NACM Oregon Business Credit Journal · NACM Oregon Business Credit Journal February/March 2012 NACM...

NACM Oregon Business Credit Journal

February/March 2012

NACM Oregon 7931 NE Halsey, Suite 200 Portland, Oregon 97213 Tel 503.257.0802 Fax 503.257.0247 www.nacmoregon.org| | | | |

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In This Issue

Authenticating Emails .......1

Chair’s Message ...............2

President’s Message .........2

Member Profile ................3

Top 5 Federal Laws ..........5

Guidelines to Pull Consumer Reports ...........................6

International Corner .........7

DSO Results ....................8

Annual Bad Debt Report ...8

NOF Scholarship Funds .....9

BCLC Webinars ................10

Education Schedule ..........10

New Members..................12

Placement Service ............13

Experian Benchmark Report .............................14

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

Authenticating Emails at Trial: Not Always as Easy as it May Seemby Bradley D. Blakeley, Esq., Blakeley & Blakeley, LLP

As a credit professional, you are asked by your attorney to provide the contents of your credit file to assist in the preparation of a lawsuit involving a contract dispute. You provide the copies of all of the documents that are electronically stored on your company’s database concerning the dispute. However, many of the documents, including emails, are foreign to you and others in your company. The recent decision in the bankruptcy case of Second Chance Body Armor addresses what can happen in this situation if those documents are not properly authenticated. In Second Chance Body Armor, a former manufacturer and distributor of bulletproof vests, the Chapter 7 trustee filed 17 counts against Toyobo and its U.S. subsidiary, suppliers of Zylon used by weavers that was then used by Second Chance to make the vests. While questioning a manager from Toyobo on the 39th day of trial, the trustee sought admission of an exhibit—an interoffice email from an employee of ITOCHU Corporation addressed to five other ITOCHU employees that dealt with ballistics testing. Toyobo objected to the admission of the trustee’s exhibit on grounds that it constituted hearsay and lacked proper authentication and foundation. In an oral bench ruling, the court provisionally admitted the trustee’s exhibit. The court held that admission of the exhibit was conditioned upon factual findings at the conclusion of the case that ITOCHU was an agent of Toyobo in connection with the transactions in question. If no agency finding could ultimately be made, or if the document was not authenticated, the court explained that the exhibit would be expressly excluded from consideration and completely ignored by the court. Responding to the court’s ruling with permission by the court to supplement its argument, Toyobo reiterated its hearsay objection and argued that the trustee had failed to lay an adequate foundation establishing the authenticity of the document. Toyobo also asserted that, to the extent the court’s ruling was based on grounds of potential agency, the document was subject to the attorney-client privilege and should be excluded from evidence on that basis. The court considered Toyobo’s arguments, but declined to alter its evidentiary ruling. In large part, the court believed that provisionally admitting the trust-ee’s exhibits was the best way to promote judicial economy. The issue presented was whether this court should rescind its conditional admission of the trustee’s exhibit into evidence over Toyobo’s objection that the trustee had failed to lay a proper foundation regarding the document’s authenticity.


February/March 2012


Message from the Chairman As I’m writing this note to our membership it’s snowing and it’s almost March. I’m looking forward to sunny, warm and longer days and put this winter behind us.

Message from the President The NACM Oregon Annual Meeting is scheduled for April 26, and I hope you are planning to join us. Wanda Borges, Esq., will provide a legal update in the morning, and Cindy Robert, our legislative representative will give us an overview of the activity in Salem this year. If you haven’t, please register today!

Rod Wheeland, CCE, CAE Direct: 971.230.1158 [email protected]

© New Yorker Cartoon Lee Lorenz from cartoonbank.com. All Rights Reserved.

Many of us have finished our year-end’s and working through audits. Many of us are being asked to do more with less, so I encourage our membership to visit NACM Oregon’s updated website. An abundance of resources are now available at your desk. How To’s, Ask an Expert, and Forum’s are available for the beginners in credit to the advanced professional. This is the time of year to plan what education and resources your staff will need. NACM Oregon has many webinars—live and recorded—and many educational classes. Don’t forget your 25 FREE Trade NACM Credit Reports and 2 FREE webinars through Business Credit Learning Center. Put important events on your calendars. April 26 is the NACM Oregon Annual Membership Meeting and June 10-13 is the 2012 Annual Credit Congress held in Grapevine, Texas. There are many scholarships available for education, conferences, and certifications. Please get your requests in early to take advantage of these offerings. I look forward to meeting many of you at the scheduled events this year and wish all of you a wonderful and prosperous year.

Raeann Binau, CICP, RGCP Airgas - Norpac Inc [email protected]

mailto:rwheeland%40nacmoregon.org?subject=

mailto:raeann.binau%40airgas.com?subject=


February/March 2012


Member ProfileFought & Company Inc.

Chances are that if you have crossed a Northwest bridge or stepped into

a tall building from Seattle to Portland you have been supported by a steel structure fabricated at Fought & Company, located just off I-5 in Tigard, Oregon. In fact, it’s hard to find notable structures that Fought & Co. hasn’t played a role in building. Joseph Fought, who immigrated to Portland from Germany via Canada, founded Fought in 1949 after working in steel fabrication for years. Fought incorporated in 1974 and Joe Fought remained involved with the company until he passed away.

Though the Fought family is no longer involved in the running of the company, the presence of Joe Fought is still felt from the front office to the fabrication floor. “There are some people who are still here that remember working for Joe,” points out Craig Lundskog, Fought’s Controller.

Lundskog joined Fought a little over three years ago as their long-time Controller was retiring. Going by the average tenure of 20 years, Lundskog could still be considered a new hire. Coming from nearly two decades in automotive finance, the difference for Lundskog has been dramatic yet comfortable.

“The people at Fought are down to

earth, hard-working, and earnest,” says Lundskog. “They take pride in their work.” As controller, Lundskog is responsible for all of Fought’s financial aspects. So, though he may not often don a hardhat stamped with Fought’s big red “F,” Lundskog shares in the sense of pride that comes with joining the Fought team.

Out of their Tigard headquarters Fought has produced the steel skeletons of some of the Northwest’s signature structures. For decades they have quietly built a long list of industry and architectural awards. The Sauvie Island bridge that was floated into place on a barge—that was Fought. Safeco Field’s retractable roof—that was Fought. They also fabricated the beautifully complex steel structure that suspends the glass canopy over Portland International Airport’s arrival and departure area.

From projects that span the West Coast, Fought is a company whose reputation becomes an effective yet hard to quantify asset. Though they aren’t always able to cast the lowest bid, Fought’s longevity proves it is not always about the bottom line. Their craftsmanship and precision are values that a can’t be quantified in a line item. “I think that our history, stability, craftsmanship, and the way we work helps us get the jobs,” says Lundskog.

Though he has spent his career prior to Fought in more consumer-related accounting roles, Lundskog admits early intentions of becoming a civil engineer. That Fought satisfies both interests is not lost on him. “I think I’m getting back to some of the things I liked doing,” he says. Most of all, Lundskog seems to enjoy the unique challenges he sees as Fought’s Controller.

“We have thirty to forty active projects when we’re at capacity,” he says. “The challenge becomes managing not just costs and revenue, but also materials and human resources.” To help answer the big picture questions, Lundskog has worked on implementing an automated system of tracking projects, inventory, and personnel.

The Big Red F

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February/March 2012


Member Profile, continued from page 3

Unlike project management, Lundskog finds that vetting new customers is not a frequent challenge. “Ninety percent of our customers are repeat customers,” says Lundskog. Still, as the commercial building industry has changed in the past few years, Lundskog has seen more new customers walk through Fought’s doors.

Walk through Fought’s facilities and you quickly pick up on the pride that comes from seeing raw steel turned into buildings and infrastructure. This is stuff - big stuff - being built right in Portland’s back yard. As one steel worker tossed over his shoulder: “It’s another great day working for the Big Red F.”

Lundskog expounds on this sense of pride. “It’s nice to be able to drive by something or over something we built and tell your kid: ‘We built that.’ ”

Craig Lundskog, Controller


February/March 2012


The Top 5 Federal Laws That Credit Professionals Need to Know A number of different bodies of law af-fect the day-to-day functioning of a company’s credit department, and they’re just as important now as they were when they were enacted. In fact, it’s probably more important than ever to make sure your company is in compliance with all governing laws as regulators become increasingly vigilant in order to collect more in penalties to shore up recession-depleted budgets. The body of laws and legislations is so diverse precisely because the credit function at many companies involves such a wide range of duties. Here, in no particular order, are the top five federal laws that credit professionals need to know:

1. The Fair Debt Collection Practices Act (FDCPA) Although this legislation technically only governs collection agencies seeking to collect consumer debts, it serves as a national framework for what’s required, what’s acceptable and what’s illegal in the collection process. Many states even have their own statutes that extend the Act’s rules to apply to commercial creditors and collectors working in-house at a creditor company. Actions on the collector’s behalf—like calling in the middle of the night, using profanity, calling too often and deceiving the debtor—are not just practices that good collectors avoid, they’re also illegal under the FDCPA.

2. The Fair and Accurate Credit Transactions Act (FACTA) This bill amended the Fair Credit Reporting Act (FCRA) (which would, in all likelihood be #6 on this list) to allow consumers to request credit reports every year. It also contains provisions geared toward reducing identity theft, most notably the “Red Flags” Rules provision that has continually beleaguered credit

professionals because of its inherently vague definitions. The rules specifically require “creditors” to develop a plan to identify relevant red flags of identity theft, detect these red flags, prevent and mitigate identity theft and update the program. An amendment to the law limited the definition of a creditor to one that uses consumer reports in connection with a credit transaction, but, nonetheless, every creditor company must look at their business to determine whether or not they have a “reasonably foreseeable risk” of identity theft.

3. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) Signed into law in 2005 and taking effect in 2006, the BAPCPA was the country’s last major update to the Bankruptcy Code. It made several changes to the commercial section of the Code, the intent of which was to help protect creditors as they worked with distressed and insolvent debtors. Specifically, BAPCPA made it easier for creditors to prove the ordinary course of business defense in a preference claim and established a floor of $5,000 (since increased to $5,850) on preference claims, meaning that any demand for less than that amount is automatically illegitimate. It also requires that any preference challenge for payments of less than $10,000 (since increased to $11,725) must be brought in the district of the creditor.

4. The Foreign Corrupt Practices Act (FCPA) The FCPA passed in 1977 and has only grown in importance recently as companies have sought to use exports as a means to shore up lagging domestic sales. The Act consists of two primary provisions, one that addresses transparency requirements

under the Securities Exchange Act of 1934 and another that addresses bribery of foreign officials, which is most important to credit professionals. In some countries, “grease payments”—payments designed to speed up a bureaucratic process—are typical and even necessary in some instances. Creditors need to be aware of FCPA provisions in order to know the line between a legitimate payment and an illegal bribe.

5. All Four U.S. Antitrust Laws Okay, so this list should technically be the top eight laws that credit professionals need to know, but all of the U.S. antitrust laws blend together to prevent price fixing, collusion and other anti-competitive behavior. They are the Sherman Antitrust Act, the Clayton Act, the Federal Trade Commission Act and the Robinson-Patman Act. Together they regulate seller behavior and ensure that companies don’t work together to stifle competition or discriminate against equally-situated buyers. Most credit professionals unknowingly run afoul of these laws at credit group meetings, which is why participating in NACM Affiliate industry group meetings—run in full accordance with the law and regulated by a knowledgeable representative— are the best and easiest way to stay out of trouble.

Talk to your local NACM Affiliate staff if you have more questions about these and other federal laws.

Rewritten with permission. from NACM National.


February/March 2012


Guidelines to Pull Consumer Reports

Acceptable uses

To review an existing account To collect on an existing account To extend credit for a commercial transaction when the owner is: A partner in a general partnership A sole proprietor An individual who has signed a personal guaranty An individual who has provided a written authorization approving your review of their personal credit history

Unacceptable uses

To review the personal credit history of: Principals of corporations Note - identifiers of corporations include: Corp., Inc., LLC, LTD, LLP Employees of a company you are researching Yourself, your coworkers, friends, family members, names in the news, celebrities, government officials or any other individuals with whom you have no commercial credit relationship

Exceptions:

You may obtain a report on: Principals of corporations who have signed a guaranty of the business obligations (often referred to as a personal guaranty) Principals of a corporation who have given written authorization for access of their personal credit history**

For more detailed information regarding the Fair Credit Reporting Act go to http://www.ftc.gov/os/statutes/031224fcra.

Definitions of key words – referenced above.

Partnership—Two or more individuals that run a business. Each partner is liable for debts of the partnership up to the amount of their personal assets tied into the business.

Limited Partnership—Limited partners in a partnership contribute only assets and are liable only up to the amount they contribute. A limited partnership consists of 1 or more general partners and 1 or more limited partners.

Sole Proprietor—This classification is used for anyone who does business without creating a formal business entity. The owner reports business income on their personal income tax statement.

Corporation—A legal entity recognized by a state or the federal government. The owners and shareholders are separate from the legal entity.

**Merely signing a credit application does not constitute written authorization. The principal whose information you are accessing must give specific written permission.

http://www.ftc.gov/os/statutes/031224fcra


February/March 2012


ICTF’s Annual Global Symposium in November presented a Worldwide Risk Tour—Recovery Interrupted or Not: Global Outlook 2012.

Dan North, Economist and VP Risk, Euler Hermes ACI, led off with the outlook for the U.S. economy. Dan started by admitting that it is getting harder and harder to be an optimist. The European debt uncertainty has a major impact on banks worldwide, the bond markets, and various stock exchanges. The problem is uncertainty. Once something happens companies can strategically plan around it but uncertainty stifles effective planning and response.

The U.S. debt uncertainty is somewhat different than uncertainty in the rest of the world since the U.S. can do something no other country can do—it can print U.S. dollars. In the U.S., the government has no plan to reduce debt, it is uncertain how the debt can be effectively managed and there is uncertainty over government regulations and taxes.

Dan identified four forces which he feels started the recession and can help forecast the outlook for our future. These forces are: oil, housing, fed policies, and fear. The effects of oil and housing are still negative. The yield curve is positive, lending has eased slightly, consumers are mixed and unemployment is alarming. The current policies to improve these factors increase debt and potentially raise inflation.

Dan discussed budget math, Washington Style, spending deficits, national debt, and the correlation between printing money, devaluing the dollar, and inflation.

Conclusions were that there are as

International Corner, by Alice Knight

Alice Knight is Vice President of Finance & Administration for Paper Products Marketing, Inc. Ms. Knight has more than 45 years' of experience in International Finance and is an active member of ICTF and NACM. She has served as Co-chair, Panel Member, and Presenter at Annual Global Conferences, as President of FCIB Forest Products Group, and participated in FCIB Conferences in Mexico, Puerto Rico, Munich, and Brussels.

many positives as negatives. The global economy is growing and the U.S. must remain an active participant.

Dr. Hans Belcsak, President, Rundt Associates, explored a World of Risks. Dr. Belcsak presented Canada as an example for the U.S. and Europe. In 1993, Canada faced BoP deficits, they were downgraded by S&P and Moody’s, and were called a third-world economy. In 1995, the government instituted huge spending cuts, increased taxes, and halved the federal deficit. Canada now has a corporate tax rate of less than half the U.S. rate.

Latin America has been effected by the U.S. slump. Most economies are still growing and conditions are improving. South America is seeing decent growth with most leftist regimes tending toward Lula-style pragmaticism. Argentina and Venezuela are increasingly higher risk.

In Western Europe there are many well-known problems including unified monetary policy but disjointed fiscal policies, leadership issues, potential bond defaults, and bank stress.

Central Europe is export dependent on Western Europe so has faced a sharp slowdown in their economies. Many countries on the “waiting list” for EU membership are no longer interested in joining. A bright spot is the rebound in the Baltics.

The Arab Spring has redefined the political structure in many countries but it is doubtful that Western interests will be served.

The Middle East has become a battle ground between Iran and Saudi Arabia for control of the gulf region and the export hub for oil. Turkey has emerged as a major power broker. The threat to Israel’s survival is increasingly alarming.

In Asia China continues to grow with inflation the major concern. India is mired in bitter partisan politics and Japan is dealing with the aftermath of the earthquake and tsunami.

Sub-Saharan Africa has major growth potential particularly in the areas of oil, mining and agriculture. Infrastructure, government stability and currency challenges are considerations.

The World economy changes constantly and in the last year it has changed very rapidly. It is important that those of us in the International arena remain informed about current conditions.


February/March 2012


National Summary of Domestic Trade Receivables—2011 Annual Bad-Debt ReportWe received the National Summary of Domestic Trade Receivables Annual Bad Debt Report for 2011.

Based on the results of this report, the Allowance for Uncollectables during 2011 was 0.50% of receivables. This is a decrease of 0.30% over 2010. Bad Debts write-offs during 2011 totaled $20.50 per $100,000 sales. This is a decrease of $13.70 over 2010.

We thank our members and all of you who participated in the survey.

Please contact Customer Service or your Account Executive for a copy.

National Summary of Domestic Trade Receivables Results 4 Quarter 2011 We have received the results of the National Summary of Domestic Trade Receivables (DSO) for the fourth quarter of 2011. The Credit Research Foundations (CRF) has been producing this valuable quarterly report for more than 50 years.

DSO slightly decreased from the prior quarter to 40.19 from 40.43. A year ago the measure was 40.70. Best Possible DSO decreased to 31.10, as compared to 31.90 last quarter and 30.80 a year ago. Average Days Delinquency increased to 6.30 from 5.80, as compared to 6.40 a year ago. The percent reported over 90 days past due increased to 0.66 as compared to last quarter at 0.47, as compared to 0.74 a year ago.

Medians for 30 different industries are included in this summary. If any SIC code has less than three responses, it will not appear in the report.

Please contact Customer Service or your Account Executive for a copy.

Now that you’ve done the NSDTR, if you really want to see how you’re doing, you’ll want to participate in CRF’s comprehensive Benchmarking survey. You can do that at: http://www.crfonline.org/surveys/benchmarking/benchmarking.asp.

Credit Enhancement Bill Will Expand Growth for Oregon business HB 4150 will allow more businesses to qualify for capital. Legislation increasing access to capital for Oregon businesses has earned unanimous support in both the Oregon House and Senate. House Bill 4150 opens up eligibility for more businesses to tap the state’s Credit Enhancement Fund, a loan insurance program that helps Oregon companies grow and create jobs.

Currently, the Credit Enhancement Fund is used to help traded sector businesses access capital. With the economy improving, many small businesses across Oregon are poised to grow, but have difficulty accessing loans. HB 4150 temporarily extends the fund to nontraded sector businesses, partnering with financial institutions to help businesses access working capital.

The Credit Enhancement Fund, which was created in 1993 and is administered by the Oregon Business Development Department, is a loan insurance program available to lenders to assist businesses in obtaining access to capital. The Fund guarantees loans made by lenders providing working capital or fixed-asset loans to businesses and is available for traded sector manufacturing, production, processing and distribution companies.

http://www.crfonline.org/surveys/benchmarking/benchmarking.asp


February/March 2012


Battle of the tired egos by Chris Kuehl, Ph.D.

It was a late arrival at the hotel last night and I have been on the road for the better part of two weeks. I was not in a mood to be trifled with and apparently neither were the other gentlemen in line. The hotel staff was working as quickly as possible when suddenly an irate pilot charged to the front of the counter and shoved his way past the guy being helped. He snarled at the clerk and demanded to know why he had been given a room that was so far from the elevators and did not have a view of the harbor. He demanded a new room and a meal voucher to be issued for his inconvenience. The guy standing at the counter was stunned, I was stunned. The other two guys in line were stunned. Then we all ganged up on this drip. The guy he cut off barked—“you think you are some hotshot pilot that gets to sound off? Back off buddy. I’m a hotshot neurosurgeon and I make more in a week that you do in a year.” Another guy snarled words to the effect that “glorified bus drivers” need to chill out. I piped in with a pithy comment or two about how pleasant the experience of flying has become and that it seemed a little odd that he would be calling out the hotel for a slightly inconvenient room. The fourth guy leaned over to take his name and to note what airline he flew for as he organizes the travel schedules for his company and wanted to make sure that the airline knew exactly why they were now on the no fly list. The moral of the story is to make sure that you really are the big dog on the porch before you start to bark.

NACM-Oregon FoundationThe NACM-Oregon Foundation grants scholarships to credit professionals for continuing education, professional designations, and conference expenses.

The Foundation manages two scholarship funds: the NACM-Oregon Scholarship Fund and the Phylliss Clark Memorial Fund. The Foundation offers scholarship to the following events:

• All NACM Oregon educational courses

• Portland Community College courses within the Credit Administration and Advanced Credit Administration Programs in preparation for professional designation

• Self-study courses in preparation for professional designation

• Registration and exams fees for the National NACM Professional Designation Program

• NACM/CFDD Pacific Northwest Credit Conference

• National Credit Congress and Exposition

• NACM National schools such as Credit Management Leadership Institute, Mid-Career School, and the Graduate School of Credit and Financial Management

If taking a course or pursuing your certification seems like an expensive proposition, think again. These scholarship funds are a benefit to you as a member, so please take advantage by applying for next year.

To apply—

To apply for scholarship funds, or for more information, contact Lourdes (Lou) Rice, NOF Scholarship Committee Board Director, Pacific Metal Company at 503.454.1051 or [email protected].

Submit applications to:

Lourdes (Lou) A. Rice, NOF Scholarship Committee Board Director Pacific Metal Co. 10700 SW Manhasset Dr. Tualatin, Oregon 97062p: 503.454.1051 f: 503.454.1065 e: [email protected]

http://www.nacmoregon.org/about/foundation.html

mailto:lrice%40pacificmetal.com?subject=

mailto:lrice%40pacificmetal.com?subject=


February/March 2012


Business Credit Learning Center WebinarsPhone Power Collections March 7 9-10 a.m. (PT)

Unclaimed Property Compliance in the State of Oregon March 8 9-10 a.m. (PT)

Cross Cultural Communication March 9 9-10 a.m. (PT)

The Balance Sheet & Income Statement March 13 9-10 a.m. (PT)

Bankruptcy Forms March 15 9-10 a.m. (PT)

Payment Mechanisms: A Focus on Letters of Credit March 16 9-10 a.m. (PT)

Common Errors Made by Creditors in Bankruptcies March 20 9-10 a.m. (PT)

Understanding International Collections March 23 9-10 a.m. (PT)

International Case Study March 31 9-10 a.m. (PT)

The Real Measure of Cash Flow April 10 9-10 a.m. (PT)

Lean and Mean: Personal Guarantees April 12 9-10 a.m. (PT)

Due Diligence Via the Internet April 19 9-10 a.m. (PT)

UCC Article 9 May 10 9-10 a.m. (PT)

Webinar fee: $79 each—member; $109 each—nonmember

For a complete list of webinars and descriptions, please visit www.businesscreditlearningcenter.com.

If you have any questions on any of the webinars, call Elizabeth Heintz at 971.230.1120, or [email protected].

Schedules are subject to change.

Education Class Schedule

OR, WA, ID Lien Laws March 7 8:30 -10:30 a.m. March 14 8:30 - 11:30 a.m. NACM Oregon Classroom CEU: .2/.3, Course Level: IntermediateEach day: $71/member, $95/nonmember Presented by Sussman Shank, LLP

Export Credit Insurance March 29 8:30-10 a.m. NACM Oregon ClassroomCEU: .15, Course Level: Intermediate$47/member, $95/nonmember Guest Speakers: Jeff Deiss, SBA; Brett Tarnet, Brett Tarnet Insurance Services; and Robina Peanh, Meridian Finance Group

Certification Roadmap Introduction May 10 11:30 a.m. - 1 p.m. NACM Oregon Classroom Free to members—lunch included! Guest Speaker: Marilyn Rea, CCE, Pacific Architectural Wood Products

Credit Applications and Personal Guarantees May 16 7:30 - 8:30 a.m. NACM Oregon Classroom CEU: .1, Course Level: Intermediate $30/member, $75/nonmember Guest Speaker: Rick Baroway, Esq., Farleigh Wada Witt

Registration

To register for on-site classes, please call Elizabeth Heintz at 971.230.1120 or email [email protected]

www.businesscreditlearningcenter.com

www.businesscreditlearningcenter.com

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February/March 2012


The months right after an election year can leave you scratching your head with unanswered questions:

• What exactly was it all about?• How will it affect me?• What does it mean for my organization and how we

do day-to-day business?

Join Dr. Chris Kuehl on February 7, 2013, as he helps you sift through all of the political debris left over from MONTHS of a tornado of heavy campaigning to determine what really happened and what it all means.

Meet us for breakfast! Keep checking back for more details.

Christopher Kuehl (Ph.D.) is a Managing Director of Armada Corporate Intelligence and one of the co-founders of the company in 1999. He has been Armada’s economic analyst and has worked with a wide variety of private clients and professional associations in the last ten years. He is the Chief Economist for the National Association for Credit Management and is on the Board of Advisors for their global division – Finance, Credit and International Business. He prepares NACM’s monthly Credit Managers Index. He is the Economic Analyst for the Fabricators and Manufacturers Association and writes their bi-weekly publication, Fabrinomics, which details the impact of economic trends on the manufacturer.

Chris is the chief editor for the Business Intelligence Briefs, distributed all over the world by business organizations and he is one of the primary writers (with Keith Prather) for the Executive Intelligence Briefs. He also makes close to a hundred presentations each year to business and industry associations in the US and overseas. He is on the Board of the Business Information Industry Association in Hong Kong and serves as a resource for the media and for many trade publications.

Chris has a doctorate in Political Economics and advanced degrees in Soviet Studies and Asian Studies and was a professor of international economics and finance for over 15 years prior to starting Armada.

Huh? What just happened?

Questions? Please contact Elizabeth Heintz at [email protected].

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February/March 2012


Dealers Supply Co.Melissa Garcia

503.226.1195 110 SE Washington St. Portland OR 97214

In 1920, Dealers Supply distributed small feed and seed in the Portland, Oregon area. As Portland grew, the demand for construction was cause for our company evolving away from agricultural supplies and toward the supply of building materials. Services include: knowledge, product inventory, and delivery services in the areas of residential roofing, commercial roofing, building envelope (below grade waterproofing and air barrier), as well as our own in-house tapered insulation design specialists.

DeTemple Company, Inc.Michelle McElligott

503.471.5247 1951 NW Overton St. Portland OR 97209

In 1907, DeTemple established a location at 429 Washington in downtown Portland. Fires and floods forced them to move several times before a new headquarters was built in 1975 at 1951 N.W. Overton St., where the company remains today.DeTemple, which bills itself as the oldest continuously operated plumbing company in the state still prides itself on its efficient and polished delivery of service regarding plumbing, HVAC, boiler or controls projects you may have. The Rice family, who has been involved in DeTemple since 1935, acquired the company in 1973. Still, DeTemple’s website is heavily dominated by tales of the company’s founders, the DeTemple family.

Esco Corp.Phillip Angelechio, CCE, CICP

503.778.6699 2141 NW 25 Portland OR 97210

In 1913, Portland, Oregon businessman Charles (C.F.) Swigert saw a need for a local source of steel castings and established the Electric Steel Foundry Company. In the 1920’s, the company expanded production to include cast steel alloy products and in 1926, the “ESCO” trademark was first used and eventually became the company’s new name. Throughout the years of growth and innovation, ESCO has become the customer’s choice for metal components and wear parts that meet and exceed expectations with quality, value, and speed.

Excavator Rental Services, LLCJerry Sauer

360.607.1646 26300 NE 16 St. Camas WA 98607

ERS was founded in 2004, and supply southwest Washington and northern Oregon excavating industry with construction machinery and equipment. Services include maintenance, rental, hauling and delivery of rental equipment.

O’Shea Lumber Co.Roxann Todaro 253.301.3231 11425 Susquehanna Trail Glen Rock PA 17327

O’Shea Lumber Co., a wholesale lumber supplier of domestic and imported hardwoods and softwoods, complete with dry kilns, milling facilities, and export services, was founded in 1971, by Mike O’Shea. They service Pennsylvania, New Jersey, Delaware, Virginia, Maryland, West Virginia, eastern Ohio, and southern New York. They have a common carrier network that gives them the availability to ship all over the U.S. and Canada.

Supply Source, Inc.

Suzanne Bell

503.905.5012 12402 SE Jennifer St., Ste. 190 Clackamas OR 97015

Started in 1998, Supply Source, Inc., offers supplies of all kinds. They provide everything from paper clips, to pallet wrap; food services supplies to janitorial products; and office supplies to office packaging and shipping items.

New Member IntroductionNACM Oregon extends a warm welcome to the following new members:


February/March 2012


Employee Placement ServiceThis networking tool is offered free of charge to NACM Oregon members. You may include your resume in our resource pool, or utilize it to fill an opening in your credit, accounting, or collection department. To participate in this program, please call Barbara Salazar at 971.230.1182 or 866.359.1182.

Seeking Position:

I am a self-motivated, forward thinking person who enjoys challenges. Seeking long-term employment where my abilities are utilized to achieve internal objectives. My background includes all phases of credit/collection functions; correspond with sales departments and customers; and financial statement analysis. Please call Diana at 503.405.2018 or [email protected].

Position Open:

Accounting Assistant/Bookkeeper Part-time

Duties include processing accounts payable, accounts receivable, and payroll. Daily Cash Management. Assisting controller. Weekly collection activities and reporting. Creating and maintaining credit files. Must be proficient at Excel, detail-oriented and dependable. We are looking for a flexible, self-starter able to multi-task effectively. Strong communication, organizational, and customer service skills are essential. Vancouver-based company in wholesale trading. Approximately 20-25 hours per week to start, may work into FT. An associate degree in accounting or a related area is preferred. Minimum 5 years experience.

Send resume with salary/ benefit history to:

[email protected]

Seeking Position:

Summary Qualifications • 23+ years progressive experience with customer service, cost accounting, invoicing, all facets of payroll, data entry, accounts receivable and credit/collections.• Ability to work well under various deadlines, able to multi-task between projects. • Self-motivator, hard worker, quick learner and detail-oriented. Team Player that works well with others or independently.• Experience with Abra Payroll Systems, MAS90, Hagen OA, POS Partner, Pay Simple, Microsoft Word, Excel, Zimbra and gmail.

Work Experience

• 1988 - January 2012 My Little Salesman Inc. Responsible for all aspects of payroll, timecards, processing garnishments, deductions, 401(k), workers comp, quarterlies and year-end. Accounts receivable, credit and collections, along with invoicing for both catalogs and Inventory Mover accounts. post cash and process bank cards daily. Telephone backup.• 1988 - 2008 Industrial Publishing Inc./Koke Printing/MLS, Inc. Responsible for all aspects of payroll: timecards, processing garnishments, deductions, 401(k), quarterlies and year-end procedures for two companies. Maintain credit and collections for Industrial Publishing Inc., along with cost accounting, invoicing and cash receipts. • 1986-1988 Farmers Insurance Company-Office Assistant Handled customer service by phone or walk-ins. Data entry and cash posting. Managed office when owner was away.Education

• Thurston High School Graduate, Springfield Oregon• Lean Manufacturing• CQI-Continuous Quality Improvement

Please contact [email protected].

Position Open:Senior Account, Project Cost Full Time Permanent (Monday - Friday)

Portland area Construction Materials Supplier and Contractor seeks Senior Accountant, Project Cost.

Position will require a wide range of accounting and business administration functions in a diverse operations environment. Duties include but are not limited to general accounting up through financial reporting, including accounts receivable, accounts payable, project (job) accounting, inventory, cost accounting (manufacturing), and payroll.

Requirements

• Bachelor’s degree in accounting, finance or business administration. • Minimum four (4) years accounting experience • Valid driver license and insurable driving record • Experience in use of Microsoft Excel, Word, Outlook, database and bookkeeping software. • AS400 Experience a plus.

Drug Screen and Background check required.

Please email resumé to: [email protected].

EQUAL OPPORTUNITY EMPLOYER

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February/March 2012


Ten Tips Relating to the Use of Personal Guarantees1. A personal guaranty does not guarantee that the creditor will be paid

2. If the guarantor does not pay voluntarily, the creditor may have no choice but to sue the guarantor to enforce the guaranty

3. Always look a gift horse in the mouth - meaning know the guarantor including their credit history, reputation, net worth and liquidity

4. Unless you know the financial strength and health of the guarantor, it makes no sense to proceed with obtaining a guaranty

5. It is difficult, time consuming and costly to try to verify the creditworthiness of the guarantor

6. Many companies simply request a signed personal financial statement from the guarantor and rely on this as the basis for accepting and relying on their guaranty

7. A personal guaranty must be signed by the guarantor and that signature should always be notarized

8. In community property states such as California, it is strongly advised that the creditor request the spouse’s signature on a personal guaranty

9. However, if the spouse is not active in the business, the creditor may be legally prevented from requesting or requiring the spouses signature. However, without that signature there is a real possibility that the creditor will find it difficult to enforce the guaranty even with a court judgment in the creditor company’s favor

10. If the guarantor is the President of the corporation, there is a reasonable chance that the guarantor will file personal bankruptcy when the corporation files for bankruptcy. Doing so limits the creditor’s options in collecting from the guarantor

© 2011. Michael C. Dennis. All Rights Reserved

Experian Business Benchmark Report Experian’s Business Benchmark Report is a quarterly look at how businesses are faring in the United States. Designed to monitor the health of U.S. businesses, the report focuses on key risk indicators such as commercial risk score*, DBT and percentage of delinquent debt.

Findings from the Q4 report show general improvement in business performance in most categories quarter over quarter, while metrics remain negative from a year-over-year perspective.

To download the report, click here.

http://www.experian.com/business-information/business-benchmark-report.html


February/March 2012


Manual of Credit and Commercial Laws, 103rd Edition— Four Volume Set . . . Special Introductory Price $69.95NACM has re-envisioned and revitalized its flagship publication, the Manual of Credit and Commercial Laws. Not only will the new edition continue to provide essential information for credit and finance professionals, it will do so in a highly flexible and more affordable format. The latest version of the Manual of Credit now comprises four volumes that either may standalone ($29.95 each plus S&H) or continue to serve as a cohesive and comprehensive set ($69.95 plus S&H). Chapters and appendices from the book have been reorganized under the following headings:

Volume I: General Business Law, Related Statutes, and CollectionsVolume II: Commercial and Consumer Credit TopicsVolume III: Construction IssuesVolume IV: Bankruptcy and Insolvency Issues

Contact Barbara Salazar at 971.230.1182 or 800.622.6985 ext. 182 or email to [email protected] to order your copy.

2012 Credit Congress & Exposition

NACM’s 116th Credit Congress & Exposition in Grapevine, Texas, June 10-13, 2012.

We invite you to join us in Grapevine, Texas, nestled between Dallas and Ft. Worth, to share in our bigger than life Lone Star State experience in June 2012 at our national Credit Congress & Exposition.

This community, which is historically rich and rooted in tradition yet distinctly modern, welcomes NACM members to the Gaylord Texan Resort and Convention Center.

Credit Congress is the largest gathering of credit professionals in the country so don’t miss your chance.

To register click here. Register five or more from a single company at the same time and receive Team Discount savings! The Team Discount applies only to NACM members.

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http://creditcongress.nacm.org/

http://creditcongress.nacm.org/register-2012.html


February/March 2012


Authenticating Emails, continued from cover

There are four traditional types of evidence: real, demonstrative, documentary, and testimonial. The basic prerequisites of admissibility of evidence are relevance, materiality, and competence. In general, if evidence is shown to be relevant, material, and competent, and is not barred by an exclusionary rule, it is admissible. Evid. Code § 351; Fed. Rules Evid. 402. When documents such as letters, contracts, invoices, wills, certificates, and records are presented as evidence by a defendant, or, indeed, the prosecution, in a court of law, they are known as documentary evidence. This evidence can have serious consequences and can help determine the outcome of a case. It is, therefore, essential that documentary evidence is authentic. Federal Rule of Evidence 901 states the general requirement for authentication of a document. Rule 901(a) provides: The requirement of authentication or identification as a condition precedent to admissibility is satisfied by evidence sufficient to support a finding that the matter in question is what its proponent claims.” Rule 902 identifies several types of evidence that are “so well recognized as prima facie genuine” that they are considered self-authenticating. For evidence that is not self-authenticating, including email messages, Rule 901(b) sets forth a nonexclusive list of ways in which the requirement of authentication may be satisfied. One of the most common ways to authenticate a document is for the proponent of the document to elicit testimony of a witness with knowledge that the document “is what it is claimed to be.” When the document involved is an email communication, a “participant in, or recipient of, that communication” will generally be able to authenticate the communication, so long as the person “was able to perceive who communicated what.” Mark D. Robins, Evidence at the Electronic Frontier: Introducing E-mail at Trial in Commercial Litigation, 29 Rutgers Computer & Tech. L.J. 219, 226 (2003).

Bradley Blakeley, Esq., earned his bachelors degree from Loyola University, Los Angeles, California, and his law degree from Santa Barbara College of Law (J.D.). Practice areas he specializes in are: commercial law and bankruptcy litigation. He can be reached at [email protected].

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February/March 2012


Board of Directors NACM Oregon

ChairmanRaeann Binau, CICP, RGCP Airgas - Norpac, Inc. [email protected]

Vice ChairKimi Shelton-Muller, CCE EKC Consulting, [email protected]

SecretaryJohn Hardy Emerson Hardwood [email protected]

TreasurerMarsha Johnson, CCE TEC Equipment, [email protected]

CounselorSue Hein Rapid Bind, [email protected]

Customer Service/ Credit Reporting971.230.1220 [email protected]

Data ContributionShannon Abnal, CGA 971.230.1166 [email protected]

Member Services Kathy Linscott, CGA 971.230.1164 klinscott@nacmoregon

Member Services Account Executives Clara Nemeth, [email protected] Denise Redding, CGA 971.230.1178 [email protected]

National Account Executive Caroline Anderson, CGA 971.230.1168 [email protected]

EducationElizabeth [email protected]

Directors Steve Amiel Electrical Distributing Inc./[email protected]

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

Will Campbell Standard Supply [email protected]

Tony Ceniga Industrial Finishes & [email protected]

Paula Cooley, CBA American Steel [email protected]

Lori Jones, CCE [email protected]

Pat Swope, CCE, CICP Pacific Seafood Co., [email protected]

PresidentRod Wheeland, CCE, CAE NACM [email protected]

Industry GroupsRichard Browning, CGA 971.230.1188 [email protected]

Kristen McBride, CGA 971.230.1176 [email protected]

Collection ServicesBrenda Terreault, JD, [email protected]

BillingMarmie Carpenter971.230.1146 [email protected]

Meeting Room RentalElizabeth [email protected]

Newsletter EditorBarbara Salazar971.230.1182 [email protected]

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