CM September 2020

NEWS ROUNDUP
CICM in new TV venture
with ITN Productions
THE Chartered Institute of
Credit Management (CICM) and
ITN Productions will be coproducers
of a content series
‘Managing the New Credit
Future,’ produced to raise awareness and
develop understanding of the vital role
of credit management in the current
climate.
‘Managing the New Credit Future’
will address a variety of themes each
centred around key areas affecting credit
management in times of such deep
financial uncertainty. The programme
will highlight the importance of going
‘Back to basics’ to manage credit beyond
the crisis, keeping cash flowing to
sustain supply chains and exploring the
opportunities and threats associated
with ‘Increasing risk’.
The programme will also discuss
the strategic challenge of ‘Doing more
with less’ whilst simultaneously driving
income, profit and customer excellence.
Sue Chapple FCICM, Chief Executive
of CICM says the programme will shine
a spotlight on the people, processes and
systems helping to address change:
“Professional credit management teams,
strategies, sharing experiences and
best-practice through programmes such
as this, will be essential as we move to a
period of recovery.”
Elizabeth Fisher-Robins, Head of
ITN Productions Industry News agrees:
“We’re delighted to be partnering again
with the Chartered Institute of Credit
Management to produce a content
series that raises industry and public
awareness of the vital role of credit
managers in sustaining the business
landscape. We hope the programme will
help address many of the immediate
challenges faced by organisations across
the UK.’
Launching digitally in November
2020, the programme will form part
of an extensive communications
campaign featuring CICM members and
professional partners.
“Professional credit
management teams,
strategies, sharing
experiences and
best-practice through
programmes such as
this, will be essential as
we move to a period of
recovery.”
Sue Chapple FCICM,
Chief Executive of CICM
COVID-19 impacting USMCA businesses
LATE payments have soared in the
USMCA region as businesses are
squeezed by the impact of COVID-19,
according to the latest research by trade
credit insurer Atradius.
The annual Payment Practices
Barometer by Atradius analyses the
payment behaviours and sentiment of
businesses in the United States, Mexico
and Canada (USMCA). This year’s survey
results reveal compromised cashflows
and an increased reliance on bank
finance, as businesses grapple with
COVID-19 containment measures.
The report found late payments
affect 43 percent of the total value of
invoices issued in USMCA, up from 25
percent last year. Furthermore, the total
value of invoices overdue past 90 days
has doubled year on year to 13 percent,
while four percent of the total value was
written off as uncollectable, up from
three percent a year ago.
The Atradius research barometer
reveals 40 percent of USMCA businesses
use invoice payment delays as a form
of short-term financing, while delays in
payments are also caused by customer
liquidity shortages (cited by 36 percent
of businesses) and disputed invoices
(cited by 39 percent). To counter late
payments, nearly a third (30 percent) of
businesses in USMCA report needing to
increase the amount of time, resource
and cost spent to chase overdue
invoices while 28 percent acknowledge
needing to delay settlement of invoices
to their own suppliers as a result. A
quarter of businesses admit needing
to strengthen their own internal credit
control procedures, while more than
half plan to improve the efficiency of
their debt collection processes with the
two most cited approaches including
increased use of payment reminders
and outsourcing debt collection to a
specialist agency.
James Burgess, Head of UK
Commercial for Atradius says the
research is a particularly revealing story
of two halves: “On the one hand is the
dramatic increase in overdue payments
and the undeniable indications that
the region has entered recession.
Whilst conversely, respondents convey
optimism for a brighter future despite
the gloomy figures to date. Of course, the
reality hangs on the development of the
COVID-19 crisis and the effectiveness
of the region in reversing its negative
effects.
“What is clear is the pressure USMCA
businesses are feeling which is reflected
by widespread deteriorating B2B
customer credit risk. Invoice payment
defaults are up significantly compared to
last year as is the number of businesses
awaiting payment subsequently
delaying payment to their suppliers.
In a climate rocked by late payments
and sustained economic uncertainty,
businesses must act cautiously when it
comes to maintaining successful trade
relationships.”
‘‘On the one hand is
the dramatic increase
in overdue payments
and the undeniable
indications that the
region has entered
recession.’’
James Burgess, Head of UK
Commercial for Atradius
Advancing the credit profession / www.cicm.com / September 2020 / PAGE 7