Volume 23, No 4 July 2016
The Publication for Credit and Financial Professionals IN AUSTRALIA
Global economy: Where is it heading?
Tips, updates and changes: Human Resources Credit Management Legal Economy Training news DIRECTORS 46 Australian President – G.L. Morris MICM CCE NSW Division: Women in Credit Luncheon. Australian VP, Legal Affairs – J.A. Neate MICM Professional Development – S.D. Mitchinson LICM YCPA & CCE – G.C. Young MICM CCE Member Services – J.G. Hurst FICM CCE Finance – G. Odlum MICM CCE
CHIEF EXECUTIVE OFFICER N. Pilavidis MICM CCE Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 PO Box 64, St Leonards NSW 1590 49 Tel: 1300 560 996, Fax: (02) 9906 5686 Email: [email protected] Qld Division: Linda Parry, Greg Young and Samantha Taylor.
EDITOR/PUBLISHER Nick Pilavidis | Email: [email protected]
CONTRIBUTING EDITORS Arthur Tchetchenian NSW Stacey Woodward Qld Gail Crowder SA Warren Meyers WA Donna Smith Vic/Tas
ADVERTISING MANAGER 52 John Field FICM, CCE, ACPM, Ph: 1300 560 996 Mob: 0412 732 831, Email: [email protected] SA Division: Winter Warmer Night guests.
EDITING and PRODUCTION Anthea Vandertouw | Ferncliff Productions Tel: 0408 290 440 | Email: [email protected]
THE EDITOR reserves the right to alter or omit any article or advertisement submitted and requires idemnity from the advertisers and contributors against damages or liabilities that may arise from material published. CREDIT MANAGEMENT IN AUSTRALIA is published by the Australian Institute of Credit Management, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of Australian Institute of Credit Management, which does not expect or invite any person to act or rely 54 on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any Vic/Tas Division: YCP Information Night. of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2016.
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EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO: 56 The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or email: [email protected] WA/NT Division: Breakfast Club CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Volume 23, Number 5 – July 2016
Message From the President 4
Portfolio Update, By Gregg Odlum 6
In Memorium – Michael Murphy 6
Human Resources 18 20 32 Salary increases unlikely to excite this year 8 Symon Cook Roger Mendelson Barry Urquhart By David Crawley
Credit Management Around the States National Conference testimonials 11 New South Wales 46 Queensland 49 ACCC to commence excessive surcharge 17 South Australia 52 compliance role Victoria/Tasmania 54 Reviewing your invoicing to best practice 18 Western Australia/Northern Territory 56 By Symon Cook New Members 58
Legal Mistakes not to make when suing a debtor 20 Promotions By Roger Mendelson Credit Team of the Year 5 Women in Credit 7 Unfair preferences and how to avoid them 22 – Part 1, By Nick Cooper 2016 National Conference 10 Conference Program 12 Authority to bind 25 Credit Qualifications By Peter Mills and Robert Gallagher 59
Don’t get your contract terms knocked out 28 John Fairgray, Luis Ormazabal and Balveen Saini For advertising Technology Australia on the cusp of ‘digital greatness’ 31 opportunities in
Economy Credit A new world of commerce awaits 32 Management By Barry Urquhart In Australia Brexit from a Credit managers point of view 34 A U.S. Macro outlook 36 By Mark Zandi Contact: Queensland economy shifts gears and pitches 39 JOHN FIELD for a more balanced future FICM, CCE, ACPM
Ph: (02) 9906 4563 AICM Training news Fast track your credit career through 40 Mob: 0412 732 831 Recognition of Prior Learning E: johnfi[email protected] Graduates 44 Calendar 45 aicm 4
From thePresident over the next couple ofyears. how smoothlyorotherwiseparliamentwillfunction biter anditwillbesome littletimebefore we know forward. meetings andasIhave saidonmany occasions look operate, attend workshops, seminars andnetwork intelligence. their earto theground canprovide tremendous early after allthey are theonesincontinual contact. Having research andknowledge ofourcustomer baseas their abilitiesusedto themax.They must assist with develop ourteams sothere basicskillsare honedand cannot bedonealoneanditisessential we train and ideas andsharingconcerns withourpeers.This including formal training, networking, exchanging our gamethrough continued professional growth relevance and they must beroutinely reviewed for currency and folder oronanIntranet page. They must befollowed processes are notjust documentsthat lookgoodina reach oftheirbusiness. industries inwhichthey operate andthegeographical weighting andlocation oftheirrevenue base, the know whotheircustomers are andunderstand the and inquisitive. Becloseto ourcustomer’s business, must continue to bemore attentive, professional have beenmakingplansfor just thiseventuality. We aware ofthepossibility for alongtimeandshould power ofthepound. decline inBritstravelling dueto thereduced spending Route” to London, whichmay bebecauseoffears ofa offering triplefrequent flyer pointsonthe“Kangaroo corporates react quicklyto thechangeslike QANTAS and currency exchange rates. We have seenmajor eventuality? happen? Whohadmadeplansfor just that this month. L CREDIT MANAGEMENT INAUSTRALIA • On thehomefront theFederal Election was anail simply,Put beaware ofthearea inwhichyou Ascredit professionals we must stay ontop of Basics are paramount. Policies, procedures and Nothing haschangedfor us.We have been We have seendramatic changesinshare prices Who would have really thoughtBrexit would and Icanvery nearlystart thesameway have thoughtwe would have seen……” well, well. Just 12monthsagowhowould ast issue Istarted thereport with“Well, July2016
Ph: 0407 405198 [email protected] – Grant Morris about theCredit Industry. RIPMike. from Mike’s passion for helpingotherslearnmore members andthecredit industry benefited greatly conference andnumerous WA events. The AICM, its of credit professionals andpresented at thenational 4 years asourNational President. the Board in2004andserved until 2010 including the AICM.HejoinedAICMin1989, was elected to Credit Managerat BGCinPerth andalife memberof May whilst onacruiseinEurope. Mike was theGroup I regret to adviseMike Murphy passed away on26th Vale Mike Murphy CCE LICM support theInstitute whichsupportsyou. them alongaswell whenthey hittheirtargets. as motivation andreward for your staff ieoffer to send employees soplannow to getyourself there anduseit good organisations spendonthedevelopment oftheir networking experience that canbepacked into 3days. provides you withthebest information, education and Resort ontheGoldCoast. The programme isoutand and Convention Facility adjacent to SeaWorld October 12–14at thenew SeaWorld Conference Thanks to Veda for theirsponsorshipofthisaward. winners suchasCaltex andReece to namebuttwo. own organisation andonthenational stage like past them achieve recognition for themselves withinyour opportunity to showcase your teams talentsandsee close thismonth(31st July).The award isagreat peers anddiscuss thecredit environment. same time. Itisagreat opportunityto meetwithyour professionals andalsorecognise otherachievers at the opportunity to showcase thetalentofyounger credit by Dun&Bradstreet (thanksguys) andisafantastic each mainlandcapitalcity. The award issponsored Credit Professional oftheYear winnerat adinnerin calendar withmost DivisionsannouncingtheirYoung month butitisanabsolute corker ontheAICM Mike developed anddelivered training to hundreds I hopewe seeyou at anAICMevent soonasyou The cost ofthe conference isfar less than what The National Conference isbeingheldfrom Nominations for theCredit Team oftheYear For somepoliticiansJulyhasn’tbeenagreat Australian President Grant MorrisCCE
Become the National Credit Team of the Year
All 4 National Finalists will Enter your team by 31 July 2016 for your each win a $1,000 Team chance to be awarded for credit excellence. Development Grant
At the 2016 AICM National Conference on the Gold Coast, The national winner will receive: each nominee for the national winner will receive: • Professional development services worth $2,000, • Two conference registrations provided by AICM • Airfares and accommodation at the Seaworld Resort, • Recognition in the AICM magazine, plus the AICM, Gold Coast Veda and Credit Network websites • On-stage introduction prior to the announcement • The 2016 National Credit Team winner’s trophy of the National Credit Team of the Year winner
All three runners up will receive $500 each in AICM services of their choice.
Applications and information is available at aicm.com.au Proudly sponsored by Veda. aicm Portfolio Update From the Finance Director
On behalf of the Board, I would like reducing overall expenditure on materials to be used in future years. to thank all of our members, partner, venues, Keep your eye out at conference sponsors and supporters, as well z Introduction of the webinar 2016, as some of the activities as the CEO, Nick Pilavidis, and the series, providing further training related to this will occur there. dedicated AICM national office staff opportunities and value to all z Member engagement manager. for delivering a strong year all-round members, We are trialing this role at national in 2016. Our current financial position z Launching of the credit tool office with the aim to proactively continues to strengthen, delivering a box training, providing some engage with members and partners modest surplus enabling us to invest in foundational and consistent training to drive our Certificate/Diploma the future of the institute, bring more materials, training, Membership, Sponsorship, value to members and partners along z Record attendance at the 2015 Conference, Toolboxes and other with providing high quality events to conference. activities. This enables us to go connect and continuously develop As a result of the stronger financial out to our members and sponsors credit professionals nationwide. position of the institute, two key rather than waiting for them to As we close in on the final month initiatives have been launched with the come to us. of the financial year we can reflect on aim of increasing membership value as some of the highlights for 2015/2016 well as boosting membership itself; As we plan for 2017, the objectives will that have driven such a great result; z Conference marketing campaign. As be much the same. Aiming to deliver a z Positive membership growth, the conference is our biggest event modest surplus whilst investing in the z Moving the office to a new each year, we have invested some future to provide more value for our premises, providing better facilities money into a marketing campaign members and partners. including a large meeting room that that will outlast this year and aim has been used for NSW Council to boost the visibility of conference – Greg Odlum meetings and AICM training courses 2016 as well as provide some NSW Director and Treasurer
In Memorium MICHAEL MURPHY LICM network with his colleagues and peers, Mike was considered by many, as much, and usually more, It is with a heavy heart we announce the passing a friend than a business associate. of Mike Murphy on 26th May 2016. The respect and esteem in which Mike was Mike joined the AICM in 1989 and served held resulted in him being presented with the for in excess of 25years on the WA Division Basil Dunn award, Western Australia’s premier Council and the National Board, including recognition of dedication to the AICM and its 5 years as national President. He was well goals, and Life Membership of the AICM. In respected throughout the Credit Industry and further recognition of his dedication to training delivered numerous qualification based and in Credit Management, the AICM will be working non-qualification based training sessions on toward setting up the Mike Murphy Scholarship our behalf. There will be literally hundreds Fund to further the education of deserving of people from credit clerks to senior credit members. managers who have benefited from his insights Mike passed away in his sleep whilst on a and experience. European river cruise with his wife Andrea. Never one to pass up an opportunity to R.I.P. Mike, you will be missed by all.
6 CREDIT MANAGEMENT IN AUSTRALIA • July 2016
Human Resources
Salary increases unlikely to excite this year
By David Crawley, Credit controllers are in high demand 25 per cent of construction, Regional Director of as business activity increases, but property & engineering employers according to the 2016 Hays Salary also expect to increase salaries by Hays Accountancy & Guide this is not translating into between three and six per cent, with Finance salary increases. 5 per cent expecting to increase Most core areas of transactional above six per cent. finance are experiencing strong levels In terms of typical salaries, a Credit of staffing demand across Australia, Controller in Sydney, Canberra and particularly credit control and payroll. Perth will typically receive $60,000. However salaries are generally closely The typical salary is $55,000 in controlled with employers reluctant regional NSW, Melbourne, regional to offer substantial increases unless Victoria, and in Queensland’s absolutely necessary to secure a Brisbane, Gold Coast & Sunshine candidate with skills in short supply. Coast. It is $50,000 in regional Our guide includes recruiting Queensland, Adelaide, Darwin, Hobart trends and typical salaries for credit and Launceston. control job functions in 14 locations For a Senior Credit Controller the across Australia and New Zealand. typical salary increases to $65,000 It reveals that just 22 per cent in Sydney, Canberra, Queensland’s of credit control professionals can Brisbane, Gold Coast and Sunshine expect a salary increase of three per Coast, Hobart and Launceston, cent or more in their next review. $70,000 in Perth, $60,000 in Instead the vast majority Melbourne, regional NSW, regional (66 per cent) will receive an increase Victoria, and $55,000 in regional of less than three per cent. The final Queensland, Adelaide and Darwin. 12 per cent will receive no increase. A Supervisor/Manager of one to Credit professionals working in five staff will typically receive $80,000 the professional services industry are in Sydney, $75,000 in Perth and in for the greatest windfall, with 31 Queensland’s Brisbane, Gold Coast per cent of employers in this industry & Sunshine Coast, and $70,000 in expecting to increase salaries by Canberra and regional Victoria. These between three and six per cent, while candidates typically receive $65,000 a further 7 per cent expect to increase in Melbourne and regional NSW, and salaries above six per cent. $60,000 in regional Queensland, This is closely followed by financial Adelaide, Hobart, Launceston and services, where 25 per cent of Darwin. employers expect to increase salaries A Supervisor/Manager of by between three and six per cent, more than five staff will typically and 5 per cent expect to increase receive $90,000 in Sydney and David Crawley above six per cent. Perth, $85,000 in Melbourne and
8 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Human Resources
Queensland’s Brisbane, Gold Coast & finance departments, although and Sunshine Coast, $75,000 in 10 per cent expect their use of such Canberra, regional NSW and regional resources to fall. Victoria, and $65,000 in regional In light of salary expectations it’s Queensland, Adelaide, Hobart, ironic that 32 per cent of employers Launceston and Darwin. say salary and benefits have a major Finally, the typical salaries for impact on their employer brand, up an Accounts Receivable Officer from 25 per cent last year. 60 per are $55,000 in Sydney, Melbourne, cent say skill shortages will impact regional Victoria, Perth and Canberra, the effective operation of their OUR NEXT CHALLENGE $50,000 in Darwin and Queensland’s business or department. RECOGNISING AND Brisbane, Gold Coast and Sunshine With employers for the most RESPONDING TO SALARY Coast, $48,000 in regional NSW, part unwilling to loosen the purse & RECRUITMENT TRENDS $47,000 in Hobart and Launceston, strings, employees will start The 2016 Hays Salary Guide and $45,000 in Adelaide and regional to take matters into their own . Queensland. hands. 41 per cent of employees In other findings, almost two- say they’ll ask for a pay rise in thirds of employers (64 per cent) their next review. Another 25 experienced increased business per cent are as yet undecided hays.com.au | hays.net.nz activity over the past 12 months, about popping the salary with 70 per cent expecting further question. Meanwhile staff increased activity in the year ahead. turnover has already increased in 29 Hiring intentions are also up. This per cent of organisations. year 26 per cent of employers expect The Hays Salary Guide includes Get your copy of the 2016 Hays to increase permanent staff levels salary and recruiting trends for over Salary Guide by visiting www.hays. in their accountancy and finance 1,000 roles in 14 locations in Australia com.au/salary, contacting your local department, exceeding the 12 per cent and New Zealand. It is based on Hays office or downloading The Hays who expect to decrease it. The use of a survey of 2,752 organisations, Salary Guide 2016 iPhone app from temporary and contract staff will also representing over 2.6 million iTunes. n increase in 15 per cent of accountancy (2,686,179) employees.
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July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 9 See you at AICM’s
2016 National Conference Credit Management AICM National Conference 2016: Past attendees on why it’s an event not to miss
We asked credit professionals who attended last year’s AICM National Conference what they learnt and how they’ve applied it to their day-to-day business. Here’s what they said.
Rhys Buzza MICM Joe Losinno MICM Reece Pty Ltd, Ruralco Holdings Ltd, Group Credit Manager Credit Manager I picked up a number of different Last year’s conference taught me strategies with regard to leadership about the continually changing as well as practical solutions landscape of the credit world from available to implement with staff legal changes to the challenges immediately. The conference credit managers face every day. It always provides me with the tools I need to better gave me the opportunity to build my knowledge manage my team and myself. It motivates me on all aspects of credit and the networking is to seek out further learning opportunities and also brilliant. The people I meet and the learnings continually improve. from the seminars allow me to grow as a credit professional every year.
Karl Hill Results Legal, Partner Georgia Barbera MICM CCE I learnt just how much an impact the Rocla Pipeline Products, challenging market conditions are National Credit Manager having on trade credit businesses At last year’s conference I learnt all and in particular, credit departments. facets of credit management, with This information led us to work more a specific focus on the changing closely with our trade credit clients, payment trends and the Fintech supporting them in this challenging period. Gaining evolution, with its non-traditional practical insights as to the market conditions and the assessment. This is key learning for all those who broader trade credit landscape assists our team to deal with SMEs. As a result, I’ve adopted change in provide better advice and assistance to our clients. my style of management and broadened my ideas with technology and change. It’s about working effectively with the right people and the right tools.
David Hunt Fujifilm Australia, Do you want to join the likes of David, Karl, National Credit Manager Rhys, Joe and Georgia this year? If so, you’re Last year saw us spoilt with a only a click away! great presentation from ASIC and the ATO. Comments from senior panel members on the state of The 2016 AICM National Conference, sponsored the economy were particularly by Veda and supported by Austral, takes place on enlightening. It’s actually hard to find 12 October 2016 at Sea World Resort, Gold Coast, yourself not using the information received during Queensland. the conference. Geoffrey MacDonald’s presentation on Effective Terms of Trade, in particular, provided me with some great ideas for improving our terms For more information and to register, and processes. click here
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 11 PROGRAM
DAY 1 Wednesday 12th October 2016
LEADERSHIP FORUM (optional workshop prior to Conference opening)
9.00am - For experienced and aspiring managers, supervisors, team leaders and team members. 12.00pm Delivered by leadership experts to help you develop as effective leader and maximise the value of the credit function to the broader business.
12.00 - 1.00pm Lunch (CCE’s & Forum delegates)
START OF CONFERENCE
Time Topic Description Speaker/s
1.30 - 1.45pm Conference opening President’s Address and welcome by Conference Grant Morris Premium Sponsor Veda MICM CCE AICM Australian President Nerida Caesar Veda Group Managing Director, Australia & New Zealand
1.45 - 2.45pm Economic Key Note Leading Australian Economist analyses trends and Speaker TBC what the expected impacts will be
2.45 - 3.15pm Afternoon Tea
3.15 - 4.00pm Tough times aren’t going • Credit demand and market insights Moses Samaha MICM Away… Time to Act! • Results from the credit manager survey General Manager, Commercial and • Credit manager Tips for 2016 and beyond Property Solutions, Veda Debbie Leo MICM General Manager, Major Accounts, Veda
4.00 - 4.15pm Credit Team of the Year Meet the two National Finalist teams and find out Grant Morris Announcement who is the Credit Team of 2016 MICM CCE AICM Australian President Debbie Leo MICM General Manager, Major Accounts, Veda
4.15 - 5.00pm An international Stay tuned for announcement of an exciting Speaker TBC perspective of Credit international speaker Management
5.00 - 6.00pm Welcome Drinks
Premium Sponsor Supporting Sponsor
Proudly supported by 12 DAY 2 Thursday 13th October 2016 PROGRAM PROGRAM Continued
DAY 1 Wednesday 12th October 2016 Time Topic Description Speaker/s
9.00 - 9.45am Data driven credit and Strategic insights on using data to improve Mark Russell MICM collections strategies performance Director, Dun & LEADERSHIP FORUM Bradstreet (optional workshop prior to Conference opening) 9.45 - 10.00am Young Credit Professional Meet this year’s Finalists Grant Morris 9.00am - For experienced and aspiring managers, supervisors, team leaders and team members. of the Year MICM CCE 12.00pm Delivered by leadership experts to help you develop as effective leader and maximise the value of the credit AICM Australian function to the broader business. President Mark Russell MICM 12.00 - 1.00pm Lunch (CCE’s & Forum delegates) Director, Dun & Bradstreet
START OF CONFERENCE 10.00 - Is your opponent a North Seven strategies for negotiating with hard Mr Pat Cavanagh 10.45am Korean? bargainers Adjunct Professor of Time Topic Description Speaker/s Law, UQ TC Beirne School of LawL BB, 1.30 - 1.45pm Conference opening President’s Address and welcome by Conference Grant Morris LLM (Hons) Premium Sponsor Veda MICM CCE AICM Australian 10:45 - 11.15am Morning Tea President Nerida Caesar Start of Concurrent Sessions Veda Group Managing (choose one of the following options) Director, Australia & New Zealand Time Topic Description Speaker/s
1.45 - 2.45pm Economic Key Note Leading Australian Economist analyses trends and Speaker TBC 11.15am - INSOLVENCY Update on recent developments and how they: Speaker TBC what the expected impacts will be 12.00pm Lessons from 2016 • Improve your options for recovery insolvencies and case law 2.45 - 3.15pm Afternoon Tea • Change previous assumptions or decisions • Give you new options and strategies 3.15 - 4.00pm Tough times aren’t going • Credit demand and market insights Moses Samaha MICM KNOWLEDGE Case studies of solutions that streamlined Speaker TBC Away… Time to Act! • Results from the credit manager survey General Manager, Commercial and Evolution of payment customers payments, allocations and • Credit manager Tips for 2016 and beyond Property Solutions, Veda technology and how to reconciliations Debbie Leo MICM make it work for you General Manager, Major Accounts, Veda SKILLS • Proven methods and processes specifically Terry Ledlin MICM Problem solving: the designed to help you solve your most challenging Special Counsel Ledlin 4.00 - 4.15pm Credit Team of the Year Meet the two National Finalist teams and find out Grant Morris number 1 skill you will problems Partners Announcement who is the Credit Team of 2016 MICM CCE need to thrive in the future • Fundamental steps, mind shifts and a new and AICM Australian different approach which will build a platform President for critical thinking, creativity and, ultimately, Debbie Leo MICM innovation General Manager, Major Accounts, Veda Continued over page
4.15 - 5.00pm An international Stay tuned for announcement of an exciting Speaker TBC perspective of Credit international speaker Management
5.00 - 6.00pm Welcome Drinks
Premium Sponsor Supporting Sponsor Premium Sponsor Supporting Sponsor
Proudly Proudly supported by supported by 13 Day 2 Continued Thursday 13th October 2016 PROGRAM Continued
Concurrent Sessions continued
12.00 - INSOLVENCY Like it or not insolvency touches the best of credit Robyn Erskine MICM 12.45pm Insolvency Law Reform – managers. Understanding the impacts on creditors Partner Brooke has the government got it of these imminent and proposed changes will keep Bird Restructuring, right? you ahead of the pack and manage your risk Turnaround & Insolvency
KNOWLEDGE Case studies where creditors have lost and how to Kim Powell MICM Common industry errors ensure you don’t Founder EDX (part of the in PPSR registrations, Veda Group) and tips to protect your security interests
SKILLS The importance of investing in mitigating your Cynthia Thomas Importance of early bad risk exposure by creating a proactive risk MICM intervention in a proactive management strategy. National Collection and risk management strategy Sales Manager Austral Mercantile Collections Pty Ltd Bill Famelos QBE Trade Credit National Relationship Manager.
End of Concurrent Sessions
12.45 - 2.00pm Lunch
Time Topic Description Speakers
2.00 - 3.00pm Ways to curb phoenix Illegal phoenix activity occurs because it’s cheap Professor Helen activity and easy, it’s profitable and hard to detect. This Anderson presentation will examine a range of solutions to Associate Dean address these facets. Undergraduate, Melbourne Law School, The University of Melbourne
3.00 - 3.30pm Afternoon Tea
3.30 - 4.45pm How will the extension of Legislation that affects your dealings with small Boyd Honor unfair contracts legislation business comes into affect in November 2016. Senior Manager, Deposit to small business affect Understand the affects of legislation Takers, Credit & Insurers you ASIC
4.45 - 5.00pm AGM
7:00pm Presidents Dinner, sponsored by Dun and Bradstreet. Featuring announcement of the YCP of the year and Presidents Trophy winners
Premium Sponsor Supporting Sponsor
Proudly supported by 14 Day 2 Continued Thursday 13th October 2016 PROGRAM DAY 3 Friday 14th October 2016 PROGRAM Continued
Start of Concurrent Sessions Concurrent Sessions continued (choose one of the following options)
12.00 - INSOLVENCY Like it or not insolvency touches the best of credit Robyn Erskine MICM Time Topic Description Speakers 12.45pm managers. Understanding the impacts on creditors Partner Brooke Insolvency Law Reform – 9.00 - 9.45am How to help your How to advise your customers on credit Speaker TBC of these imminent and proposed changes will keep Bird Restructuring, has the government got it customers cash flow management strategies and debtor financing you ahead of the pack and manage your risk Turnaround & Insolvency right? options
KNOWLEDGE Case studies where creditors have lost and how to Kim Powell MICM 10 Things a Lawyer won’t • When you don’t need a lawyer and can do it James Neate MICM Common industry errors ensure you don’t Founder EDX (part of the tell you but you need to yourself Partner Lynch Meyer in PPSR registrations, Veda Group) Lawyers know • How to save costs in briefing your lawyer and and tips to protect your how do legal costs really work? Peter Mills MICM security interests Special Counsel, • Keeping your lawyer and your matter under control. Thomson Geer Lawyers SKILLS The importance of investing in mitigating your Cynthia Thomas • Lawyering up- added costs v strategic benefit? Importance of early bad risk exposure by creating a proactive risk MICM intervention in a proactive management strategy. National Collection and risk management strategy Sales Manager Austral 9.45 - 10.45am Shared service centres Understand the causes and impacts on this Speaker TBC Mercantile Collections and impacts on Credit growing trend affecting the credit management Pty Ltd Management profession Bill Famelos QBE Trade Credit Credit insurance 101 How to assess if it’s right for you Kirk Cheesman MICM National Relationship Managing Director NCI Manager.
End of Concurrent Sessions End of Concurrent Sessions
12.45 - 2.00pm Lunch 10:45 - 11.15am Morning Tea
Time Topic Description Speakers Start of Concurrent Sessions (choose one of the following options) 2.00 - 3.00pm Ways to curb phoenix Illegal phoenix activity occurs because it’s cheap Professor Helen activity and easy, it’s profitable and hard to detect. This Anderson Time Topic Description Speakers presentation will examine a range of solutions to Associate Dean address these facets. Undergraduate, 11.15am - INSOLVENCY • How to limit the risk of a preference Karl Hill MICM Melbourne Law School, 12.00pm Avoiding unfair preference • Effectively responding to a liquidator’s demand Results Legal The University of claim Managing DIrector Melbourne • Effectively resolving claims • Maximising the available defences (esp good faith 3.00 - 3.30pm Afternoon Tea and PPS defence) • Latest case law developments 3.30 - 4.45pm How will the extension of Legislation that affects your dealings with small Boyd Honor unfair contracts legislation business comes into affect in November 2016. Senior Manager, Deposit KNOWLEDGE • Practical steps to maximise recoveries Joseph Scarcella to small business affect Understand the affects of legislation Takers, Credit & Insurers What to do when it all goes • Balancing getting paid with having a clean MICM you ASIC wrong accurate and effective credit file Partner Ashurst
4.45 - 5.00pm AGM • Credit Insurance • Other tips and tricks 7:00pm Presidents Dinner, sponsored by Dun and Bradstreet. Featuring announcement of the YCP of the year and Presidents Trophy winners SKILLS TBC Arthur Tchetchenian Proving your worth value MICM CCE as a credit manager National Credit Manager Transurban
Continued over page
Premium Sponsor Supporting Sponsor Premium Sponsor Supporting Sponsor
Proudly Proudly supported by supported by 15 Day 3 Continued Friday 14th October 2016 PROGRAM Continued
Concurrent Sessions continued
12.00 - LEGAL • A crucial current checklist James Devonish 12.45pm “TERMINATOR” – Terms • Recent cases that give real traction MICM CCE and conditions how to end Senior Associate Lynch • Increase your “credit ammunition” to summarily Meyer Lawyers all arguments ? deal with spurious defences
KNOWLEDGE Trevor will demonstrate the basic functionality of Trevor Middleton Working smarter – there is modern collection and cash allocation software Director at Cosyn an app for that and how it can ensure the efficiency of your credit Consulting operation
SKILLS See how other credit professionals deal with the Speaker TBC Managing expectations growing pressures. with less staff and how to reset expectations
End of Concurrent Sessions
12.45 - 2.00pm Lunch
Time Topic Description Speaker/s
2.00 - 2.30pm Implement your conference Using insights from the conference sessions, learn Jane Calleja insights how to: Learning & Development • Develop action plans Manager, NCI • Identify roadblocks • Process change management • Jane will help develop action plan
3.00 - 4.00pm President Trophy Closing and Prize Draw
End of Conference
For more information, visit
aicm.com.au or Register Now
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ACCC to commence excessive surcharge compliance role on 1 September 2016
The Australian be linked to the direct costs of the many businesses in Australia that Competition and payment method such as bank fees incorporate payment system costs and terminal costs,” ACCC Chairman into their overall prices. Consumer Commission Rod Sims said. Material on the RBA’s website will begin enforcing The Standard defines what provides detailed information for the ban on excessive businesses are able to include in businesses about the Standard, setting a surcharge and sets out a including how businesses can identify surcharges for large two-staged implementation, with the and quantify those costs that can merchants on 1 ban commencing on 1 September be passed on to a consumer as a September 2016. 2016 for ‘large merchants’ and surcharge. The Standard is available at 1 September 2017 for all other www.rba.gov.au merchants. Recently, the Reserve Bank of The Standard defines a ‘large Background Australia Payments System Board merchant’ to be one that satisfies The new surcharging law arose out of (PSB) published its Standard which at least two of the following a recommendation in the Report of the relates to surcharges by merchants requirements: it has a consolidated Financial System Inquiry (FSI) which when charging customers for the use gross revenue of $25 million or more, had the objective of improving the of a credit or debit card. Surcharges the value of its consolidated gross efficiency and effectiveness of price will be excessive where they exceed assets is $12.5 million or more, or it signals and reducing the potential for the permitted cost of acceptance, as employs 50 or more employees. cross-subsidisation between customer defined in the Standard. The Standard will apply to six card groups and merchant groups. The FSI “In short, the new provisions systems – EFTPOS, Debit MasterCard, received more than 5,000 submissions will limit the amount businesses MasterCard Credit, Visa Debit, Visa related to credit card surcharges, most can surcharge customers for use Credit and American Express cards of which called for surcharges to be of payment methods such as most issued by Australian banks. banned. credit and debit cards. The limit will “The ACCC is finalising online The Competition and Consumer guidance material for consumers Amendment (Payment Surcharges) Bill “In short, the new and businesses, which will provide 2015 was introduced into the House further information on the ACCC’s of Representatives on 3 December provisions will enforcement role, what businesses 2015. It was passed by Parliament on need to do in order to comply, and 22 February 2016 and received Royal limit the amount how consumers can make complaints Assent on 25 February 2016. if they believe a business has Nothing in the Standard alters businesses charged a payment surcharge that is the existing obligations of businesses can surcharge excessive,” Mr Sims said. to comply with the provisions of the “We will focus on education and Australian Consumer Law, as set out customers for awareness in the early stages but in the Competition and Consumer won’t turn a blind eye to possible Act 2010, which deal with false and use of payment breaches, particularly for those large misleading representations about the businesses clearly on notice of these price of goods or services. n methods such as changes.” The ban has no effect on ACCC press release, 26 May 2016 http:// most credit and www.accc.gov.au/media-release/accc-to- businesses that choose not to impose commence-excessive-surcharge-compliance- debit cards...” a payment surcharge, such as the role-on-1-september-2016
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 17 Credit Management Reviewing your invoicing to best practice
By Symon Cook Credit managers are often asked automated, with minimal human to review the invoicing process for intervention required.If you’re not efficiency and best practice. While there, fear not, this can be a reality. we’re confident we’ve got the team An online invoicing platform unlocks and systems to best practice, Symon efficiencies within the accounting Cook, Neopost’s resident digital team, releasing valuable staff hours specialist, gives an overview of the 10 that can be redeployed to resolving criteria he uses when being asked to customer disputes and ultimately, assess a customer’s processes. improving cash collection. One of the most defining features I use the following 10 criteria when facing businesses today is the assessing a customer’s processes transition from paper-based processes and whether they should consider an to electronic workflows online solution: Across all businesses there are 1. Faster payment Electronic invoices many common traits and potential can reduce day sales outstanding improvements we could give our (DSO) by delivering invoices customers in their daily experience virtually instantly. This avoids the of interacting with the creditfunction. need to print post and wait for Relying on paper based invoice your customer to receive a hard processes carries some challenges. copy, cutting up to 5 days from the There’s the risk of the invoice going invoicing process. missing, delays in postal delivery, 2. Visibility and peace of mind the time element involved in If a posted invoice goes astray, it manual handling and receipt of the may be weeks before you become invoice,along with print and postage aware. Modern e–invoicing costs. solutions will not only show the Digitisation enables the invoice has been received but also organisation to do things better, faster that it’s been opened, providing more accurately and in compliance certainty and reassurance with audit rules and regulations. It 3. Cost reduction Remove paper, means less printing, less paper, fewer print, postage and filing costs. filing cabinets and none of the errors 4. Improved productivity Manual and delays associated with manual processes are inherently inefficient. processes. By removing the need for manual We imagine a non-demand digital data entry, e-invoices releases staff platform capable of distributing to focus on more productive tasks. invoices, statements and other 5. Fewer errors Automation reduces transactional documents in the the need for manual data entry. manner that your customer prefers, The less data entry, the less risk of whilst verifying delivery and archiving human error. a copy in compliance with ATO rules. 6. Satisfied Customers Are you Symon Cook This vision sees invoices online, sending your customers their
18 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Credit Management
invoices in the manner according to their preference? Some “Digitisation enables the customers will want to continue organisation to do things better, to receive paper based invoices. Others will prefer an e-invoice. faster more accurately and in Some companies nowadays will even refuse to pay an compliance with audit rules and invoice unless it’s sent via email. Customers will pay their bill faster regulations. It means less printing, if it is sent in the manner they have less paper, fewer filing cabinets...” requested. 7. Improved Cashflow E-invoicing empowers your accounting team Transitioning to e-invoicing may spends printing invoices, manually to keep a close eye on cashflow seem like a daunting undertaking removing invoices that need to be and balance sheet. An up to date but actually, can be quite simple. In suppressed and measure the time central view of incomings and comparison to the often complex, it takes to fulfil invoices ready for outgoings help support good cumbersome ERP systems that mailing. Calculate the cost of the cashflow management. most organisations are used to, postage and the cost of the overall 8. Digital Records Many e-invoicing modern e-invoicing systems have time generating the invoice run. systems keep a digital record been developed to offer user friendly In our experience, most customers of invoices, statements and dashboards, straight forward user who undertake this process, validate supporting documents making for interfaces and can take ‘clunky data’ for themselves that an online option on-demand easy retrieval of files and streamline the information into would be sensible to consider. 24/7. invoices and statements that make Often more surprising, is how 9. End-to-End Automation Simplify sense. much further an e-invoicing system and streamline. Automate the end- When approached by for can improve the efficiency of your to-end process of sending and assistance for companies considering accounting function even if you’re receipting the invoice, at a time an e-invoice solution, we offer some already sending transactional that suits the organisation. basic advice. documents via email. n 10. Compliance E-Invoicing systems 1. Do a short survey with your are highly compliant. As well customers, seeking their Symon Cook is Neopost’s resident digital specialist and has worked in the print and as providing an audit trail of preference on receiving your mail industry for the past 22 years. Having transactions, online systems create invoice. been with Neopost for more than 8 years, Symon has been supporting our customers in and store documents in formats 2. At your next invoice run, assess the management of their physical and digital compliant with local tax rules the amount of time your team strategies.
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July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 19 Legal Mistakes not to make when suing a debtor ...and tips on what you should do
By Roger Mendelson There are some fundamental mistakes Don’t issue a warrant of which are regularly made when a execution debtor is being sued for an unpaid Unless you are aware of specific, debt. valuable items which can be seized If you don’t make these mistakes, the success rate is extremely low. you will find that your success rate If the debtor runs a business and dramatically improves and you will has got seizable assets (such as a then fully understand just what a restaurant) then the warrant can be powerful tool legal action is. effective but you should specifically For convenience, I will use direct the sheriff to those assets. Victorian names for processes. Don’t issue a summons for oral Don’t sue if you don’t have a examination confirmed address for service This is not an enforcement path but is So many legal actions fail at the often treated as if it is. first hurdle because the address of Experienced debtors know exactly the debtor has not been properly what to do and what to say with the confirmed or the debtor has moved result being that any information you and cannot be located. This problem do obtain is invariably worthless. adds to delay, can sometimes prove The real time to find out about fatal if a new address has not been your debtor is before you sue, not found and will always add to the cost. after. The lesson is to always immediately reconfirm the address Avoid a defence before suing. Your aim in recovering a debt is If the debtor is relatively transient to either end up with full payment but has a regular job, write to him at prior to judgment being obtained or work (obviously marking the envelope obtaining a default judgment. “private and confidential”) and advise If there is a genuine dispute, legal him that you will be serving him at action is often not the best way to work, unless he makes contact with resolve it and should be regarded as you to make a time to meet the a last resort. There are steps you can process server. take to significantly reduce the risk of This is a valid tactic and it often a defence being lodged. results in payment being made at that Send a final letter to the debtor stage. specifically requesting that he outline In many cases, work is a more any dispute he has, in writing, within reliable service address. You are seven days and further advise that in entitled to serve the Complaint at the event where he fails to do this and work and the only downside to this is he then ultimately lodges a defence, Roger Mendelson that service must be personal. you will be seeking an order for
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indemnity costs as opposed to part party costs. Indemnity costs will be Your aim in recovering a debt is approximately 40% higher. to either end up with full payment Don’t miss part of the claim prior to judgment being obtained or Many Complaints are issued for less than the full amount which can be obtaining a default judgment. properly claimed. Check your trading terms. It is probable that there will be a penalty After the Complaint is served, achieve from legal action will be interest clause and also a clause the clock is ticking and the debtor guaranteed to substantially lift. n providing that in the event of default, is under pressure. He should be all collection costs will be payable by called and encouraged to pay the full The writer is CEO of Prushka Fast Debt the debtor. amount at that stage. If he can’t pay in Recovery Pty Ltd and is principal of Mendelsons National Debt Collection Lawyers Spending a little time to cover all full, enter an instalment arrangement Pty Ltd. Prushka acts for in excess of 53,000 of these additional charges will often but leave the judgment dangling, small to medium size businesses across lift the amount claimed substantially. so that if he defaults, you can enter Australia and operates on the basis of NO RECOVERY – NO CHARGE. www.prushka. judgment for the balance plus costs. com.au. Free call 1800 641 617. The writer is Don’t wait until judgment By not making the common also author of The Ten Mistakes Businesses Make and How to Avoid Them and Business You don’t want a judgment. You really mistakes detailed in this article, I Survival, both published by New Holland want payment. guarantee that the net recovery you Publishers.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 21 Legal Unfair preferences and how to avoid them
By Nick Cooper* Part 1 – What is a Preference Payment? The rationale for unfair preferences is that when a company When a company enters liquidation, it is is insolvent, by definition, the company will not be able to pay the full amount of its debts when due for payment. understandable that creditors often feel The governing law, which is the Corporations aggrieved. Act, encourages insolvent companies to pay all their creditors proportionally. It does this by penalising those Firstly they are owed a debt which will creditors who have received a disproportionate share usually become a bad debt. Secondly, they (an unfair preference). The creditor who has received may be asked to refund some of the money the disproportionate share is required, subject to certain they have worked hard to collect – when defences, to repay the amount they have received. It is the duty of the Liquidator to collect these a Liquidator claims they have received an preference payments and then distribute the monies “unfair preference”. proportionately to all the company’s creditors. “Unfair preferences” are defined under Section 588FA(1) In this 3 part series, I will provide a practical of the Corporations Act as follows: summary of the law concerning unfair preference transactions. What is unfair preference? A transaction is an unfair preference given by a company to a creditor of the company, if, and only if: The topics to be covered are: (a) the company and the creditor are parties to the • what is a preference payment? transaction (even if someone else is also a party); and • what are the defences? (b) the transaction results in the creditor receiving from • how can you reduce the chances of a the company, in respect of an unsecured debt that preference claim? the company owes to the creditor, more than the creditor would receive from the company in respect of the debt if the transaction were set aside and the creditor were to prove for the debt in a winding up of the company; even if the transaction is entered into, or is given effect to, or is required to be given effect to, because of an Order of an Australian court or a direction by an agency. There are several aspects of preferences which ought to be noted:
a) Timeframe. The timeframe within which payments can be deemed to be preferences is within six (6) months before “commencement” of a liquidation. This period of time is referred to as the “relation-back period”. “Commencement” of a liquidation is defined in the Corporation Act and is not necessarily the day that a company enters liquidation. Where a company is in Voluntary Administration Nick Cooper (or trading under a Deed of Company Arrangement)
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and later enters liquidation, the “commencement” of liquidation is deemed to be the date that the company In the case of a liquidation first entered Voluntary Administration (s. 513B). ordered by the Court, it is In the case of a liquidation ordered by the Court, it is six months before the filing of the application to Court six months before the filing to wind up the company (s. 9 definition of “relation- back day”). of the application to Court The time period for transactions with related parties is four (4) years. to wind up the company Sometimes there is an issue as to whether or not a payment falls inside the relation-back period – if d) Interest and costs. A Liquidator can claim interest on there was a delay between a cheque being drawn and a preference payment and legal costs if the matter presented. proceeds to trial and the Liquidator is successful. In the case Re: Transconsult Australia Pty Ltd (In Conversely, if the Liquidator is unsuccessful, the liq) (1991) 9 ACLC 1052 – it was held that the date of a creditor can claim some of their legal costs against the payment by cheque is the date on which the cheque Liquidator. was given to the creditor not the date that the proceeds In the case Star v O’Brien [1996] 22 ACSR 434, it was of the cheque were made available to the creditor held that interest on a preference claim runs from the through the bank transfer system. date of the Liquidator’s letter of demand for payment. It should also be noted that legal costs awarded by b) Liquidation. The company must be in liquidation for a court to the successful party is usually on a “party/ a payment to be caught by the preference provisions. party” basis rather than “solicitor/client” basis. In other words, payments are not liable to be deemed This means that some costs cannot be claimed such preferences where a company enters Receivership as the cost of providing legal advice as opposed to (unless it enters liquidation at the same time) or enters preparation for a trial. Voluntary Administration and then enters a Deed The costs awarded are also calculated on a set of Company Arrangement that does not end in a scale of rates, which might be less than your solicitors’ liquidation. standard charge out rates. This is relevant if a debtor company enters Voluntary Administration and you as a creditor are given an What the Liquidator must prove option to vote for liquidation or for a Deed of Company To successfully establish at trial that a payment is an Arrangement proposal. If you consider that you may unfair preference, a Liquidator must prove to the court the have received a preference within the previous six following matters: months, this may influence your vote as you may be liable to repay the preference in the event of liquidation. a) Insolvency. The Liquidator must prove that the company was insolvent at the time of the preference c) Insolvency. A payment can only be deemed to be a payment. This is usually done by the Liquidator preference if the company was insolvent at the time of preparing a report on the company’s financial position the payment. which demonstrates that the company was insolvent. It is important to note that even though there is a “Insolvency” is explained in section 95A of the six (6) month timeframe for recovery of preferences, a Corporations Act, as follows: company may not be insolvent throughout the entire six (1) A person is solvent if, and only if, the person is months. able to pay all the person’s debts as and when The Liquidator usually seeks to prove insolvency by they become due and payable. preparing a report on the company’s financial position (2) A person who is not solvent is insolvent. during the relation-back period. Insolvency is a “cash flow test” rather than a If defending a preference claim, it may be “balance sheet test”. In other words, insolvency is worthwhile scrutinising the Liquidator’s report and not determined by examining a Balance Sheet but by seeking an opinion on the company’s solvency from examining a company’s cash inflows and cash outflows. another Insolvency Practitioner. A company is insolvent when the cash outflows will There have been several cases where a Liquidator exceed both the: has lost a preference claim on the basis that they have z cash inflows; and failed to prove that the company was insolvent at the z the available cash funds and credit available on time of the preference payment. bank overdraft accounts, etc.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 23 Legal
There are a number of factors which will indicate receive in the winding up of the company conducted by insolvency, such as: the Liquidator. ¾ high proportion of trade creditor aged 90 days Preferential effect is important for one class of or more; creditors, being landlords, who are in a privileged ¾ late lodgement or non-payment of amounts due position with respect to preferences. It has been held in on Business Activity Statements; the case Re: Discovery Books Pty Ltd (1972) 20 FLR 470 ¾ late or non-payment of WorkCover levies; that landlords do not necessarily receive a preference ¾ demands from suppliers for payment; when a tenant pays rent – as the ultimate effect is ¾ legal action commenced by suppliers; that the company is allowed to continue trading from ¾ negotiating repayment arrangements with the rented premises. This is known as the “doctrine of suppliers; ultimate effect”. ¾ a deficiency in “working capital” generally calculated by deducting current liabilities from e) Transaction. The Liquidator must prove that there current assets as disclosed in the Balance Sheet. was a “transaction”. Clearly when a creditor receives a payment, the payment itself is the transaction. b) Debtor/Creditor Relationship. The Liquidator must There have been several cases in which the meaning prove that there was a debtor/creditor relationship at of a “transaction” was important, including: the time of the preference payment. z Re Emanuel (No. 14) Pty Ltd (In liq) (1997) 24 In other words, the recipient of the payment must ACSR 292 – it was held that the definition of have been owed monies at the time of payment. This “transaction” was sufficiently broad to catch an will usually be the case. arrangement whereby a payment from a third However, there will not be a debtor/creditor party, rather than from the company which relationship where payments are made on a cash- entered liquidation, to the creditor was liable on-delivery (“COD”) basis. Such COD payments can to be repaid as a preference – given that the therefore never be preferences. payment was authorised by the company. z Bartercard Ltd v Wily (2001) 19 ACLC 1461 c) Unsecured Creditor. The Liquidator must prove that the – it was held that a transaction existing in creditor who received the preference payment was an circumstances where a creditor terminated a “unsecured” creditor. In other words, there cannot be franchise agreement and obtained the business a preference payment against a bank or other creditor (including goodwill and plant & equipment) of who has valuable security over the company’s assets. a franchisee. It was a transaction as the creditor Similarly, with the introduction of the Personal set-off the value of the business against the Property Securities Register (“PPSR”), suppliers of debt owing to it. goods who have a valid PPSR registration are secured creditors and immune from preferences – but the In the next article, I will discuss the defences and remedies value of their security against the value of the alleged that are available to creditors. n preference payment must be considered.
If a secured creditor receives a payment which *Nick Cooper is a Partner of the Adelaide office of Worrells Solvency exceeds the value of its security, then the portion of the & Forensic Accountants. He is qualified as a Chartered Account and hold a Bachelor of Laws. He is an Official Liquidator and a Registered creditor’s debt that is effectively unsecured is liable to Trustee in Bankruptcy. Nick has worked in the insolvency practice for be repaid as an unfair preference (section 588FA(2)). 20 years. He has acted as an Administrator, Liquidator and Receiver of companies in a diverse range of industries. He has acted on behalf of major banks and in respect of clients of many accounting firms. d) Preferential Effect. The wording of section 588FA(1)(b) In his role as a Liquidator and as a Trustee in Bankruptcy, Nick is often suggests that a payment can only be a preference if the involved in litigation to recover assets for the benefit of creditors. creditor was effectively preferred over other creditors of the company. The test is whether the transaction results in the creditor receiving from the company more than it would The Liquidator must prove have received in respect of the debt if the transaction was set aside and the creditor were to prove for the that the creditor who debt in a winding up of the company. In the case Walsh v Natra (2000) 1 VR 523, it received the preference was held that preferential effect is demonstrated by payment was an comparing the return that the creditor received from the payment against the return the creditor would “unsecured” creditor.
24 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Legal Electronic contracts – what’s new? Part 2 – Authority to bind
By Peter Mills and In Part 1 of this series (March 2016 right documents and systems in place Robert Gallagher issue), we looked at the Supreme to ensure that the necessary steps are Court decision in Stellard Pty Ltd & taken to bind the correct parties. Anor (Stellard) v North Queensland Whilst authority might be proven Fuel Pty Ltd (NQF)1 (Stellard’s or other rights or remedies might be Case). The Court ruled that the available eg against an agent acting name of an agent typed in an email without authority, these often involve was a “signature” which bound the complex disputes with uncertain company. results, as the cases below show. We also looked at the implications for Credit Applications, Terms and Stellard’s Case – sale of land and Conditions of Trade (called T+C’s) and business by non-director guarantees which need to be “signed”, z The seller was a company (NQF). whether foreign laws are relevant, and z NQF’s apparent principal asset was the need for proper processes and land and a service station business systems (both manual and online) for located on it. ensuring a signature is obtained. z All relevant email communications In Part 2 of this series, we look at were with only NQF’s agents, some who has sufficient “authority” to enter with the sales agent, and others into an agreement or sign on behalf with the director’s son, Drew. of a customer or guarantor and what z Drew was not a director of NQF Peter Mills happens if they do not have authority. according to ASIC records. No Power of Attorney appeared to Authority to bind have been registered granting All contracts and documents, whether him authority to deal with NQF’s they are T+C’s or a guarantee, must interest in land. It was not alleged be entered into by the person who that any statement had ever is to be held liable (as customer or been provided to Stellard by the guarantor). If a person (including a directors of NQF to the effect that company) is represented by a “duly Drew had NQF’s authority to enter authorised” agent it is critical that the into any contract, although sales agent has sufficient authority as an and marketing materials identified agent’s authority often will be limited Drew as a contact for NQF. to entering into only certain dealings. z Importantly, NQF expressly If an agent lacks sufficient admitted in Court documents that authority, then no contract is formed Drew was duly authorised to enter and no rights can be enforced in into the relevant contract. This contract eg a charging clause will not meant that it was not necessary enforceable. for Stellard to prove that Drew was Robert Gallagher The best course is to have the NQF’s duly authorised agent.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 25 Legal
Generally a non-director would not dealership to buy and sell names and passwords to be be taken to have authority to grant cars and to grant retention of able to access Hellofax. Only an interest in land. Here, Stellard ran a title security interests in the persons with the suitable user complex Court case to prove its claim. vehicles. name and password could access Takeaway – on both sides of a deal — This did not mean however the system and use the related get the paper work right and have that the salesman was also signature. all officers sign the documents so duly authorised to enter into z As further protection, everyone has certainty. the GSA. It was beyond the whenever a document was to actual or implied authority of a be signed using a director’s Auto Moto Corporation Case2 – salesman to grant a charge over Hellofax, the relevant director salesman had authority to buy and the company’s assets at large. would be emailed. After their sell cars but had no authority to give a — The GSA was not enforceable signature had been applied, charge over the customer’s assets and so the PPSA registration the relevant director was z A supplier sold expensive made by the supplier was sent another email as to their imported cars to a car dealership. deregistered and the supplier signature having being applied All discussions were conducted was an unsecured creditor for to the document. with a head salesman, who was over $1 million. z Lastly, the Hellofax system also not a director or shareholder. Takeaway – obtain relevant ASIC logged from where and when a z Cars were sold to the dealership and other searches to identify the user of the signature had accessed on the basis that the supplier director/s who are authorised to enter the system. retained title until paid, and into agreements to give a charge z Mr C never changed his user name normally the supplier would over a customer’s real and personal or password. receive payment on a sale property. z IDH went into liquidation owing occurring. WGA $1M. z Subsequently, as the debt owed Williams Group Australia (WGA) z The evidence showed that grew to over $1 million, the Case3 – electronic signature not Mr C’s signature had been supplier provided a written general inserted by guarantor’s duly placed on the guarantee by a security agreement (GSA) to “authorised agent” and so guarantee person who had logged in at the salesman, providing for the not enforceable IDH’s Murwillumbah office, at dealership to grant a charge over z WGA was a building materials a time when Mr R was not in all of its assets to the supplier. supplier. Its customer was IDH Murwillumbah. It could not be z A registration was lodged under Modular (IDH). proven who the person was who the Personal Property Securities z Mr B, Mr W and Mr C were IDH’s used his (unchanged) user name Act 2009 (PPSA) by the supplier directors, and Ms H was its admin and password, or that Mr C had based on the GSA. assistant. read the emails as to the use of z The GSA was not signed by z Mr A set up an electronic signing his electronic signature. the dealership’s directors nor system for the directors to z The Court held: was there any evidence that use called “Hellofax”. Hellofax — There was no evidence the directors had ever adopted, permitted each user to upload that any person had been discussed or seen the GSA. a copy of their signature which actually authorised to z The dealership went into could be applied to documents place Mr C’s signature to liquidation. electronically. any document, or that Mr z The Court held that: z Mr B, Mr W and Mr C all uploaded C had led WGA to believe — The salesman was the duly copies of their signatures, and that Mr C had granted authorised agent of the were provided with unique user such authority to others. Mr C’s failure to change his password was not sufficient; ...obtain relevant ASIC and other — That since Mr C had not read the emails as to his signature searches to identify the director/s being used, he could not be said to have ratified any who are authorised to enter into unlawful use of his signature. agreements to give a charge over a The Court held that the guarantee was not enforceable against Mr C and customer’s real and personal property. he was not liable for the debt owed.
26 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Legal
Takeaway – communicate directly in person with guarantors to make sure that they have signed the guarantee. Even though an electronic signature may be sufficient (such as in Stellard’s case) safeguards against fraud should be in place and perhaps more so when electronic dealings are relied on.
Menzies Case4 – accountant handled all communications with banks and forged signature of client on loans, real property mortgages and guarantees – contracts not binding on client z A client placed her trust in her accountant to assist in making a loan application. z The accountant used her ID documents to forge her signature on numerous loans, personal guarantees and to fraudulent ordering by employees of duly authorised officer or agent, or grant mortgages over the client’s goods and obtaining of fraudulent guarantees properly signed by the properties. refunds by them on customer liable parties, you will not likely be z All communication, bank accounts are possible exposures able to enforce rights against the statements and correspondence for suppliers under T+C’s. In credit customer, guarantors or third parties, were sent via the accountant’s documents it may be possible to or lodge PPSA security interests or office. provide that the customer and caveats. z The client was not liable for the guarantors will be liable on the Review your contracts, T+C’s and fraud of her accountant as he had account and that any fraud or forgery guarantees to identify where the risk no sufficient authority to bind her. by the customer’s employees will be falls if a customer’s employees effect a Takeaway – good old fashioned at the risk of the customer, not the fraud on the account. fraud doesn’t have to be electronic or credit provider. digital. Minimise risk by dealing with Next the person directly. Overview Stay tuned for the final Part 3 of this T+C’s and guarantees should be series. In the final part, we will look Tai Hing Cotton Mill Ltd Case5 obtained with care, using reliable at when parties are legally bound – HK$5M in cheques signed by systems, processes and documents. during negotiations, even if and when customer’s employee who was not an Contracts, guarantees and other they say the dealings are “subject to authorised signatory on bank account documents generally do not grant contract”. n – bank liable for entire loss any contractual rights to a creditor if Written by: z The customer’s employee made they are signed or entered into by an Peter Mills, Special Counsel off with the ill-gotten funds. agent for the party to be held liable [email protected], T +61 7 3338 7921 z The company did not complain unless the agent acts with sufficient Robert Gallagher, Partner to the bank for some time after authority. [email protected], T +61 7 3338 7920 receiving bank statements. Electronic “signature” systems z Because of the terms of the and processes might seem fine and FOOTNOTES: contract between the bank and its efficient, however they should be 1 Stellard Pty Ltd v North Queensland Fuel Pty Ltd [2015] QSC 119 customer, the bank was still liable reviewed to ensure that they verify the 2 Auto Moto Corporation Pty Ltd v. SMP for the employee’s fraud and was lawful and authorised placement of Solutions Pty Ltd [2013] NSWSC 1403 required to refund the HK$5M in signatures. 3 Williams Group Australia Pty Ltd v. full, despite the passage of time. Direct contact with directors and Crocker [2015] NSWSC 1907 Takeaways – credit providers guarantors is especially important. 4 Perpetual Trustees Victoria Ltd v Menzies [2012] NSWSC 1066 are also providers of finance. If you fail to have contracts and 5 Tai Hing Cotton Mill Ltd v Liu Chong Hing Whilst cheques are used less today, T+ C’s signed by the party or a Bank Ltd [1985] 3 WLR 317
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 27 Legal Don’t get your contract terms knocked out
By John Fairgray, The Treasury Legislation Amendments (Small Business and Unfair Contracts Luis Ormazabal and Terms) Act 2015 (the Act) Balveen Saini* On 12 November 2016, the Act will be enforced, amending the From 12 November 2016, Australian Securities and Investments Commission Act 2001 and if you work with small Competition and Consumer Act 2010 businesses and use (more specifically Schedule 2 – The standard form contracts, Australian Consumer Law). you must ensure that The purpose of the Act is to extend the existing unfair contract term your contracts do not provisions to small businesses entering then it is essential that you review contain unfair terms or into standard form contracts valued your contracts before 12 November you risk having part, less than the prescribed threshold. 2016, otherwise you run the risk or all, of those terms that part, or all, of your contract What does this mean for you? terms may be knocked out by the knocked out. This article If you work with small businesses Court. provides an overview to and intend on entering, renewing or these changes. varying your standard form contracts, What is a small business? which relate to such things as: A business is taken to be a small 1. Unilateral variation of terms and business where it employs fewer conditions. For example, where than 20 persons, excluding casual you may amend the terms and employees not employed on a regular conditions of a contract and publish or systematic basis. A head count them on your website without approach will be used to calculate the sufficient and/or reasonable notice number of employees. to your customer; 2. Automatic rollover of the contract. What is a small business For example when a contract contract? expires and you automatically A contract is a small business contract renew it for a further term, unless if either of the following applies: notice has been provided by your 1. The upfront price payable under customer that they do not intend the contract does not exceed to extend the contract; or $300,000.00; or 3. Enforcing contingent fees. For 2. The contract has a duration of example default fees and/or more than 12 months and the liquidated damages which are not upfront price payable under disclosed at the time the contract the contract does not exceed is entered into, $1,000,000.00.
28 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Legal
“The onus of proof lies with you to show that your small business contract does not contain unfair terms.”
Is my small business contract a customer when entering into the To which standard form small standard form contract? contract with them. business contracts DOES NOT As stated above, the unfair contract Therefore, a standard form contract the Act apply? provisions will affect standard form is a contract which has been Whilst most standard form small small business contracts. prepared by you and is not subject business contracts will be covered by Whether a small business to negotiation, being when your the Act, there are some exceptions, contract is a standard form contract customer has to either accept the these being: will be a question to be decided case terms of the contract or not i.e. on a 1. Contracts entered into before by case. ‘take it or leave it’ basis. Examples of 12 November 2016 (subject to In the past, the Courts, in deciding standard form contracts in credit are any renewals or variations to whether a contract is a standard form where there is a supply of goods and the contract and/or terms and contract, have taken into account such services to consumers in industries conditions); matters as: such as telecommunications, finance, 2. If your customer is unable to 1. One of the parties has all or most domestic building, gyms, rental allege that your terms of contract of the bargaining power relating to agreements and utilities. are unfair merely on the basis that the transaction; they have changed their mind, or 2. If the contract was prepared by To which standard form small no longer require the goods and/ one party before any discussion business contracts DOES the or services from you. This applies occurred between the parties; Act apply? where you are supplying goods 3. Another party was required to The Act will apply to small business and services which are specifically either accept or reject the terms of contracts that: defined in the contract; the contract; 1. Have been renewed on or after 12 3. Where the upfront price has been 4. Another party was given an November 2016. As such, the Act clearly stated in the contract at effective opportunity to negotiate applies from the renewal date; or the time in which the contract was the terms of the contract; and 2. Have been varied on or after 12 established; 5. The terms of the contract and November 2016. That is, the Act 4. Where there is a requirement or whether they take into account will apply to the term(s) varied on you are expressly permitted by the specific characteristics of your or after 12 November 2016. a law to include a specific term.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 29 Legal
For example, some legislation 1. The extent to which the term is What you should do before may permit the inclusion of transparent (that is, expressed in 12 November 2016. terms as a matter of public policy reasonably plain language, legible, Due to the significant impact that the to ensure specific transactions presented clearly and readily Act may have to your business, you occur i.e. cooling- off periods available to any party affected by should: in various industries and their the term); and 1. Consider whether the Act applies relevant statutory provisions; 2. The contract as a whole. to your contracts and whether 5. Terms that have been subject to there are any terms which should genuine negotiations between you What powers will the Court be amended, if you use standard and your customer; have? form contracts in your business; 6. Shipping contracts (as they are The Court may declare that a term 2. Obtain legal advice and have subject to a comprehensive in a small business contract is unfair your contract terms reviewed, legal framework that deals with on the application of a party to the removed and/or amended where maritime contracts); contract (subject to the relevant appropriate and in compliance 7. Contracts that are constitutions of thresholds being met) or ASIC. with the Act; companies, managed investment 3. Implement changes to your front schemes or other kinds of bodies; What happens if the Court end processes to ensure that if or determines that my term(s) you are going to enter into, vary 8. Contracts in sectors exempt to be unfair? or renew a standard form contract by the Minister, for example If the Court finds that a term is unfair, with a small business customer on insurance contracts as they then there are a range of orders that or after 12 November 2016, that it are regulated by the Insurance the Court may make, including: complies with the Act; Contracts Act 1984. 1. Declaring that the term be 4. Consider whether there is going deemed void; to be some uncertainty about the Is my small business contract 2. Refusing to enforce some or all fairness of your contract terms unfair? of the terms of a contract; and in the event there will be Generally, if a term is in a standard 3. Directing you to refund money then include additional terms. For form contract it will be “unfair” if three or to compensate your affected example, disclosure requirements tests are satisfied: customer; and/ or as to your customers business or 1. The term would cause a significant 4. Directing you to continue limitation of liability terms; and/or imbalance in the party’s rights providing goods and/or services 5. Ensuring your contract, and its and obligations arising under the to your customer at your expense. specific terms, are clear and contract; and transparent. n 2. The term would cause detriment In the event that your term has (whether financial or otherwise) been deemed ‘unfair’, and you to a party if it were applied or continue to rely and enforce that relied on; and term, then you could be engaging 3. The contract term is not in false and misleading conduct by Should your business require any assistance reasonably necessary in order to misrepresenting the enforceability or advice regarding the impact of the Act protect the legitimate interests of the term to your customers. to your business, please do not hesitate to contact BBW Lawyers; of the party seeking to rely on it. John Fairgray (Partner) In applying each of the three tests, Who bears the onus of proof? E: [email protected], a Court may take into account such The onus of proof lies with you to show Luis Ormazabal (Associate) matters as are relevant and is obliged that your small business contract does E: [email protected] or to take into account: not contain unfair terms. Balveen Saini (Solicitor) E: [email protected] on 02 9210 9100.
The AICM will be holding seminars in Consider whether there is going Brisbane, Sydney, Melbourne, Adelaide and Perth in August to ensure you understand to be some uncertainty about the the impacts for your business and are able to adjust for them. Email [email protected] to express your interest and ensure you are fairness of your contract terms and notified once dates are confirmed. in the event there will be then include Disclaimer: This is general commentary and should not be relied upon as if it were legal additional terms. advice.
30 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Technology Australia on the cusp of ‘digital greatness’
Australia could soon become the FinTech Hub of Asia by eliminating regulatory red tape that has previously held the nation’s visionary start-up companies back, Tyro CEO Jost Stollmann said recently. Under changes announced by the Australian Government, start-up companies can now test and evolve their business models with customers in a regulatory ‘sandbox,’ without first having to obtain a financial services licence. The development will help encourage some of Australia’s best and brightest bankers to leave the comfort of the ‘big four’ banks Forum it was noted that 90 per cent be ‘toast’ within 10 years if it didn’t and venture out on their own with of the data we use today has been innovate. disruptive new ideas. created in the past two years. Mr Narev refuted the notion that “Australia’s financial services Mr Stollmann said that FinTech innovation and technology was only sector is the largest contributor to was disrupting banking so quickly it the domain of the start-up, describing the national economy, providing was possible that one of Australia’s Commonwealth Bank as the “big dog about $140 billion to GDP last year, big four banks may no longer exist in sleeping on the porch”. and employing 450,000 people,” Mr a generation. Early last year, Tyro took this a Stollmann said. “Australia is now creating an eco- step further by opening Australia’s “The Australian Government’s system of FinTech start-up companies first FinTech Hub, designed to package of measures will help unleash that are working together to provide a foster new ideas and help Australian a new generation of entrepreneurs 21st century suite of banking services entrepreneurs build their dreams. and investors who want to make for customers and businesses,” he “FinTech is going to revolutionise everything we do quicker, easier and said. how consumers and businesses more productive. “What that means is that the old interact in the future,” Mr Stollmann “FinTech investment around the and slow banks may be replaced by said. world reached an estimated $30 100 smaller organisations working “But individual FinTech companies billion, a jump of about seven-fold in together. can’t thrive in an analogue world, we only three years. “It is possible that within 20 years need to create a digital ecosystem for “Australia needs to make itself one of the current big four banks new ideas to grow and prosper. FinTech friendly if it wants to set will no longer be with us. The only Mr Stollmann sits on the Federal itself up for the next generation of question is, which one will it be?” Government’s FinTech Advisory Group economic growth. While most banks have been that advises the government on how “If it does, Australia could become reluctant to speak publicly about to improve Australia’s international the FinTech Hub of Asia, servicing the challenges posed by FinTechs, competitiveness in the digital a market of more than three billion Commonwealth Bank CEO Ian Narev economy. n people, including a rampant Chinese told a gathering at The Centre for Adapted from Tyro press release dated economy.” Independent Studies earlier this 17/06/2016 https://tyro.com/press-releases/ At the recent World Economic month that his organisation would australia-cusp-digital-greatness/
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 31 Economy A new world of commerce awaits
By Barry Urquhart* Once the economic headwinds abate industry. Labour-intensive sectors, and the downturn is over, a new, lean, whose participants have little or no efficient, cost-effective, technology- personal relationship skills, face a driven world of commerce will await. bleak, contracting and short future. There will be no “going back to the In the new marketplace, the harsh good old days”. climate and working conditions The jobs and careers lost during of remote mining sites will not be the mining, retail, construction and endured by large numbers of workers. services contractions will not return. Automated drilling machines, Managements, and Boards of trucks and trains will be operated, Directors have learnt how to operate, monitored and controlled by a develop and grow with reduced few select, professionally qualified resources. specialists located in air-conditioned Profit margins have been trimmed city-based offices. since the onset of the Global Financial Union acceptance and Crisis (GFC) in August 2008. So too endorsement of such rationalisations have organisation structures and the will have long-term structural consequences for its members.
Managements, and Boards of Up in the air Directors have learnt how to operate, The military conflicts in Afghanistan, Iraq and Syria are already being develop and grow with reduced influenced, if not won, from the air, with strikingly accurate, efficient resources. armed drones, which are being fixed costs of operating overheads “flown” by pilots and crews located centred on staff members. half-way around the world in the Therefore, future increases in safety and comfort of a foreign demand, production, sales and country. The need for “boots on revenue will trigger widespread the ground” to win a war has been positive leveraging in profits, slashed. dividends, share prices and business Legal practices have addressed the valuations, without the need for decline in public- listings, acquisitions substantial increases in people. and mergers with a restructuring Higher productivity and lower unit of firms, reductions in head-counts, costs-of-production will be rewarded. surrendering floors of office space, Self-worth will be enhanced for those and the outsourcing of para-legal capable, and trained, to capitalise on duties to overseas. the future business landscape. Career paths, and the pursuit of climbing corporate ladders have Look, no hands! become more tenuous and shorter in Autonomous vehicles will overwhelm term. Reportedly, over the past two Barry Urquhart and largely render obsolete the taxi years up to 26% of law graduates
32 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Economy
from Australian universities have not and the consuming public does not Overall, it is apparent that secured full-time employment. Many appear to have firm opinions or technological developments are are undertaking intern duties on limited established preferences. Familiarity enabling the automation of processes, stipends, or working pro-bono for a will doubtless breed acceptance. and with it, the lowering of costs. It is host of not-for-profit organisations. In all of these instances there are important that at the interface with The lore of economics has parallels to a visit to Disneyland in customers, clients, and guests there supplanted the law of statutes. Anaheim, California, USA and taking is always the capacity and option to a child’s fun-ride with the background engage with service providers. Automated hospitality music, “It’s a small, small world after Thus, the silo-effect inherent in the Automated registrations at all”. concepts and phrases of omni-channel accommodation–hotels are already Sadly, many of those who have not and multi-channel have quickly revolutionising tourism and prepared for the structural change will become redundant and replaced with hospitability practices. Consumers are not enjoy joining the chorus line. an integrated, interactive and dynamic enjoying lower room tariffs and the single channel. Greater productivity avoidance of long queues at book-in Make it public remains a key driver; customer and book-out. The take-up of similar Disturbingly, for some, the potential satisfaction and fulfilment the goals. developments will accelerate in any of rationalisation of organisational Get ready to participate, widespread economic upturn. structures and people- counts in the compete and win, in a new world of Interactions with staff are still public sector will not be realised. commerce. n possible when ordering room service, It is potentially the most lucrative eating in the restaurants and seeking sector to effect greater efficiencies, to *Barry Urquhart of Marketing Focus is an internationally respected business strategist, local information from the concierge. enhance productivity and to reduce consumer behaviour analyst and conference The present is a transition period, staff numbers. keynote speaker.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 33 Economy
Brexit from a Credit managers point of view
Opinions of UK credit managers indicated Prior to the vote on a Brexit from the EU a survey Brexit was a genuine possibility. of 300 Chartered Institute of Credit Management (CICM) members revealed that almost a third of credit managers planned to vote in favour of leaving the EU and almost a half believed that Brexit would have little or no impact on their business. 75% of the survey participants conduct international trade and these results (32 percent in
34 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Economy
favour of leaving) were an increase Brexit has delivered a shock to major trading partners in Asia. We from 12 months prior when only 21 global financial markets. Australia’s see Brexit as unlikely to trigger a percent intended to vote in favour markets have, however, seen much cash rate cut from the RBA this of leaving the EU. 21 percent of smaller moves than elsewhere, month. participants were undecided in the particularly in Europe. This partly We see the election as unlikely to latest survey. reflects that commodity prices have have market implications, although Philip King, Chief Executive of held up well with the iron ore price the desire to be apolitical could the CICM, says that while the shift above its pre-Brexit referendum level. explain the central bank’s recent in opnion has been marked, almost The AUD is down from USD0.76 to reluctance to give much policy half (47 percent) were still in favour USD0.74, but the fall in the AUD is guidance (see Australian Election of staying as part of the union: “this largely explained by strength of the Observer, 17 June 2016). means that only a small percentage USD. More generally, Australia’s growth of the undecided vote needs to be The market’s reaction seems remains strong, business conditions converted for the ‘stay’ campaign to consistent with the apparent are at high levels, jobs growth has carry the day” limited economic significance of continued and house prices are CICM members (like AICM the UK for Australia. Britain takes rising. Last weekend’s consumer members) work across all sectors only 2.8% of Australia’s exports and confidence and housing auction and industries and the volumes and although financial connections are clearance rates remained high, values of credit granted provide a larger, recent net capital inflows to despite the Brexit vote. We expect primary indicator of the strength of Australia have mostly come from continued solid growth, although the UK economy and actual levels Asia. In short, Australia’s economic inflation remains low. of business being conducted. “At story is much more about Asia than We continue to see the RBA’s next the moment they seem to be saying about Britain or Europe. To the potential trigger as the Q2 CPI print, that leaving the EU will make little extent that Brexit affects Australia, due on 27 July. Our central case sees or no difference to their business it is mostly through an impact it a 25bp cash rate cut in August, after a – an opinion that has remained could have on growth in Australia’s low CPI print. n constant over the last 12 months” he continues. This suggests that the ‘stay’ campaign had not yet won the argument convincingly and the positive results of being part of the EU had not registered with CICM members. While the CICM remained neutral, the results of the survey are a good barometer for how many in the industry felt and with time running out we need to see more positive arguments from both sides. In hindsight the results of this survey reflects recent commentary post the vote that the ‘stay’ campaign was not able to convince the broader public of the benefits of staying in the EU (adapted from June 2016 article in Credit Management, the CICM To the extent that Brexit affects magazine). Australia, it is mostly through an Brexit’s impact on Australia Paul Bloxham Chief Economist HSBC impact it could have on growth in Bank Australia Limited, in a recent Australia’s major trading partners press release reflected on how the RBA will react to the Brexit. in Asia.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 35 Economy U.S. Macro Outlook: It’s a Job Machine
By Mark Zandi, Chief GDP growth has come to a near GDP Head Fake Economist Moody’s standstill. Growth will be barely GDP also undergoes significant positive in the first quarter, after revision. The initial estimate of GDP Analytics a paltry gain in the fourth quarter for a quarter is revised by close of last year. Job growth, however, to a percentage point on average remains robust, with no sign of in subsequent estimates as more slowing. The job numbers are a better source data, especially inventory and representation of the reality of the international trade statistics, become economy’s performance and near- available. Big revisions also occur term prospects. years later when more source data Measurement problems plague and methodological changes are the GDP figures. Despite yeoman incorporated into the GDP accounts. efforts by the Bureau of Economic Even if the BEA got it exactly Analysis, the source of the GDP right, GDP growth would still likely data, there remains a significant be on the soft side, as productivity residual seasonality problem. growth remains punk. While hard to That is, GDP has a clear seasonal prove, this can be traced in part most pattern, with the weakest growth recently to the hit the energy and not surprisingly during the winter manufacturing sectors have taken. months. But the BEA hasn’t These are very productive industries, been able to fully correct for this and output has been hammered more seasonality. than employment. Productivity has also struggled since the financial crisis, as that wrenching period undermined Labour Force Surges With Stronger Job Market business risk-taking, which is vital to innovation, and labor mobility, Labour force, ths, change yr ago, 3-mo MA which is key to getting workers into 2,000 the most productive jobs. Massive reworking of the financial system 1,500 engineered by Dodd-Frank, and 1,000 of the healthcare system by the Affordable Care Act, has also played 500 a role. These, however, are more 0 or less transitory constraints on -500 productivity. The downdraft in energy and manufacturing will abate -1,000 by year’s end and risk-taking and -1,500 mobility are picking up. Adjustment 08 09 10 11 12 13 14 15 16 to the new regulations in the
Source: BLS, Moody’s Analytics financial and healthcare systems will be over soon.
36 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Economy
Job Machine It is much easier to count jobs than Financial Sector Weights Heavily on Productivity GDP. While the Bureau of Labor Labour productivity, 2009Q2=100 Statistics estimates jobs based 112 on a sample of businesses, once a Nonfarm business year it makes sure its job counts 110 are consistent with unemployment Nonfinancial corporate 108 insurance records for all businesses. In recent years, the BLS estimate of the 106 number of jobs has been dead on. The economy is a job machine. 104 The string of monthly job gains is 102 Avg annual growth during recovery: the longest on record, stretching all Nonfarm business = 0.9% the way back to September 2010, 100 Nonfinancial corporate = 1.7% and more than 200,000 jobs have 98 been created on average each month 09 10 11 12 13 14 15 during this time. This is twice the pace Source: BLS, Moody’s Analytics of job creation needed to absorb the growth in the working-age population. Lots of all kinds of jobs are being tightening job market. Participation hourly earnings have picked up from created. Job growth is strong across is up an astounding 60 basis points closer to 2% per annum through all pay scales, and nearly every in the past six months, as the labor most of the recovery, to just below occupation, industry and region of force has expanded by a whopping 2.5% most recently. Compensation as the country. The only blemishes are 2.4 million over this period. In a typical measured in the labor productivity related to the plunge in oil prices and year, the labor force will grow by no statistics shows a somewhat their impact on energy-related jobs, more than half that. stronger increase, but the preferred and the impact on trade-sensitive Some of the increase in employment cost index shows little manufacturing jobs from the tough participation may be noise, as this increase. global economy and strong U.S. dollar. number is derived from a small sample The BLS measures of wage growth of households. But evidence that are likely biased downward, even Help Wanted the increase is across all age groups the ECI. The problem is that given Everything points to continued strong suggests it is not a statistical mirage. the way the BLS measures wages, job gains in coming months. Layoffs Adding to this view is that most of they are affected by the changing remain at record lows, with weekly the increase in participation is due to composition of workers leaving and unemployment insurance claims— fewer workers leaving the workforce, coming into the workforce. With lots arguably the best realtime indicator and less due to those out of the of higher-paid baby boomers leaving, of the economy’s strength—about as workforce coming back in. and lower-paid millennials coming low as they ever go. Hiring isn’t quite While there is still an elevated in, the BLS wage measures are being as good as in the best of times past, number of workers out of the pushed down. Another likely factor but given the record number of open workforce who say they want a job is that marginal, lower- paid workers job positions, this is either because and part-timers who want more hours, are finding jobs as the labor market businesses are becoming pickier in they are quickly being absorbed. tightens. who they hire, or more likely because At the current pace of job growth— Wage data collected by human they can’t find qualified workers. if sustained, which seems likely—the resource company ADP and Arguably most encouraging of economy will be at full employment constructed by Moody’s Analytics late is the surge in the number of by summer. While job growth is affirm this. The data are able to track workers quitting their jobs. People sure to slow after that, as it will be the wages of the same individuals don’t leave jobs voluntarily unless they increasingly tough for businesses to fill over time and is thus not biased by feel confident they can find new ones jobs, the economywill be beyond full the compositional issues plaguing easily. High and rising “quits” are a tell employment by this time next year. the BLS data. The ADP-based data that the economy is closing in on full Wages Revival Wage growth is show that for workers who have employment. reviving in response. This is somewhat stayed at the same job over the past The sharp increase in labor force evident in the various wage data year, wages are up a strong 4.8% participation is also consistent with a constructed by the BLS. Average through March of this year. This is
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 37 Economy
approximately 2 percentage points stronger than wage growth using Strong Labour Market Internals the ADP data, but based on the BLS Rate, % methodology for measuring wages. 4.5 According to the ADP-based data, Openings Hiring Quits Layoffs wage growth is also accelerating, 4.0 consistent with a tightening job market. A year ago, wages for the 3.5 same workers on the job more than 3.0 a year were rising by 3.8%. This is a 100-basis point acceleration in wage 2.5 growth in just the past year. Adding credence to the ADP-based data is 2.0 that wage growth for all workers, 1.5 including job switchers, is consistent with wage growth as measured by the 1.0 BLS. 00 02 04 06 08 10 12 14 16
More Consumption, Fed Source: BLS, Moody’s Analytics Tightening An economy at full employment and with stronger wage growth will be Wage Pressures Develop a substantial tailwind to consumers. Job holders, ADP wages per hr. % change yr ago Not only will consumers have more 3.0 5.0 income to spend, but their psyches Based on BLS methodology (L) should get a lift. People likely judge 2.5 4.8 Based on tracking individuals (R) their financial well-being through 4.6 the prism of their pay. Are their 2.0 pay increases this year bigger than 4.4 1.5 last, and are the increases beating 4.2 inflation? For most of the recovery, 1.0 4.0 the answers were no and no. Until now. With wage growth picking up, 0.5 3.8 so too should consumer confidence. 0.0 3.6 Continued strong consumer spending 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 growth is vital to the U.S. economic recovery, and even to the global Source: ADP, Moody’s Analytics economy. A full-employment economy and stronger wage growth also imply that will pressure businesses to raise Mark M. Zandi is chief economist of Moody’s the Federal Reserve will soon resume prices more quickly. Reinforcing the Analytics, where he directs economic research. its normalisation of monetary policy. case are sturdy rent growth and an The Fed raised rates off the zero lower anticipated pickup in healthcare Moody’s Analytics, a subsidiary of Moody’s Corp., is a leading provider of economic bound in December but has been inflation as some of the constraints research, data and analytical tools. Dr. Zandi on hold since, given the weak global resulting from healthcare reform fade. is a co-founder of Economy.com, which economy and turmoil in financial The longer the Fed fails to respond to Moody’s purchased in 2005. Dr. Zandi conducts regular briefings on the economy markets at the start of the year. the tightening job market, the greater for corporate boards, trade associations, and But the Fed can’t wait much the risks that it will need to raise rates policymakers at all levels. He is often quoted in national and global publications and longer to resume increasing rates more quickly next year and the year interviewed by major news media outlets, and as its full-employment mandate after in order to catch up. This is the is a frequent guest on CNBC, NPR, CNN, Meet the Press, and various other national networks has been nearly met. Inflation is still classic dynamic that has done-in and news programs. below the Fed’s target of 2%. But most other business cycles. The Fed Article sourced from Credit Research it won’t be for much longer, given can still forestall it, but not for much Foundation’s newsletter CRF News the strengthening wage growth that longer. n www.crfonline.org
38 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Economy
Queensland economy shifts gears and pitches for a more balanced future
Queensland’s five year budgetary every reason to be positive according “We know that improving the forecasts place its growth firmly at to Doherty. connections of people to jobs is a the top of the state leader board as “The economy is in better shape key enabler of economic growth, in its economy shifts gear. And that’s than many Queenslanders realise. addition to the obvious boost from the rub, according to Deloitte Access As Treasurer Curtis brought down construction. We need connected Economics’ Director Natasha Doherty. his second budget aimed at building infrastructure, connected businesses “As the economy transitions from ‘investment, infrastructure and and innovative research to better mining to embrace a more balanced innovation’ for FY17, Queensland’s grow our businesses and communities. future, it doesn’t yet feel buoyant; growth is projected to be comfortably The right infrastructure and business despite total employment increasing faster than that of Australia as a incentives will enable this.” with 72,000 additional jobs, primarily whole, and the fastest of any of the Deloitte Queensland Managing in the service sectors, replacing the states,” she said. Partner John Greig added: more than 20,000 jobs lost from the Deloitte Queensland Public “Investment in the knowledge mining sector over the last two years. Sector leader, Graeme Newton said: economy is the insurance policy “It does take time for balanced “Queensland has the potential to for our future. Business needs to growth to translate into jobs and build out its diversified economy and engage and take advantage of the generate a ‘feel good’ factor and today’s injection of $225 million to opportunities. I am confident that boost spending within the State itself. bring the Government’s investment this budget is on the right track to In fact state demand has been steadily in its Advance Queensland initiative encourage business investment, shrinking for more than two years, and to $405mn is a good base. Added to particularly for companies in the it will take time to turn that around,” this the government’s commitment to knowledge economy. The question Doherty said. the cross river rail, the Regional Action we need to determine is, is it enough? Despite the obvious challenge that Plan and connectivity across S.E. “Business confidence will be an the biggest driver of growth is exports Queensland, and the road ahead will absolute key for realising jobs and – LNG exports in particular – there is significantly improve. growth and we need to ensure we have the right skills to make this happen. We will need to pull together to invest and grow these skills. As we pointed out in our Purpose of Place: reconsidered – the fifth edition of our Building the Lucky Country series – by collaborating to make place a driver of productivity and prosperity, Australia can unlock enormous potential. “In Queensland we have the opportunity to build a state where government, business, the research sector and communities join forces to develop a healthy, vibrant and more balanced future,” Greig said. n
Source Deloitte Access Economics and State Treasury Departments 2016 Deloitte press release 14 June
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 39 aicm Training News
Fast track your credit career through Recognition of Prior Learning
Do you have skills and knowledge means, how an individual may access How do you access recognition? gained through career experience, the process and the reliability of There are several recognition prior training or study and even qualifications gained through this pathways available. Namely: voluntary work, but you don’t have process. z Development of a portfolio of the piece of paper to prove it? Then Recognition is often perceived to evidence. Recognition of Prior Learning (RPL) be an easier way to gain a qualification. z Seeking recognition of could put you on the fast track to However, it is usually time-consuming qualifications and nationally obtaining a Nationally Recognised and is subject to the same level of recognised Statements of Australian Qualification without rigorous assessment arising from Attainment issued by another having to complete each unit within a participating in a training program. Registered Training Organisation – Qualification. This Guide has been specifically Mutual Recognition. Recognition is the term used to developed to assist credit z Credit transfer, which is the describe how an individual’s skill professionals to: recognition of formal training and knowledge can be formally z Understand what recognition is. previously undertaken. recognised, resulting in either a z Guide them in determining if they z Undertake an assessment project. qualification or a Statement of wish to seek recognition. Attainment. z Address issues which colleagues Each pathway has requirements, There is often considerable or managers may raise concerning which must be met in order to achieve confusion as to what the process recognition recognition. As well, there can be
40 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 aicm Training News
an overlap between the pathways. Packages. Training Packages are of potential customers prior to Irrespective of the pathway selected, endorsed by the State, Territory and granting credit. there are some ground rules which Commonwealth Governments. z Determining if securities are must be adhered to. These include: AICM Learning Services is required required based upon the z Compliance with training package to adhere to the Training Package rules. assessment of credit worthiness. requirements and the relevant unit z Maintaining records in relation to of competence. Choosing your pathway customers’ accounts. z Compliance with the NVR In order to help you choose the most z Ensuring that their work is in Standards. effective recognition pathway you compliance with company should consider the functions you are policy procedures and legal A threshold issue required to perform in the workplace. requirements. Irrespective of the pathway you z Resolving disputes with customers select to gain recognition, it must Sample Job role concerning their accounts. be against a unit of competence, Typically a credit officer, who has z Initiating legal recovery. which sets out the key performance been working in the profession for z Reporting to management on the criteria required in the workplace in several years, possibly undertaking a status of accounts and financial relation to the skill and knowledge team leader role, would be responsible indicators against predetermined described in a unit of competence. for: criteria. Units of competence are developed z Interpreting corporate policy by industry training advisory bodies on the provision of credit and These job roles are reflected in the based on the industry’s needs. advising customers/sales staff as units of competence listed in the table They are packaged together to appropriate. below. form a qualification. The rules for z Following up with debtors for To complete this qualification you how units may be combined into timely collection of payments. must complete the 9 core units and qualifications are set out in Training z Investigating credit worthiness 3 elective units.
FNS40115 CERTIFICATE IV IN CREDIT MANAGEMENT
C=Core Unit Code Unit Description E=Elective
FNSCRD401 Assess credit applications C
FNSCRD402 Establish and maintain appropriate security C
FNSRSK401 Implement risk management strategies C
FNSINC401 Apply principles of professional practice to work in the financial services industry C
FNSORG401 Conduct individual work within a compliance framework C
FNSCRD405 Manage overdue customer accounts C
FNSCUS402 Resolve disputes C
BSBCUE203 Conduct customer engagement E
BSBCMM301 Process customer complaints E
FNSCRD403 Manage and recover bad and doubtful debt C
FNSCRD404 Utilise the legal recovery process to recover outstanding debt C
BSBCNV506 Establish and manage a trust account E
BSBCUS403 Implement customer service standards E
FNSCRD503 Promote understanding of the role and effective use of consumer credit E
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 41 aicmLegal Training News
Please note that people undertaking z Letters of appreciation from which seemed likely to become a more senior/complex/responsible customers bad/doubtful with reference to role(s) should consider seeking You will need to remove information company policy. recognition at the Diploma level. such as names and addresses z Examples of collection procedures z There is often little consistency of which could breach privacy and she had developed and applied. job titles for credit professionals. confidentiality. z An outline of her follow up Your position title maybe: Label your documentation to procedures. z Credit Officer show it relates to a particular unit z An outline of communication z Collection Officer of competence and present your strategies when dealing with these z Accounts Receivable Clerk documents chronologically, with the customers z Billing Clerk most recent evidence appearing first. z File notes, email and/or z Finance Clerk AICM stores all records in a safe correspondence z Loss Recoveries Officer and secure environment. However, z Feedback from her manager such z Recoveries Officer portfolios will be reviewed by as performance appraisals z Credit Control Officer independent assessors and may z Her negotiation strategies, for z Customer Service Officer be examined by the Australian example copies of repayment Because of the diversity of titles each Skills Quality Authority (ASQA) for agreements application is assessed for recognition purposes of audit and accountability. Unfortunately, during the time Alicia based on skill and experience, rather The following case study may was developing her portfolio of than job title. assist you when considering using a evidence her mother became ill. Alicia portfolio of evidence. discussed this with her assessor and a new timeframe for completion was Pathway 1 Case Study 1 – Alicia agreed. – Portfolio of evidence Alicia had worked for several years When Alicia completed her If you decide to use the portfolio in a credit department. Alicia’s documentation she presented it to pathway you will need to compile a supervisor had consistently praised her assessor with the most recent portfolio of evidence which confirms her approach for dealing with bad evidence appearing first and with all your ability to meet the requirements and doubtful debt. Alicia believed she of the evidence labelled to show how of a particular unit of competency. could complete the unit FNSCRD403 it related to the unit of competence. Examples of the types of evidence Manage and recover bad and doubtful Alicia’s assessor evaluated her you could include are: debts by portfolio of evidence as portfolio and applied the rules of z Copies of reports you have a first step towards gaining her evidence. Alicia was found to be prepared for management FNS40115 Certificate IV in Credit competent and was awarded a z Copies of emails, faxes Management. nationally recognised Statement of z Copies of performance appraisals Alicia contacted the AICM Office Attainment. z Supervisor reports which and she was advised the name This meant that Alicia had gained acknowledge your skills and and contact details of her assessor one unit of the units required for her abilities together with any documentation qualification. z Copies of workplace awards you she needed. Alicia and her assessor may have received discussed her decision to attempt FNSCRD403A Manage and recover Pathway 2 bad and doubtful debt and a – Assessment task(s) recognition plan was agreed upon This is often used when people do not including a suitable timeframe for have ready access to the evidence Alicia to gather and compile her they need to confirm competence evidence. via the other pathways. For example, Alicia’s assessor was able to give the person may have changed their her advice in preparing her evidence employer, moved house and/or portfolio. Some examples of the types misplaced records. of evidence Alicia collected included: This assessment pathway is the z Reports she had prepared for her most popular method for RPL as it manager outlining her collection fast tracks the pathway to completion strategies in relation to accounts of a unit or a qualification. This
42 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 aicm Training News Legal
process requires less documentation “Label your documentation to show and has clear criteria. Generally this involves completing an assessment it relates to a particular unit of for the relevant unit of competency with validation that you have applied competence and present your documents the skills and knowledge in your chronologically, with the most recent workplace. The validation is achieved by evidence appearing first.” indirect evidence, for example a reference from their employer or testimonials from customers. If an Mutual Recognition of units in her Business course would employer is not able to validate or a qualifications and Statements of be recognised by AICM and this person is unable to provide evidence Attainment are specifically provided would count towards her FNS40115 from their workplace an assessor will for in the NVR Standards. What this Certificate IV in Credit Management. contact you and conduct an interview. means in practise is that a person The relevant units were who has gained a qualification or BSBCUS403 Implement customer Case Study 2 – Johnny Statement of Attainment may request service standards and BSBCMM301 Johnny has worked in credit for the to have this recognised and count Process customer complaints. past 8 years, and now wants a formal towards another qualification. Clearly AICM was able to give mutual qualification at Diploma level. After there are some key issues to be recognition because the TAFE Kylie speaking with Debby at AICM Johnny: considered: attended issued her qualifications — Completes assessments for 4 units z Training Packages Rules; in accordance with the Training and his employer validates that he z The relevance to the qualification Package rules. Kylie’s qualifications applies this skills and knowledge now being sought; were current because she had within the completed units in his z The currency of the qualification completed her training in the last role. for which recognition is sought. three years. — Attends face to face training Kylie was so pleased she told for BSBRSK501 Manage risk The following case study should her colleague Nathan about the and completes the assessment clarify these concepts. AICM recognition program. Nathan in in 6 weeks. The face to face commented that he had started a sessions enable him to gain a Case Study 3 – Kylie TAFE Course some years ago but deep understanding of core Kylie started working as a personal had not completed the program. credit management skills and assistant in a medium sized law firm. Nathan contacted AICM and knowledge and also allowed She was a keen and enthusiastic discussed his situation. Nathan had Johnny to connect with other employee who wanted to learn and completed the unit FNSCRD403A credit professionals focused on gain qualifications. Kylie enrolled in Manage and recover bad and doubtful progressing their careers. a Certificate IV in Business Services debts in 2011; his assessor advised — Completes the remaining 7 units at a TAFE College. Whilst Kylie was him that due to the RPL requirements of competency online. undertaking this course her employers this would not be sufficient to At the AICM NSW Presidents discovered that she had excellent demonstrate currency of knowledge Dinner Johnny is presented with his rapport with the clients and she was for the purpose of recognition Diploma of Credit Management in very good at getting people to pay (if the unit was completed within recognition of his experience, skills their outstanding accounts. Kylie’s 3 years it would be sufficient). Nathan and knowledge gained on the job and manager offered her a promotion was able to provide evidence of through AICM training. and transfer to the credit unit of attending an in-house training course, the practice, which Kylie willingly which addressed the main areas of accepted. However, this left Kylie change in relation to compliance, for Pathway 3 with a dilemma: should she finish her example an introduction of the Debt – Mutual Recognition Business Certificate or change to a Collection Guidelines in December Mutual Recognition is the recognition qualification more relevant to her new 2010. In addition, Nathan’s supervisor of Qualifications and Statements role? confirmed in writing that the law firm of Attainment issued by another Kylie contacted AICM and was held regular workshops to discuss Registered Training Organisation. delighted to discover that the recent decisions and legislative
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 43 aicmLegal Training News
change and participation was a z Course outlines Implementation Guide for Financial requirement of Nathan’s performance z Copies of assessments the person Services indicates that the course he management. may have completed during the has completed is equivalent to some As Nathan was able to program aspects of the unit of competence demonstrate he had maintained the Often people do not keep these BSBCUS403 Implement customer currency of his skill and knowledge, documents and when this happens service standards. However, in the unit was recognised. Nathan the person will usually be invited to discussion with his assessor Con decided to enrol in the remainder of complete an assessment to confirm explains that he did not keep any the FNS40115 Certificate IV in Credit competence. of his assessments. Together they Management program. Another issue which may affect consider the unit of competence credit transfer is the ‘age’ of the and Con advises he believes his course. Credit transfer for programs current role covers the content of Pathway 4 completed generally more than five the unit. Con decides to complete an – Credit Transfer years ago must be supported with assessment to support his claim for Credit transfer is defined as being evidence which confirms that the recognition of competence against the recognition of formal training person has kept up to date in the the unit. previously undertaken and which is subject area. For some subjects where deemed to be equivalent to a unit of there is a need to constantly keep up A maximum of 3 years is allowed to competence. Credit transfer requires to date, a person may be requested complete a full qualification which the consideration of documentation to provide additional information allows flexibility around work, life and supplied by the training organisation to confirm the currency of their study. By taking advantage of your where the person completed their competence. experience and prior learning you study. Usually this documentation could obtain your qualification in less will relate to a course and/or The following case study may assist time than you may think. subject. Unfortunately some training you in understanding credit transfer. providers do not relate their course/ Contact the aicm to learn how quickly subject to the units of competence. Case Study 4 – Con you could obtain your qualification in When this occurs the Registered Con had completed part of a Business credit management. Training Organisation is required Studies course at TAFE. Con is now
to make further inquiries as to the working in a credit department and relationship and this will be informed would like to gain the FNS40115 Companies that by Implementation Guides developed Certificate IV in Credit Management. AICM conducted by State Training Authorities. However Con is seeking recognition for the in-house training: they are guides only and if the course he has already completed – — Cleanaway Operations relationship is unclear the person “Managing Customer Service”. — BOC seeking recognition will be asked to Con’s academic record lists the — Bendigo Bank provide further information. This may course but there is no reference — Baiada include information such as: to the unit of competence. The
Statement of Attainments issued Lena Pham NSW FNSCRD502 Manage factoring and invoice discounting arrangements
Ilona Ter-Stepanova QLD FNSCRD401 Assess credit applications
Mei-Ha Edwards QLD FNSCRD405 Manage overdue accounts
Kerrie Adams VIC FNSORG401 Conduct individual work within a compliance framework and FNSINC401 Apply principles of professional practice to work in the financial services industry
Melissa Dinning NSW FNSCRD405 Manage overdue accounts
Nathan Smith QLD FNSCRD405 Manage overdue accounts
Ebony Lewis WA FNSCRD403 Manage and recover bad and doubtful debts
Joshua Tseitlin VIC FNSCRD502 Manage factoring and invoice discounting arrangements
44 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 aicm Training News
2016 Face to Face Training Calendar – Melbourne, Brisbane and Sydney
MELBOURNE: 20th September – Process 18th November – Establish and Customer Complaints and Conduct Maintain Appropriate Security (C,4) 22nd July – Dealing with Customers Customer Engagement (E,4) (E,4) 5th & 6th December – Legal 7th October – Resolve Disputes Compliance (C,4,D) 22nd & 23rd August – Manage (C,4) Factoring and Invoice Discounting 7th December – Legal Recovery of (E,D) 7th & 8th November – Manage Outstanding Debt (C,4) Factoring and Invoice Discounting 24th August – Manage People (E,D) Performance (E,D) TABLE OF EXPLANATION: 9th November – Establish and C= Core Unit 12th September – Manage Maintain Appropriate Security (C,4) E = Elective Unit Organisational Change (E,D) 12th & 13th December – Legal D = Diploma 13th September – Process Compliance (C,4,D) 4 = Certificate IV Customer Complaints and Conduct 14th December – Legal Recovery of Important Information: Customer Engagement (E,4) Outstanding Debt (C,4) You do not have to be a current 26th October – Resolve Disputes AICM student undertaking a full (C,4) SYDNEY: qualification to attend any AICM face to face training. You may 21st & 22nd November – Manage 11th July – Dealing with Customers wish to undertake a program for Factoring and Invoice Discounting (E,4) (E,D) your Professional Development, 17th & 18th August – Manage or enhance and update your 23rd November – Establish and Factoring and Invoice Discounting current skills and knowledge. On Maintain Appropriate Security (C,4) (E,D) the completion of the face to face 19th August – Manage People training, you will be required to Performance (E,D) undertake the online assessment/s BRISBANE: for the unit/s of competency, if 7th September – Manage 8th July – Dealing with Customers you wish to receive a nationally Organisational Change (E,D) (E,4) recognised Statement of 8th September – Process Customer Attainment. 8th & 9th August – Manage Complaints and Conduct Customer Factoring and Invoice Discounting Engagement (E,4) Please register you interest early, (E,D) 19th October – Resolve Disputes as there is a minimum requirement 10th August – Manage People (C,4) of 8 students to conduct face to Performance (E,D) face training. 16th & 17th November – Manage 19th September – Manage Factoring and Invoice Discounting Click here or call the AICM office for Organisational Change (E,D) (E,D) more information.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 45 New South Wales
WINC Luncheon. AROUND THE STATES
WINC Luncheon: Debbie Leo, Veda and MC. WINC Luncheon: Maureen Bell, Keynote Speaker.
President’s Report professionals which represents our membership. Each councillor has extensive on the job and academic qualifications - 2016/17 Year in Review in credit management and while this is important we agree that The NSW council recently took time to reflect on the it is the regular interaction with our peers that is the best value achievements of the past membership year, some of the activity we undertake to stay on top of the challenges that highlights include: come our way and continue to develop. z Hosting the 2015 National Conference, with record Connecting credit professionals is why we come together attendance as a council which we aim to do by organising opportunities for z Golf day also with record attendance all credit professionals to share their experiences with the only z Great professional development and networking sessions people that really understand the challenges of the profession z Sold out Pinnacle Awards dinner fellow: Credit Managers, Credit Officers, Team Leaders and every At the same time we started planning for 2016/17 and are other role that is involved with credit approvals and collections. excited to be planning even more ways for you to stay up to Our tip for you is to attend every opportunity that comes date, learn more and connect with fellow credit professionals. your way. Even if a presentation is not exactly relevant you are The NSW council is made up of a diverse range of credit likely to pick up at least one insight from the presentation and
46 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 New South Wales AROUND THE STATES
20th July Reacting to Decisions VENUE: PARRAMATTA
4th August YCPA Dinner KIRRIBILLI CLUB
Friday 9th September WINC Luncheon. Golf Day OATLANDSEvents GOLF COURSE Calendar 9th-12th September 2016 Online CCE Exam
Tuesday 11th October 2016 National Golf Day GOLD COAST
12th-14th October 2016 AICM 2016 National Conference SEAWORLD, GOLD COAST
Thursday 17th November 2016 YCP Barefoot Bowling VENUE: TBC
WINC Luncheon. Thursday 8th December 2016 Masterclass and Pinnacle Awards multiple from talking to fellow credit professionals. VENUE: TBC An example of the great opportunities is the Women In Credit Luncheon held in May, this was an inspiring session with over 100 women (and some men) leaving with tips on how to harness the power of their voice and new connections. is a Senior Performance Specialist who delivers Learning & At the time of writing our YCP committee was reviewing Development, Facilitation and Consulting Services designed to the great pool of YCP applicants to select the finalists. help businesses discover the riches in their people by utilising Congratulations to all that applied and good luck to all the brain science methodologies to enhance engagement, learning finalists. Make sure you register for the YCP Dinner on 4 August retention and workplace application. to see who wins and to be inspired by our Olympic themed Maureen has almost two decades of leadership training and speaker. Thank you to Dun and Bradstreet for their support. staff development experience. First starting at Flight Centre Finally, the Credit Team of the Year applications close on Travel Group as a Sales Consultant, Maureen’s passion and 1 July so don’t delay and have your team apply. Everyone that aptitude for training saw her progress to Human Resource has applied in the past has found that the process of applying is Manager for Flight Centre USA within just eight years. She has a great team building and motivating experience, there are also also consulted to a wide range of external corporate clients some great prizes for finalist and the winner. with a focus on sales, communication and presentation training, – Arthur Tchetchenian and leadership, team and people development. As a Facilitator and Consultant, Maureen is particularly skilled at being able to engage with a range of different personalities, ensuring each WINC Luncheon person is inspired to successfully collaborate, and supported On the 20th May we hosted the first NSW WINC event for to build their own internal drive. Maureen had us all up on our 2016. The event was a delicious luncheon held at the Kirribilli feet, practising what we were learning as we went along, and Club overlooking the beautiful Sydney harbour. Maureen Bell, challenging us to get out of our comfort zone with exercises from GoldMind was our wonderful guest speaker. Maureen and tongue twisters.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 47 New South Wales
WINC Luncheon. WINC Luncheon.
The Australian Institute of Credit AROUND THE STATES Management welcomes our Partners for 2016.
National Partners
Divisional Partners
WINC Luncheon.
The key take away point of the event was the importance of harnessing the power of your voice by using the 3 steps – (1) The 5 P’s – Pace, Pitch, Projection, Pause, Pronunciation (2) Tone (3) Words. It was thoroughly engaging and we all walked away having learnt something new. Our WINC days also support Safe Steps organisation. Professional Partner We heard from Rashmi, about the important work Safe Steps does to aid the prevention and elimination of violence against women and children by providing immediate response that informs, protects and connects women and children so they are safe. Safe Steps is also works to build the voice of women and children to influence research, policy, service provision Official Division Supporting Sponsors and the wider community to eliminate violence. Thanks to all of the wonderful raffle sponsors who generously donated prizes which helped to raise over $1,500 for Safe Steps. To view more of the great work that Safe Steps do visit www.safesteps.org.au. Thank you also to our important WINC event sponsors, Veda (premium sponsor), Results Legal and NCI (supporting Sponsors). Our National, Divisional and Professional Partners support Thank you for supporting the AICM WINC events and we and work with the AICM to promote the Institute’s activities, look forward to seeing you all at the upcoming AICM events represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your especially our future WINC events. If you’d like to provide more Institute and your Industry please consider them when you feedback on the event and suggest ideas for future events, require assistance. please contact the AICM office.
48 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Queensland AROUND THE STATES
YNN – Kate Row and guests. CNN – Decia Guttormsen presenting.
Linda Parry, Greg Young and Samantha Taylor. CNN – Decia, Ruthven and Simon.
President’s Report the CBD regularly. These are “The Legal Process – Secured Credit Network Night (CNN) events are a valuable opportunity vs Unsecured Credit Processes”; “Maximising professional for AICM members to not only gain important technical relationships using technology and Linkedin” and “Writing knowledge from expert speakers, but also to speak with their a Credit Policy – what you should include in your policy and fellow members and our Partners about what changes are likely the process of creating and reviewing.” Members have kindly to occur in credit and affect both our own and our customers’ donated their time and Thomson Geer’s conference room businesses. Firstly (as always), the ongoing support in 2016 facilities make this a great value workshop. from our Partners, Veda, Dun & Bradstreet, Austral Mercantile, Vincents, Results Legal and Randstad is greatly appreciated. 20 July – The Main Event The engagement and commitment by their people make us all proud to be AICM members. – the Dun & Bradstreet In the next half year month, the major key events occur in Young Credit Professional Awards. our AICM Queensland Calendar (plus CNN and YNN) are: To be held at the Rydges Southbank this year. Again, we have excellent candidates and the judging looks like being even 20 July – Afternoon Workshop for harder. We thank our judges for giving up of their valuable time in support of developing, encouraging and recognising our credit officers young members, as they progress their careers. we have been A new event, and as a segway for members and credit teams fortunate enough to have prizes donated by Vincents and other attending the evening’s main event, an afternoon workshop will members, and it proves to be a fun event both socially and cover various topics for members who find it hard to get into professionally. Make sure you book your tables ASAP!!
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 49 Queensland
Emma Beal and Melinda Grob.
Felicity Ford and Val Baynes. AROUND THE STATES
Our AGM will also occur on 20 July. Do not be afraid to put your hand up for a council position or to even share or assist on 20th July 2016 a council position (which has worked very well this year). I can AICM AGM say that being a councillor is possibly the best thing that I have RYDGES SOUTH BANK ever done. The councillor remuneration has been doubled this year, so no more excuses. Feel free to give myself or any of the 20th July 2016 councillors a call about how to be more engaged. Workshop & Awards Dinner – Young Credit Professionals RYDGES SOUTH BANK 9 September – Qld WINC Luncheon, With generous support from our Premium Sponsors Veda, and August 2016 supporting sponsors Results Legal and NCI. Julie McNamara Personal Development (Patane Lawyers) will likely have to knock back late comers. MagistratesEvents Court Visit &Calendar Procedures MAGISTRATES COURT 11 – 14 October – Qld Golf Day and 15th August 2016 National Conference, Gold Coast Credit Toolbox – Risk Assessment State council look forward to seeing you all again this year. RANDSTAD Greg Young has done another brilliant job in securing Hope Island Golf Course; John Playfair is leading the organising of 9th September 2016 some additional benefits for attendees, and Toni Sawyer has Women in Credit Luncheon been prepared to drop her usually high fashion standards to CUSTOMS HOUSE fit out state councillors with “hi-vis and eye catching” Hawaiian shirts. 9th-12th September 2016 Felicity Ford (of National Partner Austral Mercantile) had a Online CCE Exam blinder of a quarter for new membership. Queensland looks like getting its hands on that President’s Award for membership 14th September 2016 and YCP this year. In times when professional membership can Personal Development Breakfast be seen as a burden by some employers, Felicity has done a Q& A – Credit Network Forum stellar job following the fantastic groundwork by Melinda Grob. Thank you all again for your support to the Queensland council, 11th October 2016 and making the AICM informative and “fun” for its members. National Golf Day – Peter Mills MICM, President GOLD COAST
12th – 14th October 2016 CNN – 11 May AICM National Conference AICM Qld members were recently treated to an excellent CNN SEAWORLD GOLD COAST presentation by Val Baynes, the National Insurance Recoveries Manager of our National Partner Austral Mercantile (a division of QBE). Originally from Galway, Ireland, Val provided valuable
50 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Queensland AROUND THE STATES CNN – 8 June On the 8 June Queensland held another successful CNN with engaging presentations by Decia Guttormsen – AR Manager University of Queensland, Ruthven Underhill – National Credit Manager Boom Logistics and Simon Dawson – National Franchisee Credit Manager Parmalat Australia. With an on the couch style panel discussion chaired by our own President Peter Mills, they each covered how they handle time management, prioritising, reporting deadlines, staff and the general daily demands of a credit department. It was an insightful and engaging event with plenty of opportunities for guests to network with fellow credit colleagues. A big thank you to Decia, Ruthven and Simon for giving their time to this event.
Membership Report For the month of May we had a record number of new members for Queensland – 44!! A big thank you goes to Peter Mills, Ruthven Underhill, Decia Guttorsmen, Simon our Felicity Ford from Austral for driving the Queensland Dawson and Felicity Ford. membership and getting this result. We are absolutely thrilled with this and we cannot wait to see everyone at our next event which is being held at Vincent’s on the 13th July for a personal insights into Privacy Compliance gained from his international development breakfast with the topic on Insolvency and experience working for insurers and banks in Europe, where remember to book your table at this year’s YCP dinner on the privacy compliance programs can run into the hundreds of 20th July being held at Rydges in South Bank. millions of dollars. Val’s concise explanation of how and when to make telephone contact under the ACCC/ ASIC Guidelines for Debt Collectors was extremely helpful. His practical tips and examples included what days, times, locations and regularity are The Australian Institute of Credit suitable for making phone calls in the debt recovery process. Val Management welcomes our Partners for 2016. also shared his views on some of the principal tools for creditors being paid in a reasonable time and minimal steps, the main one National Partners of which is to ensure that you use credit professionals who are trained in and work day to day with the relevant compliance and credit laws and procedures. On a personal side, Val also shared his love of Rugby, and how he had started the Sydney’s Irish Rugby Football Club only a short time after arriving in Australia some 5 years ago. Thank you again Val. All AICM members are reminded that their companies should support AICM Partners at every possible opportunity. Without these Partners’ support, many events would not be possible. Divisional Partners – Peter Mills
Youth Networking Night (YNN) - Friday 20 May Queensland hosted yet another successful Youth Networking Night (YNN) on Friday 20 May. We had 2 young inspiring speakers: Kate Row – one of only two Australians in 2015 awarded the Queens Young Leader Award for her involvements Official Division Supporting Sponsors in a range of youth leadership projects; and Tara-Jay Rimmer – CEO of The Van That Can and voted in the top 10 Emerging Leaders and top 20 Female Entrepreneurs under 40. We heard their stories telling us how they got to where they are today, and how one little decision can change your entire career path. Their stores were great encouragement for our young Our National and Divisional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit credit professionals in the audience and it was great to see Industry and develop the careers of all Credit Professionals. the increased number of YCP applications flow through on the As these organisations support your Institute and your Industry Monday after the event. please consider them when you require assistance. – Melinda Grob
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 51 South Australia
Winter Warmer Night. Winter Warmer Night. AROUND THE STATES
Winter Warmer Night. Winter Warmer Night.
President’s Report Although we are having never ending rain in our state, it a huge success. All the hours of liaising with speakers and has not dampened our spirits! SA is continually razzing up coordinating sponsors and donations paid off and ensured an with some great functions at the moment. Well done to the inspirational day. We fully appreciate the time and presence councillors for all the hard work they have put in over the put in by Veda, Results Legal and NCI. Having Amanda, from months to make every event a success! We are very lucky national office, was very much appreciated also. Our chosen to have such a proactive and innovative council who work charity, Dress for Success was eye opening and made us all extremely well together. aware of how fortunate we are with our chosen professions. Our first Credit Symposium was extremely well put The Quiz Night is back in town in July! Look out for the flyer together with a cast of expert speakers, including some from shortly and rally your friends, family and work mates to come to interstate, that attracted a good crowd of credit professionals. this fun night. A great way to end a busy working week. Darryl Gobbett is always a big draw card. His insight as Chief On behalf of the SA councillors we would like to extend our Economist, particularly focusing on South Australia, keeps deepest sympathies to the family and associates who knew the everyone abreast of where we are heading and what to look late Mike Murphy. His past presidency in WA and tireless input out for. Well done Professional Development team! into the education of credit professionals will not be forgotten. Winter Warmer’s evening was cosy and well received. The We are very sadden to hear of his passing. Unley was the perfect venue on a cold night and had yummy Remember your feedback and input on events is important hot finger food! The attendees mingled well around the fire and to the councillors. surrounding tables. YCP candidates were encouraged to speak Take special care over the coming months on the wet and with their peers and associates to receive the best advice on dangerous roads. what is required to be a successful applicant. Good luck to our See you soon at one of the great upcoming events. SA candidates! – Gail Crowder, The launch of our first Women In Credit luncheon was SA Division President
52 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 South Australia AROUND THE STATES
22nd July 2016 Function – Quiz Night
11th August 2016 YCPA Dinner
14th September 2016 Mock Court – Preferences
Winter Warmer Night. 6th October 2016 BreakfastEvents Calendar 12th – 14th October 2016 AICM National Conference SEAWORLD GOLD COAST
9th November 2016 Meeting of Creditors
24th November 2016 End of Year Event
The Australian Institute of Credit Management welcomes our Partners for 2016.
Winter Warmer Night speaker, Michael Seychell. National Partners
Functions Report The SA Division’s second social function of the year was a network night held at the revamped Unley Hotel on Thursday 26 May. This bright and airy interior, complimented by a warm cosy fire, provided a unique venue for the event to Divisional Partners “welcome in winter”. The food was first rate and enjoyed by all. Attendees mingled freely and caught up with fellow professionals. President Gail Crowder welcomed members and thanked them for attending. Our YCP Chair, Nick Pontikinas, and Dun & Bradstreet State Manager, Michael Seychell, spoke about the upcoming YCP award. Nick and Michael encouraged members under 30 to consider nominating and the not-so- young members to encourage work colleagues under 30 to Official Division Supporting Sponsors nominate! The next function to be held by the SA Division is a Quiz night on Friday 22 July at the Unley Community Hall. We look forward to seeing many of our members and their family and friends attend this event which is always a lot of fun with plenty Our National and Divisional Partners support and work with the of raffle prizes to be won. AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. Look forward to see you there. As these organisations support your Institute and your Industry – Trevor Goodwin and Gail Crowder, please consider them when you require assistance. Functions
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 53 Victoria/Tasmania
YCP Information Night: Members and Guests throw Paul Broadfoot from NICH Economics presents at June questions from the floor. Network. AROUND THE STATES
YCP Information Night. Former YCPs.
President’s Report Well done to all the members who successfully sat for the The Vic/Tas division continues to roll out new CCE exam in March, good luck in completing their paper in initiatives and updated network sessions. readiness for the final stage to become a CCE. Just a reminder A YCP Information Night was held early May, with great success to all the members who want to become a CCE the next exam and helped the YCP participants to make up their minds as is set for the early September. they questioned past YPCA’s state finalists on their journey to I would also encourage any member who would like become a YCPA. Good luck to all who have applied and who to submit a credit related article to please do so to have made it to the interview stage for the final announcement [email protected] where the team will review the document at the Young credit professional award dinner to be held at the for publication. This is a great way to share your thoughts and Melbourne Town Hall on the 21 July. At the awards dinner we insights with your peers. will announce the Vic/Tas YCP of 2016 who will then go on to We look forward to seeing you at our upcoming professional represent Vic/Tas at the national conference in October on the Network and Social events, we have some great speakers lined Gold Coast. up and great opportunity to meet industry peers and other The network nights have been well attended and have been credit professionals. great value to the people attending with relevant and updated information on the latest trends and also information, especially on the PPSR which is a continually evolving area for credit Women in Credit (WINC) Luncheon professionals. Invitations out soon – 2 September 2016 I am also very pleased to announce there will be upcoming Mark your calendars now as this year’s WINC luncheon will be events to be held both in Tasmania and the Victorian even better than last year country centres. Stay tuned for the flyers so you can lock in We have Francesca Thorne, founder and CEO of the the date. Australian Women’s Network as our inspirational speaker on
54 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Victoria/Tasmania AROUND THE STATES
AndrewMcLellan Presents on PPSR. Members and Guests at PPSR Update Breakfast. the day and will be raising funds for a great charity helping women in need. The WINC Luncheon is an opportunity for women at all levels and ages to be inspired and informed to achieve their potential in credit and life. These events have been developed out of a growing need to focus on the specific challenges women face in the Credit Industry. This has all been made 21st July 2016 possible with support from our Premium Sponsor, Veda and Awards Dinner: Young Credit Professional supporting sponsors NCI and Results Legal. VENUE: MELBOURNE TOWN HALL
27th July 2016 The Australian Institute of Credit Tas Network Event Management welcomes our Partners for 2016. 18th August 2016 National Partners Network Event, Topic: Time Management Skills
25th August 2016 Youth Networking Topic:Events The future and direction Calendar of debt recovery 2nd September 2016 WINC Luncheon Divisional Partners VENUE: RACV CLUB
9th-12th September 2016 Online CCE Exam
22nd September 2016 Seminar/Workshop Topic: See you in Court!
Professional Partners 12th-14th October National Conference
28th October 2016 Official Division Supporting Sponsors Youth Networking – Trivia Night
11th November 2016 CCE Breakfast
Our National, Divisional and Professional Partners support 17th November 2016 and work with the AICM to promote the Institute’s activities, Network Event, Topic: Telephone Techniques represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your 1st December Institute and your Industry please consider them when you require assistance. End of Year Function – Pinnacle Awards
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 55 Western Australia/Northern Territory
AICM Breakfast Club. AICM Breakfast Club.
AROUND THE STATES President’s Report WA AICM Breakfast Club - Winter in the West Driving culture and getting your teams working Not sure where to begin, so many thoughts and things going on better together here in Perth. We held another successful breakfast club in May with Cynthia It has been almost 12 months since I commenced as State Thomas, National Sales Manager at Austral taking the stage President. I want to take this opportunity to thank all councilors to talk about driving culture change and building successful for their faith, support and energy. It has been a very busy year teams. Those who attended found the content relevant and for us and I look forward to what happens next. engaging. This was evidenced by the feedback from Martin During May, we were very lucky to have a brilliant breakfast Bigg at Capricorn who said “The topic of installing a good presentation. Our great friends at Austral gave us some tips on culture and increasing employee engagement is certainly growing and developing our teams while working better with not a new one for Capricorn and many of ideas and concepts the people around us. It was amazing to see so many people presented by Cynthia were familiar as I believe they would be discussing common issues and what things we could take back to a large proportion of managers. to the office from the morning’s topic. “Yet Cynthia raised a simple but very significant point. The cool weather didn’t stop the word getting out about the Managers often find that the busy nature of their roles mean 2016 YCP Awards. We had several expressions of interest from that the warm and fuzzy side of management is put to one side potential candidates. as we focus our business objectives. However, investing the WA Council thanks Dun & Bradstreet for their continued time in building a strong culture and working on keeping your support of the YCP initiative. We look forward to introducing employees engaged goes a long way to helping us achieve our finalists at the YCP Gala Dinner at Crown on 16 July. All those very objectives. To put this in my own words, you have to members of the WA Credit Community are invited to celebrate work hard to make it easy.” this fantastic event with Council. Place your bets and book your Watch out for the next Breakfast Club and be sure to secure spot today. your place as tickets sell fast. Sadly there will be one spot not filled at our event this year. – Lisa Marr Our esteemed colleague Mike Murphy will be missing. Mike’s contribution to the WA council and the AICM is immeasurable. His passion to educate was most evident. His ability to get the Women in Credit (WINC) Luncheon message across simply and effectively made working with Mike Invitations out soon – 16 September 2016 on council very easy. The more I listened the more I learned, This year we are taking our WINC luncheon to the next level from someone who had been there and done that…and didn’t securing a panel of 3 guest speakers in September. Each need to brag about it. He will never be far from our thoughts. speaker, a successful and inspirational woman will share their A brief look into Spring and Summer: the re-launch of experiences in business and their road to success. the Women in Credit here in Perth. We have secured guest We have Linda Murray, a high energy professional coach speakers for our event in September. We are very excited to and speaker specialising in leadership and developing do this with the support of another good friends of the AICM in peak performing female executives and business owners. Veda, NCI and Results Legal. We can’t wait. We plan to present Linda’s approach to coaching is a fusion of humanistic skills a Breakfast Club and a Toolbox before the end of the year and commercial savvy stemming from her background to round out things before our Christmas on the Bay to bring in Psychology, owning businesses since age 23 and an things to a close. unwavering passion for people. Until next time, stay well and never forget the AICM is here Julie Rynski, General Manager SME Banking and Connect for all members. NOW at Westpac. With a long management career at Westpac
56 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Western Australia/NT AROUND THE STATES
16 September 2016 WINC Luncheon VENUE: MATILDA BAY
October 2016 Sponsors Lunch VENUE: TBC
12th – 14th October 2016 AICM Breakfast Club. AICM National Conference SEAWORLDEvents GOLD COAST Calendar 8th December 2016 End of Year Event VENUE: TBC
The Australian Institute of Credit Management welcomes our Partners for 2016.
National Partners
Mike Murphy.
Divisional Partners
Julie also sits on the Board of Directors for the Global Banking Official Division Supporting Sponsors Alliance for Women and is on the Advisory Board for the Big Issue. Lisa Stedman, Chief Operating Officer at Pioneer Credit Ltd. Lisa joined Pioneer Credit in 2011 as Head of Operations and Our National and Divisional Partners support and work with the has held nationally accredited training and management roles AICM to promote the Institute’s activities, represent the Credit prior to Pioneer. Industry and develop the careers of all Credit Professionals. The luncheon, sponsored by VEDA, NCI and Results Legal is As these organisations support your Institute and your Industry please consider them when you require assistance. definitely the most anticipated AICM event this year. Invitations will be sent out soon.
July 2016 • CREDIT MANAGEMENT IN AUSTRALIA 57 New Members
NEW MEMBERS The Institute welcomes the following credit professionals who were recently admitted to membership in May and June 2016.
New Zealand Queensland Victoria/Tasmania Matthew Chamberlain Fletcher Building Limited Jos Basson CLH Lawyers Fawaduddin Abro Australian Receivables Ltd Talitha Bere Tradelink Shannon Burge Transurban Tanya Boggs Finance One Janine Cations Visy Board Pty Ltd New South Wales Peta Breed University Of Queensland Surinder Chopra Viva Energy Australia Pty Ltd Sheree Brittain Hastings Deering (Aust) Ltd Abhimanyu Choudhary Goodyear & Dunlop Tyres Pty Ltd Mark Adamson NewsCorp Australia Maree Brooks University Of Queensland Karandeep Chugh Transurban Kazi Arifuzzaman Sony DADC Australia Pty Ltd Maxine Browne Transurban Peter Constantinou Goodyear & Dunlop Tyres Pty Ltd Nicola Bailey Polczynski Lawyers Dwayne Bungay Transurban Leonie De-Simone Roberts Ltd Sarah Batzloff DHL Express (Australia Fiona Burfield Finance One Sean Devota Home Timber & Hardware Arpan Baxi Metcash Pty Ltd Leanne Buttress-Grove DHL Express (Australia Group Pty Ltd Paul Brandalise IP Solved (Holdings) Pty Ltd Samantha Camerlengo Collection House Limited Erick Di Girolamo Visy Industries Alana Buckley Transurban Che-Jung Alvin Chang Transurban Bryan Edge BR&C Agents Christina Campbell SR Law Catherine Clapton Cairns Hardware Company Pty Ltd Judy Eldridge Visy Board Pty Ltd Nedeljka Canak Transurban Melanie Davis Crane Distribution Namal Fernando Goodyear & Dunlop Tyres Pty Ltd Alex Clark Aravanis Issam El-Merebi Transurban Mark Gaetani Roberts Ltd Abraham Dower Swift Recovery Australia Pty Ltd Toni Faulkner Transurban Gordon Gallagher Hibar Court Pty Ltd
AROUND THE STATES Dominic Dragicevic Polczynski Lawyers Kyriaki Koula Fotinos Lloyd-Jones Transurban Joyce Gin Viva Energy Australia Pty Ltd David Edney Polczynski Lawyers Maureen Greaves Crane Distribution Maree Green Roberts Ltd Amanda Fazio SR Law Nicola Hart Tradelink Fungai Gurure Transurban Lee-Anne Freeman NewsCorp Australia Leanne Healy Crane Distribution Anna Hatzidakis Hallmark Cards Australia Paramita Ganguli Americold Logistics Meghan Holman Finance One Bridget Hume Home Timber & Hardware Belinda Glare Rivalea (Australia) Pty Ltd Delia Human University Of Queensland Group Pty Ltd Grant Hackleton CLH Lawyers Cassandra Jones Finance One Lars Inki Transurban Ian Hawden Veda Tina Keenan Transurban Mariana Ivanova HTH Group Pty Ltd Melisa Iovanescu NewsCorp Australia Greg Khan The Energy Network Edwar Kartio Transurban David Jovanov Veda Greg Kotzadamis University Of Queensland Eugene Kavunousky Goodyear & Dunlop Tyres Pty Ltd Piyare Karakurt NewsCorp Australia Bobbie Langdon Tradelink Harita Khosla Goodyear & Dunlop Tyres Pty Ltd George Karindjias Ezy-Way Finance Jonathan Lillas DHL Express (Australia Jessica Lara Goodyear & Dunlop Tyres Pty Ltd Sophia Kwiet SR Law Paul Lister Century Yuasa Batteries Pty Ltd Anthony Lee Visy Board Pty Ltd Jaspreet Lamba Talent International Pty Ltd Kate Long Finance One Alberto Leung Transurban Claire Latham Polczynski Lawyers Michelle McDonald Bradnam’s Windows & Doors Joseph Livne Australian Receivables Ltd Averne Myles Loos N/A Debbie Meyer Finance One Denise Lopresti Viva Energy Australia Pty Ltd Richard Lyne Polczynski Lawyers Kelly Morden Tradelink Mark Loriente Goodyear & Dunlop Tyres Pty Ltd Paul Lysaght Law In Order Pty Ltd Arash Najafz DHL Express (Australia Joi Mathiopoulos Transurban Dajana Malnersic Polczynski Lawyers Linda Parry Australian Receivables Ltd Perry Mathiopoulos Viva Energy Australia Pty Ltd Kire Markovski Australian Temporary Lynette Pearce Transurban Deborah Maxwell HTH Stores Pty Ltd Fencing Pty Ltd Samantha Pearce Tradelink Siddhartho Mukherjee Transurban Alison Massey Vinidex Pty Ltd Bronwyn Reimer Tradelink Sean Muller Transurban Rachel McKinnon Transurban Kasey Leigh Sinardi Finance One Lara Murdoch Reece Pty Ltd Theresa McLean DHL Express (Australia Jesse Stevenson Finance One Van Nguyen Transurban Valerie McMahon Americold Logistics Samantha Vale N/A Caroline O’Donnell Lander & Rogers Fetaowmi Moelau Sony DADC Australia Pty Ltd Jade Wellington University Of Queensland Joel Pacetti Veda Karlie Moore Sony DADC Australia Pty Ltd Walter Zumaeta Transurban Nancy Pantano United Petroleum Pty Ltd Luis Ormazabal BBW Lawyers Meghna Pillai Transurban Vicki Pereyra Sony DADC Australia Pty Ltd Jonathan Praeger Veda Stephen Polczynski Polczynski Lawyers South Australia Seema Saini Transurban Corinne Rugolo Brickworks Limited Christine Samarasinsha Viva Energy Australia Pty Ltd Tonierose Sabado NewsCorp Australia Karan Bhatia National Credit Insurance Samuel Shand Transurban Monique Schmitz SR Law Cassandra Burfoot Lynch Meyer Lawyers Shane Smith Transurban Alicia Seargeant SR Law Nick Christpoulos Pernod Ricard Winemakers Pty Ltd Kathryn Stephens Home Timber & Hardware Harjaan Sekhon LG Electronics Australia Pty Ltd Nancy Duong CCC Financial Solutions Group Group Pty Ltd Prakash Singh Budget Repair Erin Freebairn Lynch Meyer Lawyers Marina Tilley Transurban Craig Storkey Macquarie Bank Limited Jason Heidt BRI Ferrier Robert Tonkin Transurban Michelle Sy Transurban Roger Kuchel The Collections Coach Jane Trask Transurban Katrin Tange Transurban Travis Olsen BRI Ferrier Rob Turner Australian Receivables Ltd Kylie Tate Polczynski Lawyers Matthew Ormsby BRI Ferrier Dean Walkeden Allianz Australia Insurance Limited Karol Tello Alvardo Transurban Stuart Starr BRI Ferrier Melissa Yong Viva Energy Australia Pty Ltd Louise Thomas Transurban Michael Yu Transurban Kathleen Thompson Americold Logistics Effie Zervakos Visy Board Pty Ltd Leanne Van Brussel NewsCorp Australia Archana Venkatesh Metcash Pty Ltd Tanya Vermeij DHL Express (Australia Western Australia Trent Vieira ACM Group Ltd Carol Wardi Remondis Rachel Beck Perth Energy Pty Ltd Terri-Ann Whiting Americold Logistics Aisling Conlon Perth Energy Pty Ltd Narelle Williams DHL Express (Australia Zekiya Jasaroska Capricorn Society Ltd Laura Willis Polczynski Lawyers Tracey Newton Capricorn Society Ltd Amanda Young Jirsch Sutherland Jo-Anne Western Boral
58 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Want to progress your credit career? (or improve results from your credit staff)
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Thanks to our National and Divisional Partners