nacm oregon business credit journal march 2009 · 7931 ne halsey, suite 200, portland, oregon 97213...

7931 NE Halsey, Suite 200, Portland, Oregon 97213 (Voice) 503.257.0802 or 800.622.6985 (Fax) 503.257.0247

NACM Oregon

Business Credit JournalA monthly newsletter published by NACM Oregon

March 2009

...continue on page 16

Protect Yourself Against BankruptcyBy Duane Lee, CCE

A good credit agreement and a sharp eye on your receivablesis a great way to protect yourself against losses but,unfortunately, no company is immune from the possibility thatone of their customers may file for bankruptcy.

Obviously, taking the fall for your customer’s debt will havean impact on your bottom line. To lessen the blow and ensurethat nothing falls between the cracks, I would highlyrecommend keeping a “Bankruptcy Checklist” on file. Here area few items that should be on the list:

Part 1: Gather Pertinent Information

Once a customer files for bankruptcy, you will receive a noticeof filing. Take a minute to go over it and make sure it containsthe following information:

• The customer’s attorney’s name and phone number• The bankruptcy trustee’s name and phone number• The case number• The exact address of the court in which the action has

been filed

Additional information you’ll want to gather:

• Was the filing a Chapter 7 Liquidation, Chapter 11Reorganization, or Chapter 13 Wage Earner Plan?

• What is the exact amount the customer owes yourcompany?

• Are there products or services which have been deliveredbut have not yet been invoiced?

• Are you a secured creditor? (If you are, you have theright to ask the customer to sign a “ReaffirmationAgreement.”)

Protect Yourself AgainstBankruptcy ........................ 1

Chair's Message ................. 2

President's Message ........... 2

Pacific Northwest CreditConference Cancellation ...... 3

Scholarship Recipients ......... 3

Legal Corner ...................... 4

Barry Elms Presentation ....... 6

Upcoming Events ................ 7

Education Schedule ............. 7

2009 NOF ScholarshipFund ................................. 8

2009 BCLC Webinars .......... 9

International Corner ............ 12

Welcome New Members ...... 13

CFDD Chapter Meetings ...... 14

Contacts............................ 17

In This Issue


NACM Oregon


March 2009

Chairman of the BoardBarbara Davis, CCE

Spring is almost here! I hopemembers will take advantage of theupcoming events and educational

offerings planned for the next several months.The Business Credit Learning Center continues to

be packed with informative sessions ranging frombankruptcy to FACTA to dealing with fraudulentcustomers. There is also “The Art of Getting Paid”with Barry Elms on March 24. Barry’s courses arevery entertaining and informative and if you havenot attended one, I encourage you to do so. Thereare also upcoming classes in collections and creditmanagement. These are perfect for beginningcredit professionals.

Be sure to join us on Thursday, April 23 for theAnnual Meeting of the membership. This featureselection of the Board of Directors, the financialreport of the association, recognition ofoutstanding members, and some outstandingspeakers.

Also upcoming is the Credit Congress and Expoin Orlando, Florida, on June 14-17. The CreditCongress provides some outstanding educationaland networking opportunities for the creditprofessional. It is gearing up to be a great eventand I hope members will have the opportunity toattend.

Barbara Davis, CCELiberty Northwest Insurance [email protected]

President & CEORod Wheeland, CCE/CAE

We’ve been busy working withmembers who are reevaluatingbudgets this year, trying to findopportunities to reduce informationcosts, as well as improve delinquency and DSO.

Regarding information costs, as previouslymentioned we have a broad array of products, andin the last year we’ve been given contract pricingfrom our credit report suppliers. It makes ourpricing unbeatable. If you are buying credit reportsfrom an on-line company that claims the bestpricing, call Kathy Linscott, VP Sales & Service(971-230-1164), and she will give you acompetitive bid. I have yet to see a contract thatwe couldn’t beat or at least match. Combinequality, timely data, at a reasonable price, withexceptional NACM Oregon service, and you have awinner!

And, with the development of our proprietarydatabase that includes credit experience from morethan twenty other NACM Affiliates across thecountry, we can provide a trade clearance reportsecond to none and at a very modest price.

Tired of being told that your “all you can eatcontract” will increase 10% this year, and you can“take it or leave it”? Tired of trying to call ahelpline on the East Coast that connects you to aboiler room somewhere across the pond? Tired ofpaying $65 a report for a lot of verbiage, datedinformation, and stock descriptions like “three-story brick building on a well-traveled street”? Letus show you alternatives . . . let us pull samplereports for comparison. Thanks for yourconsideration and your continuing support.

Best wishes for an early Spring!

Rod Wheeland, CCE, CAEDirect: [email protected]


NACM Oregon


March 2009

February 17, 2009

Dear fellow CFDD Chapter Presidents and NACMAffiliates:

Due to the current economic downturn, thePCFAC Executive has decided we are no longerable to commit to hosting the Professional Creditand Financial Association Conference, September23 through September 26, 2009, at Banff ParkLodge. I have sent a letter to cancel the confer-ence to the hotel on the recommendation of ourConsultant, Derise Siemens, of Helm Briscoe.

It is unfortunate but polling of prospective at-tendees and reviews of the budgets and actualsfrom the most recent three conferences indicatedthat, with possibly only 40 delegates able toattend, the costs would outweigh revenues. Theconference would not make money and may, infact, cost the Association considerably.

My email address is [email protected] and mynumber is (403) 717-8132; do not hesitate toemail or call me if you should wish to discuss thismatter further.

Sherry GrahamPresident

PO Box 40654Highfield Post Ofice

Calgary AB. T2G 5G9www.pcfac.ca

Due to the status of the economy, NACM

Oregon has decided to make some changes

for this year. The Gala, usually held in early

April, has been cancelled along with the golf

tournament, originally scheduled for July.

We all hope 2010 will bring a more positive

and encouraging environment.

Scholarship RecipientsCongratulations to the following recipients of theNACM-Oregon Foundation scholarships:

David Said, Graybar Electric, was awarded ascholarship to the “Introduction to Financial State-ment” webinar through the Business Credit Learn-ing Center and,

Marsha Johnson, TEC Equpiment, was awarded ascholarship for the NACM National CertificationFee.


NACM Oregon


March 2009

Every now and again, adebtor sends a check forless than the full amount

he owes and writes “paid in full,” “payment in full,”“full payment of a claim,” or something similar on thecheck or in a letter accompanying that check. If done inaccordance with state law, this can be deemed anAccord and Satisfaction of the debt.

But what if you or your company have a lock-box andyou don’t see the check or letter. You are only toldseveral days later that a check was received. So youcall your debtor who in turn tells you that, by deposit-ing the check, you had settled the account.

Now for a dose of reality. The Oregon debtor prob-ably still owes the money. Under Oregon RevisedStatute 73.0311, a check with such a notation doesnot establish a settlement on a debt without somethingmore. Such an attempt does not bind the creditor orprevent the collection of any remaining amount owedunless the creditor has agreed in a signed writing tosettle the debt for the specific amount stated on thecheck. A creditor can agree to an Accord and Satisfac-tion of the debt, either personally, or in the case of abusiness, through an officer or employee with actualauthority to settle claims for the business, but settle-ments like this are not done just on the debtor’s say-soin the memo section of a check.

The picture is not as clear in Washington. RevisedCode of Washington 62A.3-311 provides some verystringent guidelines for Accord and Satisfaction on acheck. Before an Accord and Satisfaction can be had inWashington State, there must be two basic criteria.First, either the amount of the debt must be unliqui-dated (undeterminable at the time of the payment) or abona fide dispute must exist. Second, the debtortendering the payment in full satisfaction of the debtmust be doing so in good faith.

In a court action, if it is determined that the amount

was in dispute or was unliquidated and if the debtortendered payment in good faith, the debt is dischargedif the debtor proves that the check or any accompany-ing written communication contained a conspicuousstatement to the effect that the check was tendered asfull satisfaction of the debt.

However, the company creditor may not be out ofluck yet. The statute allows for two exceptions underwhich the creditor may still be able to collect the fullamount.

In the first exception, the company who is the credi-tor must first show that, within a reasonable timebefore the debtor’s tender, it sent written correspon-dence to the debtor which conspicuously stated thatcommunications concerning disputed debts, includingan instrument tendered as full satisfaction of a debt,are to be addressed to a designated person, office, orplace. The statute does not define the “reasonabletime” period. The company must also show that thecheck or correspondence was not received by thatdesignated person, office, or place.

The second exception requires the creditor, whetheran individual or an organization, to prove that, within90 days after receiving the check, the creditor tenderedrepayment of the amount of the check to the debtor.Since most creditors do not want to return funds froma debtor who is delinquent in paying, many will acceptthe payment in satisfaction and not press for paymentof the entire debt.

Paid-in-Full Checksby Brenda Terreault

Brenda Terreault is the Collection Services Manager forNACM Oregon and an Oregon attorney. You can contacther at 971.230.1196 or [email protected].

� � �


NACM Oregon


March 2009

We are saddened by the passing of Nick Ropp,CCE, on Thursday, February 12 in Issaquah, Wash-ington.

Nick was a member of NACM as Market CreditManager of BMC West in Sherwood. Nick wasrecently promoted to Northwest Regional CreditManager for BMC West working out of the Issaquah,Washington office.

Nick joined CFDD in November 2005. Due to hisextensive knowledge and friendly demeanor, he wasasked to be Publicity Chair in 2007 and editor of theCreditline. He made sure each edition had articles ofinterest to keep CFDD members apprised of changesand challenges within the credit management arena.Nick took time to research our Portland ChapterCFDD history in order to write a “Chapter Spotlight”article for publication in the April CFDD Nationalnewsletter. He gave his full attention to any job hetook on and he was a strong supporter of CFDD.When asked if he would accept the nomination of Vice President for the 2008-2009 year, he seemed quitetouched and honored to be considered for the position. His new role within CFDD was met with enthusiasm as hefocused on educational topics and lined up speakers.

He recognized the value CFDD offers its members through scholarships as he utilized opportunities to attendregional and national conferences in 2007 and 2008.

I had the opportunity to spend time with Nick as we were returning home from the 2008 Credit Congress inLouisville and learned about the other side of Nick—his dedication to his family. Because of Nick the CFDD Boardof Directors agreed to allow CFDD members who wanted to bring their mate to an occasional CFDD meeting,could do so at CFDD member (instead of guest) rate. His wife, Tara, attended several CFDD meetings—includinga Spring Auction where she was an active bidder, providing her support of CFDD’s scholarship fund!

We’ll miss Nick—he made a difference while he was in our midst and I can’t think of any higher tribute thanthat.

Our heartfelt condolences go out to Nick’s wife and family.

The Memorial service will be held March 7, 2009, at 12:30 p.m. at the Tualatin/Durham Senior Center, 8513 SWTualatin Rd., Tualatin, Oregon 97062.

In MemoryNick Ropp, CCE


NACM Oregon


March 2009

An NACM Oregonpresentation featuring

Barry Elms!Tuesday, March 24, 2009

8:30 to 9 a.m. - Continental Breakfast9 a.m. to 4 p.m. “The Art of Getting Paid”

NACM Oregon Classroom (Suite 201)7931 NE Halsey, Portland, Oregon

$195 - NACM members $295 - Nonmember.6 CEU/CCE

“The Art of Getting Paid”

Barry’s entertaining and inspir-

ing material is appreciated by a

portfolio of clients that include

General Motors, Ford Motor

Credit, American Express,

Verizon, Dell Computers, Shell

Oil, The Federal Reserve, and

many other leading companies.

He is a world-class speaker and

author of numerous video and

audio programs.

As president

of Strategic

Negotiations

International,

Barry Elms is

acclaimed by

many as

“America’s Business Coach in

Negotiation Skills.” He has more

than 25 years of business experi-

ence in customer service, credit

management, sales, and general

management.

It has never been more

important to get paid quickly. In

the current economic climate

companies will use trade credit

as a substitute for bank loans

and take advantage of any

opportunity to delay payment.

Don’t let your profits suffer!

Make sure you have a well-

trained and effective team

looking after the interests of

your business.

Have you heard the same

excuses time after time? Would

you like to know how to get

paid on every collection call?

Have you ever had a check

promised that did not arrive? If

you answered yes to any of

these questions, then this

seminar is for you!

For more information contact

Claudia Sarinana, Education

Coordinator, at 971.230.1184 or

[email protected]


NACM Oregon


March 2009

2009 Education Program Schedule

March 24The Art of Getting Paid

9 a.m. - 4 p.m.

May 22Certification Roadmap Introduction

11:30 a.m. - 1 p.m.

July 23Improving Collection Results

8:30 a.m. - 12 p.m.

August 20International Business Day

8:30 a.m. - 4 p.m.

September 22Credit Management Boot Camp

8:30 a.m. - 4 p.m.

October 6Getting Exceptional CollectionResults

8:30 a.m. - 4 p.m.

NACM Oregon Annual MeetingApril 23Join us for an update on NACMOregon and the election ofDirectors to the Board.

NACM Western Regional ConferenceOctober 16-18, 2009,Monte Carlo Resort, Las VegasBe there for the 22nd Annual NACM WesternRegion Credit Conference (WRCC). The conferenceis designed for anyone who performs the businesscredit function at your company.

2009 Upcoming Events 2009 Credit Congress & ExpoRosen Shingle CreekOrlando, FloridaJune 14-17, 2009

The National CreditCongress is an opportunity tomeet and network with creditexecutives from across the nation.This is the only exposition of this type, designed tomeet the needs of business credit professionals nation-wide. The National Credit Congress provides:

• invaluable educational sessions• productive networking events• practical product and services demonstrations

For more information go to http://creditcongress.nacm.org/

Five scholarships to be awarded by NACM OregonFoundation. To apply for scholarship funds, or for moreinformation, contact Lourdes (Lou) Rice, NOFScholarship Committee Chair, Pacific Metal Company at503.454.1051 or [email protected].


NACM Oregon


March 2009

2009 NOF Scholarship FundsThe NACM Oregon Foundation grants scholarships to credit professionals for continuing

education, professional designations, and conference expenses.To apply for scholarship funds, or for more information, contact Lourdes (Lou) Rice, NOF

Scholarship Committee Chair, Pacific Metal Company at 503.454.1051 [email protected].

For 2009, the NOF Board has designated that $15,000 in scholarship funds be madeavailable. The categories are as follows.

NACM National Credit Congress, June 14-17, Orlando,FloridaFive (5) $700 scholarships.

Deadline: March 13, 2009

Graduate School of Credit & Financial Management,June 22 - July 2, 2009, and June 21 - July 1, 2010Support for first-time attendee. $3,000 total. Mustsubmit an application for consideration. Candidate needto submit request for the second years. NOF will payNACM National directly.

Deadline: April 20, 2009

CFDD Credit Conferences—

Pacific Northwest Credit Conference, September 23-26, 2009, Banff (Calgary) BCFour (4) $500 scholarships.

Deadline: August 31, 2009

CFDD National Conference, October 8-10, 2009,Denver, ColoradoThree (3) $500 scholarships.


Phylliss Clark ScholarshipsThree (3) $500 scholarships. Applicants must be aCFDD member and a first-time attendee to the PacificNorthwest Credit Conference. Each CFDD Chapter—Eugene/Springfield, Portland, and Salem/Albany isallocated one scholarship per year.


Please Note: One scholarship funding per year perrecipient for the above scholarships.

Certification ProgramsTo establish your file with NACM National; reimburse-ment of exams fees after a passing grade; recertifica-tions (NOF pays for 50% of the fee)—$2,000 total.

College Courses or NACM/FCIB on-line courses forprofessional accreditations. Reimbursement aftersubmission of grade—$2,000 total.

NACM Oregon-sponsored Webinars half and full-dayseminars—$1,000 total.

Professional Advancement Scholarship(PAS)

For those wishing to attend the Graduate Schoolof Credit and Financial Management (GSCFM), theNACM Scholarship Foundation has created a specialscholarship category, the Professional AdvancementScholarship (PAS). Applicants must be potential first-year students who meet all GSCFM entry standards,and be committed to the rigorous educationalstudies expected of its participants. Recipients mustattend the full 2-year program. For more informationon the PAS go to http://nacm.org/education/scholarship_awards.shtml and click the PAS tab.

In addition, the NACM Oregon Foundation (NOF)offers two scholarships: one for a first-year attendeeand one for a second- year attendee. The NOFscholarship is applied for separately, awardedindependently, and is available for renewal (byapplication) for the second year. The scholarshipprograms offered by NACM and the NACM OregonFoundation can ease the burden on companies/fellowcredit professional who desire to attend thisexcellent program. For more information, contactLourdes (Lou) Rice.


NACM Oregon


March 2009

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

March 5

Selling the Chapter 11Debtor

Instructor: Bruce Nathan,Lowenstein Sandler PC

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

March 19

First-Day Orders: SecuredCreditors' Dream

Instructor: Robert Fishman,Shaw Gussis FishmanGlantz Wolfson and Towbin

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

April 2

Using Credit Enhancementsto Make the Sale in aRecession

Instructor: Scott Blakeley,Blakeley & Blakeley LLP

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

April 16

FACTA: Red Flags for TradeCreditors

Instructor: Brenda Terreault,NACM Oregon

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

April 30

My Customer Just FiledChapter 11 and Is BeingSold as a Going Concern.What Does This Mean toMe?

Instructor: JonathanFriedland,Levenfeld Pearlstein LLC

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

May 14

What Do Trade CreditorsNeed to Know AboutFDCPA?


May 28Letters of Credit: ResolvingDiscrepancies

Instructor: TBA

June 11Dealing with the FraudulentCustomer


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

June 25

Using Reclamation and 20-Day Administrative Claimsto Reduce the Loss

Instructor: Bruce Nathan,Lowenstein Sandler PC

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

July 9

Legal Aspects of theCollections Procession


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July 23

Adding Insult to Injury:Creditors' Preferences

Instructor: Dorman Wood,CEW CCE,Dorman Wood AssociatesLLC

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

August 6

I Have a Judgment, NowHow Do I Get Paid?


○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

August 20

Getting Paid on YourDelinquent Account


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September 3

ECOA Requirements forTrade Creditors


September 17Out-of-Court Resolution ofInsolvency

Instructor: Jay Indyke,Cooley Godward KronishLLP

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

October 1

Defamation: AvoidingSlander & Libel

Instructor: Jack Cooper

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October 15

Selling International onOpen Account

Instructor: TBA

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October 29

Serving on Creditors'Committee: Current Issues

Instructor: JonathanFriedland,Levenfeld Pearlstein LLC

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November 12

What Do Trade CreditorsNeed to Know AboutAntitrust?

Instructor: Jack Cooper

Business Credit Learning Center 2009

Time: 9 - 10 a.m. (Pacific Time)Cost: $79 (members); $109 (nonmembers)


NACM Oregon


March 2009

Connecticut AG Warns ofPhony Collection Agency

Connecticut Attorney GeneralRichard Blumenthal this weekwarned consumers to ignore lettersfrom a bogus collection agency.Houston-based Black CollectionServices, which is not registeredwith the state as a collectionagency, has been sendingconsumers letters claiming theyowe money and demandingpayment.

Blumenthal said that his office hasreceived numerous complaintsabout the attempted fraud.Blumenthal could not be reached foradditional details.

“Black Collection Services is ablatantly bogus company seeking toswindle consumers,” Blumenthalsaid of the scam. “This ‘phishing’scam aims to hook consumers withphony fears of unpaid bills, trickingthem into paying nonexistent debts.I urge consumers to consign thiscommunication to its proper place:the trash,” he said in a statement.

Blumenthal reminded consumersto never provide their SocialSecurity numbers, bank accountnumbers, or other personal financialinformation to anyone they do notknow. The attorney general alsorecommended that consumersperiodically obtain their creditreports to check for red flags thatmay indicate identity theft.

© 2009 CreditandCollectionsWorld.com andSourceMedia, Inc. All rights reserved.

AttorneyGeneral FilesLawsuit AgainstTopco FinancialServices

WashingtonAttorney General RobMcKenna last weekfiled a lawsuit againstTopco FinancialServices Inc., anEverett, Washington-based collectionagency, for allegedlyharassing, threatening,and cussing atconsumers.

The lawsuit, which was filedFebruary 10 in Snohomish CountySuperior Court, alleges thatrepresentatives of Topco FinancialServices called debtors names suchas “loser,” scum,” “no good,”“lowlife,” “deadbeat” and“worthless.” The lawsuit alsoalleges that Topco FinancialServices threatened to revoke orsuspend debtors’ driver’s licenseswithout lawful authority to do so.

McKenna’s complaint namesTracey Austell and Harry Packer,the company’s president andsecretary/treasurer, respectively,and accuses them, along with thecompany, of violating the state’sConsumer Protection Act.

Topco Financial Services officialscould not be reached for comment.

“Even though they provide animportant service for businesses,collection agencies get a bad rapbecause nobody likes to be on thereceiving end of the call,” McKennasaid in a statement. “Unfortunately,it only takes a few bad collectors togenerate a lot of complaints.”

The Attorney General’s Office hasreceived more than 120 complaintsabout the company since thebeginning of 2005 from residents ofWashington and several otherstates, according to McKenna.

McKenna is asking the court toassess civil penalties of up to$2,000 per violation, restitution ofmoney, or property acquired byTopco Financial Services as a resultof the alleged illegal conduct andcourt costs.

© 2009 CreditandCollectionsWorld.com andSourceMedia, Inc. All rights reserved.


NACM Oregon


March 2009

Expanded. Expansive.Enlightening.

So packed with information, wemade the book bigger!

The 100th edition of NACM’sflagship publication has beenresized to better accommodate itscomprehensive coverage of legalissues. Written and developed bylegal experts and leaders incommercial credit, the Manual isdesigned to help you solve day-to-day problems.

This milestone edition offers anew chapter on letters of credit; a

recently combined chaptercovering personal property liens,trust funds and trust fundagreements; amended sections ondata breach security issues andunclaimed property matters; andnumerous statutory updates,including those for bad checks,retail installment sales, mechanic’sliens, construction bonds and thelegal rate of interest.

Start the year off right by addingan indispensable tool to your creditdepartment. Contact BarbaraSalazar at 971.230.1182 or

Now Available...

MANUAL OF CREDIT AND

COMMERCIAL LAWS—100TH

EDITION


NACM Oregon


March 2009

Your customer sells all the product.When the invoice is due to be paidthe exchange rate is 14.7 thecustomer now has to provide 14.7pesos to the bank or exchangehouse for each dollar to pay you.He has incurred a loss on each unitsold.

Sell price 100 pesos per unit 100.00 pesosCost US$7.10 @ 14.7 pesos 104.37 pesosLoss (4.37) pesosG/P% (4.37) pesos

The customer went from anestimated profit of 29.71% to aloss of 4.37%. Many customers areunable or unwilling to pay when therates moves against them. Theywant to wait until the exchangerate is better. Conversely weseldom see customers paying earlywhen the rate moves in their favor.

FX rates are an extremelyimportant component ofinternational business whether youare buying, selling, paying, orgetting paid.

Next month we will look at someways to mitigate the effect of FXmoves.

Alice Knight is Vice President of Finance& Administration for Paper ProductsMarketing (USA) Inc., Ms. Knight hasmore than 35 years of experience inInternational Finance and is an activemember of FCIB and NACM. She hasserved as Co-Chair, Panel Member andPresenter at Annual Global Conferences,as President of FCIB Forest ProductsGroup, and participated in FCIBConferences in Mexico, Puerto Rico,Munich, and Brussels. She is currently amember of FCIB Board of Directors and

the FCIB Hotline Committee.

International Cornerby Alice Knight

FX may sound like science fiction but in the context of internationalbusiness it is a very real and important concept.

FX is the widely used abbreviation for Foreign Exchange. ForeignExchange is the relative value of one currency to another. Each relationshiphas its own everchanging value such as how many pesos equal one dollaror how many dollars equal one Euro.

Domestic sales usually do not involve FX. If a supplier in Oregon sells toa customer in Florida the invoice will probably be in US dollars. There areno “Oregon” dollars or “Florida” dollars only US dollars. A check drawn inUS dollars on a bank in Florida can be deposited in an Oregon Bank for thesame value.

Each Country or Nation governs its own currency. It can set an officialexchange rate, restrict how the currency is used, restrict how or when thecurrency is exchanged for other currencies and restrict or control themovement of its currency and other currencies into or out of the Country.

Some well-known currencies from well-developed Countries which areglobally recognized and freely traded on global FX markets are called “hardcurrencies.” Some examples are US dollar, Euro, British Pound, and Yen.

The relationship between currencies is constantly changing based onexchange market and bank activity. Buyers and sellers negotiate pricesaround the clock and around the world. Hard currencies have enoughactivity that they have buyers and sellers ready to deal and establish areference point for current exchange rates. Some currencies have so littleactivity that it is very difficult to establish an exchange or conversion rate.

Many things influence a currency’s exchange rate with other currencies.Some influences are political activity, political stability, inflation, deflation,foreign reserves, debt payments, interest rates, having or needing oil,having or needing commodities, employment rates, wars, military strength,terrorism, financial exposure to other Countries—the list is endless.

If we sell in US dollars why should we care about FX rates? We shouldcare because it directly affects our customer’s ability to pay. The MexicanPeso has moved form 9.9 pesos to the dollar last fall to 14.7 pesos to thedollar now.

Suppose last fall your customer in Mexico was planning to sell a productfor 100 pesos per unit. He entered a purchase order with you for the baseunit at US $7.10 per unit with 90-day terms. He has very few additionalcosts.

Sell price 100 pesos per unit 100.00 pesosCost US$7.10 @ 9.9pesos 70.29 pesosProfit 29.71 pesosG/P% 29.71


NACM Oregon


March 2009

Welcome New MembersBlackwell Book Services, books &bibliographic data distributor.Patti LaRoche-Clark503.684.11406024 Jean Rd., Bldg. GLake Oswego OR 97035

Cashco Distributors, Inc., distributor oftravel/trial-size products.Lon Getlin503.288.81516430 NE Columbia Blvd.Portland OR 97218

Central Forest Products, Inc., lumber broker.Lazaro Ramos503-266-8660210 SW 2nd Ave.Canby OR 97013

Daimler Trucks North America, LLC,manufacturer & distributor of trucks & parts.JoAnna Refsland503.745.70684747 N Channel Ave.Portland OR 97217-7613

Datalogic Mobile, Inc., manufacturer ofmobile computers, handheld scanners & dataconnection terminals.Curt Smith541.743.48001505 Westec Dr.Eugene OR 97402

Dun & Bradstreet, credit reporting & riskmanagement services.Zach Johnson503.230.8147825 NE Multnomah, #905Portland OR 97232

Headgear, Inc., manufacturer of clothing &shoes.Peggy Raveling757.858.12013409 Chandler Creek Rd.Virginia Beach VA 23453

Golden Temple of Oregon, LLC,manufactures granola cereals & health teas.Kathryn Gayle Bruns541.461.21692545 Prairie Rd.Eugene OR 97402

Pollmeier Massivholz GmbH & Co. KG,lumber & wood products manufacturer &distributor.Constanze Bertmaring04154 795964Pferdsdorfer Weg 699831 Creuzburg, Germany

Portland West Shipping, LLCDBA: United Shipping Solutions, freightbroker.Dan Bell503.270.5050PO Box 1Canby OR 97013

SeaPort Hardwoods & Flooring, distributor ofwood flooring.John Butler503.594.05409001 SE Lawnfield Rd.Clackamas OR 97015

Squires Electric, Inc., electrical contractors.Donna Toothman503.252.1609PO Box 16851Portland OR 97292

Vancouver Iron & Steel, Inc., manufacturerof iron & steel castings.Maura Wodarski503.821.8100866 N Columbia Blvd.Portland OR 97217

Willamette Graystone, Inc., manufacturer ofconcrete block, pavers, septic & water tank,& masonry supplies.Bileejean Sparks541.747.1225PO Box 7816Eugene OR 97401

Williams Form Engineering Corp., distributorof concrete accessories.Sherry Rakestraw503.285.45487601 N Columbia Blvd.Portland OR 97203

Congrats!Congratulations to the NACM

members who continue to wincash prizes for referring compa-nies to NACM for membership.

Otis Foglesong (Roseburg Lumber)referred Rosboro, LLC.

Sandy Hardison (The Cronin Co.)referred Flintile, Inc.

Mindy Kephart (United Pipe &Supply) referred WillametteGraystone, Inc.

Kim McGuire (Tice Electric) referredSquires Electric Inc.

You can also win cash forgetting companies to join yourindustry group. Just ask SandyHardison, The Cronin Co., whoreceived a cash award forreferring Flintile to the FloorCovering Industry Group.

Ask your group secretary orcall customer service for detailsat 971.230.1220.


NACM Oregon


March 2009

CFDD ChaptersSalem/Albany

This chapter of the NACM Credit& Financial Development Divi-sion meets the second Tuesdayof each month.

Meeting Date: Tuesday,March 10, 2009

Location: Almost Home Restau-rant & Steakhouse3310 Market St., NE, Salem

Luncheon: 11 a.m. - 12 p.m.

Topic: "Letters of Credit”

Presenter: Judy Chan, VicePresident Trade ConnectionsManager, Wells Fargo HSBCTrade Bank

Coordinator:Theresa QuillardAir BP Aviation [email protected]

Eugene/Springfield

This chapter of the NACM Credit& Financial Development Divisionmeets the second Wednesday ofeach month.

Meeting Date: Wednesday,March 11, 2009

Location: Downtown AthleticClub Conference Center999 Willamette St., Eugene

Mini-seminar

3 - 5 p.m.Basic and Telephone Collections

5:30 - 7 p.m. - Break & Dinner

7 - 8 p.m. - Collection Laws &Measuring Your Success

Presenter: Brenda Terreault,Collection Services Manager,NACM Oregon

Coordinator:Laurie FullerHarvest House [email protected]

Portland

This chapter of the NACM Credit& Financial Development Divisionmeets the second Thursday ofeach month.

Meeting Date: Thursday,March 12, 2009

Location: Red Lion ConventionCenter, 1021 NE Grand Ave.,6th Floor, Portland

Networking Time: 5:30 p.m.Dinner: 6 p.m.

Topic: “Handling Credit in Diffi-cult Times”

Presenters: Jim Jensen, CCE,International Business CreditConsulting; Jeffrey O’Banion,CCE, CICP, Director of Credit,NW Natural Gas Co.; and RodWheeland, CCE, CAE, President,NACM Oregon

Coordinator:Marilyn Rea, CBFPacific Architectural WoodProducts503.284.0024 ext. [email protected]


The Effective Interview:Finding the Right Fit

The simple act of hiring personnel canbe time-consuming, stressful, andcostly. Make the wrong hiring decisionand the cost of replacing that individualcould be the equivalent of up to one-and-a-half times his or her annual salaryonce recruiting, training, lostproductivity, and additional on-boardingexpenses are taken into account. Oftentimes, turnover of a new hire is not dueto lack of skills, but the inability of thenew employee to fit into the companyculture.

This makes effective interviewing oneof the most important factors in thehiring process. A resume will give youthe facts, but a successful interviewwill reveal whether the candidate is agood fit.

Most times it’s appropriate to beginan interview with questions in whichthe answers are based specifically onthe technical qualifications needed to dothe job. These tend to put the candidateat ease by allowing them to showcasetheir knowledge, experience, and skillsas it relates directly to the position.

The interview can then transition intowhat may be a structured or semi-structured format involving open-endedquestions. Using questions that arebehavioral and situational in nature, youcan gain further insight into acandidate’s likely response, motivations,traits, and tendencies – all qualitiescritical to a good culture match.

Here are a few sample questionsdesigned to help identify right-fitemployees:

• What accomplishments are you mostproud of and why?

• What is your approach to an im-portant assignment? To a typicalworkday?

• Which is more important - creativityor efficiency? Why?

• In what kind of environment do youdo your best work?

• How would you describe yourself interms of your ability to work as amember of a team? Give me anexample of a success you had as partof a team.

• Tell me about a situation in whichthere was poor communication. Howdid you handle it?

• Give an example of when you had towork with someone who was difficultto get along with. How did youhandle that person?

• I’m going to give you a hypotheticalsituation which you may encounter inthis position. Tell me how you wouldwork through it.

• Tell me about a time when you madea mistake; how you rectified it;and what you learned from it.

• What do you think it takes to besuccessful in this position?

• What are the most important rewardsyou expect to gain from your positionhere?

• What are your career goals and howdo you plan to achieve those goals?

Uncovering a potential employee’spast experiences and behaviors, you willidentify characteristics that may predictfuture behavior and performance. If it’snot something you’ve tried in the past,it may be helpful to integrate some ofthese behavioral questions the next timeyou interview - and help yourself makethe right hire the first time around!

Source: Employment Trends


NACM Oregon


March 2009

Protect Yourself, continued from cover

Part 2: Notify all appropriate individuals and make note ofimportant dates.

Notify your company’s legal advisor or attorney as well as allappropriate personnel within your company that might beaffected by a customer bankruptcy. This could include creditand accounting, sales, distribution, etc.

Ensure that your Proof of Claim is filed in a timely manner.Another important deadline to watch for is the date to filecomplaints objecting to the discharge of the debtor.

Part 3: Defending yourself against a Voidable Preference

Any payments made to your company in the 90 days prior toa bankruptcy filing, may be subject to a Voidable PreferenceAction. Put together documentation that includes a listing ofall invoices and payments in the 90 days prior to thebankruptcy filing and a separate print out of all invoices andpayments for at least the prior year. This documentation willassist your attorney in presenting either a “New Value” or a“Normal Course of Business” defense to a later preferenceaction. It’s best to gather these documents as soon as youreceive word of the bankruptcy rather than wait for the noticeof a preference action as it tends to arrive just prior to the twoyear filing deadline.

Having a “Bankruptcy Checklist” readily available will helpeven a veteran Credit Manager make sure that little details arenot missed. Here’s hoping you never have to use it!

Article submitted by Employment Trends, part of the SOS Family ofCompanies

Chapter 11 - 101 TheNuts and Bolts of Chapter11 Practice: A Primer

Would you like a broaderoverview of theChapter 11process? Forthe next 10months, NACMOregon willprovide, in an attachment, aseries of essays on Chapter 11practice.

This is the thirteenth article inthe series, “Executory Contractsand Section 365” by authorsJonathan P. Friedland, Michael L.Bernstein, Professor George W.Kuney, and Professor John D.Ayer. These series are intendedto instruct reader’s in the nutsand bolts of Chapter 11 practice.Consider obtaining and readingthe prior series if you have notalready done so, as eachinstallment builds on thebackground built in priorinstallments.

We thank ABI for permission toreprint the series. Theinstallments are chapters from aCD-Rom that is available forpurchase for $50 ($20 to ABImembers) through ABI. For moreinformation call 703.739.0800or go to www.abiworld.org.


NACM Oregon


March 2009

Board of DirectorsChairmanBarbara Davis, CCE, Liberty NW Insurance [email protected]

Vice ChairDoug Jacobson, CCE, [email protected]

Secretary/TreasurerSue Hein, Rapid Bind, [email protected]

CounselorPat Jones, Consolidated Supply [email protected]

DirectorsLinda Bishop, CCE, CICP, Tektronix, [email protected]

Tony Ceniga, Industrial Finishes & [email protected]

Kellie Hainline, National Bldrs. Hardware [email protected]

John Hardy, Emerson Hardwood [email protected]

Marsha Johnson, TEC [email protected]

Kimi Shelton, CCE, EKC Consulting, [email protected]

Raeann Smith, North Pacific [email protected]

PresidentRod Wheeland, CCE, CAE, NACM Oregon

NACM OregonCustomer Service/Credit [email protected]

EducationClaudia [email protected]

Industry GroupsKathy [email protected]

Claudia [email protected]

Collection ServicesBrenda [email protected]

BillingMarmie [email protected]

Meeting Room RentalLisa Rogstad971.230.1160

nacm oregon business credit journal march 2009 · 7931 ne halsey, suite 200, portland, oregon 97213...

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