Magazine article Business Credit

Open Accounts

Magazine article Business Credit

Open Accounts

Article excerpt

WHAT CREDIT CRUNCH?

Rumors of a small-business credit crunch have been vastly exaggerated, according to the National Federation of Independent Businesses(NFIB). A new NFTB study concludes that the credit problems faced by small businesses have mostly been a normal, cyclical phenomenon associated with business downturns. Credit availability usually declines during economic weakness, the study notes, because investment opportunities shrink. But in recent years, credit availability fur small business has actually been less tight overall than in past recessions.

The NFIB study also says that less demand for credit by small business has been misinterpreted as a restriction of supply. Because of low inflation, high profits in the mid-1980s, and the recent slowdown, many small-business owners have felt little need or desire to borrow heavily. NFIB surveys in recent years indicate that financing woes loom relatively small in small businesses' assessments of their problems.

MIGNINI RECERTIFIED AS CAE

NACM President Paul J. Mignini Jr., CAE was one of 300 individuals recertified as a Certified Association Executive (CAE) with the American Society of Association Executives (ASAE) for 1993.

Prior to certification, applicants are rated on their experience and accomplishments in association management and must successfully complete a comprehensive, one-day examination, which tests general knowledge of the association management profession. To maintain certification, an association executive must accumulate professional credits every three years based on their involvement in association management, continuing education, and their profession.

More than 3,000 association executives have earned the CAE designation which indicates demonstrated skill in leadership, activity in community affairs, and expertise in association management.

IF YOU WANT PAYMENT, GIVE GOOD SERVICE

Customer service is having a strong impact on customer accounting and cash flow at some of the nation's largest companies, according to the results of a nationwide survey of Fortune 500 companies.

The survey, conducted by Resource Evaluation, Inc., a management consulting firm specializing in administrative quality, found, among other things, that:

* Eight in ten Fortune 500 companies (81 percent) say their company's level of customer service affects the decision by a customer to pay an invoice on time.

* More than half (53 percent) of the largest U.S. companies say that the level of customer service they receive from a vendor or supplier has an effect on their decision to pay an invoice on time.

* Half of the largest U.S. companies (51 percent) have withheld payment of a vendor or supplier's invoice because they were dissatisfied with the level of customer service they received.

* Nearly three-quarters of respondents (71 percent) named factors other than customers' financial trouble as the most frequent cause of late or non-payment of invoices.

The survey found that at the majority of the largest companies in the U.S. (51 percent), cash flow has been affected as a result of late payment of invoices.

However, more than half of the respondents continue to ship products or provide services to customers who have past-due invoices that remain unpaid, even though an overwhelming majority (93 percent) found that customers who do not pay invoices when they are due are more likely to not do so again.

LEGISLATIVE TRACKING SERVICE

NACM is now on-line with the StateNet Government Monitoring Profile and as of Jan. 1, 1993, has the capability to monitor most aspects of commercial credit management. This includes topic profiles such as antitrust, bankruptcy, bonding, collections, credit reports and services, liens, and much more. This new service has been initiated to enhance NACM's proactive stance toward national and state level legislative activities. …

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