credit management in australia - december 2015

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Volume 23, No 2 December 2015

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CREDIT MANAGEMENT IN AUSTRALIA • December 2015

NSW Division: Golf Day.

Qld Division: WINC Panel – Gemma Twemlow, Julie George, John McNamara and Sonia McDonald.

SA Division: Neil Fennell – Credit Management Fundamentals.

35

40

44

Vic/Tas Division: Trivia Night winners – Team Transurban.

WA/NT Division: High Tea.

47

51EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or email: [email protected]

DIRECTORS

Australian President – G.L. Morris MICM CCE

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

Tel: 1300 560 996, Fax: (02) 9906 5686

Email: [email protected]

EDITOR/PUBLISHER

Nick Pilavidis | Email: [email protected]

CONTRIBUTING EDITORS

Colin Magee NSW

Stacey Woodward Qld

Gail Crowder SA

Warren Meyers WA

Donna Smith Vic/Tas

ADVERTISING MANAGER

John Field FICM, CCE, ACPM, Ph: 1300 560 996

Mob: 0412 732 831, Email: [email protected]

EDITING & PRODUCTION

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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 on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2015.

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Message From the President 2

Portfolio Update 6By James Neate MICM

Human ResourcesEngaging process focused staff 8By Paul Burgess MICM

Keeping it in the family 10

How do I know my worth 12By Jan Reeves MICM

Credit ManagementQuarterly Business Credit Demand Index 14By Paul McFadden

7 quick wins you get from phoning instead 16of (e)-mailing your customersBy Aroud Visser

Staff engagement – its not as scary as it sounds 18By Stacey Feaver MICM

LegalImpact of DOCAs 20By Joseph Scarcella MICM

Unfair contract terms 22By David Francis LICM

Foradvertisingopportunitiesin CreditManagementInAustralia

Contact:JOHNFIELDFICM, CCE, ACPM

Ph: (02) 9906 4563 | Mob: 0412 732 831 | E: [email protected]

Volume 23, Number 2 – December 2015

Frank Gambera

25Joseph Scarcella David Francis

20 22

PPSCase Note: Central Cleaning Supplies 25(Aust) Pty Ltd -v- Elkerton [2015] VSCA 92By Frank Gambera MICM

Lower PPSR costs for equipment 26hire businessesBy Moses Samaha MICM

AFSA launches new PPSR guide 27

The money or the box 28By Oliver Shtein

Annual Conference Photos 30

AICM Training News 32

Can we help? 34Trade references

Around the StatesNew South Wales 35Queensland 40South Australia 44Victoria/Tasmania 47Western Australia/Northern Territory 51New Members 53

Paul McFadden

14Oliver ShteinJan Reeves

2812

aic

mFrom the President

4 CREDIT MANAGEMENT IN AUSTRALIA • December 2015

This month we are back to our regular

soft copy magazine following the annual

hard copy version we issue each year in

conjunction with the national conference.

Many members and colleagues attended the national

conference, in fact it was a record number who attended

at some stage over the three days and this record

extended to the conference golf day and the President’s

dinner. If you didn’t make it then make sure you get along

to next year’s event on the Gold Coast where we will take

the learnings from the Sydney conference and feedback

from delegates and members to provide you with the best

information, education and networking experience that

can be packed into 3 days.

z Plan now to get yourself there

z Include it in your annual budgets when next you

complete them

z Incorporate it as reward and recognition for achieving

your KPI’s or targets

z Add it to your training and development programme

z Use it as motivation and reward for your staff ie offer

to send them along, too, when they hit their targets.

The cost of the conference is far less than what good

organisations spend on the development of their

employees.

Thanks to Veda for again standing with us and being

our conference premium sponsor and supporting the

Credit Team of the Year Award which was won by Caltex.

Congratulations to Caltex who are a fantastic team

who have overcome a number of hurdles and produced

outstanding results in 2015.

Thanks to Austral Mercantile who were the conference

supporting sponsor. Their back up and assistance was very

much appreciated.

The biggest roll out at the conference was the

President’s dinner which was sponsored by Dun &

Bradstreet and at which we had the very great pleasure

to see Tate O’Connor from South Australia win the National

Young Credit professional of the Year Award in what was

once again a very strong field. An awesome acceptance

speech and an exceptional young credit professional.

Onya Tate.

Our CCE lunch was the largest ever with the greatest

number of awards presented including the Dux of the

Year which is sponsored by NCI and was awarded to

Alison Beythien, Holcim’s National Credit Manager. Well

done Alison.

The Christmas period is a time for reflection and as

we look back we are proud of 2015 especially

z The significant increases in student numbers

undertaking Certificate IV and Diploma courses – both

online and face to face. Inhouse training was conducted

at major banks and finance companies, utilities and

trade credit operations as far afield as Manilla.

z A record member participation at events across the

country such as full houses at Women in Credit or

WinC luncheons in Sydney and large numbers in

Melbourne and Brisbane, Insolvency Symposiums,

Network meetings, trivia nights and golf days in

Melbourne and Sydney

z The sell out of the Pinnacle Awards in NSW and,

following the growing success in New South Wales

in recent years, their expansion into Victoria in

December this year.

z The licencing agreement we entered into with

the UK Credit Institute, the Chartered Institute of

Credit Management. This will see us deliver quality

accreditation for Australian Credit Operations and raise

the bar here in Australia. Two companies are already

enrolled in the programme as we establish the AICMQ

accreditation.

z There were solid increases in nominees for the Credit

Team of the Year and YCP Awards and the calibre was

very high – again congratulations to Caltex and Tate

O’Connor.

z We introduced our online magazine and supplemented

Grant Morris CCE

Australian President

From the Presidentaic

m

December 2015 • CREDIT MANAGEMENT IN AUSTRALIA 5

this with the new monthly newsletter – making us

all better and more regularly informed.

z We helped the industry overcome the obstacle of

EDR’s and the Privacy Reforms requiring membership

of an external dispute resolution scheme.

z We hit our optimistic, but very necessary profit target

and have gone some way to restoring our financial

health following past storms. This puts us half way to

the target suggested by our auditor.

z There was a 20% increase in the number of CCE’s –

our highest professional recognition, and the biggest

growth in many years.

z We held our inaugural webinar, with many to regularly

follow.

While it was pleasing to see companies entering

External Administration of all forms drop to 12,726

in 2014/2015 (a fall of 9% and the lowest level since

2007/2008) it is interesting to note that the Q1 result

this financial year reveals 4,118 companies entered

administration. This is up 14% on Q1 in FY15 and represents

the 2nd quarter in a row where external administrations

have grown by 14% to the previous period. Not a good sign

at all and an indication of some tough times ahead.

On the personal insolvency front it is pleasing to

see the number of Personal Insolvencies were virtually

static in the September quarter when compared to

the September quarter last year (4,386 and 4,390

respectively) although it is an increase of more than

4% on the June quarter (4,215). It probably comes as no

surprise that the biggest increases were in the mining

states of WA and Qld with year on year first quarter

increases of 7.7% and 6.6% respectively. The next highest

increase was Victoria at 1.0%.

The message here is monitor these trends, take action

in managing your book, make your management aware of

the difficulties out there where they exist in your area of

trade and show your worth and professionalism to your

business by becoming a CCE.

Grant’s Soapbox

We continue to receive strong support of our proposed

lobbying of the Attorney-General and ARITA for

changes to legislation and practices in

z The period in which preference claims can be

made ie the 3 year “statute of limitations” on

making preference claims is too long and should

be shortened to a year or less.

z The recovery of preferential payments and those

Liquidator recovered funds not being paid in

dividends to unsecured creditors or any class of

creditor for that matter.

z Unsecured creditors who are genuinely at arm’s

length being subject to preference claims.

z Spurious and inflated preference claims from

Liquidators ie claiming $700K and settling for $10K.

z Fees charged by Administrators, Liquidators

and Receivers & Managers ie specifically annual

increases of 5 – 10% and more.

This action is now being taken up by James Neate

and the Legal Affairs portfolio with lobbying of the

Attorney-General to be our first action.

With the Federal Government announcing reforms

to the insolvency regime as part of the Innovation

Statement made on 7/12/15 (click here), the time is

right for us to unite and drive for practical reform to

address these issues.

We can never have enough support and it is not

too late to register your support by sending Nick

(our CEO) or I an email simply saying you support

positive changes in these areas. It doesn’t need to be

wordy. We are happy with a simple “good onya”. The

emails/links are [email protected] and

[email protected].

I hope we see you at an AICM event soon as you

support the Institute which supports you.

– Grant Morris [email protected]: 0407 405 198

http://www.innovation.gov.au/page/insolvency-laws-reform

mailto:[email protected]


aicm Portfolio Update


Legal Affairs PortfolioPreviously known as the Law &

Regulation Portfolio the Legal Affairs

Portfolio has been relaunched.

All Australian businesses, and

therefore all credit departments and

allied service providers, operate within

a highly regulated and complicated

commercial legal environment.

Professional credit controllers must

have current knowledge of a range

of legal matters in order to carry out

their duties. Given the complexities

of modern, professional, credit

management practice, it is appropriate

that the AICM continues its leading role

as a training and education specialist in

the niche credit industry.

The AICM also seeks to exert

greater influence as the voice of the

credit industry in terms of input into

legislative and regulatory change.

The focus of the National Legal

Affairs Portfolio is twofold:

1. To liaise with division Legal Affairs

Portfolio chairs to identify and

coordinate appropriate legal

education across a broad range of

topics and including:

z Australian Competition Consumer

Law, Australian Privacy Laws,

Workplace Occupational Health

and Safety Law, Personal Property

Securities Act, Corporations Act

and Bankruptcy Act in respect of

insolvency;

z ASIC debt collection protocols;

z Federal and State based legislation

and Court Rules.

2. To amplify the voice of the AICM

in driving legislative change and

reform which reflects members’

concerns. To do this, an informal

“AICM Legal Affairs Advisory

Panel” has been developed

drawing upon the skills of a broad

range of members and non-

members, credit managers and

legal advisers, each with their own

particular interests, networks and

specialties.

As National Director for South

Australia and Director of the Legal

Affairs Portfolio, James Neate,

Partner of Lynch Meyer Lawyers, is

always keen to hear from members

with any specific legal or legislative

issues of concern. Feedback from

members is vital in shaping the

education programme in an ever

more complex legal environment.

Contributions by members enable

policy formulation so the AICM

can continue to make relevant and

forceful submissions for legislative

change. The most recent examples of

these have been formal submissions

to the Commonwealth Attorney-

General’s Department as part of

the review of the Privacy Act and

Personal Property Securities Register

Act review.

James welcomes any direct

contact concerning the Legal

Affairs Portfolio and can be

reached on 08 8223 7600 or at

[email protected] u

Legal AffairsAs part of an occasional series, we profile each National Portfolio to better inform members of the role of the National Board, its policy objectives and the work undertaken for members’ benefit.

Professional credit controllers must have current knowledge of a range of legal matters in order to carry out their duties.James Neate MICM


Human Resources


I was asked not so long ago how I go

about engaging collections staff who

spend their day making or receiving

phone calls. Their main task, and

in some cases their only task, is to

collect the debt that is the focus of

the call. The question was asked from

the perspective of keeping these

calls both professional and customer

focused.

In reality, making call after call

does lead to a very short term view

of the world. The next customer on

the list owes $100. The job at hand

is to collect that $100 in the shortest

time possible, within the confines

of legislative and ethical guidelines

and rules, and in alignment with the

culture of the company. This is by no

means an easy task, and is further

complicated by the addition of the

person making the call, their feelings,

beliefs and persuasions. Have they

just had a relationship break up?

Have they run over the cat on the

way to work?

As a leader, it is important to

have a clear vision: a picture that the

whole team can pick up and work

towards. It is the translation of this

vision to each role, each daily task,

that is the difference between the

success or failure of the vision.

When giving my answer I thought

hard about how I translate my vision

to the team and how well they

understand how they impact on the

success of that vision.

My vision is to make credit a

competitive advantage for the

company. It is easy to translate this to

a role where retention of customers

through problem solving their

issues feeds back into a competitive

advantage. This is what I would

consider a direct influence on the

pursuit.

However there are also indirect

influences on the pursuit. As an

example, the team member who’s

responsibility it is to pick up the

phone and make the collection calls.

It is true that a leader’s mind is in

the future and a manager’s mind is

in the present. In the modern world

people need less managing and more

leading. To bring the collections role

into the vision I first get the focus

off the immediate call and onto the

big picture. The call is not about

collecting $100 today, but setting

the customer up for good payment

behaviour for the next six to twelve

months. Yes, it is important to still

work to getting the $100 in, but it is

more important to work towards on

time payments over the next twelve

months.

Every collections call becomes

a potential relationship building

experience which keeps the mind

focused on the future. The next call

becomes easier, less stressful. The

one call everyone gets a day that

really gets under your skin becomes

more than manageable; it becomes

a challenge to work a potential

protagonistic situation into an

opportunity to win over a faithful and

passionate customer, to create a loyal

customer.

A success in this type of call

becomes a direct influence on

the pursuit towards competitive

advantage of the credit function. It

gives the team member a sense of

Engaging process focused staffBy Paul Burgess MICM*

Paul Burgess MICM

Human Resources


value in the team and in their efforts,

and where there is a perception

of value, there is commitment and

engagement.

My role as leader in the above

situation is to keep the team’s mind

focused on the future, get out of

their way and let them do their thing

and provide an environment that

is conducive to unlimited thinking.

This involves not getting upset when

things go wrong, and they do go

wrong from time to time, but to be

part of the solution by asking, in the

immortal words of Bruce Sullivan,

“What happened? How can I help?”

Given the emphasis on working

towards the future, I do things today

to ensure tomorrow is a successful

day. The one tool I have found

incredibly powerful for this is to say

thank you to team members at the

end of the day for a good days work.

This does two things: it shakes off

the negatives of the day just gone,

and provides the basis for the next

days’ enthusiasm for the task at hand.

Appreciation, it would seem, is a

hidden secret to tap into unlimited

potential. The real not so hidden

secret is that I mean it.

I would be interested in hearing

from anyone who has had similar

experiences, or who employs the

“What happened? How can I help?”

method. u

*Paul is National Credit Manager at Steelforce Australia Pty Limited

“As a leader, it is important to have

a clear vision: a picture that the

whole team can pick up and work

towards.”

Human Resources


It is often said that credit people

are just one big family and for

Christie Addison, Megan Kernick

and Robyn Erskine this is certainly

true. Credit professionals Megan

Kernick and Christie Addison not

only share the family bond of being

cousins they also share the bond of

choosing credit as their profession.

Christie is Credit Manager at

United Energy & Multinet Gas and

Megan is Credit Team Leader at the

Reece Group. “Aunty” Robyn is an

experienced Insolvency Practitioner

with Brooke Bird and has been

closely involved with the AICM for

many years where she continues to

serve on the Victorian/Tasmanian

council.

We recently caught up with

Christie, Megan and Robyn to find out

just how three members of the one

family have found their way into the

credit profession and what this has

meant for each of them.

What we found is that the pathway

into credit was quite different for

each.

Robyn, an accountant by

profession, has specialised in

personal and corporate insolvency

so while not directly involved in

credit interacts regularly with credit

professionals. She sees the role of

the credit manager as one that is

incredibly important. She says “an

organisation should never under

estimate the value of the credit team.

Without sound credit policies and

processes it can lead to liquidity

problems which in turn can cause

the failure of a business”. Christie

came via what one would consider

the traditional pathway commencing

some 14 years ago as an Accounts

Receivable trainee with Nestle Peters

Ice Cream. Megan on the other hand,

after completing more than half of

a teaching degree, felt she needed

a change and was seeking some

real life hands on experience that

university just was not providing and

was encouraged by Christie to look at

an accounts receivable role.

Obviously one of the great

attributes of the credit profession is

the broad base that people looking to

work in credit can come from which

opens up opportunities for many

different people from many different

backgrounds.

Both Christie and Megan have

enjoyed career growth and success

which no doubt comes from hard

work and commitment. Both

attribute much of their success

to the tremendous support they

have received from fellow credit

professionals who have unselfishly

acted as mentors by giving freely of

their knowledge and helping them

develop sound credit skills. Megan

says “from day one at Reece I have

been challenged to think beyond

what was put in front of me, to

consider why I had reached certain

conclusions and above all to have

confidence in making decisions”.

Christie is also glowing of the support

she has received along her journey

especially during her early years at

Nestle where, as a young credit team

member, she was encouraged by her

supervisor to gain valuable skills in

managing small and large ledgers

progressing to project management

and credit analysis. In turn Christie

now finds herself in the position of

Keeping it in the family

“... I have been challenged to think beyond what was put in front of me, to consider why I had reached certain conclusions and above all to have confidence in making decisions”

Human Resources


being able to assist with developing

her own team and sees this as one

of the most enjoyable parts of her

current position at United Energy.

Both agree the collegiate

atmosphere in credit has allowed

them to develop and grow

professionally.

Megan says “one of the best parts

of my job are the people I work with.

There is a great culture at Reece and

we all just want to do our best for the

team”.

The AICM has been important in

their careers. Robyn says being part

of the AICM has developed a strong

network of credit professionals which

has stood her in good stead when

appointed to various insolvency

matters. “Knowing you can pick

up the phone and find out how a

particular supply chain works or how

things work in a particular industry is

invaluable”.

Christie rates being a State

Finalist in the YCP Awards in 2004

and 2006 and receiving the Tony

Mamone Memorial Award in 2006 as

some of the major highlights in her

career.

Megan feels the opportunities

her employer has given her by

supporting her membership of the

AICM, allowing her to attend the

various training sessions and the

National Conference each year has

enabled her to grow and understand

the world of credit. Since joining

the credit profession in 2013 she

has been a state finalist in the YCP

awards this year and a member of the

National Credit Team of the Year in

2014.

Personal support is also seen

as important. For Christie, a busy

mother of two small children, juggling

a full on career and motherhood is

challenging. She feels very fortunate

to be given the opportunity to work

4 days per week with 3 days in

the office and one day from home

however being a senior member of

staff this often means that the days

she is in the office are long and on

her day off she spends quite a bit

of her day checking and replying to

emails just to ensure the work that

is needed to be done gets done. The

ability of being able to work from

home does allow her important time

with her family. “Being a working

mum is a juggle. Thankfully I have

a husband that can share the load,

picking the kids up from day care and

getting dinner on the table. I often

feel that we are always racing the

clock and rushing but the kids are

very adaptable and are used to having

two working parents”. She said “the

support I’ve received from United

Energy in giving me the flexibility

needed to be a valuable employee

and a working mother has been really

appreciated”.

Clearly being part of the credit

family has allowed this particular

family to make the most of life’s

opportunities, make great friendships

and develop challenging and

stimulating careers. u

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“the support I’ve received ... in giving me the flexibility needed to be a valuable employee and a working mother has been really appreciated”

Human Resources


Working in credit control and

collections can be a great career for

many reasons including:

1. It’s a challenging role where

you are able to develop top

communication skills.

2. You can see your results daily. It’s

very rewarding!

3. It is service focused. If you

provide great service to internal

and external clients, you will get

results. In addition, everyone loves

good service so you can make lots

of friends throughout your career.

4. You can make a positive

contribution to your company’s

growth. You can make that as

visible as you wish.

5. It’s possible to see exactly what

you need to do to progress your

career. You can plan your career

from day 1.

6. You can know your own worth in

the job market.

Do I need to be at senior level to know my worth?If you are a junior trainee, an

experienced credit controller or

collector, team leader or manager it’s

almost always possible to understand

your worth to an organisation. That’s

very useful when you are planning

the next steps in your career!

Below are 2 examples of how to

gain an understanding of how much

you are worth to an organisation

using standard DSO and 90+ results.

However, before embarking on a

strategy to reduce DSO or 90+ in

your current or new role, you must

first have an understanding of the

direction your company is currently

taking.

Understand your company’s current business focus:

z What is the current focus around

sales? Is it to increase sales? Keep

sales level? Is the focus controlled

sales growth?

z And what about making a profit

this year? What is the focus

around this? Is growth or profit

currently the most important?

z Is the company borrowing to fund

receivables? What are the costs

involved? Is there lots of cash and

spare funds available?

Understanding the answers to these

type of questions is important for

everyone involved in both the sales

and credit/collection function. To

move any business forward, everyone

in it has to be working towards the

same overall business goals.

When senior management have

signed-off on the current focus of the

business, suitable and realistic DSO

and 90+ targets can be agreed on.

Once they are agreed, a credit policy

and collections plan can be devised to

achieve those goals.

If you work in a credit or

collections environment without

understanding the business focus

you can find yourself working against

some other departments. That type

of situation can be frustrating and

disheartening. It would be very hard

to enjoy your job working in that

environment. For example:

z It may suit a business to hold

shipments if the customer’s

payment is 1 day overdue.

It definitely wouldn’t suit all

businesses. It depends on the

overall business focus.

How do I know my worth?By Jan Reeves MICM^

Jan Reeves MICM

Human Resources


z It could suit some organisations

to give a customer a 90 day

credit facility, for example if they

are trying to win a new account.

It definitely wouldn’t suit other

organisations.

z Although a particular business

may have trading terms of 30 days

nett, the industry average DSO

may be 60 days. In that instance,

your business may be comfortable

accepting a DSO of 60 days.

Once you have an understanding

of your company’s current business

focus, and what their goals and

expectations are, then you can work

out how you can make the best

contribution. Once you know that it

will be clearer to work out your worth.

Examples: How to work out your worth (Adapt these to your current

environment and circumstances)

Example1:Considering90+balances

(This example is taken directly from a

Sydney based Credit Manager)

When John* joined Ryland Matrix*

as Credit Manager, the ledger he took

over had:

z Total ledger value of $70 million.

z 90+ balance $20 million

Ryland Matrix* are a service

company and operate in a very

competitive environment. Most of

their growth comes from repeat

business and referrals so it was

paramount that the $20m was

collected without upsetting clients.

Using an outstanding customer

service approach, in a just a few

short months, John’s* team were

able to collect $19.5 million of the

90+ balance. The $19.5m went onto

deposit at their bank:

Result for Ryland Services:

1. Extra $19.5 million on deposit at

3% = $48.7K per month (extra

profit $585K per annum)

2. ‘Potential bad debt reserve’

reduced by more than 97%

Result for John* and his team:

1. Much appreciation and recognition

from the Company.

2. Bonuses and salary increases for

the whole team according to their

personal results.

3. Terrific results to add to everyone’s

CV.

Example2.ConsideringDSO

(Example taken directly from a

Western Sydney based Credit

Controller)

When Mary* joined Buckerman

Industrial Pty Ltd* their trading terms

were 30 days from invoice date.

However, the receivables Mary* took

over were:

z Ledger value $5 million

z DSO average for the previous

12 months 68 days.

The brief from the CEO and

Finance Manager of Buckerman*

was to reduce the DSO by 2.5 days

a month to achieve a DSO of 38 days

within 12 months. The business plan

for the next 12 months was reviewed

and a credit/collections plan agreed.

With a structured and customer

service type approach, and without

losing any customers, Mary was able

to reduce the DSO by an average

of 2.5 days each month over the next

12 months.

Result for Buckerman:

1. An average of $183K extra a

month on deposit earning

3% interest = $2.2 million

additional cash in 12 months and

$36K in interest

2. Potential bad debt reserve’

reduced by more than $2 million

Result for Mary*

1. Two bonuses and a pay increase.

2. A great deal of recognition and

thanks from senior management.

3. A marvellous result to add to her

CV.

The key to knowing your worth in

the job market is to be aware of the

results you are achieving. Then you

can relate that to how much cash you

are saving the company, in terms of

interest, either on cash invested or

loans.

The credit/collections function

is hugely important in any business.

Businesses only survive if they are

able to collect their receivables. The

faster they collect their cash the more

money they are able to make.

With a little knowledge and

planning you will be able to see the

results you are having in terms of

hard cash. Learn to understand your

worth and to articulate the important

contribution you are making to the

company.

Know your worth and take control

of your career today! u

*Not their real names

^Jan Reeves has been involved in credit and collections her whole career, most recently as Managing Director of a specialist credit and collections recruitment company. She has now turned her focus to helping small businesses to get all their invoices paid by the due date. Using her experience as a business owner and a Credit Professional she has developed an online collections course, http://getpaidfortheworkthatyoudo.com/ , written especially to guide small business owners.

If you work in a credit or collections environment without understanding the business focus, you can find yourself working against some other departments.

http://getpaidfortheworkthatyoudo.com/

Credit Management


The Veda Quarterly Business

Credit Demand Index, measuring

applications for business loans,

trade credit and asset finance, grew

moderately by 1.6% in the September

2015 quarter.

Asset finance applications

grew (+6.7%), business loans grew

(+1.8%), and trade credit declined

(-2.2%) in the September quarter

2015 compared to the September

quarter 2014. The Veda Business

Credit Demand Index has historically

proven to be a lead indicator of how

the overall economy is performing.

Veda’s data continues to indicate

moderate growth in credit demand

for business, but showed a slight

decline from the annual growth rate

of +3.7% in the June quarter. Veda’s

General Manager, Commercial Risk

and New Markets, Paul McFadden

said: “With growth in the Australian

economy remaining below trend,

moderate business credit growth

should be seen as a positive.” Overall

business credit applications eased in

the September 2015 quarter (+1.6%).

The softer conditions reflected

across both mining and non-mining

jurisdictions, however, non-mining

states showed stronger demand for

business credit. NSW (+5.9%) and

Victoria (+2.5%) were the strongest

states, followed by SA (+1.7%), ACT

(+1.4%). Tasmania (-12.3%) was the

only non-mining state to experience

contraction. All mining jurisdictions

experienced declining business

credit applications for the September

quarter 2015; Queensland fell by

(-1.7%), WA (-4.5%) and NT (-10.7%).

Business loan applications

eased in the September quarter

to +1.8%. Of the non-mining

jurisdictions NSW (+9.6%),

Victoria (+2.3%), and the ACT

(+2.1%) enjoyed strong growth in

applications, while SA (-1.4%) and

Tasmania (-15.4%) recorded a fall.

Business loan applications

across the mining jurisdictions

Veda Quarterly Business Credit Demand Index (September 2015 Quarter)

Moderate growth of business credit for September quarter• Overall business credit applications rose 1.6% (vs September quarter 2014)

• Business loans (+1.8%) and asset finance applications (+6.7%) grew, trade credit weakened (-2.2%) (vs September quarter 2014)

• NSW’s position as a strong economic performer evidenced in business credit growth

By Paul McFadden*

Paul McFadden

Credit Management


experienced drops across all states,

with Queensland (-0.9%), having a

modest drop, while WA (-11.1%) and

the NT (-19.0%) dropped sharply in

the September quarter.

Trade credit applications fell

overall in the September quarter

(-2.2%). Trade credit applications

over the past year fell in NSW (-1.5%),

Victoria (-2.8%), Queensland (-5.1%),

Tasmania (-16.1%), the ACT (-4.8%)

and the NT (-8.3%). SA (+5.5%),

and WA (+1.4%) were the only two

states to see growth in trade credit

applications.

The easing of trade credit

applications was largely driven by

weakness in the main category

of 30-day accounts (-4.2%), with

applications for seven-day accounts

(+3.3%) seeing a lift.

Asset finance applications picked

up in the September quarter (+6.7%).

This represented an improvement in

the annual rate of growth for asset

finance applications from 4.0% in the

June quarter.

NSW (+10.7%), Victoria (+9.8%)

and the ACT (+10.0%) saw strong

growth in asset finance applications,

followed by the NT (+2.8%),

Queensland (+2.5%), SA (+1.3%)

and Tasmania (+0.9%). WA (-3.4%)

continues to see falls mirroring

the downturn in mining-related

construction work.

“Changes to accelerated

depreciation rules for small

businesses in May’s Federal

Budget caused a spike in demand

for asset finance for items under

$20,000 in the June quarter.

Changes in Overall Business Credit Demand – Quarterly Year on Year %

*Veda recomputes the entire index over its lifetime every quarter so there will be a slight adjustment to the above historical figures. Veda normalises the date for a like-for-like comparison.

Demand for asset finance

strengthened in the September

quarter (+6.7%).

“While growth in national credit

demand was moderate, NSW’s

position as a strong economic

performer stood out in this quarter’s

credit demand numbers. NSW led

all states in overall business credit

applications (+5.9%), business loan

applications (+9.6%) and asset

finance applications (+10.7%). NSW’s

economy has been underpinned

by growth in the construction and

housing sectors, which have been

performing strongly,” Mr McFadden

said. u

*Paul McFadden is General Manager Commercial Risk at Veda.

“While growth in national credit demand was moderate, NSW’s position as a strong economic performer stood out in this quarter’s credit demand numbers...”

% C

han

ge

Yo

Y

Quarter of Enquiry

7%

6%

5%

4%

3%

2%

1%

0%

-1%

-2% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

6.0%

3.7%

2.5%

-1.1%

0.6%

2.4%

-0.1%

4.0%

1.9%

3.1%

3.7%

1.6%

Credit Management


Any time in credit management that

is not spent communicating with your

customers is time not adding value to

your business.

Customer contact is what makes

your customers pay faster and cash

is the fuel of your organisation. In

our years of experience offering

customers credit management

software we have seen a large portion

of organisations spending excessive

time in pre-call preparation and

prioritisation. By the time you’re ready

to contact you customer it might

be tempting to just send an email

reminder.

But in our view, depending on how

your policies are set up and which

type of relationship you (want to)

have with your customer, phoning can

be more effective than sending an

(e)-mail or text message.

Here are 7 reasons why direct

customer contact is the better way

to achieve results within credit

management:

1. ProactivenessPhoning is a more proactive

approach than an email or a letter.

By phoning the customer you show

that you are committed to your own

cause as well as the customer’s –

collaboratively removing barriers that

are preventing them from paying that

invoice.

2. Getting the right personWhen you call the chances are higher

you will get the right person on

the phone. This is important if you

are dealing with open invoices and

payments. Getting the right person

on the phone gives you instant access

to all the facts and details about the

barriers mentioned above. And this

also allows you to keep your customer

contact information current and

accurate.

3. Direct resultIn our experience no other medium

achieves direct results like a phone

call. When you have your customer

on the phone you can do business

instantly, rather than waiting for

a response to an email or a letter.

It takes the hassle out of putting

next steps in place or letting the

customer decide the next move.

4. Two-way commitment Sending a letter or email asks your

customer for commitment, but it

does not mean that they will give

you that commitment. If you call your

customers and discuss options with

them, you will end up with a two-way

commitment, rather than a one-way

request.

5. Tracking dissatisfaction When you have your customers

on the phone they can feed back

any dissatisfaction that could stem

from an invoice they have received.

In this way you can move quickly

to the root cause of the customer

not paying, provide a solution and

move on.

6. Building customer intimacyYou have an agreement with

your customer. Stick to your

7 quick wins you get from phoning instead of (e)-mailing your customersBy Aroud Visser*

Customer contact is what makes your customers pay faster, and cash is the fuel of your organisation.

Aroud Visser

Credit Management


policies and processes and let

your customer know that you

are expecting them to keep their

promises. Communicate in a

pragmatic business way but keep

your communication friendly

and personal. So stick to your

agreements but don’t forget

to apply the personal attention

that a customer needs. Personal

commitments by the customer take

promises and performance to a

different level.

7. Picking up on the less obvious signals Speaking to someone allows you to

pick up on emotions and behaviour.

You might be able to detect “hidden

messages” and ask that extra

question to get to the bottom of

the situation. In writing you do not

know whether you are reading fact

or fiction.

All the above steps have

something in common. By creating

customer intimacy you start nudging

your customers in the direction

that you want them to go, by

communicating and understanding.

It is about achieving success through

mutual commitment, rather than

pushing through a process which

could lead to conflict and jeopardize

the long-term relationship.

Sending emails and texts definitely

have a place and can be very effective.

Phone calls can often be seen as the

more time-consuming option. But

appropriate communication is what

we are aiming for.

Modern, focused credit collection

software can help you free up the time

to pick up the phone and call those

customers who need direct contact,

by:

— prioritising which communication

is appropriate for which of your

customers, at which point in time.

— automating your administrative

tasks, to give you more time to

focus on customers. u

Aroud Visser is head of International New Business Development at OnGuard Netherlands. He enjoys sharing exposure to current international ‘best practice’ trends in credit management. Onguard is represented in Australia and New Zealand by Cosyn, OnGuard’s certified Business partner freephone 1-800-123 613 or email [email protected]. Alternatively you can visit www.cosynsoftware.co.nz or follow @OnGuardHQ on Twitter to stay up to date with international best practice.


http://www.cosynsoftware.co.nz

Credit Management


Every good people manager will know

the importance of staff engagement

within a business, especially in a high

stress environment like the credit

industry. Every year we all face the

struggles of that ever tightening

budget, revenue targets and client

retention levels. These are a just few

things we are required to take into

consideration every day. While trying

to concentrate on the experience

of the customer and looking after

the people working for you, we are

participating in two completely

different battlefields. Hard work,

right? Well, it shouldn’t be.

As we shift into the silly season we

should start considering the next year

ahead. Now I know what you’re going

to say! You’re still trying to negotiate

Christmas with a smile on your face

and 400 family members invading

your lounge room for lunch on the

25th December.

But trust me you won’t regret

walking into a positive and infectious

environment moving into the New

Year and 2016 in all its glory. Why

not make the change to encourage

productivity and manage a high

performing team?

Richard Branson and other business

royalty alike will agree, they have even

spoken about the importance of their

teams and owe a lot of their success to

the people that surround them.

They also have the view we need

to treat our colleagues and team

members like capable and smart

adults. In doing this they will make

better decisions that will benefit the

business.

Australians work an average of

60 hours a week from the age of

22 – 65. This is over 14 years of our

entire lives in the office! While you’re

digesting that information think

about how much harder it would all

be if the team you worked in wasn’t

a cohesive and functioning unit? You

will consistently fight a losing battle

and none of this is good for the

business you work for, or the people

involved on the ground.

Staff engagement isn’t something

that should be left up to the manager.

This is the responsibility of everyone

in the company. From the CEO

making those sometimes difficult

decisions, to the people a business

can’t live without, which is every

single other person in the company.

Regardless of the size of the teams,

this effects everyone in the exact

same way.

Keep in mind our teams usually

work better when they feel supported

and respected by the company

that pays their salary. We all have a

common goal and we are essentially

on the same team, so why would

working against each other be a

productive environment for anyone?

Driving the employee engagement

can be hard, but when done correctly

the result is extremely satisfying for

both yourself and the team you’re

working with.

To get all this going there are a

couple of very easy things everyone

Staff engagement - its not as scary as it sounds By Stacey Feaver MICM*

Staff engagement isn’t something that should be left up to the manager, this is the responsibility of everyone in the company.

Credit Management


can do to start moving in the right

direction.

Have your team set their own

values. Take the time to listen to each

individual and what is important

to them to succeed. Your role in

making sure this is an effective

exercise is to steer the conversation

towards tangible results. Encourage

brainstorming, no matter how wild

it may seem. Encourage everyone

to think about their initiatives and

how they can execute these ideas

successfully. Consider leaving them

alone to discuss the different ideas.

If you have given them clear

guidelines of what you are expecting,

and trust them, you will be surprised

with what is presented back to you.

Then, as a group, decide on the three

most important and tangible ideas.

Plan how you’re going to implement

them and place times frames around

it. Be realistic with this, you don’t want

to under deliver.

There are a few different benefits

that come from this exercise. Your

team will feel valued and listened

to, as well as gaining a sense of

accountability and responsibility.

When humans feel like they are

making a difference and their opinions

matter, they automatically participate

more willingly.

Action Plans are a vital part

of making sure you can track and

keep ahead of what you are doing.

The corporate world is constantly

changing, being able to keep track of

where everything stands is paramount

to the success of a business. Delegate

tasks to everyone to play on their

strength as an individual. Have

you got one team member that is

exceptional in a specific task within

the workplace?

Can they transfer this knowledge

to the rest of the team? Why not have

them work amongst themselves to

organise a small training session? Then

follow up on the progress of these

items in regular pulse checks. Once

everyone is satisfied with the outcome,

everyone can agree on the next item to

tackle. Repeat this and don’t stop.

This exercise isn’t designed

to change company policy but

to encourage participation and

responsibility, demonstrate trust and

move in the direction of a team that

work to the best of their ability to

achieve an overall goal.

And the goal for all of us is to be

successful, both individually and as a

business. Remember that we are only

as great as the team we work with.

And from one manager to another, it

worked with my team and it can with

yours. So what will your 2016 look

like? u

Stacey Feaver is State Collections Manager for Austral Mercantile Collections Pty Ltdwww.australmercantile.com.au

“Have your team set their own values. Take the time to listen to

each individual and what is important to them to succeed.”

Legal


The voluntary administration regime

in Part 5.3A Corporations Act 2001

allows reconstruction possibilities to

be pursued via a deed of company

arrangement (DOCA) in such a way

that, if creditors so desire, a legacy

of debt may be extinguished so that

liquidation may be avoided. Implicit

in that is that the company will

thereby be permitted to return to

mainstream commercial life1 and have

a “fresh start”.

There have been two recent

decisions of the Courts2 that

materially alter the perception of the

position of a secured creditor once

a DOCA has been executed. The

previous thinking was that secured

creditors who did not vote in favour

of a DOCA had an unfettered right

to exercise their security rights over

assets of the company to recover

amounts owed to them.

Recently, two decisions in

Western Australia and New South

Wales have cast some doubt on

the ability of secured creditors

to maintain their debt post the

execution of a DOCA.

The impacts of these decisions are

explored in this article.

Understanding the Legislative FrameworkSection 444A(4)(d) Corporations Act

2001, provides that the instrument

setting out the terms of the DOCA

to be voted upon by creditors at a

second meeting must specify to what

extent the company is to be released

from its debts.

Section 444D Corporations Act

2001, broadly provides that a DOCA

binds all creditors of the company but

does not prevent a secured creditor

from realising or otherwise dealing

with their security interest except in

so far as the DOCA so provides and

the secured creditor voted in favour of

the resolution to execute that DOCA

at the second meeting of creditors of

the company.

The highlighted words above have

particular importance. Firstly, it is

usual that most DOCAs provide that

it will bind all creditors who have a

debt or claim against the company at

the date of administration. However,

nowhere in s444D (nor Part 5.3A for

that matter) is the secured creditor’s

debt referred to as being preserved

post the execution of DOCA. All

that is preserved by the legislative

framework is the right to realise and

deal with a security interest. The

statutory framework contemplates

that the DOCA must state what debts

are to be released and the extent of

such release.

The Components of a Security InterestA security interest also has a

proprietary element, that part of it

which is said to attach to the assets

of the grantor company. That right

allows the secured creditor a right

of action against the property of

the company. It is common for

modern security interests to attach

to present and future (known as after

acquired) property. Thus there are

Impact of Deeds of Company Arrangements on secured creditorsBy Joseph Scarcella MICM*

Joseph Scarcella MICM

Legal


two proprietary rights, those against

existing assets, and those against

future assets. Further, a security

interest has a personal element, being

a claim against the company itself (as

distinct from the assets) for any debt

owed. At law proprietary rights under

a security interest exists regardless if

a debt is owed to the secured creditor

or not. That is why even though you

may pay off your home loan (the

debt), the bank still needs to release

the mortgage (the security interest)

over your house.

The DOCA in QuestionIn decision of Bluenergy Group

Limited, the particular DOCA provided

(like most DOCAs) that:

z The DOCA binds all persons having

a Claim against the company;

z On and from the commencement

of the DOCA, that all Claims

against the company would be

released and discharged;

z “Claim” was defined to include

a debt or a present future or

contingent claim against the

company;

z A secured creditor could realise or

otherwise deal with their security

except to the extent the secured

creditor voted in favour of the

DOCA or released its security.

A particular secured creditor in

question did not vote in favour of the

DOCA, nor did the DOCA provide.

The NSW Supreme Court had to

consider, amongst other things, if:

(a) The secured creditor’s debt was

released?

(b) If the secured creditor’s security

remained?

(c) If the secured creditor’s security

extended to property acquired

after the DOCA?

Does a DOCA release a secured creditor’s debt? The NSW Supreme Court found that

nothing in the structure of Part 5.3A

Corporations Act 2001 preserved

the debt of a secured creditor if the

DOCA provided that all debts of the

company are to be released without

saying anything about preserving

the debts of a secured creditor.

The reason for this is that s444D only

preserved the proprietary rights of

the secured creditor.

Does a DOCA release a security?Given that the DOCA in question

(and s444D) expressly preserved the

right of the secured creditor to realise

and otherwise deal with its security

interest, the security remained and

still attached to the relevant assets of

the company. However, that security

interest no longer secured any debt

obligation, the debts having been

released by the entry into the DOCA.

Does a DOCA extinguish security over future property?The Court found that the existence

of a continuing security extending

indefinitely into the future over a

company’s after-acquired property,

where the DOCA provided for the

release of the secured creditor’s

debt, would place a very significant

practical obstacle in the way of any

future operation of a company that

emerged after a DOCA, including

potentially preventing the obtaining

of new secured finance. The Court

found this was inconsistent that a

DOCA was to give a company a “fresh

start”. This interpretation places a

restriction on the scope of the assets

available to a secured creditor seeking

to “realise or otherwise deal” with its

security. Only those assets which are

held by company as at the time of

the execution of the DOCA would be

available.

What are the practical implications?

z Secured creditors should ensure

that a DOCA expressly confirms

that their debts are not released.

z Unless debts and security interests

of secured creditors are preserved

by a DOCA, it is likely that secured

creditors will

— vote down any proposals for

a DOCA thus reducing the

prospects of restructures and

companies having a fresh start;

and

— enforce their security interests

immediately (including

by appointing receivers) –

this will limit the ability of

restructures and increase the

costs associated with external

insolvency administrations.

z If secured creditors do not act as

suggested above then companies

entering a DOCA will have a lower

debt burden and a greater chance

of restructure. u

*Joseph Scarcella is a partner at Ashurst in the Restructuring & Special Situations Group in Sydney. www.ashurst.com

FOOTNOTES:

1 Blacktown City Council v Macarthur Telecommunications Pty Ltd (2003) 47 ACSR 391

2 Australian Gypsum Industries Pty Ltd v Dalesun Holdings Pty Ltd (2015) 106 ACSR 79 and In the matter of Bluenergy Group Limited (Subject to a Deed of Company Arrangement) (Administrator Appointed) (2015) 107 ACSR 373

At law proprietary rights under a security interest exists regardless if a debt is owed to the secured creditor or not. That is why even though you may pay off your home loan the bank still needs to release the mortgage over your house.

Legal


From 12 November 2016 the

protections to consumers from unfair

terms in standard form contracts in

Part 2.3 of the Australian Consumer

Law (ACL) will be extended to small

businesses.

This will apply to the supply of

goods or services other than financial

services or products in the sale or

grant of an interest in land.

Financial services or products

will be subject to identical provisions

in the Australian Securities and

Investments Commission Act 2001.

Why has this happened?When the unfair terms protections

were first put forward in 2009 they

were not confined to consumers

but had been extended to small

businesses. However, following

extensive lobbying (including by the

AICM) the extension to small business

was excluded from the amendments

to the ACL when it commenced

operation on 1 January 2011.

Nonetheless, that extension to

small business remained part of

the Liberal/National Party Coalition

policy. When the Coalition gained

government it signalled its intention to

introduce the extension of the unfair

contract terms provisions to small

business.

Although there was significant

opposition from industry the

government decided to proceed with

the amendments necessary to extend

the Unfair Terms Law to small business.

In the Explanatory Material to the

2015 Bill the following justifications

were put forward for the extension of

the unfair contract term provisions.

z Small business is vulnerable

As they are often offered contracts

on a “take it or leave it” basis and

lack the resources to understand and

negotiate contract terms which leads

to potential detriment where unfair

contract terms are enforced.

z Transfer of Risk to Small Business

Unfair contract terms often allocate

contract risks to the party that is less

able to manage them (usually small

businesses), as they are less likely to

have robust risk management policies

or be in a position to absorb the costs

associated with a risk allocated to

them eventuating.

z Lack of Legal expertise

The cost of obtaining legal advice,

particularly for low-value contracts

can result in small businesses not

entering contracts due to their lack

of confidence in understanding and

negotiating terms. This may mean

they miss out on market opportunities.

z Unfair business dealings laws exist

but not for contracts.

Existing laws largely address ‘unfair’

behaviour in business dealings, rather

than unfair contract terms. Moreover,

the protections available under the

ASIC Act for unfair contract terms are

currently only afforded to consumers

and not businesses.

z More efficient allocation of risk

The extension of the unfair contract

terms protection to cover small

businesses will reduce the incentive

to include and enforce unfair terms in

small business contracts, providing a

Will your terms of trade and contracts be deemed unfair?By David Francis LICM*

David Francis LICM

Legal


more efficient allocation of risk and

supporting small business’ confidence

in agreeing to contracts.

z Limited to “Low-value” contracts

Small businesses also engage in high-

value commercial transactions that

are fundamental to their business,

where it may be reasonable to expect

that they undertake appropriate

due diligence (such as seeking legal

advice). Limiting the extension to low-

value small business contracts that

are standard form will support time-

poor small businesses entering into

contracts for day-to-day transactions,

while maintaining the onus on small

businesses to undertake due diligence

when entering into high-value

contracts.

The amending legislation was

introduced into the Commonwealth

Parliament on 24 June 2015, passed

both houses on 20 October 2015

and received the Royal assent on 12

November 2015. The Act provides that

it commences operation 12 months

after assent to allow businesses time

to adjust their policies, procedures

and paperwork.

What contracts are affected?The amended law will apply to

contracts entered into or renewed on

or after 12 November 2016 which are:

z standard form contracts

z for the supply of goods or services

(or the sale or grant of an interest

in land)

z between parties at least one

of which employs less than

20 people, including casual

employees employed on a regular

and systematic basis (which makes

it a “small business”, as defined by

the amended Act). If a business

has subsidiaries which are separate

legal entities, employees of its

subsidiaries will not be included in

the employee headcount.

z contracts where the upfront price

payable under the contract is

no more than $300,000.00 or, if

the contract is for more than 12

months, no more than $1 million.

If the contract is varied on or after 12

November 2016, the amended law will

apply to the varied terms.

What is a standard form contract?A contract will be presumed a

standard form contract if a party to

a proceeding alleges that it is. The

burden will be on the other party to

prove otherwise.

The court must consider the

following when deciding whether a

contract is a standard form contract

for the purposes of these laws:

z whether one of the parties has all

or most of the bargaining power in

the transaction

z whether the contract was

prepared by one party for any

discussion occurred between the

parties about the transaction

z whether the other party was, in

effect, required either to accept

or reject the terms of the contract

in the form in which they are

presented

z whether the other party was given

any real opportunity to negotiate

terms contract

whether the terms of the contract

take into account the specific

characteristics of the other party or

the particular transaction.

A court may take into account any

matters it considers relevant, but must

take into account the above.

Credit applications, guarantees and

other security documents are likely

to be standard form contracts for

the purposes of the law. It is difficult

to see how a trade credit provider

relying on a credit application and

guarantee would ever be able to rebut

the presumption that those documents

were standard form contracts.

What contracts and terms are excluded?

z Contracts entered into before 12

November 2016 (unless rolled over

or renewed on or after this date).

z Shipping contracts.

z Constitutions of companies,

managed investment schemes or

other kinds of bodies.

z Certain insurance contracts, such

as car insurance.

z Contracts in sectors exempted

by the Minister (none declared as

yet).

z Terms that define the main subject

matter of the contract.

z Terms that set the upfront price

payable under the contract.

z Terms that are required or

expressly permitted by law of

the Commonwealth, or a State

or Territory. My view is that a

retention of title provision giving

rise to registration of a purchase

money security interest under the

PPSA is such a term.

What is an unfair contract term?There are three limbs of unfair

contract terms, the Act says that a

term of a small business contract is

unfair if it:

z would cause a significant

imbalance in the parties’ rights

and obligations arising under the

contract (1st limb); and

z it is not reasonably necessary in

order to protect the legitimate

interests of the party who would

be advantaged by the term (2nd

limb); and

z it would cause detriment (whether

financial or otherwise) to a party if

it were to be applied or relied on

(3rd limb).

Credit applications, guarantees and other security documents are likely to be standard form contracts for the purposes of the law.

Legal


These 3 limbs must be proven by the

small business in order to escape the

alleged unfair term.

However, for the purposes of

proving the 2nd limb, a term of

the contract is presumed not to be

reasonably necessary in order to

protect the legitimate interests of

the trade creditor (who would be

advantaged by the term), unless the

trade creditor proves otherwise.

In determining whether a term of

a consumer contract is unfair, a court

may take into account such matters as

it thinks relevant, but must take into

account the following:

(a) the extent to which the term is

transparent;

(b) the contract as a whole.

Transparency of a term A term is transparent if it is expressed

in reasonably plain language, legible,

presented clearly and readily available

to any party affected by the term.

Terms that may not be transparent

include terms that are hidden in

fine print or schedules, or that are

phrased in legal, complex or technical

language.

The contract as a wholeWhile a term in isolation may indicate

it is unfair the court will consider it in

light of the contract as a whole. Some

terms that might seem quite unfair

in one context may not be unfair in

another. Conversely, if a particular

term was decided by a court in one

case to be fair, this does not mean it

will always be fair.

For example, a potentially

unfair term may be included in a

small business contract but may

be counterbalanced by additional

benefits – such as a lower price –

being offered to the small business.

However, favourable terms may

not counterbalance an unfair term if

the small business is unaware of them,

for example, implied terms, terms

hidden in fine print, in a schedule,

in another document or written in

legalese.

Other mattersThe ACL provides that the court may

also take into account such other

matters as it thinks relevant. It is

likely that the court would take the

following matters into account in most

situations:

z pre-contractual conduct of the

parties

z other options available to small

business at the time of the

contract

z the notice given to small business

customers about the terms of the

contract, particularly any unusual

terms

z any explanation given to small

business customers about the

terms of the contract

z whether a small business had

reasonable opportunity to consider

the terms before concluding the

contract; and

z whether small business should or

could have sought professional

advice before entering into the

type of contract in question.

Section 25 of the Act also provides

13 or 14 examples of the types of

terms of the contract that might be

unfair. However, space does not allow

those to be set out.

Enforcement of the new lawThe ACCC and state and territory

consumer protection agencies share

responsibility for enforcement of the

unfair contract terms protections for

small-business goods and services.

ASIC is responsible for enforcing the

protections in relation to financial

products and services.

If a trade creditor sues a small

business to collect a debt and the

court makes a declaration that a term

is unfair, that term is void and cannot

be relied on by the trade creditor as

part of the contract.

What to do during the transitional period?The following are brain-storming

ideas, not advice.

z Use the next 12 months to change

the structure of your credit

documentation distinguishing

between security terms (which you

won’t change) and trading terms

(which you may change).

z If you rely on guarantees with

charging clauses, be sure you

have them all in place with all the

customers you want them from by

11 November 2016.

z Conduct a survey of your customer

base to work out how many fall

within the small business definition

(i.e., fewer than 20 employees)

so you can develop an informed

strategy.

z If you want to rely on your current

terms and conditions for customers

with 20 or more employees, decide

if you want to develop 2 sets of

terms, one for small business and

another for the rest. My view is that

will be unworkable.

z Work out what terms can be

mutualised without too much

harm (e.g., unilateral variation) and

change them to avoid needless

hassles.

z Alternatively, and despite

the avowed purpose of the

amendments, consider if there is

any point at all in amending your

terms and conditions. A lot of the

time you won’t know on the day

of contract whether customer had

fewer than 20 employees. It may

be that the credit policy will need

to be adjusted to allow negotiation

if it seems that the small business

can prove it.

z Develop a process to annually

monitor small business customers

so that if a customer moves from

less than 20 employees to 20

or more employees the relevant

terms and conditions can be varied

so that the contract is outside the

Unfair Terms Law.u

*David Francis is a Solicitor and Director of Francis Commercial Lawyers Pty LtdTel: (02) 9587-9002 Fax: (02) 9587-9003Email: [email protected]

Legal


printed on the invoices issued

by the Supplier which included a

standard ROT clause. The Terms

and Conditions of Supply were not

attached nor did they form part of

the Credit Application.

z The Supplier supplied to the

customer from September 2008

to May 2013 when an administrator

was appointed to the Customer.

z The Supplier did not register its

security interest over the goods

supplied and the subject of the

case.

z The Supplier was unsuccessful at

trial. The Trial Judge determined

that each invoice for supply was

a separate contract. The relevant

separate contracts came into

effect after 30 January 2012, and

the transitional provisions of the

Personal Property Securities Act

(‘the Act’) did not perfect the

contracts.

Summary of the decision of the Court of Appeal

z The Court of Appeal overturned the

Trial Judge’s decision.

z The Credit Application did not

create a contract between the

Supplier and the customer.

However the contract between

them was formed when the supply

took place. The customer did

not become bound by the Credit

Application Terms until the first

supply of goods after the Credit

Application was made.

z The Supplier’s supply of goods

was acceptance of the customer’s

application for credit by conduct.

The delivery of the goods which

the customer had ordered and the

sending of the invoice confirmed

that the supply was on 30 day

credit and this was the conduct

through which ‘the supplier

signified its acceptance of the

customer as an account customer’.

The sending of the invoice was the

critical step which confirmed that

credit was being provided.

Commentary z The PPSA requires a formal

security agreement to be in place

before supply of goods.

z The Court considered that a formal

agreement for all future supplies

of goods existed. In this case the

formal agreement consisted of the

Credit Application and the invoices

which contained the Terms and

Conditions of the Sale.

z Usually the Terms and Conditions

of Supply would form part of

the Credit Application and the

Terms and Conditions of Sale

would either be included in or be

attached to the Credit Application

at the time the customer signed

the Credit Application.

z This decision may provide some

comfort to suppliers where

they rely on Credit Applications

similar to those in this case and

also possibly where the Credit

Application cannot be found but

there are documents such as

emails and invoices which contain

terms which can be inferred as

constituting a formal security

agreement. u

*Frank Gambera is Director for McMahon Fearnley Lawyerswww.mcmahonfearnley.com.au

Case note

By Frank Gambera MICM*

Frank Gambera MICM

Central Cleaning Supplies (Aust) Pty Ltd -v- Elkerton [2015] VSCA 92

The Court of Appeal of the Supreme

Court of Victoria has upheld the

security interest of Central Cleaning

Supplies (‘the Supplier’) over the

supplies of cleaning products and

equipment (‘goods’) to Swan Services

(‘the Customer’).

Summary of facts z The customer in 2009 completed

and signed ‘An Application for

Commercial Credit Facilities’ which

was required before the supplier

would supply goods on 30 day

terms.

z Clause 2 of the Credit Application

provided ‘The supply of goods

by the seller is governed by

the seller’s Standard Terms and

Conditions as in force from time

to time’.

z The Supplier’s Terms and

Conditions of Supply were


PPS

Small to medium hire and rental

businesses will benefit from reduced

PPSR costs, thanks to changes to

the Personal Property Securities Act

2009.

What has changed?From 1 October 2015 the changes

reduced the number of leases that

hire and rental businesses need to

protect with PPS registrations.

Previously leases of serial-

numbered goods (such as cars, trucks,

caravans, cranes and watercraft)

lasting more than 90 days but less

than 12 months were deemed PPS

leases and needed to be registered.

On 1 October 2015 the definition

of a deemed PPS lease was narrowed.

Now leases of serial-numbered goods

of less than 12 months may fall outside

the definition and no longer need to

be registered on the PPSR.

This makes the treatment of leases

of serial-numbered goods and non-

serial-numbered goods consistent. For

many businesses the outcome will be

less confusion, fewer registrations and

lower costs.

What has not changed?The law reform won’t apply to leases:

z With a term of more than

12 months;

z Capable of being renewed

beyond a 12 month term;

z Of an indefinite term;

z Entered into before 1 October

2015.

It’s important to seek legal advice in

relation to your specific circumstances

to understand the action you should

take. u

*Moses Samaha is General Manager, Commercial/Property Solutions & B2B Channels at Veda. www.veda.com.au

Lower PPSR costs for equipment hire businessesBy Moses Samaha MICM*

Moses Samaha MICM


PPSR

The Australian Financial Security Authority (AFSA) is

the body responsible for administration of the Personal

Property Securities Register and they released a new

guide designed to increase awareness of the Personal

Property Securities system on 13 November 2015.

The Guide was created by Associate Professor David

Brown from the University of Adelaide.

Mr Brown is co-author of the book Australian Personal

Property Securities Law (LexisNexis, 2012) and he teaches

and writes on the Personal Property Securities Act,

insolvency law and property law.

An acknowledgement is given by Mr Brown to James

Neate (AICM Director and Law & Legislation chair),

Gail Crowder (AICM SA Division President) and several

other AICM Members and CCE’s for their assistance in

participating in a feedback group coordinated by James

Neate.

The feedback group provided firsthand accounts of

issues that Members face and their real world experiences

of difficulties and lack of broader understanding of the

existence and operation of the Register.

This guide is targeted at small businesses, their

accountants, financial advisers and lawyers. It was released

by the AFSA Chief Executive, Veronique Ingram who said

“Our new business guide – titled Are you in business? – is

intended to help Australian businesses not familiar with the

practical implications of this law”.

“It also explains how they might benefit from using the

national online system – the Personal Property Securities

Register, also known as the PPSR” Ms Ingram said.

The guide is well designed and clearly explains some

of the basic concepts including clarifying that “Personal

Property” relates to Goods and/or Assets and “Securities”

relates to Debt.

The guide may be useful for credit professionals

attempting to educate team members and colleagues

about the importance of the PPSR or to pass on to

their customers to assist with their understanding of

the PPSA.

Gavin McCosker, Registrar of Australia’s Personal

Property Securities system, said “The business guide is

designed to present information on the law and the PPSR

in a way that is easy to understand”.

“We’ll build on the release of the business guide with

the regular development and release of more resources

– including products tailored for specific sectors – through

a variety of channels,” he said.

The PPSR business guide is available on the PPSR

website (www.ppsr.gov.au).

The AICM joins Mr Brown in thanking the following

AICM members for assisting with this guide:

z Gail Crowder, Executive Director, Kemps Credit

Solutions, and President SA Division AICM;

z Nigel Hillier CCE, Credit and Administration Manager,

Coopers Brewery;

z Anne Wilkins CCE, National Credit Controller, FMG

Engineering;

z Nick Pontikinas, FP&A and Collections, Boart Longyear;

z Kerry Hammill CCE, Consultant, AMA Collection

Services;

z Trevor Goodwin CCE, Manager Credit Services, National

Credit Insurance (Brokers) Pty Ltd;

z James Neate MICM, Partner, Lynch Meyer, and Director,

AICM. u

AFSA launches new PPSR guide for business

BEFORE YOU SAY “NOTHING TO DO WITH ME”‘Personal Property’ and ‘Securities’ are legal terms.

This roughly translates to:

https://www.ppsr.gov.au/ppsr-business-guide

http://www.ppsr.gov.au/


https://www.ppsr.gov.au/ppsr-business-guide



PPS

As credit managers will know, since

January 2012 Australia has had a

complex new law about security

interests – the Personal Property

Securities Act 2009 (Cth) (PPSA).

The PPSA has put in place a whole

new landscape for retention of title

sellers and other owners who seek to

recover their goods in the insolvency

of the customer.

If a PPSA registration is not made

to the letter of the law, then title to

the goods supplied can be lost under

the vesting and priority rules in the

PPSA. The effect on the hire industry

has been particularly dramatic as

hires can be deemed to be ‘security

interests’.

The Whittaker ReportA review of the PPSA was tabled in

Federal Parliament in March 2015.

However to date nothing has been

adopted.

What is clear from the Report is

that the PPSA is excessively complex.

There are many questions in the

registration process which have

little meaning in practice but which,

if wrongly answered, could render

the registration invalid and expose

businesses to loss of ownership

of goods in the insolvency of their

customers. In our view little effort was

made to make the system accessible,

simple or intuitive. The legislation

itself is also loaded with exceptions

and special rules.

The Report finds that all this has

meant the PPSA has not delivered the

benefits it was intended to.

The Report proposes (amongst

many other things) a substantial

simplification of the register. It

recommends removing or simplifying

many of the inputs to a typical

PPSA registration. It recommends

removing:

z The box that indicates whether

the interest is a ‘purchase money

security interest’ (PMSI). More

about that below.

z The question whether the

collateral is consumer property

or commercial property.

z The question whether the security

interest is subordinated.

z The question whether proceeds

are claimed. This is a confusing

question and no-one ever answers

‘no’ to it except by mistake.

z The question whether the

collateral is inventory. Another

misconceived question which

for highly technical reasons we

won’t go into here.

z The requirement to register

against the ABN of certain

corporate customers acting as

trustees of trusts. Creditors will

not have to negotiate the difficult

issue of whether they have been

dealing with a trust or not.

What about hire?

The hire industry is undoubtedly

the victim not the beneficiary of the

PPSA. The industry continues to

advocate for the PPSA to be amended

to exclude hire, so as to prevent

more losses of hired equipment in

customer insolvencies. The Whittaker

The money or the box – reforming a perplexing PPSABy Oliver Shtein*, Executive Lawyer, Bartier Perry

Oliver Shtein


PPS

recommendations fall far short of

what the industry wanted. The Report

recommends that indefinite hire or

lease no longer be a deemed security

interest and that a uniform period of

one year’s actual hire be the entry

point to the PPSA. However this still

cuts across the hire industry where

certain kinds of goods (site sheds,

vehicles, formwork, generators etc)

can sometimes be deployed for

more than a year especially on larger

projects.

So even if the Report is adopted,

hire businesses will still stand to lose

the ownership of capital assets that

they hire out with these assets being

made available to banks. In fact the

Report specifically recommends

preserving the right of the banks to

claim hired assets. If the customer

is a large one this can be (and has

been) fatal to hire businesses.

How would PPSA’s casualties fare under a post-Whittaker PPSA?From a review of the decided Court

cases in Australia and some of our

own files we have compiled a short

list of PPSA mishaps and asked how

suppliers would fare if the PPSA were

amended as the Whittaker Report

proposes.

The Maiden Civil case –

NSW Supreme Court

In this case a company (QES)

hired two caterpillar excavators to

a construction business (Maiden

Civil) which became insolvent. The

excavators were successfully claimed

by the receiver appointed by a lender

to Maiden Civil (Fast Finance) even

though the excavators were never

actually property of Maiden Civil.

QES suffered the loss of its

excavators because the hires were

of motor vehicles for more than 90

days and QES made no registration

against Maiden Civil. The 90 day

period was changed to one year by

legislation in 1 October 2015. But the

same result would obtain under the

Whittaker recommendations if the

hires were for more than a year.

The Doka Formwork case –

Victorian Supreme Court

Doka was a formwork hire business

that lost about $1million in formwork

in the insolvency of a builder

customer. Doka was caught by PPSA

because it had the formwork out on

indefinite hire. Under Whittaker it

would only be caught once the one

year threshold is crossed.

Doka actually had made a

registration but it was one day

late. Doka fell foul of a rule in the

Corporations Act (section 588FL) that

applies in parallel to PPSA. The rule

in 588FL applies if no registration is

made within 20 business days of the

security agreement.

Whittaker recommends that

section 588FL be repealed. Cold

comfort.

Spiers Earthworks –

West Australian Supreme Court

Spiers lost valuable plant and

equipment which it had sold on a ‘rent

to buy’ basis as part of a business sale.

The hirer/purchaser became insolvent

and the equipment was taken by the

hirer/purchaser’s bank.

The security interest was security

‘in substance’ – not time dependent.

As with retention of title there needed

to be a registration under PPSA. The

Whittaker Report would not change

this outcome.

Retention of title supplier A –

the money or the box

This new client of ours had resolved

to tackle PPSA registration without

specialist advice. It supplied several

million dollars’ worth of its product to

a business which became insolvent

having paid for virtually none of it.

The client made a registration but

didn’t tick the PMSI (‘purchase money

security interest’) box. A bank took an

‘all assets’ security for a refinancing

of the customer. The bank made its

registration before the client’s. The

bank has claimed priority over the

product supplied – essentially because

the PMSI box wasn’t ticked.

The Whittaker Report

recommends the PMSI box be

abolished. as the Report finds it was

never necessary in the first place. The

PMSI box has been a source of many

other PPSA mishaps especially in

the hire industry where it is often not

appreciated that a hire of goods is

deemed by the law to be a PMSI.

Retention of title supplier B

This hire company client of ours had

agreed equipment hire terms with

Company X and had made a good

registration against Company X.

However a few months into the hire,

there was a ‘business restructure and

transfer’ in the customer group. Our

client was asked to stop invoicing

Company X and to invoice related

company Y instead. Not thinking too

much about PPSA, the client obliged.

Company Y then became insolvent

and its liquidator claimed that the

client was a supplier to Company

Y against which it had not made a

registration. This case will turn on its

facts but in this kind of case if there

was truly a new contract for supply on

retention of title to Company Y there

needs to be a registration against

Company Y.

ConclusionIf and when the Whittaker

recommendations are adopted they

will bring a welcome simplification to

the register. They will not do much for

those who are oblivious to PPSA or

not very attentive to the complexities

and pitfalls that will remain.

Some businesses will look back

and wonder why they were caught by

rules that were never needed in the

first place. u

*Oliver Shtein is a corporate and commercial lawyer and leads Bartier Perry’s PPSA team. He is the adviser to Australia’s Hire & Rental Industry Association on PPSA issues and PPSA reform since 2011. Ph: (02) 8281 7868, email: [email protected]


2015 National Conference

Vicki Writer, founder of The 360° Solution™.

YCPA Finalists – David Brennan (WA), Tate O’Connor (SA), Patrick Barry (Vic/Tas), Michael McDowell (Qld) and Kimberley Hale (NSW)

Dr Craig Latham, Deputy Australian Small Business Commissioner

Credit Managers Panel. 5 CCE’s.

Nerida Caesar, Veda.Panel of Economists M. Witts (ING Direct), P. Bloxham (HSBC), J. Fabo (ANZ) and A. Stabback (AB+F magazine)

Debbie Piening MICM, Caltex Credit Team of the Year Winner.Moses Samaha MICM, Veda.


2015 National Conference

Clarke Butler, CEO of D&B.

James Neate MICM – Conference MC.

Delegates at the Conference.

Michael Seddon, ATO and Adrian Brown ASIC.

Adrian Heath.

New and recertifying CCE’s.

Darin Milner MICM, D&B. Victor Walter QBE.

To see all the conference photos please go to www.creditnetwork.com.au/photo-gallery/

Please note: you need to be registered to see all photos. Registration is free.

http://www.creditnetwork.com.au/photo-gallery/

Legalaicm Training News

Australian businesses are dynamic and constantly

changing and the workforce needs to be as well.

Progressively higher levels of language, literacy and

numeracy (LLN) are required to respond to increasing

skills requirements in order to adapt to change and

expand your business.

International surveys and research in this area indicates

that there are significant LLN issues for the workforce.

The findings paint a disturbing picture. 93% of surveyed

employers identified a wide range of impacts on their

businesses from low level literacy and numeracy skills.

The most significant impacts were inadequate

completion of workplace documents and reports (21%),

time wasting (17.7%) and materials wastage (11.5%). In

addition, employers indicated what corrective measures

they had tried. Over 30% of companies provided internal

company training and 20% offered skill development

support.

Why are workplace language, literacy and numeracy skills important? Modelling undertaken by the Australian Workforce and

Productivity Agency indicates an increased industry

demand for higher level skills. This will be difficult to

achieve with 4.2 million, or 40% of the workforce currently

below the minimum language, literacy and numeracy

(LLN) standard needed to function in a knowledge

economy. Building LLN skills is critical to increasing labour

force participation and increasing productivity in a higher

skilled economy.

Australian workplaces are dynamic and constantly

changing. The workforce needs to respond to increasing

skills requirements brought about by new technologies,

new work processes and increased compliance and

quality assurance measures. Progressively higher levels of

language, literacy and numeracy are required to support

this.

What is the current situation? In 2006 the Australian Bureau of Statistics (ABS)

conducted the Adult Literacy and Life Skills survey. Just

over half (54%) of Australians aged 15 to 74 years have

been assessed as having the literacy skills needed to

meet the complex demands of everyday life and work.

Results were similar for document literacy (53%) and

numeracy, with 47% achieving this level. Major attention

was devoted to this issue in the wake of the survey

which found that many Australians were below level

3, generally accepted as the “minimum required for

individuals to meet the complex demands of everyday

life and work in the emerging knowledge-based

economy.”

What are employers saying? The Survey of Workforce Development Needs 2012

addressed the issue of workplace literacy and numeracy.

Specifically, the survey asked about the impact of low

literacy and numeracy skills on business and what

measures have been used by workplaces to make

improvements in this area. In relation to the impact of

low literacy and numeracy skills on business, employers

reported experiencing:

z Inadequate completion of workplace documents or

reports = 21.1%

z Time wasting = 17.7%

z Material wastage = 11.5%

z Recruitment difficulties = 8.3%

z Financial miscalculations = 6.8%

z Ineffective work teams = 6.7%

z Not applicable to the business = 6.6%

z Staff unable/unwilling to take on new work/tasks =

6.4%

z Non-compliance = 6.3%

z Staff lack confidence = 5.2%

Over 93% of surveyed employers identified a wide range

of impacts on their businesses. Only 6.6% of employers

thought that this issue was not applicable to them.

These results are very similar to those reported in

a previous survey undertaken as part of the National

Workforce Literacy Project.

Across industry sectors there was some variation

from the effects of inadequate LLN capabilities.

Inadequate completion of workplace documents and

reports was shown to be most strongly experienced

across construction (22.4%), mining (21%) and services

sectors (20.4%). Time wasting was also a large issue

for mining (19.4%) and construction (19%) compared to

manufacturing (16.2%) and services (14.5%).

Drive and expand your business into the future with language, literacy and numeracy skills


Legal

December 2015 • CREDIT MANAGEMENT IN AUSTRALIA 33 December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 33

aicm Training News

Recent Graduates

Eleanor TierneyLu WangNeal HinrichsenSong Hua ZhouKylie WongSurashri PujariMichelle ZhangSavona FergusonMichelle McKenzieNicolle HewatHelena SpicerBetty CurtisSandra EstephanNicole StormRebecca HolleyAlexandra DaleTracy DoSophie LiuEmma HillKayla LopezIiona Ter-StepanovaAllison ParryEmma HillHeather PfitznerKerrie Adams

Manufacturing experienced the highest levels of

materials wastage (14.2%) followed by construction

(13.8%) and mining (8.1%). Staff being unable/unwilling

to take on new work and ineffective work teams most

affected the manufacturing sector, 10.3% and 10%

respectively, while low levels of LLN impacting on

MELBOURNE

10th February – Implement risk

management strategies (C,4)

11th & 12th February – Manage

factoring and invoice discounting

arrangements (E,D)

21st & 22nd March – Legal Compliance

(C,D and 4)

14th April – Personal Insolvency (C,D)

13th April – Manage overdue accounts

(C,4)

18th May – Corporate Insolvency (C,D)

19th & 20th May – Manage


arrangements (E,D)

21st & 22nd June – Developing

your credit policy and procedures (C,D)

BRISBANE



arrangements (E,D)

24th February – Implement risk


25th & 26th February – Legal

Compliance (C,D and 4)

7th April – Personal Insolvency (C,D)

8th April – Manage overdue accounts

(C,4)

9th May – Corporate Insolvency (C,D)

10th & 11th May – Manage factoring

and invoice discounting arrangements

(E,D)

8th & 9th June – Developing your

credit policy and procedures (C,D)

SYDNEY



arrangements (E,D)

10th March – Manage risk and policies

and procedures (C,D)

11th March – Implement risk


17th & 18th March – Legal Compliance

(C,D and 4)

21st April – Personal Insolvency (C,D)

22nd April – Manage overdue

accounts (C,4)

23rd May – Corporate Insolvency (C,D)

24th & 25th May – Manage factoring

and invoice discounting arrangements

(E,D)

27th & 28th June – Developing

your credit policy and procedures

(C,D)

TABLE OF EXPLANATION:

C= Core Unit

E = Elective Unit

D = Diploma

4 = Certificate IV

IMPORTANT INFORMATION:

You do not have to be a current

AICM student undertaking a full

qualification to attend any AICM

face to face training. You may wish

to undertake a program for your

professional development or enhance

and update your current skills and

knowledge.

Should you wish to receive a

nationally recognised Statement of

Attainment, you will be required to

undertake the online assessment

at completion of the face to face

training.

Please register your interest early, as

there is a minimum requirement of

8 students to conduct face to face

training.

2015 – 2016 Face to Face Training Calendar

recruitment difficulties (10.6%), financial miscalculations

(9.8%) and non-compliance (8.1%) were most strongly felt

in the services sector.

The AICM’s Certificate and Diplomas are being

updated to ensure they also equip students with LLN skills

as well as Credit skills.

For further information:https://www.ibsa.org.au/sites/default/files/media/No%20More%20Excuses%20ISC%20response%20to%20LLN%20challenge.pdf

https://www.ibsa.org.au/sites/default/files/media/No%20More%20Excuses%20ISC%20response%20to%20LLN%20challenge.pdf

aicm Can We Help?


Answer:Businesses that provide commercial trade references to other

businesses may have obligations under the Privacy Act (Cth)

1988. Unless a business is not required to comply with the

Privacy Act (because it falls within a specific exemption) the

13 Australian Privacy Principles (APPs) of the Privacy Act will

apply to a business that collects, holds, uses and discloses

personal information. That is, any information about a

reasonably identifiable individual.

Even when dealing with a company, obligations under the

Privacy Act should be considered. This is because a company

cannot actually do anything – it needs individuals to carry out its

business activities and operations. So even business to business

exchanges will involve dealing with people – and if you collect,

hold, use or disclose information about those people (such as

business cards from a company’s sales representatives), the

Privacy Act may apply. However if you have or give a trade

reference that only contains information about a company, then

Privacy Act obligations will not apply to that reference.

As a general principle the APPs do not prevent businesses

from doing this with personal information – they do require

transparency, so that the people know why their personal

QuestionMy company provides goods and services to other businesses

ie all of my customers, be they a sole trader, partnership or

company have provided me with their ABN and my goods are

generally for business purposes.

On which of my customers may I provide a commercial trade

reference and to whom?

What are my obligations if I provide a commercial trade

reference to another supplier of a customer ie:

z must I keep a copy of the reference, and if so for how long?

z must I divulge to the customer the fact I have provided a

trade reference?

z must I produce a copy of the reference if so demanded by

the customer?

What are the obligations on the requesting party ie:

z must he keep a copy of the reference?

z with whom may he share the information eg internally,

externally?

z must he produce a copy of the reference if so demanded by

the customer?

AICM receives questions from Credit Managers that it puts to a panel of lawyers, insolvency experts and credit professionals to answer. The brief is not only to answer the question but to look

into the root cause of the problem and contribute strategic thought.

All articles contain general information only. They are not legal advice. You should seek your own legal advice if faced with a similar situation.

Trade references

information is being collected, what you will do with it, who you

will disclose it to – and how you will keep it secure. A business

can generally collect, use and disclose personal information

when reasonably necessary for its business activities. You

should have a publicly available privacy policy that make your

personal information handling practices clear.

If the Privacy Act applies, a person has the right to ask you

for access to personal information you hold about them (which

could be personal information contained in a trade reference).

Exceptions may apply to granting access as requested.

Under the Privacy Act you must destroy personal information

when you know longer need it for your business activities. In

other words, if you no longer need it for any of the reasons you

collected it, you should destroy it. However there may be other

laws (such as tax laws) that require you to keep it for longer.

Care should be taken to ensure that the exchange of trade

references doesn’t involve exchanging any information about

a person that is about their history or activities in relation

to consumer credit – unless you have fully considered the

implications under the Privacy Act. For example, if a business

provides trade terms to a company, it may want to get

consumer credit reports about the directors as part of its credit

assessment. If so, then that business must also comply with the

credit reporting provisions of the Privacy Act (Part IIIA) that

apply to getting the reports and handling of any information in

them.

The Privacy Act requirements are complex and you should

seek professional advice about how the they apply to your

business. This article is for general information purposes only

and should not relied upon in any way as advice.

Debra Kruse

Principal Consultant

[email protected]



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ARMA Recoveries and CreditorWatch AICM National Golf Day wrap upOn Tuesday the 13th of October the AICM held the combined NSW and

National Conference Golf Day at Oatlands Golf Club who again put on

a great show despite some rain. This was the first official activity of the

AICM National Conference and the day was very successful.

We had over 100 players across 26 teams and the competition

was fierce with the BBW Lawyers Team taking out the major prize just

ahead of the Veda A Team led by Gary Forest who finished a close

2nd. Team Debt Sale Brokers Australia (DSBA) finished 3rd which still

puzzles me as team captain Adam Dayeian (Owner and CEO DSBA)

much prefers to kick a soccer ball rather than swing a golf club. BBW

scored a course record that was highlighted by an eagle at the 12th

(Par 5) after they chipped in from 110 metre’s out (the shouts could

be heard all around the course). We accepted their score only after

requesting sworn affidavits from each of them.

Team Byron Thomas took out the coveted NAGA prize for the

highest aggregate score and I’m not sure Team Captain Peter Morgan

(Owner Byron Thomas) will be taking up golf any time soon.

A massive thanks to all 22 sponsors on the day. The main reason

why the day was such a success was due to the large number of

sponsors who used the event as an opportunity to bring along their

Creditor Watch Team.

Bing Team.

Turks Legal Team.

Peter Mills, Maureen Grant, Greg Young and John Shanahan.

https://www.facebook.com/AICMNSW?fref=ts


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customers and staff for a great day of networking and fun. It’s

rare that you get an opportunity to spend 5-6 hours with a

customer discussing life and business.

We also wanted to take this opportunity to thank our

NSW President, Colin Magee, who spent countless hours

organising the golf day and wasn’t able to attend due to the

sudden loss of his father. Col, we all toasted you and your

father after the game. I’m sure he would be very proud of

your achievements over the past 12 months where you lead

the NSW AICM Council to victory with the President’s Trophy

at the National Conference. It’s certainly no coincidence that

this award was won by NSW in your first 12 months as the

NSW President.

A big thank you to all the other volunteers who gave up

their time to make the event a success, you know who you are

and you are loved.

WINC High TeaOn the 25th September we hosted the second NSW

WINC event. The event was a delicious High Tea held at

the beautiful Deloitte Building in the Sydney CBD. Nicole

Wales, from Human Tribe (formerly Emerald City Consulting)

was our wonderful guest speaker. What a lady. Nicole

is the Founder and Managing Director of Human Tribe,

a Human Performance Specialist Company that partner

with people and business to reach their highest potential

and purpose through coaching, measuring, aligning and

inspiring.

Nicole took us on a journey looking at the successes and

challenges faced in her career which included operating

three Fernwood fitness centres, employing over 100 people

at any one time. She also worked in Human Resources

and Learning and Development for over 12-years across

Patrick Goghlan and Nick Pilavidis.

Happy golfers.

Putting competition.

Mark Logue and Treacy Sheehan.

Putting competition. WINC High Tea.


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the hospitality, retail, banking and television industries in

both a senior management and executive level. She is well

versed in managing how to achieve a good work/life balance

and also how to be a more effective leader. Some of the

take away points of the discussion were the importance of

making time for yourself, prioritising tasks and relationships,

and the need to ask for, as well as accept, help from others.

The relaxed casual atmosphere allowed Nicole to open up

and share personal values and insights to the group who in

turn responded with questions of relevance. It was thought

provoking and engaging.

Beth Gray (WINC NSW Committee) delighted us with

her wit and MC’ing and we think we’ve found a new career

for her as a Bingo caller (legs eleven). Our WINC days also

support the Dress for Success (DFS) organisation. We heard

from Beverley Brock MD, about the great work Dress for

WINC guests.

WINC guests.

Beth Gray and Nicole Wales.

Nick Pilavidis, Beth Gray and Beverley Brock.

WINC guests.

Amanda Borland, Treacy Sheehan, Beth Gray, Beverley Brock and Susan Day.

Success does to promote the economic independence of

disadvantaged women by providing professional attire, a

network of support and the career development tools to

help women thrive in work and in life. With the support of

sponsors and Beth’s fabulous commentary the raffle raised

over $1,300 at the event. www.dressforsuccess.org. Thank

you to the generous supporters of the lucky door prize

(Australian Recoveries and Collections Pty Ltd), and raffle

prizes (Fresh Catering, Trace Personnel, Hoyts Cinema,

Simon Johnson, SAP User Group, Pacific Magazine and

Simpson Cottage).

Thank you for supporting the launch of the WINC events

this year and we look forward to seeing you all at the 2016

AICM events especially all of the WINC days. If you’d like to

share more ideas on events you’d like to have please let us

know and email: [email protected].


http://www.dressforsuccess.org



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Getting to know

Adam Clarke

National Credit Manager,

StarTrack, MICM & NSW

Council Member

How did you get involved

in the Credit Industry and in

what capacity have you been

a credit professional?

I started in Credit at a

company named Discount

Freight Express (DFE) at

the ripe old age of 19 after

completing Certificate IV in

Accounting at Baulkham Hills

TAFE. I have been working in Credit coming on 16 years.

My first role was a Credit Clerk which later progressed to

Credit Officer, Assistant Credit Manager, Regional Credit

Manager and now National Credit Manager.

How long have you been involved with the AICM,

on Council and other?

I have been involved with the AICM for 4 years and have been

newly appointed on the Council.

Why did you get involved on Council?

To give back and add value to the AICM and the Credit Industry

that has been so good to me. I believe you should always give

back and pay it forward as my mentors and predecessors have

done for me. Giving back is the ultimate reward.

What part of the world do you come from?

Probably another planet other than Earth – LOL, just joking!

I was born in Sydney and have Irish and French background

from my mother’s side and Hungarian and German from my

father’s side. I like to mention the French part to substantiate

why I am such a good lover

What is your favourite movie quote?

Oh it has to be “Get to the chopper” by Arnie Schwarzenegger

from the movie Predator. Another great one is “You can’t

handle the truth” by Jack Nicholson from the movie A Few

Good Men.

What sport/team do you barrack for?

My favourite sport is Basketball and I am a HUGE NBA fan.

I don’t necessarily follow a team essentially (originally it was

Chicago Bulls and more recently the Miami Heat), I tend to

follow players so if they switch teams so do I. The GOAT

(greatest player of all time) is the one and only Michael

Jordan. He is 6 from 6 in finals and crushed many dreams

of Hall of Fame players by stopping them from ever winning

the championship. My other sport is Rugby League and

I follow the Parramatta Eels. That stems back in my family all

the way to when they started in the comp in 1947. The 80’s

were legendary but I was only a little boy and don’t remember

how good they were. My mum tells me about it all the time!

I can’t believe they lost in 2001, that was their year to win

it and 2009 was a miracle run with Haynesy who I believe

is the best player to ever pull on the boots that could have

won Parra a premiership had he stuck around. Now he is

following his dream in the NFL and I will follow him all the

way! Everyone who knows me knows just how much I love

Jarryd – he is my favourite league player of all time.

What would you say has been your biggest success

in your career?

That’s a tough question. I think overall success is measured

by how well your team performs and what they represent.

I can honestly say that my guys are all better individuals and

a better team today than they were in the past and that to me

is what success is all about. It’s not about me – it’s about them

and us and progression. The coach (me) is the orchestrator;

the players play the game and they execute the game plan.

It is a collective effort and nothing makes me more proud and

honoured then to stand beside them. Without your people we

(Managers/Coaches) are non-existent.

If it is personal success it would have to be winning back

to back NSW Credit Manager of the Year in 20013 & 2014

sponsored by the AICM. Personal accolades are hard to come

by in Credit – nobody generally likes what we do (except for

the CFO of our own business when we pull great numbers).

It was a great honour to be awarded 2 years in a row. I am

sure there won’t be a third.

Anna Golubeva

Credit Manager, Hilti (Aust.)

Pty Ltd, MICM & NSW

Council Member

How did you get involved

in the Credit Industry and

in what capacity have you

been a credit professional?

I will be celebrating my 7

years anniversary this year:

1st of December 2008 is

the date when I started as

an Assistant in the Credit

Department of Hilti Russia.

I was developed within

the company into the

Team Leader position, and in 2013 moved from Moscow

to Sydney looking for international career opportunities.

Currently being a Credit Manager in Hilti (Aust.) Pty Ltd, I am

in charge of 7 credit professionals, one of the best teams I

worked with.

How long have you been involved with the AICM,

on Council and other?

I have been an AICM member for the last 2 years; on council –

since July 2015.

Why did you get involved on Council?

I am passionate about the Credit industry. I have been

within the industry for so long that sometimes I feel I know

it inside out. What is more amazing, I am continuously


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The Australian Institute of Credit Management welcomes our Partners for 2015.

ProfessionalPartner

OfficialDivisionSupportingSponsors

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your

Institute and your Industry please consider them when you require assistance.

NationalPartners

DivisionalPartners

learning: developing my team, introducing new technologies,

working on credit projects – it keeps me being enthusiastic

and encourages me to share my knowledge, energy and

experience with the people around me. I believe being an

AICM council I have more opportunities to do that through

networking. Only together we can build a better future for the

Credit industry in Australia.

What part of the world do you come from?

The country with the cold winters where the bears hang

around the streets and everyone’s favourite drink is vodka.

Do not always believe to what you hear though. I was born

in Moscow, Russia.

What is your favourite movie quote?

“You mustn’t be afraid to dream a little bigger, darling”,

Inception (2010).

What would you say has been your biggest success

in your career?

Being acknowledged as the National Winner for the Young

Credit Professional of the Year Award 2014 is definitely one of

the biggest achievements in my career. I could not expect the

better recognition than this one after being in Australia for just

one year. I would like to take an opportunity and once again

thank my team for the fantastic support.

Kimberley Hale

Currently I am the Debt

Solutions Manager for

Baycorp. I have been in debt

recovery for the past 8 years,

and have worked for Credit

Corp, Collection House, D&B

and NCML.

I became involved with

the AICM council through

my nomination in the New

South Wales YCP award

for 2015. Through this

experience and the events

I’ve attended I have met

many amazing people with similar interest and drive within

the Credit industry. They have openly encouraged me as a

new-comer and have unveiled new paths on how to improve

my career while building great new friendships. For me it’s

been a fabulous experience which I look forward to showing

others.

In my free time I enjoy many different sporting activities

which helps level my mind after a busy working week.

I currently support the Australian Diamonds in the Netball,

and the Parramatta Eels in the football. I’m fiercely

competitive and always love some friendly competition

within all aspects of my life. This keeps me motivated!

My biggest success in business came this year when

I was nominated for the YCP Award and won the NSW title.

Interestingly enough, what I have taken most out of the

experience with the AICM is introduction to its people and

understanding the love they have for our industry.

29 January

Dealing With Customers – 1 Day ProgramThis one day course covers two core areas of the Customer Relationship and two units of the Certificate IV in Credit Management, the Customer contact and Complaints process.

VENUE: GRACE HOTEL, 77 YORK STREET, SYDNEY

18-19 February

Factoring and Invoice Discounting – 2 Day ProgramThere has been substantial growth in the use of factoring and/or invoice discounting arrangements. This course is relevant to those people who provide a factoring and/or invoice discounting arrangement as well as those people who utilise such an arrangement.

VENUE: LEVEL 3/SUITE 303, 1-9 CHANDOS STREET, ST LEONARDS

Events Calendar


http://www.veda.com.au/

http://dnb.com.au/

http://www.australmercantile.com.au/

http://www.4ampac.com.au

http://www.onguardworld.com/

http://www.resultslegal.com.au/

http://www.randstad.com.au/

http://www.ncml.com.au/home.php

https://www.ashurst.com/home.aspx?id_Content=2

http://www.baycorp.com.au

http://www.byronthomas.com.au


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President’s ReportOur team of Qld councillors has achieved fantastic engagement

and drive in the last quarter, not least of all highlighted by

the “Women in Credit (WINC) luncheon, which I will talk a

little bit about. AICM is “owned” by all of its members and will

continue to be an organisation creating opportunities for all

members to engage and participate in the future shape of

their industry.

Firstly, thank you to our Partners, Veda, Dun & Bradstreet,

Austral Mercantile, Vincent’s, Results Legal and Randstad for

the fantastic support this year. As always we could not have

held our events without their assistance. Please ensure that you

show your support to our Partners wherever possible.

The September WINC Luncheon – well what superlatives

cannot be said? Whilst I was not able to attend (due to my

flying out the next day on family holidays) the pictures and

figures speak for themselves. Julie McNamara (Patane Lawyers)

and her committee are proving again what absolute stars

they are. Planning for next year’s WINC luncheon is underway

already, so if you want to attend, or be involved in any way,

please contact Julie.

Michael McDowell MICM and Zara Mends at the Annual Conference.

Melinda Grob MICM and Ruthven Underhill CCE at the Annual Conference.

Dale Hannan MICM, Scott Goodrick MICM and John Gregg MICM.

Greg Young CCE at the Annual Conference.

Greg Young CCE, Christine Bracey, John Shanahan and Natalie Denschel at the Annual Conference.


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In October we saw our most excellent state winner Michael

McDowell (NCI Qld) vie with other state winner’s for the coveted

AICM YCP of the Year award at the AICM National Conference

in Sydney. Michael did his company and Qld proud with his very

professional presentation and preparation. His courtesy and

interaction with all members before and after the judging is a

shining example of the bright future which he and other YCP’s

bring to AICM.

Special thanks must also go to our YCP Councillor Maria

Schandl for her coaching and assisting Michael before and

during the judging process. Unfortunately, 2015 was not to

be Michael’s year, however he has assured us that he will be

lining up again when possible for another crack. Well done

Michael.

Our end of year function this year was held at Custom

House on Wednesday, 25 November. Members were

entertained by a panel topic of “Who did you say makes the

better Credit Manager?”, as well as prizes and raffles.

On a serious note, council will shortly be nutting out some

key dates for 2016, hoping to add some (fun-ner) events

which businesses might wish to sponsor. If members have

Queensland WINC Guests. WINC Guests.

specific events which they would like to assist with or see held,

they should not hesitate to contact Julie McNamara (Patane

Lawyers).

The co-operation and discussions with other states’

councillors continues. Not least of these are Col Magee and his

team in NSW. The collegiate atmosphere of the AICM National

Conference continues to foster discussion beneficial to all

members in all States.

Thank you all again for your support to the Queensland

council. We wish all our members and the other states, our

State and National Partners, and all of our supporters a Merry

and safe festive season.

– Peter Mills MICM

President

Qld WINC LuncheonWhat an amazing event our first WINC was for Brisbane on

18 September this year. A huge thankyou to our sponsors NCI

and Results Legal. Also our prize donators and supporters in

the audience! It would not have been as successful without

WINC Guests.Qld WINC Panel: Gemma Twemlow, Julie George, John McNamara and Sonia McDonald.

https://www.facebook.com/pages/AICM-Australian-Institute-of-Credit-Management-QLD/919330091439977?fref=ts


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on council, having been previously involved Carla is a great

addition to the team.

MARIA SCHANDL MICM

– Qld Councillor, YCP/YNN

Maria is another new member

to council, bringing her

experience as a previous YCP

Winner and being involved in

the credit industry for over 15

years. Maria is currently the

National Credit Manager of

Stoddart Group and holds a

Diploma in Financial Services

that was attained through

the AICM. Maria’s passions

include keeping fit and she

has been involved in completing obstacle races this year.

MICHAEL MCDOWELL MICM

- Qld YCP

“Recently I went through the

Australian Institute of Credit

Management, Young Credit

Professional Program. The

program started off with a

presentation in front of a panel

in Queensland and ended with

another presentation down in

Sydney. I managed to win the

Queensland Award and whilst

didn’t win nationally, I was

announced as a finalist down

in Sydney at the Annual Conference.

your contribution and attendance. Our venue was the beautiful

Customs House on the Brisbane River which was the perfect

venue for such a prestigious event and sure to be a first choice

in years to come.

We had an audience of more than 100 people of all walks

of life, both men and women most of whom were somehow

connected to the wonderful world of women in credit. The

day would not have been such a success without our amazing

speakers Julie George, Sonia McDonald, Gemma Twemlow

and John McNamara giving us their time and sharing their

experiences and of course our amazing facilitator Treacy

Sheehan MICM who flew up to Brisbane from Sydney to lead

the questions to the panel.

Also our wonderful WINC Committee Treacy Sheehan

MICM, Anna Taylor MICM, Zara Mends, Amanda Borland, Maria

Schandl MICM and yours truly for the planning and organising

of our amazing luncheon. A thank you should also go out to

our employers for their support during the process.

Together we raised over $4,000 toward our chosen

charities of the day, Suited for Success – Dress for Success

and Women’s Legal Service. What a fantastic effort and

outcome of a most enjoyable afternoon of good food, wine and

networking.

We can’t wait to do it again in September 2016! Date to be

advised soon, watch this space!

– Julie McNamara MICM

Introducing our Councillors

CARLA SEIRLIS CCE

– Qld Councillor

Carla has over 30 years’

experience within the credit

function across a wide variety

of industries and currently

holds the role of Credit

supervisor for Berwicks (Gold

Coast) Pty Ltd t/as BBC Digital.

Her passions away from credit

include her family, camping,

fishing and hunting. Carla is

one of our newest members

Qld WINC Leith Mitchell and Katrina Christ.

Qld WINC Guests at WINC Customs House.


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Qld WINC Julie and Gemma WINC.

“The whole program had a number of challenges

including creating a presentation in front of a panel of

experts on the ‘credit industry’.

“I would recommend this program for any young

credit professional looking to grow both personally and

professionally. I am more than happy to discuss the process

further with anyone that is interested.”

– Michael McDowell MICM

5 February

Welcome to 2016, AICM & YCP Bowling & Social NightVENUE: STRIKE BOWLING WINTERGARDEN

10 Feburary

Economic Forecast 2016 – What is in store

VENUE: CUSTOMS HOUSE

9 March

Developments in Trade – Credit LawVENUE: TBA

11-14 March

Online CCE Exam

13 April

Engaging & Retaining Credit ProfessionalsDo you know the what, when, why and howVENUE: RANDSTAD

20 April

Tool Box 1 – Half Day, Assessing Credit Apps

VENUE: RANDSTAD

11 May

Compliance & SecurityVENUE: TBA

13 May

Tool Box 2 – Half day, Collect with confidence

VENUE: RANDSTAD

8 June

Q&A – Time ManagementEmails/Collection Activity, Staff Management

VENUE: TBA

13 July

PD Breakfast – InsolvencyVENUE: VINCENTS

27 July

AICM Annual General MeetingVENUE: TBA

27 July

YCP Awards DinnerVENUE: TBA

August

Magistrates Court Visit & ProcedureVENUE: TBA

8 August

Tool Box 3 – Half DayVENUE: TBA

9 September

Women in Credit LunchVENUE: TBA

Events Calendar

The Australian Institute of Credit Management welcomes our Partners for

2015.

DivisionalPartners

Our National and Divisional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit

Industry and develop the careers of all Credit Professionals. As these organisations support your Institute and your Industry

please consider them when you require assistance.

NationalPartners

https://www.facebook.com/pages/AICM-Australian-Institute-of-Credit-Management-QLD/919330091439977?fref=ts

http://www.vincents.com.au/


http://dnb.com.au/

http://www.resultslegal.com.au/

http://www.randstad.com.au/



South Australia

Vice-President’s Report2015 has been a busy and challenging year for the SA

Council, with added responsibilities for each portfolio

throughout the year.

I am pleased to say that the Councillors rose to the

challenge, ably led by our state President Gail Crowder,

who also put in a lot of hard work herself and led by

example! At the time of writing Gail is enjoying a well-

deserved holiday.

The year started off with an excellent and well attended

Credit Symposium at Hahndorf in the lovely Adelaide

Hills. The subsequent monthly credit focus sessions held

a number of interesting topics, including a liquidation

case study, trading trusts, credit risk assessments and

a mock trial at the Adelaide Magistrates’ Court. Our last

professional development event of the year, held on

20 November 2015, finished in style at the state-of-the-

art conference room at the Bendigo & Adelaide Bank,

where a half day seminar was held on credit management

fundamentals.

The social network nights were also very enjoyable and

gave great networking opportunities. They included our annual

awards night, a quiz night and credit professional networking

drinks.

The awards night in August was a highlight of the year

with approximately 100 people in attendance to see our

biggest ever contingent of State YCP applicants and finalists.

The biggest highlight was seeing our own State YCP Winner,

Tate O’Connor from NCML, win the national YCP award at

the National Conference in Sydney. We are also pleased to

welcome Tate onto the State Council.

On behalf of Gail and I, we thank all state councillors

for the efforts they made this year on Council. 2016 is

an exciting year ahead for us, as we look to revamp and

freshen up the events and training sessions we offer our

members (and all of those involved in credit management)

in South Australia.

We wish all members an enjoyable and safe festive season.

– James Devonish MICM CCE

Vice President

SA Division

James Devonish MICM CCE and Trevor Goodwin CCE – Credit Management Fundamentals.

Nick Pontikinas, Rebecca Edmiston MICM and Paul Westo MICM – Credit Management Fundamentals.

Credit Management Fundamentals.

Neil Fennell MICM – Credit Management Fundamentals.

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Professional Development Half-Day Seminar – 20 November 2015The SA Division held its second professional development

seminar for 2015 in an exciting, state-of-the-art conference

room at the new Bendigo & Adelaide Bank building in the

Adelaide CBD.

The seminar was a half-day seminar and was on credit

management fundamentals. The topics were Tools for Credit

Risk Analysis, presented by Trevor Goodwin of NCI Credit

Insurance (Brokers) Pty Ltd, Reading and Understanding

Company Financials by Neil Fennell of Worrells Solvency

and Forensic Accountants, Credit Hypotheticals by James

Devonish of Lynch Meyer Lawyers and Career Development

in Credit by Nick Pontikinas of Boart Longyear, Rebecca

Edmiston of Bendigo & Adelaide Bank and Paul Westo from

Toro Australia Pty Ltd.

Trevor demonstrated his wealth of knowledge in credit

risk analysis with a comprehensive and detailed presentation.

He emphasised the importance of the five “w”s and five “c”s

of credit, the various public and private sources to access

information and intelligence about debtors, as well as a useful

discussion about the early warning signs of a customer in

trouble.

Neil Fennell shed light on what can often be a complicated

process of analysing financial statements, setting out

various vertical and horizontal ratios to measure the financial

performance of a company and also what to consider outside

of the financial statements when considering a company’s

creditworthiness generally.

James Devonish presented three hypothetical credit

scenarios (helpfully prepared by Eric Milne of Fujitsu General

Australia) which involved a lot of audience participation and

also takeaway lessons and discussion points.

Lastly, Nick Pontikinas, Rebecca Edmiston and Paul

Toro all provided tips for excelling in a credit role and in

developing a career in credit. Some of the tips included:

knowing your business and customers very well, ensuring

all communications with management was meaningful and

proactive; and looking for those opportunities as a credit

manager to provide good news stories and to not be afraid to

own and promote your successes with management (because

no-one else will do it for you!).

All in all it was an entertaining and informative half-day

seminar and we thank all the guest speakers for their time and

contribution. We also thank Bendigo and Adelaide Bank for

allowing us to use their conference room and facilities.

– PD Committee, SA Council

James Neate MICM at the Conference.

Josh Richards.

James Neate MICM, SA Director, Tate O’Connor MICM 2015 YCPA, Gail Crowder MICM (SA President), Rebecca Edmiston (2014 YCPA).

James Devonish MICM CCE.


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DivisionalPartners




NationalPartners

October Credit Focus: Stand Out – how to get the attention you deservePresented by Jane Calleja, Learning & Development Manager

from National Credit Insurance (Brokers) Pty Ltd who covered

all the challenges we face in our day-to-day roles in Credit.

Even though we were only small in numbers, we certainly

made up for it with involvement and role-playing throughout

Jane’s presentation.

Topics discussed were challenge our perceptions of

ourselves and others, explore behaviours to help stand out

and be noticed and sharing tips on creating and sustaining

change in our life. Many more ideas and thoughts were

touched on throughout the morning session.

Jane certainly gave us lots of valuable ideas like don’t make

assumptions, dress the part, feel the part, be sociable, help

others to succeed, accept responsibility, get involved, stay

away from office politics, be change ready, continue to learn

and build a reputation for reliability and challenge.

Quote of the day was – “Get Curious Not Furious”

There were some great ideas discussed and everyone

seemed to go away with thoughts on what changes we need

to make it happen.

Here is just one example of the feedback we received.

“I certainly came out with a different way of thinking, it

was very informative and I will definitely be putting these

ideas into action.”

– Anne Wilkins FICM CCE, Credit Focus Portfolio

Jane Calleja and Anne Wilkins.

Gail Crowder and Sean Brady at the President’s Dinner.

SA Credit Focus.

Anna Golubeva and Rebecca Edmiston.

http://briferrier.com.au/

http://www.kemps.com.au/home/

http://www.creditorsprotectionagency.com.au/home/

http://www.worrells.net.au/


http://dnb.com.au/




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SMaureen Grant CCE – NCM, Lindt and Sprungli, Beth Gray CCE – NCM, Red Bull Australia and Rosina Edgar MICM – NCM, Mercedes Benz.

Winners: Team Transurban.

Victoria/Tasmania

Charles Tims CCE – National Credit Manager, Tuftmaster, Kate Baker MICM and Bianca Ronbinson, Urbis Pty Ltd.

Runners Up: Team Reece, Credit Team of the Year 2014.

YCP Function – Trivia NightHeld at the Melbourne Central Lion Hotel on 17 September,

what a fabulous turnout! 68 members and guests attended

the YCP Trivia Night organized by Neil Smith from Transurban

and the Functions Chair on the Vic/Tas Committee. There

were 8 teams of very enthusiastic quiz aficionados with 3

teams from Reece Plumbing; a great attendance from the

team at Reece. The evening commenced with a bit of social

chit chat over a drink but all gloves were off when the quiz

was underway. Consisting mainly of music trivia a fun night

was had by all. The team from Transurban lead by Arthur

Tchetchenian, took out the title for this event, the team

included Rob, Seema, Meg, Rob, Steve and Marina, with a

team from Reece coming in a close second. When the points

were tallied at the end only 1 point separated 1st and 2nd.

Quite a few participants kicked on after the conclusion of

the Trivia Night, which mainly consisted of members from

Transurban who felt obliged to celebrate their win. A very

popular and enjoyable night, we’ll definitely be running this

event in 2016. Much thanks to Neil for organising the event.

Court Process and Court Proceedings A tour of the Old Melbourne Gaol was only part of the

excellent learning experience at this half day seminar

on October 29. An informative but fun look at the Court

Process, being cross examined and giving evidence in a trial

environment. Tracy Rothwell from Rothwell Lawyers played

Judge Judy and joined by Barristers Lionel Wirth and Andrea

Mapp and QC Peter Cawthorne, gave an overview of the

See You in Court – Touring the Old Melbourne Gaol.

https://www.facebook.com/AicmVictoria?fref=ts


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process and allowed participants to get firsthand experience

of what it is like to be cross examined in the witness box.

There were dress ups and mug shots as Frank Fisher from

Australia Post donned the Magistrates garb; all part of the

fun and frivolity, however the participants’ attention was

soon turned to the court room experience and for all who

attended it was invaluable. Members, if you get a chance

to attend this half day seminar next time around we highly

recommend it, because you never know when your contact

with a customer will require you to give evidence in court.

Being familiar and comfortable with the process can help

you to be calm during a hearing and therefore help you

appear more credible as a witness when the time comes.

A big thank you to Tracy, Peter, Lionel and Andrea for their

time, preparation and participation. We greatly appreciate

you delivering this wonderful seminar for the benefit of our

members.

Women in Credit Business Luncheon – 20th November109 credit professionals and their guests attended the Vic/Tas

Division’s inaugural Women in Credit (“WINC”) Business

Luncheon, held at the Waterfront Room at Waterfront Venues,

Docklands.

Mostly women in attendance, however there were quite a

few men, and we thank you for your interest and involvement

in the day. The venue was lovely, the décor was lovely, the food

delicious and the service excellent.

The day’s proceedings commenced with a superb

introduction by our MC’s and major sponsors for the day;

Zara Mends from NCI and Anna Taylor from Results Legal,

who are both ardent in their support of the WINC credo. They

understand the issues that women in professional roles face

and the contribution and standing of women within the credit

industry as a whole.

Amanda Rothwell – Prisoner 12346.

QC Peter Cawthorne instructs participants with Barristers Andrea Mapp and Lionel Wirth and Catrina Galanti MICM of Austral Mercantile in the Witness Box.

Members and Guests at the Old Melbourne Court House.

Frank Fisher of Australia Post donns the Magistrates Garb.


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Both Zara and Anna spoke passionately about their own

experiences and their patronage of the WINC functions.

All funds raised from the event went to Dress for Success

Mornington Peninsula (“DFSMP”), a charity that assists

unemployed, low-income women on and around the

Mornington Peninsula who are seeking to return to work and

who need to rebuild their self confidence and self-esteem

after experiencing long-term unemployment, health, social,

educational or other difficulties. Over the last 6 years DFSMP

have provided a free dressing and support service to over

3,000 women helping to build their job-readiness and interview

skills and enabling them to dress appropriately in stylish

professional outfits that they are able to keep.

Prue Leggoe from DFSMP played a compelling video of

several women whose lives have been completely turned

around due to the assistance they were provided by DFS, and

spoke fervently of the great importance of the work that they

do and thanked all attendees for their attendance and support.

Traceay Sheehan MICM from Trace Personnel then chaired

an ‘On the Couch” discussion with Linda Murray Executive

Coach from Athea Coaching, Carole McTavish, Shared Service

Manager from IXOM and Jan Reeves Collections Expert and

Entrepreneur.

The ladies shared their vast and varied experience in

business, collections and life in general. They also provided

insights into the power of goal setting and planning, or in

Carole’s case just focusing on the things that you want, which is

actually keeping the goal in sight.

All three agreed on many points like keeping focused on the

positive things in your life and career and the things that you

want, rather than focusing on negatives.

Linda Murray made an interesting point about gender bias

and the fact that we, as women, need to be mindful of our

own bias. Linda went on to say that it is our responsibility

to be mindful and careful that we don’t inadvertently

perpetuate and promote the exact biases that we are trying

Carole McTavish of IXOM.Anna Taylor of Results Legal and Zara Mends of NCI – MCs for the Afternoon.

Members and guests with Prue Leggoe of Dress for Success.

Members and guests listen intently.

https://www.facebook.com/AicmVictoria?fref=ts


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to stamp out by engaging in behaviour that supports those

biases.

The major concepts that came out of the afternoon were

that women can do anything that we put our minds to, that

we are responsible for our own success and having the

courage to ask for what we want, and it is our responsibility

to voice any disparities we observe and to promote

ourselves.

We have received excellent feedback from members and

guests and this will be another event that will feature on our

annual program.

A special thanks to our major sponsors for the event;

Results Legal and NCI, and for the other companies who

supported with raffle prizes and items for the Goodie Bags;

National Collection Services, Australia Receivables Limited,

Room to Improve, Austral Mercantile, Cor Cordis, Baxters Food,

NCML, Trace Personnel, Fitness First, Blue Mane Consulting,

CGU Insurance, Recoveries National, Credit Solutions,

Home Direct, Bek’s Blooms, Reliance Recoveries, Blue Mane

Consulting, Jan Reeves, Veda, Austral Mercantile, NCML, White

Cleland Lawyers & Consultants, Baxters Foods, Collins & Co

Accountants, Sharp & Carter Recruitment, Sclazo Foods, ARL

Receivables, Stephanie Kate Hair Design, All Office Business

Solutions, REA Group, Bronwyn Bennet (Creating Healthy

Spaces), without who’s support we could never hold events

such as these. Our gratitude cannot be measured in words, but

thank you for your outstanding contribution to this event.

Lastly I want to thank the committee for their efforts in

putting this event together; Alison Said (National Manager-

Credit, GCU Insurance), Donna Smith (Managing Director,

Reliance Recoveries), Treacy Sheehan (Managing Director,

Trace Personnel), Robyn Erskine (Brooke Bird), Sherif Hussein

(Credit Manager, REA Group), Lou Caldararo (National Credit

Manager, Spicers), and Jeff Hurst (Credit Manager, Scalzo Food

Industries), Nick Pilavidis (CEO AICM) and Amanda Borland

(AICM).

A great deal of work goes into organizing these events, so

thank you all for your tireless work and contribution.

Inspirational Quote:“Be the Change You Want to See in the World” – Mahatma

Gandhi

UPCOMING EVENTSSave the dates and mark your calendars

15th December – CCE Breakfast

Our Esteemed Panel: Linda Murray – Athena Coaching, Carole McTavish – IXOM, Jan Reeves MICM – Get Paid for the Work you Do.

Treacy Sheehan MICM of Trace Personnel – Chair of the Esteemed Panel.


DivisionalPartners

Our National, Divisional and Professional Partners support and work with the AICM to promote the Institute’s activities, represent the Credit Industry and develop the careers of all Credit Professionals. As these organisations support your

Institute and your Industry please consider them when you require assistance.

NationalPartners

ProfessionalPartners

http://www.natcollection.com.au


http://dnb.com.au/

https://www.ashurst.com/home.aspx?id_Content=2

http://www.4ampac.com.au




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High Tea: Val Baynes MICM, Natalie Lunt and Donna Trezise.

High Tea: Simone Haskins, Lisa Marr MICM and Yvonne Liew.

High Tea.

Western Australia/NT

High TeaI was fortunate enough to attend the WA AICM Social Soiree

High Tea at Pagoda Resort in September. With a new president,

Lisa Marr, stepping up to the plate I was looking forward to

hearing what was in store for the WA AICM and what we can

look forward to in the next year.

There was a great cross section of the credit community

in attendance with representation from sponsors, credit

professionals and current members of the institute.

President’s ReportJust seemed like the other day I was walking down the street

without a care in the world.

But I find it’s December, it’s the end of the year, and I have

survived 6 months of the adventure as WA President.

Still asking many questions of the team at head office as

well as my mentors here in WA.

I have to remind myself that opportunities of this nature

do not come along all that often….

Over the course of 2015, we have been able to gift our WA

members with some very informative and relevant workshops.

Perhaps socially quieter this year, our Sponsors Lunch and

the High Tea were welcomed with much anticipation.

Our traditional Christmas on the Bay will bring things to

a close and allow us to spend time with our credit family

members.

Looking forward to 2016, we hope to educate, innovate and

invigorate our WA Members to putting their best credit foot

forward.

Take care over the festive season, relax and enjoy time with

family and friends. We can’t wait to see you all next year.

https://www.facebook.com/AustralianInstituteOfCreditManagementaicm?fref=ts


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Conversation was lively and the occasion provided a solid

networking opportunity for many in attendance. It was

very encouraging hearing from other Women in the credit

profession, sharing their experiences and current challenges

in the industry and the current market. The location was

fantastic and the catering was impressive. I do hope that

the high tea is a permanent fixture on the WA AICM social

calendar for years to come.

– Natalie Lunt MICMNational Credit Manager, Coventry Group Ltd

David Brennan2015 YCPA

I was fortunate enough to represent Western Australia at the

2015 Young Credit Professional of the year awards during the

AICM National Conference held in Sydney during October.

Prior to this process I had no knowledge of the AICM, being

from the financial technology sector we have previously not

engaged with traditional groups or associations focused on

credit and credit management. That will certainly change after

being involved for just a short period of time.

The people I have met have inspired me to not only go forth

in my quest for lending automation but also tweak some of our

technology to incorporate trade credit underwriting where we

had previously only focused on unsecured lending (watch this

space).

The process and Conference

The process was tough but thoroughly enjoyable, it made me

think long and hard about me, my views on the industry and

also look back at our successes and failures over the past few

years.

I was truly honored to have been chosen as the winner of

the Western Australian division and was greatly looking forward

to competing on the national stage.

The national conference was incredibly well organised, the

professionalism of the organisers, speakers and exhibitors

showed that the AICM will continue to be the preeminent credit

association in years to come.

The hospitality shown to myself and the other state finalists

was world class and truly memorable.

Unfortunately I wasn’t able to come home with the silver

wear but learnt more about myself and our business during

the process than I have before. A fantastic way to look back,

something that is sometimes difficult in our ever-evolving

business lives.

Any young credit professionals that are thinking about

involving themselves in the AICM or the YCP should jump right

in, it’s an amazing experience and one that you will remember

forever.


DivisionalPartners




NationalPartners

http://www.jbservices.com.au/

http://www.ferrierhodgson.com/au/

http://www.pricesierakowski.com.au/

http://www.fticonsulting.com/

http://www.novalegal.com.au/


http://dnb.com.au/



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QUEENSLANDJordan Bennie Mcinnes Wilson Lawyers

Linda Cougle Cashflow Finance Australia Pty Ltd

Alison Lawrence Cashflow Finance Australia Pty Ltd

Kristy Lazarus Cashflow Finance Australia Pty Ltd

Benjamin McPhail Cashflow Finance Australia Pty Ltd

Nick Stark Summer Collection Group

Shannon Stelfox Earlypay

Selina Stephen Cashflow Finance Australia Pty Ltd

Peter Toohey Cashflow Finance Australia Pty Ltd

Peta Vaoiva Cashflow Finance Australia Pty Ltd

NEW SOUTH WALESIan Armstrong Ruralco Holdings Limited

Scott Boyd Veda

Stephanie Cornforth Smith Leonard Fahey Lawyers

Dane Fazakerley Veda

Kylie Gomersall Harvey Norman Commercial Division

Mittu Gopalan Freedman & Gopalan Solicitors

Steven Highfield CML Group

Michael Leonard Smith Leonard Fahey Lawyers

Felisima Manalo Sanofi-Aventis Pty Ltd

Paul Mead Veda

Lewis Meegan Veda

Maria Messina Instant Access

Natalie Monaghan Harvey Norman Commercial Division

Heather Pattullo Veda

Ian Renney Brickworks Building Products Pty Ltd

Miral Sarvaiya Austral Mercantile Collections Pty Ltd

Mohammed Sherkawi Cabcharge Australia Limited

Heather Spring Sanofi

Garry Trompp Onesteel Trading Pty Ltd

Gina Villoria Imperial Tobacco Australia Ltd

Ni Vo Hilti (Aust) Pty Ltd

Paul Walker Dux Manufacturing Limited

VICTORIA/TASMANIARikki-Lee Ellis Reece Pty Ltd

Bianca Haver Reece Goup

Liam Jenkins Adidas Australia Pty Ltd

Robert Lyons Reece Pty Ltd

Lynne Moynihan Ridley Agriproducts Pty Ltd

Candice Noom Reece Pty Ltd

Michael Nugent The ICM Partnership Pty Ltd

Benita Payten Reece Goup

Roxanne Robinson Reece Plumbing Pty Ltd

Jenny Saveski Onesteel Pty Ltd

Deborah Stark Reece Goup

Mahlee Terrell Foremans Business Services

SOUTH AUSTRALIAShivaan Christensen Credit Recovery Solutions

Kim Mansfield The Polygon Group Pty Ltd

Brittney Waddington Railroad Transport Pty Ltd

WESTERN AUSTRALIAJulie Bartlett COVS Parts Pty Ltd

Dermot Horkan Onesteel Trading Pty Ltd

Warren Myers CMP Recruitment Specialist

NEW MEMBERS

The Institute welcomes the following credit professionals who were recently admitted to membership in September and October

2015.

Venue:

Sea World12 - 14 October

2016

ConferenceConference2016 National2016 National

See you at AICM’s

2016NATIONAL

Conference

Visit aicm.com.au

for details and earlybird registrations

credit management in australia - december 2015

Documents