Credit Managers Foresee Low Rates, Stable Economy Ahead
Gregory Potts Journal Record Reporter, THE JOURNAL RECORD
Regional professional business credit managers foresee low interest rates and a stable economy, according to a study by NACM MidAmerica, an Oklahoma City-based affiliate of the National Association of Credit Management.
The survey of business credit managers in Oklahoma, Kansas and Arkansas, however, was conducted before the recent Wall Street tumult. NACM MidAmerica President Mike Brittain speculated the Dow Jones industrial average drop on Friday and Monday could impact results if the survey were conducted again.
"It could impact the responses to the extent that it would make them a bit more jittery as to what Alan Greenspan would do on interest rates," he commented.
More than 74 percent of survey respondents predicted that economic performance would be good or excellent for the next six months. About 23 percent rated future performance as fair or poor. Similarly, 73 percent predicted lower or about the same level of interest rates over the next six months.
The combination of a strong economy and low rates has had a positive effect on the number of past due accounts, the survey indicated. More than 75 percent of all accounts were current, and another 15 percent were less than 30 days past due.
A majority of those surveyed also reported no or mild credit management problems created by bankruptcies, mergers, unauthorized discounts, chargebacks or bad checks. …