The scoop

Is One of Your Customers a "Sleeper"?

"White Collar Criminals" know very well how the credit review process works. These people are your college educated criminals who typically have above average intelligence. They understand one of the foundations of the credit review process is the credit

reference. To exploit the vulnerabilities of the system, credit criminals will set up their own references. This is not a short-term proposition... the whole point is to establish name recognition and a positive credit history for the reference over time. These references are called "sleepers." Once they have been established, the reference can provide positive history to companies who will eventually close, leaving creditors unpaid. For more information on how to spot a fraud, contact the Loss Prevention Group at 800/955-8815 ext. 1021.

Focus on Mexico

Mexico's economy dropped in synch with the U.S. downturn, but has recently showed signs of recovery. Economic fundamentals remain sound. Credit conditions have declined, however, and economic and trade reforms have been delayed. Want to learn more? The September issue of Business Credit magazine has a special section, Focus on Mexico. If you're not already a subscriber, fill out the subscription form on page 71, and fax it back to NACM with payment information to ensure that you don't miss the September issue!

CRF Looks at Imaging Technology in Credit and AIR Management

Document imaging has spread incrementally, growing by 10 to 15 percent a year. Over the last 5 years costs have come down, standards have been formed and the overall technology has greatly improved. With the advent of document and data imaging and more importantly workflow technology to facilitate the storage and movement of information, a change in the organizational landscape emerged. It could be argued that one of the reasons the reengineering movement of the early '90s was by many accounts a failure, was due to the lack of an infrastructure for the flow of data to facilitate the "process" theory. (You'll recall, it was reengineering that led us to think about processes rather than tasks). Now however, through the advent of imaging and workflow technology, responsibilities can be shifted back and forth, employee specializations can be redefined and, to the dismay of some, departmental boundaries redrawn. This technology has facilitated companies to organize in a more process orientation. See how credit managers use imaging technology and view more valuable information from CRF surveys on their web site at www.crfonline.org .

Escheatment

A credit professional often manages a portfolio of hundreds of open accounts, with credit extensions that can be in the millions of dollars. With an active trade relationship, the vendor account may periodically have a surplus. On occasion the debtor never claims the surplus. Are escheatment laws a problem for the credit executive? What is considered unclaimed property that may fall under the escheat laws? Does a credit balance qualify? What may be the consequence if the vendor declares the unclaimed property as income and applies it to the bottom line, as the vendor views it as a windfall to offset losses from unrelated delinquent accounts? Does the state have greater rights to the unclaimed property? To learn the answers to these questions and others, please join NACM-National's Education Department for an Audio Teleconference September 9, 3:00 - 4:00pm Eastern Time-- Presenter: Scott Blakeley.

Cost: Only $49.95 (participants are responsible for their long-distance telephone charges). Register online at www.nacm.org: once registered and confirmed, you will receive the dial-in number and instructions.