CM December DECEMBER 2018

ASK THE EXPERTS
AUTHOR – Lauren Carter FCICM
While many companies are currently choosing to
delay decisions in the short-term, this needs to be
balanced against the risk of missing a window of
opportunity that change on this scale can bring.
Companies selling services need to
be aware that cancellation fees are not
enforceable in some jurisdictions where
there is no provision for a charge where
no service has been rendered. Companies
selling goods need to be aware of local
retention of title (RoT) regulations. Most
countries do acknowledge RoT clauses,
but there are variations in the ease of
implementation and the requirements on
the creditor to notify, so be aware of how
this works.
Finally, a basic understanding of the
local insolvency framework is likely to be
needed, particularly for companies who
tolerate a higher degree of credit risk. An
understanding of the types of insolvency
processes available, and the requirements
and deadlines associated with these
processes will help to maximise the
return to the creditor.
Lauren Carter
DEVELOP RELATIONSHIPS
Building relationships is a key part of
good credit management and is essential
when entering a new territory. Strong
customer relationships are as important
as ever, but additionally, relationships
with local partners such as distributors
and shippers can be valuable as a
source of information. Discussions with
collections partners at an early stage
give an opportunity to develop SLAs
tailored to suit the local processes in the
new territory, and to learn from their
in-country experiences.
Contacts can also help to develop
an understanding of local culture
and conditions. It is likely that sales
colleagues will have already travelled to
the new country and can provide valuable
information to the credit team. Informal
discussions with people in your network
can also be a good source of advice and
information on local culture and trading
conditions.
These uncertain times can produce
exciting and profitable opportunities to
those who are prepared to venture into
new markets. I hope these ideas will be
useful to credit managers in supporting
businesses in their strategic goals through
these times of change.
Lauren Carter FCICM is Managing
Director of Vantage Credit
The Recognised Standard / www.cicm.com / December 2018 / PAGE 21