it into journalistic terms, never let the truth stand in the way of a good story.

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Kim Radok, founder of Credit Matters, Certified Credit Professional and Adult Educator

Manners Add Value To Your Business In Every Way

June 10th, 2016

Nowadays, one of the most noticeable mistakes in business relations, is lack of manners. You can say it’s old-fashioned, but in fact good manners have been, and will always be, a positive factor adding value to your business. It takes almost time at all to include in your conversations such words as, "Hello, how are you", or "thank you" or "please", but it does make a world of difference. Why good manners vanish so prominently in our business settings?

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Chris Sanders FCICM, Head of Accreditation – CICMQThe Chartered Institute of Credit Management

The Credit Management Team – What Type are You?

April 25th, 2016

The Credit Management Team is changing and the pace of change is stepping up as organisations consider the changing economic landscape. In the past few weeks alone I have heard some interesting comments from ‘We have stopped sending dunning letters as they don’t work anymore.’ to a comment I heard only last week ‘We are not just looking at order to cash but end to end working capital management.’

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 Robert Dyrcz, PICM founder

Buenos vs. Rio: ordem = progresso

20 kwietnia 2016

Brazil is in crisis. Political and economic. The country's lower house of parliament voted on Sunday (367 to 137) to push impeachment proceedings against President Dilma Rousseff. This is the next step in a process that has sharply divided the country, which has seen massive demonstrations for and against Rousseff. In the meantime, Brazil’s beloved neighbor, Argentina, has returned to the international borrowing markets with a sale of sovereign bonds that ends 15 years of exile since its 2001 default. Has Argentina realized that populism is an enemy of growth and prosperity, bringing just short-term benefits and preparing no ground for the stable country’s development?

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Glen Bullivant, FCICM, President of Federation of European Credit Management Associations

Brexit and the credit manager

April 14th, 2016

Wearing my hat as President of the Federation of European Credit Management Associations (FECMA), I am constantly now being asked about the United Kingdom and the European Union. More specifically, what should I, as a credit manager, be looking out for in the event that that Britain leaves the EU. My short answer to that specific question is quite simple – look out for the same things as you would do normally, regardless of Britain being in or out. In other words, be the pro-active credit professional in every way, assessing risk, identifying customers accurately and diligently and promptly following up before, during and after due date. The world existed before the EU, it existed before Britain’s membership and it will continue to exist, whatever the outcome of the UK referendum on EU membership on the 23rd June.

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 Robert Dyrcz, fundator PICM

The Pride of Poland - cancelled?

April 11th, 2016

Poles like to be proud about their history and extraordinary role in the world events. The new government, ruling in Poland since October last year, has a lot of it. Here is the news: everyone is exceptional, and every nation could be proud about what they did and regret some actions as well. That’s life. The last events in Janow Podlaski stud show that too much pride could destroy something very valuable now, and not only in the horses' breeding; I meen: reputation and trust.

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Robert Dyrcz, PICM founder & COB

The mechanism of credit decisions

March 31st, 2016

The word credit originates from the ancient Latin credere, which means “to entrust” or “to believe.” Through the past centuries, the meaning of the term remains close to the original; lenders, or creditors, extend funds, or “credit”, based on the belief that the borrower can be entrusted to repay the sum advanced according to the agreed terms. This belief essentially rests upon two fundamental principles, namely, the creditor’s confidence that (1) the borrower is, and will be, willing to repay the funds granted and (2) the borrower has, and will have, the capacity to repay those funds. The first premise generally relies upon the creditor’s knowledge of the borrower (or the borrower’s reputation), while the second is typically based upon the creditor’s understanding of the borrower’s financial condition, or a similar analysis performed by a trusted party.

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Philip King - FCICM, Chief Executive of the Chartered Institute of Credit Management (CICM)

Protecting the vulnerable

March 24th, 2016

I was privileged to chair the Utility Week Consumer Debt Conference in Birmingham last week for the fourth consecutive year. It’s always a good event and this year was no exception as we heard a range of excellent speakers from utility companies, regulators, charities and creditor organisations sharing their knowledge and insights. I came away better informed about some of the initiatives being rolled out and the new and innovative ideas being implemented but two particular things struck me.

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Chris Sanders FCICM, Head of Accreditation – CICMQThe Chartered Institute of Credit Management

Credit Management Best Practice – Credit Policy

February 29th, 2016

Hello Everyone,

Let me introduce myself, my name is Chris Sanders and I am the Head of Accreditation for the Chartered Institute of Credit Management (CICM). I have been in credit management for over 30 years, both in industry for Cable & Wireless and also as credit management and billing consultant since 2001. My clients are international organisations, many of whom have operations based in the wonderful city of Krakow. So I was very pleased to be asked by Robert Dyrcz of the Polish Institute of Credit Management to contribute a regular blog for the PICM website.

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Glen Bullivant, FCICM, President of Federation of European Credit Management Associations

The role of the credit manager

February 24th, 2016 

If I were to say that I have been in the credit management profession for a very long time, there are two typically English phrases which can be used to express longevity – “since Adam was a lad” and/or “since Nelson lost his eye”. Whichever saying is chosen, the fact is that in a career which began back in nineteen hundred and frozen to death knocking on doors trying to collect money, I have been asked may times the question – just what is a credit manager? An accountant? A debt collector? A salesman? A credit analyst? A customer service manager? The answer to all is, of course, both yes and no – in order to achieve optimum results, the credit manager must be all things to all people. The aim, when said quickly, can sound very simple – to promote the highest volume of profitable sales over the shortest period of time with the minimum of bad debt. This clearly involves credit risk assessment, customer contact and receivables collection, but so much more is required.

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Philip King - FCICM, Chief Executive of the Chartered Institute of Credit Management (CICM)

Late payment: are big companies the real villains?

July 1st, 2015

Much has been written in recent months about the unfair and oppressive treatment of ‘smaller’ suppliers by their ‘larger’ customers. Household names have been subjected to ordeal by media and some, justifiably, have been held to account. But not all big businesses are bad. Indeed quite the opposite. Many big businesses are good, and evidence that ‘good’ by valuing and supporting the supply chain. Many are signatories to the Prompt Payment Code (PPC), managed by the Chartered Institute of Credit Management (CICM) on behalf of the government.

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Maciej Bielecki, PICM member

Effective credit policy - is it worth to have that?

February 9th, 2016

In the current economic and business environment, liquidity and accounts receivable management has emerged as a topic of concern. Making sales is important, but collecting on those sales is critical. Effectively managing accounts receivable is about ensuring consistency in your credit and collection processes. The secret to this consistency is designing and actively implementing a credit and collection policy. Properly constructed and applied, this policy has the power to breathe new life into your entire credit-to-cash process. An old policy, however, that hasn’t been reviewed under the current conditions may be doing your company more harm than good.

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Robert Dyrcz, PICM founder & COB

How to set a proper credit limit?

January 27th, 2016

Ok, we did a great job in assessing whether the customer is able to pay, how the financial standing looks like, what was the payment history and how the economy around him is performing. Now the challenge is to set the proper limit for the credit we would agree to give. How to do that? I mean, rely not on the “ERP system prompt”, but on our own judgment?

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Robert Dyrcz, PICM founder & COB

Petroleum disaster

January 22nd, 2016

The oil price is around $30 per barrel and market consensus is showing that this level should be maintained at least for the next 12 months. There are many respected voices that saying $10 per barrel is the medium term price target now. The solid macroeconomic data seems to give concrete rationale for that slide. Obviously, nothing last forever and ups and downs in the economy is something very common (especially in the cyclical energy sector). No matter what is the forecast now, it‘s worth to think about whether is there any economic sense to explore the oil at all, at least for who yes and for who not.

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