Credit Management in Australia - May 2016 edition

The Publication for Credit and Financial Professionals I N A U S T R A L I A

Volume 23, No 3 May 2016

Tips, updates and changes:

Credit Management

Insolvency Legal issues

Warning signs of

Big corporate collapses

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Volume 23, Number 4 – May 2016

Message From the President 6

Portfolio Review 8By Jeff Hurst

Credit ManagementFinding the best-fit debt recovery agency 9By Amaran Navaratnam

Is mediation a useful strategy 12By Alison Shaw

It’s all about the money 15By Kirk Cheesman

Identity frustrations 16By Alan Harries

Manage or be burdened 22

LegalImportant win for creditors defending 24unfair preference claimsBy Michael McDonnell and Rhett Kipps

Unfair contracts 26By Geoff McDonald

InsolvencyShorter Bankruptcies to save the economy 30By Gavin Parsons and Rebecca Ross

Geoff McDonald

26

Kirk Cheesman

Alan Harries

15

16

Alison Shaw

12

Adam Lysle

Amaran Navaratnam

34

9

NSW Division: Data & Technology Panel and Forum.

Qld Division: March CNN: Karl Hill, Roger Masamvu, Anna Taylor and Peter Mills.

SA Division: Guest Speaker Rear Admiral the Honourable Kevin Scarce.

40

43

46

Vic/Tas Division: Golf Day: Prawn BBQ – Creditor Watch.

WA/NT Division: Barefoot bowling.

49

53

EDITORIAL 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

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

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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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Personal Insolvencies rise 2% 33

Early warning signs 34By Adam Lysle

Trends in insolvencies 36– businesses don’t fail overnight

AICM Training newsStudy tips for online learners 37Students that have completed courses/units 38

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Around the StatesNew South Wales 40Queensland 43South Australia 46Victoria/Tasmania 49Western Australia/Northern Territory 53New Members 56

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aic

mFrom the President

6 CREDIT MANAGEMENT IN AUSTRALIA • May 2016

Well, well, well. Just 12 months ago who

would have thought we would have seen

big Aussie names like Dick Smith and One

Steel with the words “In Administration”

following their well known handles.

A few would have had their suspicions and as each

month passed many more astute Credit Managers would

have raised their concern level and started to take action.

Dick Smith was large but Arrium is much larger. It has

debts of $4B and is having an impact across many industry

segments not just direct mining product suppliers but

consider too transport companies (one family company

is reported as being owed $13M) and in our profession,

mercantile agents and solicitors who assist with debt

recovery of the various Arrium/Onesteel entities. We feel

for the employees of the Arrium group and their families,

not just the people in Whyalla where Arrium is by far the

largest employer but across all business units who now face

uncertain times. A number of these employees are AICM

members and our thoughts and best wishes are with them.

It is times like this we ideally do not rue the day when

a decision was made to continue to support or not but

ensure the right decision was made with the appropriate

safeguards in place to protect our company’s own

position.

I know of at least 1 prudent Credit Manager with a

7 figure debt who had taken a conscious decision to

continue to support Arrium and had adopted a cautious

approach by substantially increasing his doubtful debt

provisions to give him cover should Arrium come under

external control. His book loss will perhaps be around 20%

of appointment date outstandings however he has enjoyed

the profit leading up to that point and will continue to do

so on guaranteed future supplies.

As I said at the national conference 18 months ago

…….our role is to look forward. No-one ever

signed off on a deal for the supply of a

product or service knowing they wouldn’t

be paid. A loss is the future non payment for

goods or services provided previously and

we must therefore look forward, albeit not

forgetting that history is a good teacher.

and it serves as a reminder now to always ensure we

adopt prudent credit policies and ensure our procedures

are followed.

I’m tired of hearing Credit Managers assessing a

situation by saying “they’re a bit slow at the moment but

they have been there before and always come good so we

are continuing to supply”. That’s not a Credit professional

but an invoicing and cash allocation clerk. We need to

understand why the customer is dragging his feet and how

he is going to turn the corner so you both march positively

forward.

To stay a step ahead of the situation you need to

continue to hone your credit skills. Hawthorn coach,

Alistair Clarkson, didn’t win the 2013 grand final and then

sit on his couch thinking I’ve got this down pat and relax.

He continued to personally grow and develop, understand

the changing pace and tactics of the game, realise that

not all competitors (customers) played the game the same

way or had the same skill set or methods. That is how he

has gone on to do a threepeat with further premierships in

2014 and 20151.

We must do the same and stay on top of our game

through continued professional growth ie training and

development, networking and exchanging ideas and

situations with our peers. This means attending workshops,

seminars and network meetings and occasionally letting

our hair down at more social events and building stronger

relationships with our peers.

It also means being across all industry publications

whether they be this magazine, the AICM monthly

newsletters or the myriad of news bulletins put out by

Government agencies like ASIC or professional firms

including our supporting partners Worrells, Ashurst and

the like.

Don’t you love the new website? Haven’t been there?

Tsk tsk click here

A formal CCE exam paper has now been written. It

is being trialled in May and June and will then be rolled

out nationally. This offer will be in addition to and an

alternative from the existing online short form exam and

supporting 3,000 word paper.

Our Webinars have good content and are being well

received and supported strongly. I would encourage you

to register for the upcoming webinars even if you will

Grant Morris CCE

Australian President


From the Presidentaic

m

May 2016 • CREDIT MANAGEMENT IN AUSTRALIA 7

miss the live webinar as by registering you will be sure to

receive a recording.

The National Conference is being held from October

12 – 14 at the new Seaworld Resort Conference and

Convention Facility on the Gold Coast. The program is

well advanced as we 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.

Plan now to get yourself there

z Include it in your annual budgets when you complete

them over the next few months

z Incorporate it as reward and recognition for achieving

your KPI’s or targets

z Add it to your training and development programme

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

send them along as well when they hit their targets.

The cost of the conference is far less than what

good organisations spend on the development of their

employees.

We regret to advise increased work pressures have led

Steve Mitchinson to step down as the WA Division Director.

Steve has very ably represented the WA Division at the

Board and conversely very ably represented the Board

in the WA Division since his appointment in August 2013.

Steve has been the driving force behind the development

of the toolboxes which are now being rolled out nationally

and has supported many of the changes which we have

made in our darkest hour. My sincere thanks to Steve

for his wise counsel and the concerned and professional

manner he has brought to every matter. We will miss you

Steve but wish you well in the new work undertakings.

I am pleased to announce NCI Trade Credit Solutions

have recently joined us as an official partner. NCI are led by

Kirk Cheesman who I respect greatly as a very street smart

and savvy credit professional. A big warm welcome to Kirk

and his team and we look forward to partnering with you

for a long time.

Grant’s SoapboxWe have received a lot of support of our proposed

lobbying of the Attorney-General and ARITA for changes

to legislation and practices in the period in which

preference claims can be made, recovered funds meeting

costs and not being paid out as dividends, claims being

inflated and excessive annual fee increases loaded at the

front end.

James Neate and our Legal Affairs portfolio now have

carriage of this and were to commence lobbying of the

Attorney-General however with the recent announcement

of an earlier and upcoming federal election this will be

placed on hold until after the election.

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

support the Institute which supports you.

– Grant Morris

[email protected]

Ph: 0407 405 198

FOOTNOTES1 Ross Lyon and the Sydney Swans have learnt a lot and will stop the

Hawks and Clarkson’s run this year.

http://aicm.com.au

aicm Portfolio Update


Over the past few years we have

been one of the main go to groups

with regards the PPSA and the more

recent Privacy Amendment Act

2012. We are currently pushing for

reforms to the way preference claims

are treated and have made recent

submissions in this area (Law reform

Bill and the second to the Productivity

Commissions Inquiry into Business

Set-up, Transfers and Closure). We are

also are currently consulting with other

associations in order to shape the

Innovation reforms being proposed by

Malcom Turnbull such as safeharbour

rules, voiding ipso facto clauses and

reducing Bankruptcy periods from 3

years to 1 year. This ensures members

concerns are voiced directly to those

in Government who instigate these

reforms that effect how we do our jobs

day in and day out.

Our Professional Development/

Education courses (discounted to

members) are not only of a high

standard but offer practical advice on

up to date methods across a variety

Credit related issues that we as Credit

Professionals see each and every day.

These together with the Divisional

seminars, workshops and networking

events are regarded highly by a

number of businesses and of course

our National Conference held each

year is always very well attended with

in excess of 400 delegates regularly

attending plus the may business

partners who provide us with the most

up to date collection tools available

from both overseas and within

Australia.

Just to reflect again on what is

offered to Members of the AICM:

1. Development – Education via

Conferences, Seminars Workshops

and the ever popular National

Conference. In 2016 we have

also introduced complimentary

webinars for members, we plan to

hold at least 10 this year.

2. Lobbying – AICM will continue to

be involved within all areas that

effect our day to day activities to

make our lives within the Credit

area a little more realistic.

3. Recognition – Membership, CCE,

YCPA and the Credit Team of the

year awards to name a few.

4. Networking/Connecting –

providing our members with

avenues to discuss and show their

knowledge through the many

forums (Credit Network Forum),

Journal, E-newsletter and the many

other activities run within each

Division.

This is also a great time to consider the

group membership option (Employer

Sponsored Memership) which is a cost

effective membership option for Credit

Teams which makes membership

viable for all members of the team to

access the benefits and learn more

about the Credit Industry.

So I encourage each and every one

of you all to spread the word and show

to those working within the Credit

field who for one reason or another

have not joined this Institution to re

think and fill in the application – get

involved!!!

As National Director for Victoria

and Tasmania and director responsible

for the Membership Portfolio I am

always keen to speak to members

or those thinking about membership

to discuss any questons and to

receive any general feedback. If

you have any ideas or concerns

please feel free to make contact on

0427945791 or via email at jeff@

jghcreditriskmanagement.com.au.

Membership portfolioAs 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.

As the director responsible for

Membership my focus is on growing

membership and ensuring value to

current members.

So I thought it a great opportunity

to revisit a few reasons why the AICM is

such a worthwhile group. This hopefully

will encourage you to get involved

with the numerous ways the AICM

helps Credit Professionals do their

jobs better and for you to spread the

word and suggest to those who are in

your network to consider filling in the

application and joining if they are not

members already.

Jeff Hurst

Credit Management


Selecting a debt recovery agency

that is right for your type of referrals

involves more than finding the lowest

priced agency – it requires careful

consideration.

This year, before you refer your

debts to any recovery agency, find the

one that is ‘best-fit’ for your existing

and future recovery needs.

Where do you start? Look within!

Look within your debt portfolio and

ask: “what are the pain points in our

collection strategy and how could a

debt recovery agency assist?”

As a Credit Manager, there can

be several competing priorities when

selecting a debt recovery agency.

These can include:

z Net return

z Partnership and brand protection

z Compliance and risk

z Customer re-engagement

z Litigation

Net Return The best-fit debt recovery agency

should not only be effective in

recovering debts but innovative in

their tactics and strategies to increase

net return and reduce your volume of

write-off through the use of analytics.

Analytics

Analytics have revolutionised the

debt recovery industry and the way

agencies now collect debt.

In an article written by Nicholas

Harrak, Head of Government and

Commercial at Recoveriescorp, (May

2014, AICM magazine “Analytics:

Why they’re critical for a sustainable

business model- Act now!”) he

emphasised recoveriescorp’s

analytics-based strategy to increase

debtor engagement through the

‘propensity to pay’ model that

accurately prioritises delinquent

accounts and determines enhanced

collection strategies based on both

the probability of recovery and

expected recovery amount.

Debt recovery agencies are now

employing smarter and more effective

ways to ultimately increase your net

return, reduce the volume of write-off

and increase customer re-engagement

at earlier stages of debt referral.

Business Intelligence

Business intelligence (BI) is a

technology-driven process that

analyses data to provide stakeholders

with improved risk mitigation strategies.

Finding the best-fit debt recovery agencyBy Amaran Navaratnam

The best-fit debt recovery agency should not only be effective in recovering debts but innovative in their tactics and strategies to increase net returnAmaran Navaratnam

Credit Management


An example of debt recovery BI

is the use of ‘intel codes’. Intel codes

are used by operators to understand

the reason for non-payment prior

to and after debt referral. This data

can be translated and reported back

to your company in order to better

understand and predict how many

customers will fall into hardship

categories for specific reasons.

Your next agency must be able to

provide you with data and guidance

that assists your credit lending team

with strategies to effectively control

the volume of debt, improve business

processes and understand your

customers to mitigate future financial

risks. This can assist your company in

increasing net return.

Panel Positioning

As a Credit Manager, you want the

security of knowing that your next

debt recovery agency is going to

increase net return. When working

for ‘Tier One’ clients, it is common

for debt recovery agencies to be

benchmarked against other collection

agencies. This can provide key

performance metrics that allow you

to determine which of the agencies

is effectively increasing your net

return in a given period. Ultimately,

the agency that is consistently the

number one performer will be the

‘supplier of choice’ for present and

future recovery needs.

Even if your requirements are not

large enough to warrant a panel of

providers, don’t be afraid to do your

research on the agencies that you are

considering adding to your panel of

suppliers with this approach in mind.

Speak with other Credit Managers

within your industry that are already

using the agencies you are considering

to find out if they are happy with the

agency’s performance against their

various KPIs. If applicable, find out

how the agency is averaging each

month against their competitors as

it will assist you in gaining a clearer

picture of their ability to increase net

return for their clients.

Partnership and Brand protectionChoosing a reputable agency is

important but there’s much more

than reputation to think about. You

need a recovery agency that fits

your corporate culture and provides

the kind of business relationship you

consider important.

Brand Protection

Before referring delinquent debts to

a recovery agency, look to partner

with an organisation that perceives

value not only in recovering payment

in full or establishing payment plans,

but also in preserving a positive

relationship between the customer

and your brand.

Your ‘best fit’ agency should

understand your expectations and

partner with you to help you meet

your goals with sound advice on

reducing delinquency. They will

provide you with more than dollars

collected – establishing a strong and

transparent partnership that will yield

long-term value to both parties.

Compliance and Risk

Legislation

Debt collection activity is heavily

regulated by legislation and other

obligations to ensure all parties in

the collection process – creditors,

collectors and customers – are

protected. Failure to comply can

lead to severe penalties, not only for

the collection agency, but also for

the creditor. Remember: a creditor’s

obligation does not end because

they have outsourced the collection

activity. Besides financial risk,

there is also reputational risk to be

considered.

Choosing an agency with a strong

compliance understanding and

culture is vital. Ask your prospective

collection agencies to demonstrate

how they ensure compliance at all

stages of the process, including

training programs for collectors and

ensure that they are prepared to work

collaboratively with you to report

back on their performance against

legislative requirements. Every agency

will claim to be compliant but you

should look for the agency that can

demonstrate this commitment to

your satisfaction. After all, it is your

company’s reputation on the line.

Quality Assurance and Data Security

In addition to legislation – which

can appear opaque at times – it is

important to choose an agency that

follows international best practice.

Ask your agency if they are

accredited to any ISO standards. ISO

accreditations go a long way towards

ensuring the service you will receive

will be of a consistent and auditable

quality.

Of the various ISO accreditations

available, two non-negotiables are

ISO 9001 (Quality Management) and

ISO27001 (Information Security).

When an agency is certified to the

ISO 9001 standard, it means that their

internal quality management systems

will meet the needs of customers and

stakeholders as well as statutory and

regulatory requirements.

With data security and privacy

of primary importance in today’s

world, an ISO 27001 certification will

mean that your agency has in place

appropriate levels of encryption and

firewalls to rival the Great Wall of

China to protect your customers’

private information.

“As a Credit Manager, you want the security of knowing that your next debt recovery agency is going to

increase net return.”

Credit Management


If your next collection agency does

not follow the correct procedures

when it comes to collection

legislation, quality assurance and data

security, you could face penalties from

regulators and damaging publicity –

a nightmare scenario for any Credit

Manager.

Litigation While the aim of early engagement

strategies is to avoid the need

for litigation, most debt recovery

agencies in Australia recognise

the need to provide end-to-end

collection services, including legal

recovery. Overlooking this critical

stage of the process when selecting

a collection agency could result

in sub-standard results, or higher

costs due to the need to engage

an additional collection partner

specifically for litigation.

Finding the ‘best fit’ debt

recovery agency with a reputable

legal recovery arm attached is

surprisingly simple. First, ensure that

the partnered law firm is specialised in

your industry, whether it be insurance

law, commercial litigation, debt

recovery or contract law.

Then ensure your next debt

recovery agency has highly

professional and knowledgeable

in-house counsel that can provide

you with the sound and actionable

legal advice you need when it comes

to legal action, enforcement of

judgements or bankruptcy.

Customer Re-engagement Debt recovery agencies that suffer

a negative image in Australia are

generally inexperienced in the art of

debt recovery, with unskilled or poorly

trained employees that are easily

frustrated. If the agency is skilled

at collections and mastering debt

recovery, the process will incorporate

a high level of customer service,

enhancing customer engagement and

improving financial results. Customer

service is the key to effective

collection in today’s environment.

Enhancing the customer service

experience should not be limited to

interactions between the agency and

your customers. It should also extend

to the agency offering your company

stakeholders transparent reporting,

auditing, and compliance oversight

that enhances your experience.

Learning and Development Programs

When selecting your next recovery

agency, find out whether their

employees receive ongoing training,

education and career development

programs supporting their career

development. Your debt portfolio

deserves highly trained, engaged and

effective leaders, qualified in areas

such as Emotional Intelligence (EI),

negotiation techniques, leadership

and customer service skills.

Having highly trained and skilled

operators representing your debt

portfolio will ultimately increase your

net return, reduce your write-off

volume and ensure collection activity

attracts a low – or zero – complaint

ratio, protecting your brand image.

It is a high risk to refer your debt

recovery needs to an agency that

does not appropriately train their staff.

Client-specific Training

As a Credit Manager, you want a

seamless end-to-end referral process.

You want the transition to be so

smooth that your customers build

trust with the agency because their

operators have sound industry, client

and product knowledge.

To guarantee a positive outcome,

provide your best fit recovery agency

with client specific training on a

granular client level, based on your

specific challenges and requirements.

Only this way can you ensure that

you will be provided with effective,

knowledgeable leaders and operators

to work your debt portfolio.

Questions to Ask Credit Managers, when selecting your

debt recovery panel in 2016, don’t be

afraid to ask an agency the following

questions:

— What are some examples of innovation you have implemented in your business?

— How will you apply analytics to my portfolio?

— What unique service approach do you employ in debt recovery to make you stand out?

— Where you serve in panel arrangements, how are you positioned against your competitors?

— How can you demonstrate your company’s commitment to the personal and career development of your staff?

— How does your agency handle complaints to better protect your clients’ brand image?

— Will your operators be trained on our specific collection requirements?

— Do you have a leading edge propriety owned IT infrastructure to effectively manage referrals?

— Is the agency able to tailor solutions specifically to our business recovery needs? Asking these questions will assist

you in determining which agency is

‘best fit’ for your recovery needs and

increasing your customer engagement

and net return. n

Amaran Navaratnam is Portfolio Manager at RecoveriesCorpwww.recoveriescorp.com.au

“Having highly trained and skilled operators representing your debt portfolio will ultimately increase your net return...”

Credit Management


Credit managers and not just those

employed by lending organisations

are responsible for debt recovery

from customers who have failed

to pay up their debt. This is a task

that requires great sensitivity and

emotional intelligence, as credit

managers are often exposed to

underlying human emotions and

personal difficulties the debtor may

be experiencing during debt recovery.

When all attempts to recover the

debt fail, litigation is commonly used

as a final resort. While litigation is

one solution to deal with recovering

debt, many credit managers will

agree that it is often not the best,

citing the following reasons:

1. Litigation is expensiveLitigation is an expensive process

both for the credit lending

organisation and the debtor who may

choose to appear in court to defend

their case or delay the collection of

the debt. There are court fees to be

considered apart from hefty legal

fees that need to be paid to lawyers

by both parties to comply with the

process.

2. It is time consuming and longLitigation is a time consuming process

wherein, once the case is filed, you

need to wait for court availability

for the hearing to start. The hearing

is unlikely to conclude in a single

session, in which case, additional

court appointments need to be taken.

Depending on the complexity, a case

can drag on for months before a trial

is reached. The value of recovering the

debt today is reduced by the delay

taken in court.

3. Both parties walk away dissatisfied During litigation, lawyers representing

both sides present and contest

evidence and facts from which the

court delivers a judgement. Often,

neither party feels they have had a

say or been heard properly. Once

delivered, a judgement would often

leave both parties feeling dissatisfied.

There is no guarantee that either

party gets the result they want going

into litigation and by delegating the

outcome to the magistrate or judge,

risk the outcome they would even be

prepared to settle for.

4. Litigation is not always successful in recovering the full debtBy going to court, there is no option

for the debtor to work with the

creditor to draw a feasible payment

plan. Rather, the limited solutions

of debt recovery delivered by the

court is what both debtor and credit

manager will have to accept. As

mentioned earlier, neither party gets a

say in the judgement delivered which

Is mediation a useful strategy for Credit Managers dealing with debt recovery?By Alison Shaw

Alison Shaw

Credit Management


also means that there is no guarantee

for the credit manager that the debt

will be recovered in full.

5. Litigation discourages confidence in the credit organisationWhen credit managers resort to

litigation, it will damage on-going

relationships and may harm the

company’s reputation and discourage

prospective customers from wanting

to deal with the business. Potential

customers may lack the confidence

to work with the company and be

concerned about the hard-nosed

attitude to debt recovery and fear

the possibility of a lawsuit being

filed against them if they default on

any payments for any reason. Such

unfavourable perception toward the

company is certainly not helpful for

future business relationships nor

an ideal image to have within the

industry.

What is mediation and what makes it a good alternative to litigation for debt recovery?Mediation is a voluntary, alternative

form of dispute resolution and

facilitated discussion where people

in conflict come together in a safe

and fair environment to try and

settle disputes with the support of

an independent third party – the

mediator.

So instead of going to court and

awaiting an outcome that you cannot

determine, going for a mediation

session could prove more effective

and satisfactory. By bringing in a third

party mediator who acts as a neutral

party and sole purpose is to help

both sides work toward resolution,

mediation enables negotiation of

solutions toward a joint agreement.

As compared to litigation,

mediation has the following

advantages:

z It is more cost effective than

litigation, since both parties share

the cost of mediation benefiting

the business and the debtor. It also

allows for quicker resolution of

cases, which helps in cutting down

on the legal costs and maximises

the value of the debt being

recovered as quickly as possible.

z It is quick and easy to arrange,

all to your convenience. Only

one party needs to contact the

mediator and the mediation

session can be held at the earliest

date when both the parties are

available. This is unlike litigation

where a date will be given

based on court availability and

both parties will have to make

themselves available at that date.

z Mediation is less intimidating

compared to litigation since it

is held at a time and place that

both parties find convenient and

have agreed on. The mediation

environment also offers privacy

Credit Management


that makes both sides feel

comfortable thus facilitating easy

and open discussions.

z Mediation is also a completely

confidential process, which

protects the reputation of the

debtor as well as the credit

manager and the organisation.

Going for mediation will help

prevent the case from going

public which can be harmful for

everyone.

z In a joint session, both parties

will be given the opportunity to

share their perspective about the

issue and express how it affects

them. This builds compassion

and empathy as both sides gain

a greater understanding of the

situation from the perspective

of the other. This encourages a

willingness to cooperate in order

to seek a satisfactory outcome for

both the business and the debtor.

z The biggest advantage mediation

has is it can allow for creative

solutions as opposed to going

to court where a judgement is

passed on the case and leaves

little room for negotiation.

Through mediation, it is possible

to work out feasible payment

plans that do not overburden the

debtor while ensuring that the

credit organisations get the owed

amount back with agreed default

provisions that can be made

enforceable. Both credit managers

and debtors are free to discuss

and choose an outcome that is

best suited to their interests. This

ensures both sides walk away

feeling heard and satisfied with the

outcome.

z Building on the fact that mediation

enables creative solutions, it also

gives more power to both parties

to control the topics for discussion

and the flow of the conversation.

They get equal chance to present

their point of view, express their

expectations and constraints

and work with the other side to

arrive at an agreeable solution

that best meets their needs and

expectations.

z Bringing about a mutually

satisfactory outcome by going

for mediation also helps preserve

current business relations

between the creditor and debtor.

Litigation on the other hand

usually results in strained relations

that ruin any chance of future

business transactions between the

two parties.

7 Tips for credit managers to maximise debt recovery with mediation:

1. Include a mediation clause in all

contracts, terms and conditions

as the primary dispute resolution

process.

2. Approach the debtor and put forth

the idea of going for mediation

first instead of sending them a

legal notice. This shows sincerity

on your end in working toward

the issues and establishes trust,

encouraging greater chances of a

quicker payment and settlement.

3. If you do not wish to initiate

mediation yourself or find that the

client is uncooperative, approach a

mediation agency, such as SHAW

Mediation, who can talk to debtors

and invite them to participate in

mediation. This will help disabuse

them of any misconceived or

misunderstanding about the

mediation process and assist in

answering any questions they may

have.

4. Meet with the mediator prior to

the mediation session to explain

your situation and discuss any

concerns and potential barriers

to the settlement. The mediator

will not proceed with any joint

mediation sessions until everyone

is in the right mindset to proceed.

5. Collate all relevant documentation

prior to meeting the mediator

to discuss what information and

documentation might be needed

to ensure a smooth process.

6. Be willing to generate and explore

options with the debtor as this

improves your chances to recover

the debt without having to resort

to litigation. You would want to

keep in mind that if the case moves

to litigation, you might receive a

judgement in recovering the debt

where the order is only as good as

the debtor being able to meet it.

7. The final outcome of mediation is

a mutually agreed upon solution

that can be legally binding, if you

wish. This protects your interests

by allowing you to take legal

action if the debtor defaults on the

agreement. However, if the debt is

paid, you may not need to go to

the expense of legally formalising

a past event by way of a Deed.

Overall, mediation is a quick, effective,

flexible and cost-efficient solution

that could assist credit managers in

debt recovery. It provides for a win-

win solution between both debtor

and creditor all the while preserving

business relations. This ultimately

adds to the good reputation of the

credit company and builds faith

among potential customers. n

This article was originally written by SHAW Mediation, a national mediation firm comprising of nationally accredited mediators whose services span across Australia. At SHAW, we can help you to resolve all kinds of disputes – no matter whether the dispute is personal or commercial, and across all ages, genders and industries. Let’s talk!

“...mediation is a quick, effective, flexible and cost-efficient solution that could assist credit managers in debt recovery.”

Credit Management


profitability as well as more than the

norm reporting ‘impairments’ further

impacting on their profit.

Whilst this simply may be a

moment in time result, it reminds

companies who are constantly

assessing credit risk, the importance

of knowing your customer and their

financial position.

Only a small percentage of our

clients admit to annually approaching

their large customers for updated

financial statements to ensure the

levels of credit that they have justified

in the past can continue to be justified

into the future.

ACTION – So what should you be

considering to combat future credit

risks?

1. Take a moment to conduct a

spread of risk of your debtors

aged trial balance. This will provide

you with a snapshot of where your

income is generated from.

2. Undertake a full review of your top

10 customers, including obtaining

financials and understanding their

market and trading conditions.

3. Focus on their net worth and

liquidity. Analyse what available

capital they may have within their

balance sheet and how long they

could endure poor financial results.

We have already experienced a

number of major failures in 2016. Many

of these are linked to poor cash flow,

lack of capital, losing bank support or

simply due to market conditions.

And whilst I enjoyed the Jesse J

‘Price Tag’ hit, I have to disagree with

the chorus and say that ‘it’s all about

the money’. n

Kirk Cheesman is Managing Director for NCI.Ph: + 61 8 8228 4869, Mob: +61 419 865 313E: [email protected]

About National Credit Insurance (Brokers) Pty Ltd: National Credit Insurance (Brokers) Pty Ltd are Australia’s leading specialist trade credit insurance broker in Australia, New Zealand and Singapore, with offices in all major capital cities. NCI is an Australian owned and operated organisation established in 1985, and are wholly owned by Steadfast Group Limited (Australia’s largest broker network).

For more information on National Credit Insurance (Brokers) Pty Ltd, please visit www.nci.com.au.

It’s all about the moneyBy Kirk Cheesman*

Kirk Cheesman

National Credit Insurance (Brokers) Pty LtdABN 68 008 090 702 | AFS Licence No 233817

TRADE CREDIT SOLUTION SPECIALISTS

CONNECT WITH THE

Navagating credit risk management requires expert advice. THAT’S WHAT YOU’LL GET WITH NCI.

To find out how we can assist you and your clients, contact us today. WWW.NCI.COM.AU 1300 654 500 [email protected]

• 30 years experience • National coverage

In January 2011 English songwriter,

Jesse J, released her single, ‘Price

Tag’. The number one hit proclaimed

“it’s not about the money”. In the

trade credit world, 2016 will be ALL

about the money and much may

hinge on cash flow, capital reserves

and credit availability.

In the Australian financial half-year

reporting season (31 December 2015)

there have been many businesses

who have reported deteriorating

mailto:Kirk.Cheesman%40nci.com.au?subject=

Credit Management


This is the equivalent to the old

challenging question of “what comes

first, the chicken or the egg?”

Both the Institute of Mercantile

Agents and Australian Collectors

and Debt Buyers Association offices

receive regular calls and messages

each week from members of the

public expressing frustration in

relation to contacts from parties

they understand or suspect to be

collectors who more often than not

are seeking out someone unknown

to that individual: sometimes it might

be seeking a previous tenant of their

address; or someone who reportedly

lived next door; or perhaps someone

with the same surname.

The most common thread to these

calls and messages is the concern of

the perceived attempt by the party

initiating the contact to deceive or

be tricky. Well you may ask, what

were the deceptions or the trickiness

allegedly being used by those making

such contacts? The refusal to say on

privacy grounds exactly who they are

and why they are calling!

Therein lies the disconnect

between the position embraced

by legislators and interest groups

justifying strict privacy regulations

and what the general community

actually want and expect in their

dealings in everyday activities such as

someone making a telephone call to

them. I’m sure many other Australians

are frustrated by this overzealous

“nanny state” privacy protection

which makes even the simplest of

transactions more convoluted and

difficult to navigate than is really

warranted.

Ever received a call from your

health insurer, your bank or insurer

and been annoyingly asked “before

I can discuss with you the reason

for my call can you please properly

identify yourself”. When this happens

to me, my response is usually “Well

yes I can, but you know who I am –

can’t you remember, you called me

on my mobile telephone number and

I announced my name as I answered

the call!”

Guideline requirementsThe ACCC/ASIC Debt Collection

Guideline at Part 2: Practical

Guidance specifically provides what a

collector should do when:

“1. Making contact with a debtor

(a). Under the privacy laws, you have

obligations to protect the privacy

of debtors. When making direct

contact, your first task must

always be to ensure the person

you are dealing with is the debtor.

This must be done every time

you make contact before you

divulge any information about the

debt, the process for its recovery

or before providing any other

confidential information.

(b). If you consider it necessary to

divulge your identity as a debt

collector before being sure that

you are dealing with the debtor

(for example, if requested by

the person you are dealing with)

then you may do so if that would

not have the effect of divulging

that the debtor has a debt.

Particular care should be taken

when speaking to a person at a

debtor’s workplace.

Example: Calling from or on

behalf of an organisation with a

descriptive name

If you are calling from or on behalf

of an organisation whose name

Identity frustrationsAlan Harries* ponders the conundrum impacting IMA Members effective engagement with consumers which is the role of identification during telephone contacts before the purpose of a call is disclosed.

Alan Harries

Credit Management


is more revealing or descriptive

in relation to debt collection

practices (for example, ‘Collections

R Us’) then revealing the name of

the organisation is likely to divulge

the existence of a debt.

(c). The limits on disclosing

information to third parties apply

to the debtor’s spouse, partner

and/or family as much as they

apply to other third parties.

(d). Having established the debtor’s

identity, you should then identify

who you are, who you work for

and explain the purpose of the

contact. Failing to clearly identify

who is calling and the purpose of

the call will most likely confuse the

debtor and may lead to the debtor

avoiding subsequent calls….”

Privacy frustrationBelow as an example, is a recent

email received by the IMA from a

distressed individual:

I am receiving frequent calls from

a debt collector on my personal

mobile number regarding a debt

that is held by a person a named

‘Wahid’ – a person whom I do

not know, who lives at a different

address, and whom I have never

had any form of relationship with.

These calls have been ongoing

since the beginning of this year.

The collector will not tell me how

or why they believe I know this

person or provide me with their

contact details, and as such I have

no way of knowing if it is the same

agency contacting me on each

occasion.

The agency in these calls advise

me my details have been obtained

from a ‘public database’. I have an

unlisted mobile number, which is

not recorded on public databases.

When I ask them to provide

me with the name of the public

database so I can have my details

corrected, they refuse to provide

it to me. The calls usually end with

the agency refusing to answer any

questions and hanging up on me.

Both...offices receive regular

calls and messages each

week from members of the

public expressing frustration

in relation to contacts from

parties they understand or suspect to be

collectors

Credit Management


A number of months back

the NSW Sheriff attended my

residential address and spoke

with my wife regarding this debt

owed by ‘Wahid’. They were

satisfied we had no relation to

the debt or the person and left

but due to privacy reasons the

Sheriff Officers could not disclose

who had sent them. The calls

(presumably from the agency)

however, have continued.

I have had my phone provider

place a trace on my phone

number to identify the details of

the caller, however as the agency

does not call more than the

required times each month the

phone company cannot provide

me any further details.

As the body representing debt

collectors I am hoping you can

assist me in some way with:

- identifying the agency

contacting me and request they

delete my contact details and

cease contacting me; and

- providing me with details of

‘public databases’ used by

collection agencies who I can

contact to have my details

corrected.

Telephone contacts with consumers

are problematic for many industries

especially for those where any

element of sales is involved but

the situation for collectors making

legitimate calls is much more

difficult given the initiating party

is restrained from being upfront

and open as to the purpose of the

call until such time that the other

party to the call has been properly

identified!

Establishing the bona fides of any

caller in order to have a meaningful

communication with the other

party is very much dependent upon

explaining the purpose and the

context of the call. This is simply

achieved for most calls except for

those made by collectors!

Consider these two typical

business related calls: “Hello, this

is Mary from Dr Smith’s office just

calling to change your appointment

time for tomorrow” and “Hi this is

John from Curtains–R-Us, I will be at

your place at 9.30am in the morning

to do your measure and quote”.

In both examples, the party receiving

the call can quickly understand the

reason and recognise the legitimacy

of the call and is not confronted

or positioned for a wary, guarded

or hostile response to a request

to provide personal identification

details before the caller can properly

identify himself and the purpose of

the call.

The adverse response often

encountered to a contact made

where the collector was unable to

divulge the identity of his or her

employer and the reason for the

call is capably demonstrated by a

complaint an IMA member recently

received – a simple contact quickly

spiralled to a complaint all because

the collector correctly followed the

privacy requirements:

The call initiated in response

to an updated contact point for a

borrower in default on an account

was to a third party who took offence

when the collector politely declined

due to privacy reasons to name the

company she was calling from.

The third party was insistent

in wanting to know the identity

of the company involved and

would not accept that due to

privacy reasons the caller could

only say she was from a financial

company and couldn’t provide the

company’s name. The third party

demanded the call be transferred

to a supervisor and in the process

of that transfer, the call connection

was lost.

The collector’s supervisor

recontacted the third party again,

advised her name and apologised

for the earlier call connection

being lost. She attempted to assure

the third party as to the need to

make contact with the consumer

– the third party however was

determined to argue about the lack

of identification of the company

being provided. The third party

asserted the first caller and now

the supervisor had breached the

privacy laws by not providing the

company’s name and that she had

previously worked in a government

department so she knew!

The third party expanded that

older people if contacted as she had

been might give out information

and so it was a breach of privacy!

The supervisor attempted to

acknowledge the third party’s

perspective and to explain the onus

in any conversation is always upon

the person giving information not to

breach another’s privacy.

The third party returned to

insistent criticism of the initial caller’s

refusals to identify the company she

was calling from – the supervisor

again explained she and the original

caller were restrained from providing

such information due to a specific

regulator requirement. The third

party asserted she knew who the

regulator was and so the supervisor

invited her to check the guidelines

Telephone contacts with consumers are problematic for many industries

especially for those where any element of sales is involved...

Credit Management


– however it was quickly apparent

the third party was unaware of the

identity of the regulatory agency

involved.

Increasingly agitated she would

not be provided with the name of

the employer involved, the third

party then asserted an intention to

call Kochie (Sunrise) and Lisa (Today

show) to see if it is allowed!

The supervisor explained a

journalist with either morning TV

show would be able to check industry

requirements and confirm all the

dealings in the telephone calls had

been done correctly and again

expanded it would be easier for the

two staff to provide their employer’s

name but the intention is to protect

the privacy of the individuals they are

attempting to speak directly with.

Finally the third party claimed

that “calling” is harassment – this was

politely disputed with the supervisor

noting she saw no evidence of any

harassment. Several attempts to

engage the supervisor in further

argument were unsuccessful with the

supervisor drawing the third party

back to the reason for the call. At

this impasse, the supervisor advised

she was happy to stop calls to the

third party’s number – the third party

advised she would tell her fellow

residents never to provide information

to any caller from financial companies

and then terminated the call.

If we were scoring this contact

the result would have to be judged

as: Privacy frustration 1 vs Effective

engagement Nil!

Pesky lettersWritten contacts can be

problematic too. Another example

of the frustration of third parties

encountering privacy restrictions

was evident when the IMA office was

contacted some months back by an

elderly female who was very upset

that she was receiving mail at her

address for a previous occupant for

whom she did not know a forwarding

address.

Instead of simply returning the

mail to sender with an appropriate

notation such as “Not Known

At Address” – this third party

explained she was so offended by

the steady stream of mail being

received in her mail box for the

previous occupant and so she

googled the PO Box address on the

back of one of the envelopes and

discovered it related to a collection

firm based in Sydney.

The Third Party then decided she

would call that collection agency to

get her address removed from their

records only to discover she was met

by a refusal on privacy grounds to

discuss whether the company were

chasing the previous occupant for a

debt as the third party was unable

to identify herself as the consumer

concerned or as an authorised

representative of the consumer.

The next call was to the IMA

to complain about the collection

company for writing to her and then

refusing to discuss anything about

the previous occupier of her address

on privacy grounds.

Impact of contactsWhilst writing this article, a call

was received at the ACDBA Office

from a female who had moved from

Australia to Singapore and was

having difficulties with repeated

contacts from an Australian collection

firm (which she named) asking her to

pass on a message to her boyfriend

who remained in Australia. She

claimed she had received perhaps

6-7 calls over recent months from

the same collector who was getting

increasingly insistent that she pass

on a message to her boyfriend to call

the collector. She explained she had

passed on the earlier messages but

could hardly compel her boyfriend to

call in response.

This female explained the

collector seemed to believe her

relationship with the boyfriend

was much closer and more serious

than it actually was and despite

her explaining they were no longer

living together but simply remained

friends, the calls to her workplace

in Singapore asking her to pass on

messages had continued.

In response to the question

of how the collector held her

workplace number in Singapore she

explained the collector had claimed

to have tracked her down via her

LinkedIn profile, established her new

employment and then called through.

According to the third party, the

repeated calls to her workplace were

now causing her embarrassment

with those working in close proximity

taking an interest such that she had

to explain that she did not owe any

money but the caller was asking for a

message to be passed onto someone

else.

Not a scam!Coincidentally, a male called

through to the IMA Office around

the same time to complain about a

call he had received from the same

collection firm. He gave an account

that he had received a call and then

Establishing the bona fides of any caller in order to have a meaningful communication with the other party is very much dependent upon explaining the purpose and the context of the call.

Credit Management


before the caller would proceed

further to explain the reason for the

contact, had asked for his personal

identification details. The caller

told him the company’s name but

otherwise would provide no other

details or the context for the call

being made to him.

When he refused to provide his

personal details, he claims the caller

became “rude and hung up”. Upset

by this call, this male then googled

the company name and discovered it

was a collection firm so he called that

company as he believed he had no

outstanding accounts and wanted to

know why it was calling him. On this

occasion he spoke with a collector

and then a manager – neither would

assist him and were again in his

view rude – he admitted however

he had again refused to supply any

personal identification details as he

was genuinely concerned the call

to him may have been part of some

elaborate scam.

Frustrated by the discussion with

the two persons at the collection

firm, he then rang the IMA to

complain. IMA staff explained the

reason for the company’s request

for him to personally identify himself

was to ensure it did not breach

privacy and collection regulatory

obligations.

After establishing the company

concerned was a member of IMA

and obtaining an alternate contact

number for the company this male

decided he would again call back

to the company and provide his

personal details so as to get this

matter sorted out. He apparently

spoke to someone who he later said

was polite and so he provided all

his identification details – in return

he was able to establish the debt

being chased actually belonged to

a former acquaintance of his from

5 years earlier – as it happened, the

male was able to provide a contact

number for that acquaintance’s

girlfriend.

The male subsequently called

back to the IMA to advise the

outcome of his further interactions

with the collection company and to

thank the IMA for the reassurance

and assistance provided in response

to his concerns.

Something has to giveUndoubtedly privacy and regulatory

obligations surrounding contacts

made with debtors and third

parties is well intended but from

the industry’s perspective it seems

those obligations are increasingly

causing quite some collateral

damage. Damage to the reputation

of responsible professional

collectors diligently meeting those

obligations as they go about their

work and more importantly, real

and costly impediments to effective

engagement between collectors

and debtors to quietly, calmly and

efficiently discuss an outstanding

account.

The same regulators who have

established the privacy and collection

obligations surrounding contacts

are amongst those which regularly

implore Australians to watch for

deceptive scams and to always avoid

passing their personal identification

details to persons they do not know.

This is the conundrum – the role

of identification during telephone

contacts before the purpose of a call

is disclosed.

The reality of society today is

that most Australians are aware of

and have access to the power of the

internet where search engines such

as Google are so fast and helpful

in returning results such as listings

for specific telephone numbers or

addresses. Leaving a non-descript

message inviting a return call to

a specific telephone number or a

letter with just a return address on

the reverse will not stop determined

individuals from making their own

online enquiries to learn more about

the message left or the identity

of correspondence received and

intended for others.

The examples detailed above of

individuals distressed by contacts

received where the caller is refrained

from divulging the context or

purpose of the call made until

first prevailing upon the receiving

party to divulge his or her personal

identification details clearly

demonstrate the artificial regime

prescribed under the privacy and

regulatory guidance is increasingly

unworkable as it fails to meet what

contemporary Australia requires

when a contact is made in this age

of being on guard to the possibility

of scams being perpetuated against

them.

The industry is willing to meet

and discuss the issue of appropriate

contacts with legislators and

regulators as clearly something has

to give to restore common sense to

such simple everyday transactions as

a telephone contact. n

*Alan Harries is the CEO of the Institute of Mercantile Agents and Australian Collectors & Debt Buyers Association – he can be contacted at [email protected]

“Something has to give to restore common sense to such simple

everyday transactions as a telephone contact”

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Credit Management


It is common to hear colleagues

despairing at the volume and

demand of email traffic to their

inboxes – even using auto rules to

weed out the scams and unwanted

promotional and sales messages

seems an inadequate defence

to keep this vital but at times

overwhelmingly communication

medium under control.

The receipt of constant email

updates, requests or queries are

a source of stress to many credit

professionals. This is not to mention

all the promotional emails and

unsolicited emails that infiltrate

most inboxes. A recent report by

researchers argues that to manage

the stress from a constant flow of

incoming emails people should

consider doing without emails

but in this day and age, such a

recommendation is pretty well

unrealistic and unachievable.

The report from the London-

based Future Work Centre which

conducts psychological research

on people’s workplace experiences

included a key recommendation to

not have your email app running at all

times. Understandably, many in our

industry would find this hard if not

impossible to implement.

The psychologists in their report

following a survey of almost 2,000

workers in the UK across a range of

industries and occupations, were

urging users to seize control of their

email instead of being ruled by it and

suggested “you may want to consider

launching your email application

when you want to use email and

closing it down for periods when

you don’t wish to be interrupted by

incoming emails… use email when you

intend to, not just because it’s always

running in the background.”

Interestingly, the researchers

found two of the most stressful

habits of those surveyed was leaving

emails on all day and checking emails

early in the morning and late at

night. They concluded that “higher

email pressure was associated with

more examples of work having a

negative effect on home life, and

home life having a negative impact

on performance at work”.

The report’s lead author Dr

Richard MacKinnon said: “our

research shows that email is a

double-edged sword. While it can be

a valuable communication tool, it’s

clear that it’s a source of stress or

frustration for many of us. The people

who reported it being most useful to

them also reported the highest levels

of email pressure. But the habits we

develop, the emotional reactions we

have to messages and the unwritten

organisational etiquette around email,

combine into a toxic source of stress

which could be negatively impacting

our productivity and wellbeing.”

Manage or be burdenedHow to avoid your inbox being a controlling burden and impediment to your work efficiencies.

A recent report by researchers argues that to

manage the stress from a

constant flow of incoming emails

people should consider doing without emails but in this day

and age, such a recommendation

is pretty well unrealistic and unachievable.

Credit Management


Heavy trafficA report “Email Statistics Report,

2015-2019” prepared by The Radicati

Group provides some context as

to the extent of email traffic and

usage: in 2015 worldwide email

users numbered nearly 2.6 billion,

with the average number of email

accounts per user being 1.7 accounts

whilst the number of emails sent and

received per day across the world

was a staggering 205 billion!The same

report details that in 2015 the number

of business emails sent and received

per user per day totalled 122 emails.

How does your inbox traffic stack up

against that average rate? Quite likely

given our industry’s reliance upon

emails, your inbox traffic will be much

higher.

Manage the trafficGetting serious with managing

your emails. The first step will be

to recognise how you respond to

incoming messages. The sad reality

is it is now common place that email

has imposed upon many of us, a form

of business attention-deficit disorder,

such that whatever comes into your

inbox trumps anything else you’re

working on!

If managed effectively, email

doesn’t need to be a burden.

Management requires some

strategies such as those suggested

by Steuart Snooks, the Email

Strategist & Productivity Expert who

presented sessions at the 2014 IMA

National Conference:

Snooks advocated a www

strategy to take control of email

traffic – the www representing

WHEN, WHAT and WHERE. We have

reproduced the outline of his strategy

below.

WHEN1. Controlling when you will look at

your email

(a). Schedule times to check email

(rather than reacting as they

arrive). Efficiency experts

suggest restricting looking at

emails to just 4 times per work

day, such as:

z Early in the day

z About 30-45 minutes

before your lunch break

z Any time that suits during

the afternoon

z About 30-45 minutes

before you finish for the

day

2. Turning off all Outlook email alerts.

Such alerts typically are any one or

combination of a sound, a change

to the mouse pointer, displaying

an envelope icon in the taskbar

or displaying a desktop alert – all

of them are a distraction to your

efficiency.

3. Managing the expectations

of those who email you – this

can be achieved by a simple

message above your signature

block on ongoing messages

advising you only check emails

3-4 times per day but if an

urgent response is required to

telephone you directly.

WHAT1. Handle each email only once by

adopting the proven 4D method:

z DITCH/DELETE

z DEAL (immediately handle any

email that you can read and

respond to in two minutes or

less)

z DELEGATE

z DECIDE

{ Where – file/move to a

Folder

{ When – convert to a Task

or Calendar item

{ Wait – add to a Watch List

(pending a reply)

2. Use Outlook rules to automate

processes such as moving

messages to specific folders eg

Newsletters/ezines, personal

emails and Google “alerts”.

Clarify expectations and

parameters in the messages you

send:

(a). No question = no reply

— Send a one off notification

— Add a PS to signature that

a reply is not required

— To reduce unnecessary

email

(b). Establish thresholds

— To allow for independent

decision making

— To reduce back and forth

emails

(c). Use if/then instructions

— To prevent follow up

questions

— To speed up decision

making

— To reduce back and forth

emails

WHERE1. Reduce mailbox size

2. Use document links in your

messages rather than adding

attachments – not only will it

reduce the size of your message

but it will improve the speed of

the transmission whilst improving

the version control, security and

compatibility for the documents

shared with the email recipient

3. Simply your email folder structure

in Outlook:

(a). Separate “finished” from

“unfinished” work;

(b). Create 4 or 5 primary folders

to sort and store your

messages. n

Adapted from an artice in The AGENT February/March 2016

Legal


The ‘PPSA defence’ has, in recent

times, become a very valuable tool

used by creditors to defend unfair

preference claims.

The Supreme Court of South

Australia recently overturned the

decision of the District Court of South

Australia in Matthews v The Tap Inn

Pty Ltd [2015] SADC 108 that was

being relied upon by liquidators

nationwide to limit the value of the

PPSA defence.

This decision focused on whether

a creditor’s security is to be valued

as at the date of liquidation. This is

relevant because liquidators can only

pursue unfair preference payments

provided they are in respect of an

unsecured debt, hence the time for

valuing that security can also be a key

consideration.

There are competing arguments

as to which of the following times are

correct for valuing the security under

the unfair preference regime because

the legislation is not clear.

1. The date of creation of the security

interest; or

2. The time of the relevant payments;

or

3. The date of liquidation of the

company.

The decisionsIn July 2015 a District Court Judge

held that the value of the creditor’s

security was to be assessed as at the

date of liquidation, thereby ignoring

the reality and value of the security as

at the time of the relevant payment.

This impacted the creditor because

the value of the security interest as

at the later date was substantially

reduced, exposing the creditor to a

claim.

The finding was overturned by the

Full Court of the Supreme Court of

South Australia. However, unhelpfully,

the question was not resolved in this

case and is yet to be determined by a

superior court in Australia.

A copy of the judgment of the Full

Court of the Supreme Court of South

Australia is available here.

The impact of the decision is

that it remains uncertain as to when

the assessment of the valuation of

a creditor’s security interest is to

occur in respect of alleged unfair

preference payments.

For creditors, it is pleasing that the

Full Court allowed the appeal and that

there is no superior court decision

that requires the valuing of the

security as at the date of the winding

up (usually when the security is likely

to be of less or no value).

Unfair preference claim must relate to unsecured debtCreditors are frequently able to

reduce, and in some cases wholly

defend, claims on the basis that

they held valuable security. Security

interests for this purpose include:

1. purchase money security interests

(PMSI) relating to goods supplied

or hired on credit;

2. registered mortgages (land and

chattel mortgages); and

Important win for creditors defending unfair preference claims By Michael McDonnell and Rhett Kipps*

Michael McDonnell

Rhett Kipps

http://resultslegal.createsend1.com/t/r-l-vukihky-ducjtliir-j/

Legal


3. charges arising from credit

applications and personal

guarantee documentation.

Creditors may have defences

available that are not immediately

obvious.

It is best practice for creditors to

engage specialist solicitors, such

as Results Legal, to undertake a

detailed security review (including

any priority considerations) as

part of the assessment of unfair

preference claims to ensure

all grounds of defence are

considered.

Earlier Superior Court decisionThe reasoning in the overturned

District Court of South Australia

decision was not consistent with

the relevant comments in an earlier

decision in the Queensland Court of

Appeal in 2011 in Bradnam’s Windows

and Doors Pty Ltd v Offermans [2011]

QCA 106 (view here).

Take away points z We consider that the relevant

time to assess the security

interest is as at the time of the

relevant payment and not at the

time of liquidation, and that the

Queensland Court of Appeal

decision supports this view.

z These decisions are important for

creditors with potential exposure

to unfair preference claims and for

insolvency practitioners seeking

to pursue such claims on behalf of

creditors.

z The industry would benefit from

statutory clarification on the issue.

z We will continue to monitor

the development of the law in

this area, including any further

litigation that ensues between the

parties to the Tapp Inn decision. n

*Michael McDonnell is a Principal at Results Legal, [email protected]

*Rhett Kipps is a Senior Associate at Results Legal, [email protected]

Results Legal specialises in credit based litigation including legal recovery, insolvency law and commercial disputes. In particular, Results Legal has extensive experience in acting on behalf of trade creditors to successfully defend unfair preference claims and promote their rights under the Personal Property Securities Act.

If you wish to discuss the impact of these decisions, or require any insolvency law advice, please contact Results Legal on 1300 757 534.

http://resultslegal.createsend1.com/t/r-l-vukihky-ducjtliir-t/

mailto:mmcdonnell%40resultslegal.com.au?subject=

mailto:rkipps%40resultslegal.com.au?subject=

Legal


As mentioned in the previous edition

of Credit Management in Australia,

we recently presented an interactive

seminar with members of the AICM

at the NSW Credit Symposium. There

was a great amount of discussion

regarding a number of practical

issues that are expected to arise as

a result of the legislative changes

to the Competition and Consumer

Act 2010 (Cth) (CCA) and the

Australian Securities and Investment

Commission Act 2001 (Cth) (ASIC

Act). The Treasury Legislation

Amendment (Small Business and

Unfair Contract Terms) Act 2015 (Cth)

(Act) will bring about those changes,

which principally have the effect of

extending the protection for unfair

consumer contracts to small business

contracts. The Act will commence on

12 November 2016 and will apply to

contracts entered into, or varied, after

that date.

For credit managers the Act is

expected to create the following

issues.

Is each new order from a customer going to create a new contract?For each order that is placed (and

accepted by the supplier) a new

contract is usually created between

the customer and supplier.

Each contract for the supply of

particular goods or services, the

subject of the order/invoice, will be for

the “upfront price” specified on the

invoice and subject to the supplier’s

Terms of Trade (where applicable).

As the Court explained in Central

Cleaning Supplies (Aust) Pty Ltd v

Elkerton [2015] VSCA 92 (12 May

2015) at [15]: Plainly enough, each

contract between Central and Swan

for the sale and supply of particular

equipment was ‘an agreement to sell

subject to retention to title’.

If the “upfront price” (invoice

price) is up to $300,000 then the Act

will apply to that contract for supply,

unless the contract duration is more

than 12 months – in which case the

greater threshold of $1,000,000 will

apply.

Why doesn’t each new order create a new security interest under the Personal Property Securities Register if each new order/supply creates a new contract?Whether a supplier’s security interest

in their goods needs to be registered

each time a contract for supply is

entered into (an order is placed and

accepted) depends on the supplier’s

Terms of Trade. A security interest

needs to be registered each time it is

provided for or created.

The Personal Property Securities

Act 2009 (Cth) (PPSA) draws a

distinction between an agreement

that creates a security interest and an

agreement that provides for a security

interest.

Section 12 of the PPSA defines a

security interest. A security interest

includes an interest in personal

Unfair Contracts Law Reform – issue identified by Credit ManagersBy Geoff McDonald*

Geoff McDonald

Legal


property provided by a number of

different transactions, comprising,

amongst other things, a conditional

sale agreement (including an

agreement to sell subject to retention

of title).

If a supplier’s Terms of Trade

provide for security in all supplies,

present and future, then, despite

the fact that there is a contract

between the supplier and customer

for each supply, the security interest

is provided once (for all supplies

including future supplies) and only

needs to be registered once.

The Court, in Central Cleaning

Supplies, gave a helpful example

to draw the distinction between an

agreement that creates a security

interest and an agreement that

provides for a security interest.

In Central Cleaning Supplies (Aust)

Pty Ltd v Elkerton [2015] VSCA 92 (12

May 2015) the Court of Appeal noted

that:

19. In the first of these, the genesis

of the security interest is to

be found in the agreement or

act itself. The entering of the

agreement, or the doing of

the act, ‘creates’ the security

interest. An example of this

would be a contract for the

sale of the goods which itself

includes a retention of title

clause. That is an agreement

which creates the security

interest in the vendor of

the goods. By contrast, an

agreement or act will ‘provide

for’ a security interest if

it makes provision for the

creation of a security interest

in the future and/or by some

other agreement or act.

Will the new laws apply as soon as the customer places an order? What if there are already Terms of Trade in place with that customer?The Act will not apply to a contract

entered into before 12 November 2016.

However, because each order and

invoice will constitute a new contract,

any order placed from 12 November

2016 will give rise to a contract to

which the Act will apply.

As readers will know, many

standard Terms of Trade are designed

to apply to all future supplies to

customers. As a result, even where

a supplier’s Terms of Trade or Credit

Application was accepted by the

customer before 12 November 2016,

those Terms of Trade will often apply

to supplies to the customer after 12

November 2016, and therefore will be

caught by the Act.

How can the sales team be expected to negotiate every contract with a customer?This issue was of great concern

for attendees of our seminar. The

Act protects small businesses from

standard form contracts that contain

unfair terms. An unfair term of a

standard form contract will be void.

A contract will continue to bind

the parties to it if it is capable of

operating without the unfair term.

In assessing whether a contract is a

standard form contract a Court must

take into account the following:

(a) whether one of the parties has

all or most of the bargaining

power relating to the

transaction;

(b) whether the contract was

prepared by one party before

any discussion relating to the

transaction occurred between

the parties;

(c) whether another party was, in

effect, required either to accept

or reject the terms of the

contract (other than the terms

referred to in section 26(1)) in

the form in which they were

presented;

(d) whether another party was

given an effective opportunity

to negotiate the terms of the

contract that were not the

terms referred to in section

26(1);

(e) whether the terms of the

contract (other than the terms

referred to in section 26(1))

take into account the specific

characteristics of another party

or the particular transaction;

(f) any other matter prescribed by

the regulations.

There is little to no doubt that, if a

supplier provides its standard Terms

of Trade to a customer and does

not provide that customer with the

opportunity to negotiate those Terms,

that document will be a standard form

contract.

If it is accepted that a supplier’s

Terms of Trade are the terms of a

standard form contract, then it is a

matter of either negotiating those

Terms of Trade with the customer,

or ensuring that the Terms of Trade

are not unfair. At the NSW Credit

Symposium, the thought of a sales

person being required to negotiate

and then vary the Terms of Trade was

not well received.

We suggest that, rather than

negotiating the terms with each

customer, it is easier to ensure, that a

supplier’s Terms of Trade are fair.

It is important to keep in mind,

when assessing whether a term is

unfair, that the Court must consider

the extent to which the term is

transparent and the contract as a

whole.

What should I do to minimise the risk that my terms are unfair?One thing that can be done quite

easily is to increase the “transparency”

of terms that are at risk of being

found to be unfair. Suppliers should

increase the font size of these terms

and possibly bold certain terms where

possible. A transparent term must

be expressed in reasonably plain

language, be legible, presented clearly

and readily available to the customer.

It is suggested that the more

significant the term (e.g. a charging

clause within a director’s personal

guarantee), the more transparent it

must be.

Legal


How will suppliers know if the customer is a “small business” – are we expected to monitor the number of employees of each customer?The Act applies to small business

contracts. A contract is a small

business contract if, at the time the

contract was entered into, at least one

party to the contract is a business that

employs fewer than 20 persons.

The popular consensus at our

Symposium was that it is just too

difficult to monitor the number of

employees of each customer.

In order to assess whether their

customer is a small business, the

supplier would have to know the

number of employees at the time the

contract was entered into (which, as

discussed above, is not necessarily

the time when the Terms of Trade

are accepted) and whether the

customer’s employees are employed

on a full time or a casual basis.

For purposes of the Act, a casual

employee is not to be counted

unless he or she is employed by the

business on a regular and systematic

basis.

Suppliers should err on the side of

caution and, where in doubt, assume

that the customer is a small business,

that the Act will apply, and consider

whether their Terms of Trade could be

held to be unfair.

What sort of terms will be unfair?The CCA provides examples of terms

that may be unfair. As mentioned

above, a term must be considered in

its context, so as a result, it cannot be

said that any term would definitely be

found to be unfair.

(a) a term that permits, or has the

effect of permitting, one party

(but not another party) to

avoid or limit performance of

the contract;

(b) a term that permits, or has the


(but not another party) to

terminate the contract;

(c) a term that penalises, or has

the effect of penalising, one

party (but not another party)

for a breach or termination of

the contract;

(d) a term that permits, or has the


(but not another party) to vary

the terms of the contract;

(e) a term that permits, or has

the effect of permitting, one

party (but not another party)

to renew or not renew the

contract;

(f) a term that permits, or has


party to vary the upfront price

payable under the contract

without the right of another

party to terminate the contract;

(g) a term that permits, or has


party unilaterally to vary the

characteristics of the goods or

services to be supplied, or the

interest in land to be sold or

granted, under the contract;

(h) a term that permits, or has


party unilaterally to determine

whether the contract has been

breached or to interpret its

meaning;

(i) a term that limits, or has the

effect of limiting, one party’s

vicarious liability for its agents;

(j) a term that permits, or has


party to assign the contract

to the detriment of another

party without that other party’s

consent;

(k) a term that limits, or has the

effect of limiting, one party’s

right to sue another party;

(l) a term that limits, or has the

effect of limiting, the evidence

one party can adduce in

proceedings relating to the

contract;

(m) a term that imposes, or has

the effect of imposing, the

evidential burden on one party

in proceedings relating to the

contract;

(n) a term of a kind, or a term

that has an effect of a kind,

prescribed by the regulations.

Is the Act going to mean I can’t vary my Terms of Trade and/or publish variations on the Internet?Given the abovementioned examples

of unfair terms, any term that allows

a supplier to unilaterally vary their

Terms of Trade will likely be unfair.

This is a difficult point of law,

given the varied nature of agreements

between trade suppliers and

customers, as it may be reasonably

necessary for a supplier to vary its

Terms of Trade in order to protect its

legitimate interests. In this context,

such terms allowing a variation may

be permissible. However, any term that

is unilaterally varied by the supplier

(relying on a unilateral variation

clause) could itself nonetheless be

deemed to be unfair. The principal

reason that we take this view is that

any term that is unilaterally varied by a

supplier will not have been negotiated

by the customer and will (in many

circumstances) be to the detriment of

the customer. Again, if the varied term

is reasonably necessary to protect the

legitimate interests of the supplier it

may be considered fair.

A good example of a necessary

variation would be the variation of a

retention of title term to bring it into

compliance with the PPSA.

Any term that allows a supplier

Suppliers should err on the side of caution and, where in doubt, assume that the customer is a small business

Legal


to unilaterally vary their Terms of

Trade, by simply publishing those

terms on the Internet, is highly likely

to be unfair because that term would

reduce the transparency of any

variation. The customer may not visit

the supplier’s website and may place a

further order with the supplier without

realising the variation has occurred.

The issue comes back to the term

which the supplier seeks to impose on

the customer; is it unfair?

Revisiting your Terms of TradeThe reform to unfair contract laws

is significant. The effects won’t

be known for some years when a

customer cross claims against the

supplier alleging a breach of the law.

We acknowledge that it will be

difficult to balance the inclusion

of unfair terms within the Terms of

Trade against protecting a supplier’s

legitimate and reasonable business

interests.

Where at all concerned, it is best

to seek legal advice.

To conclude, we provide the

following peculiar example of a term

that the Federal Court of Australia

has recently found to be unfair in

the context of consumer to business

contracts.

The case below relates to the

terms of supply of Christmas hampers.

Chrisco Hampers had included a

term in its contract that allowed

Chrisco Hampers to continue to

withdraw funds from its customers’

bank accounts after the customers

had completed payment for their

hamper, on the basis that the amounts

withdrawn would be held as a

prepayment for any future hamper

purchased. The term would apply

unless the customer opted out of it.

We expect that, as a result of the

Act, a similar term would be found to

be unfair if it existed in small business

to business contracts; such as a

supplier’s Terms of Trade.

This case may also be of assistance

to suppliers in considering the use

of terms that the customer may opt

out of and how to otherwise present

their Terms of Trade so that they

are transparent for purposes of the

Act. In paragraphs 71 to 97 of the

Judgment, the Court considered the

transparency of the HeadStart term

by reference to the placement of the

term, the placement of the opt out

box, the language of the term (was

it confusing), and the size, colour

and style of the font of the term in

comparison to other terms in the

contract.

In Australian Competition and

Consumer Commission v Chrisco

Hampers Australia Limited [2015] FCA

1204 (10 November 2015), his Honour

Justice Edelman stated:

3. Chrisco’s contracts with its

customers contained a term

(called the HeadStart term)

that required the customers

to allow Chrisco to continue

withdrawing funds from the

customer’s bank account even

after the customer had made

full payment for the goods. The

term would apply unless the

customer opted out of it. The

money withdrawn from the

customer’s bank account would

be used for any future order

made by the customer but the

customer would not obtain any

discount on a future order and

if the customer did not place an

order, but requested a refund

of the money paid, the money

would be refunded without

interest.

4. The first issue concerns

whether the HeadStart term

is an “unfair term” within the

meaning of s 24 of the ACL.

The essential issue in this

case is whether the HeadStart

term caused a significant

imbalance in the parties’ rights

and obligations arising under

the contract. One of Chrisco’s

submissions was that the

demographic of its customers,

some of whom were described

as “unsophisticated”, was such

that it was an advantage for

them to have money removed

from their accounts prior to

placing another order unless

they elected to the contrary

or sought a refund. Chrisco

submitted that the removal of

the money from the customers’

accounts without interest,

and without any discount on a

prospective order, conferred

a benefit on the customers.

Chrisco said that the benefit

was that the customers were

given the ability to pay for

prospective orders by smaller

instalments over a longer

period of time (albeit at a

higher cost taking into account

the time value of money). As

I explain in the body of these

reasons, such a “benefit” is not

substantial. I consider that in

all of the circumstances of the

HeadStart term and Chrisco’s

contract the term was unfair. n

* Geoff Mc Donald is Barrister at 9th Floor Windeyer Chambers.

Any term that allows a supplier to unilaterally vary their Terms of Trade, by simply publishing those terms on the Internet, is highly likely to be unfair because that term would reduce the transparency of any variation.

Insolvency


Welcome to the Ideas Boom reads

the tagline for the Commonwealth

Government’s National Innovation

& Science Agenda’s webpage.

Under the heading Insolvency Law

Reform the reasons behind the

proposed changes to our personal

and corporate insolvency legislation

are explained (our emphasis):

More often than not,

entrepreneurs will fail several

times before they make it

and will usually learn a lot in

the process. To help these

entrepreneurs to succeed will

require a cultural shift. We

need to encourage Australians

to take a risk, leave behind the

fear of failure and be more

innovative and ambitious.

The Government’s proposed changes

should reduce the fear of personal

and corporate insolvency for directors

and sole traders. It is proposed

that the term of a bankruptcy be

reduced from 3 years to 1 year and

directors be allowed safe harbour

from insolvent trading liability if they

appoint a restructuring advisor (read

on for recommendations from the

Productivity Commission as to who

will be qualified for that appointment).

But will the Government’s

initiative create the desired cultural

shift and change the stigma of

bankruptcy, and at what cost

to creditors? The Government’s

proposal paper is expected later in

the year. Until then we provide the

following observations in relation

to the Inquiry Report produced by

the Productivity Commission (the

Inquiry Report is being considered

by the Government in deciding the

extent of legislative reform) and

note the response from ARITA to the

foreshadowed reform.

In deciding the extent of the

insolvency law reforms to be

implemented in 2017, the Government

will consider the recommendations

of the Productivity Commission as

published in the Inquiry Report on

Business Set-Up, Transfer and Closure.

Safe Harbour ProvisionsThe Productivity Commission has

recommended some conditions for

the Government to consider when

drafting legislation to amend the

Corporations Act 2001 (Cth) to

provide a ‘safe harbour’ defence to

directors. As mentioned above, the

director must appoint a restructuring

advisor, but who will qualify for

that appointment? The conditions

proposed by the Productivity

Commission include:

1. When appointing a restructuring

advisor the director must

approach the appointment with

clean hands; this will mean that

the director must provide the

complete books and records of

the company upon the advisor’s

appointment.

2. The company must be solvent at

the time of the appointment of the

restructuring advisor.

3. The restructuring advisor must be

Shorter Bankruptcies to save the economy?ARITA concedes that the Government’s proposed Insolvency reform could leave the system open to rorting

By Gavin Parsons and Rebecca Ross*

Gavin Parsons

Rebecca Ross

registered with ASIC and have at least 5 years’

experience as an insolvency and turnaround

practitioner.

4. The restructuring advisor will be required to verify

that the company was likely to have been solvent

at the time of appointment, and if not, the adviser

should withdraw and advise ASIC accordingly.

5. If the restructuring advisor does not think the

business can be turned around they are under

a duty to terminate the safe harbour period and

advise the directors that a formal insolvency

process should commence.

6. The restructuring advisors will only be allowed to

perform subsequent insolvency processes for the

company with leave of the Court.

7. Appointments should not be publicly disclosed, as

this could damage the prospects of a successful

restructure.

8. The director must be able to show that they took

all reasonable steps to pursue the restructure

of the company as advised by the restructuring

advisor.

Changes to the Bankruptcy Act 1966 (Cth)The Commission considered the following in

the context of changes to the existing personal

insolvency regime to shorten the period of

bankruptcy:

1. An extended period of bankruptcy may have

negative economic consequences.

2. Potential business owners may be deterred by

the fact that individuals are forced to endure a

lengthy ‘exclusion period’ before recommencing

business activity following bankruptcy.

3. For those that have failed once, the spectre of

bankruptcy can loom large in any consideration of

efforts to ‘restart’ a second business.

4. Longer bankruptcy periods may therefore

discourage ‘latent’ potential business owners who

are risk averse from entering the market.

5. Lenient bankruptcy laws may increase the risk

associated with lending and therefore the cost

of capital in the economy, however, retaining

regulatory oversight should minimise such risks.

The Commission also considered the extent and

success of reform undertaken in the United Kingdom.

Guidance from the UKIn 2004 the United Kingdom amended the

Insolvency Act 1986 (UK) to reduce the duration of

bankruptcy from 3 years to 1 year.

The Commission noted that the research

regarding the UK’s insolvency reform shows that

the reform led to a reduction in discrimination

against bankrupts, and to a small extent encouraged

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Insolvency


business set up. As a result, some of

the goals of the UK insolvency reform

were achieved.

Some of the goals of the UK

reform however were not achieved.

There still remained a ‘fear of

failure’ and bankrupts continued

to be hindered in their ability to

recommence trading (for reasons

including their restricted access to

financial markets and business’s

attitude towards bankrupts). It

should be noted that cultural shifts

in business’s attitude towards

bankrupts was not expected

to change over night. Cultural

changes are long term goals of the

insolvency reform undertaken in the

UK and to be implemented here in

Australia.

For purposes of considering

the lasting effects of bankruptcy

on a debtor’s ability to re-establish

themselves in business, it is interesting

to consider the differences between

the practice in the UK and Australia

for publishing bankruptcies on the

public record.

In the UK, bankruptcies are

published on the Individual

Insolvency Register during the term

of bankruptcy and then removed 3

months after discharge. This is a stark

contrast to the situation in Australia

where bankruptcies are published

on the National Personal Insolvency

Index, and remain forever on that

index after the bankrupt is discharged.

Perhaps the difference in the stigma

surrounding bankruptcy in the UK

and in Australia is at least partially

due to the different approaches

to maintaining a public register of

discharged bankrupts.

After considering this international

perspective, and balancing the

protections for creditors against

the benefits to bankrupts (and the

economy), the Commission concluded

that a reduction in the term of a

bankruptcy appears justified.

Extension of a default 1 year term of BankruptcyThe Commission nonetheless

recommended that we retain the

power for trustees to extend a

bankruptcy in certain circumstances

(again guided by the UK).

Under the current regime, a trustee

is able to object to the discharge of

a bankrupt at the end of the normal

3 years if the bankrupt has engaged

in misconduct of the type set out at

section 149D of the Bankruptcy Act

1966 (Cth).

An objection to discharge

filed by a trustee with the Official

Receiver has the effect of extending

the relevant bankruptcy to a term

of up to 8 years. No application to

the Court is required. In the UK, a

Court application is required for the

extension of the term of bankruptcy

(also to up to 8 years).

As a result, it is possible that the

Government’s insolvency reforms

may, if in alignment with the position

in the UK, have the significant effect

of reducing the power of a trustee to

extend a bankruptcy, by requiring the

decision to be made by the Court.

Data provided by AFSA indicated

to the Commission that objections to

discharge were rare; extensions were

enforced for approximately 4.5 per

cent of all bankrupts due for discharge

in 2014 15 and where bankruptcy

was initiated by a debtor through

a debtor’s petition (90 per cent of

bankruptcies), objections to discharge

represented 3.4 per cent of all cases.

Interestingly, the Commission

was not concerned that if the

default length of a bankruptcy is

reduced, objections to discharge may

increase. Instead, the Commission

identified that if reform had that

outcome, it could be of assistance in

reducing the stigma of bankruptcy

by differentiating between honest

bankrupts and culpable bankrupts

(who will face a longer term of

bankruptcy).

Shorter term and income contributionsUnder the current regime, there are a

number of restrictions on bankrupts

during the term of bankruptcy; from

obtaining finance to international

travel. There are also a number of

obligations on bankrupts during

bankruptcy, including the obligation

to pay income contributions if they

earn over a certain income threshold.

Whilst the Commission identified

the merit in reducing the term

of bankruptcy to 1 year, it also

recommended that bankrupts

nonetheless remain liable to pay

income contributions to their trustee

for a 3 year period. Further, it was

recommended that the trustee have

the power to extend the period for

income contributions to up to 8 years.

Public ConcernWe look forward to reporting to you

again when the Government publishes

its proposal paper later in the year

and otherwise conclude with the

comment provided by John Winter of

ARITA to Fairfax Media (extract from

the Sydney Morning Herald):

When asked whether the reforms

would make it easier for fraudsters

and corporate crooks to be back in

business, Mr Winter said: “Look, yes it

could, but people do need to be aware

of who they are dealing with.”

“There’s some famous people who

have cycled in and out of bankruptcy

over their lives. There’s a whole

bunch of other people who are out

there trying to build a business and

it didn’t quite work and yet they get

very heavily penalised and they can’t

restart,” he said.

Mr Winter said the law changes

were aimed at trying to help the

“good guys” in the system get back

on their feet. But he conceded the

reforms announced today without

further legislative changes could

leave the system open to rorting.

“Addressing people who are trying

to rort the system is another set of

regime change,” Mr Winter said. n

*Gavin Parsons is Managing Director, Gavin Parsons & Associates.

Rebecca Ross is a Solicitor for Gavin Parsons & Associates

Phone: (02) 9262 4471, Fax: (02) 9290 2616www.gplaw.com.au

Insolvency


Personal insolvency in the March quarter 2016Total personal insolvencies increased

2.0% in the March quarter 2016

compared to the March quarter 2015.

This is the fourth consecutive rise

when compared to the same quarter

in the previous year. This is the first

time four consecutive rises occurred

since 2009.

By type of personal insolvency:

z bankruptcies fell by 5.8%

z debt agreements increased by

15.6%

z personal insolvency agreements

fell by 9.5%.

Queensland and Western Australia

accounted for most of the national

rise in personal insolvencies in the

March quarter 2016 compared to the

March quarter 2015. Debt agreements

in Western Australia in the March

quarter 2016 are the highest on

record.

See the personal insolvency

statistics for the March quarter 2016.

Debtors with a business-related personal insolvencyIn the March quarter 2016, 16.1% of

debtors entered a business related

personal insolvency. This is a decrease

from 17.7% in the December quarter

2015.

In the March quarter 2016:

z economic conditions (410 debtors)

was the most common business

related cause

z unemployment or loss of income

(1,970 debtors) and excessive use

of credit (1,908 debtors) were

the most common non-business

related causes.

See the business and non-business

related personal insolvency statistics

for the March quarter 2016. n

Source: AFSA Media Release 13 April 2016

Personal insolvencies rise 2.0% in the March quarter 2016

The Australian Financial Security Authority recently released the personal insolvency activity statistics for the March quarter 2016.

Personal insolvency in Australia: % change compared to same quarter in previous year

Quarter

Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

-8.7%

-1.4%

-4.5%

-9.0%

-0.2%

-11.1%

-8.1%-8.7%

0.9%

6.1%

0.6%1.5%

2.0%

8%

6%

4%

2%

0%

-2%

-4%

-6%

-8%

-10%

-12%

Pe

rce

nta

ge

ch

an

ge

https://www.afsa.gov.au/resources/statistics/provisional-bankruptcy-and-personal-insolvency-statistics/quarterly-statistics/quarterly-statistics-march-quarter-2016

https://www.afsa.gov.au/resources/statistics/provisional-bankruptcy-and-personal-insolvency-statistics/quarterly-statistics/quarterly-statistics-march-quarter-2016

https://www.afsa.gov.au/resources/statistics/provisional-business-and-non-business-personal-insolvency-statistics/quarterly-statistics/quarterly-statistics



Insolvency


This year has seen some elevated

focus on Australia’s business

community by the media and the

public at large in relation to corporate

collapses. In 2015 we have had the

failure of Homeart, Hooters, Koko

Black and My Baby Warehouse and

2016 has seen Laura Ashley succumb

to external administration as well as

the Dick Smith saga continue to play

out. This combined with the ATO has

been instrumental in the heightened

activity in external appointments

since March 2015, it’s timely to look

at the early warning signs that are

available to creditors and lenders and

learn from those who have prevented

financial disaster by doing so.

Take Dick Smith for example

which is currently subject to a Senate

Inquiry, ASIC investigation and a

focused attention from the Australian

media that we haven’t witnessed

for some time. Two major suppliers,

Apple and Samsung, appear to have

utilised advanced information systems

to detect trouble within Dick Smith

before Receivers were appointed.

Put simply, though there are

some key indicators that whilst on

the face of it would ordinarily attract

suppliers and lenders the lesson from

the Dick Smith case is that they had

dire consequences for some. Some of

these are:

Organisational structural changes within a short period of timeDick Smith went from being owned

by Woolworths to being purchased by

private equity operators Anchorage,

to having a new management team,

to being floated. All of these changes

took place within 2 years. Change can

be good for organisations, particularly

when in a competitive market and

the retail industry appears to become

stable. To the normal supplier and

distributor, these types of changes

usually provide an opportunity for

growth in revenue and certainly are

attractive to jump into.

Staff members employed by Dick

Smith were unsure of what was going

on for some time and the consumers

were only interested in the great

deals that may have been enticed

purchasing gift vouchers for loved

ones at Christmas. Suppliers and key

stakeholders needed to look at the

changes going on and perhaps a

maintaining of the PPSR could have

assisted.

Massive Growth in Sales It is reported that Dick Smith went

through a massive phase of sales

growth after Woolworths sold it to

Anchorage. Again, suppliers and

distributors would ordinarily be

immensely attracted to this and not

be blamed for it. However, there were

a number of distributors to Dick Smith

and unless their insurer pays, there will

be a further fall out as well.

Sales growth should be

interrogated and understood as to

its origination be it an opening of

new stores, expansion of line items,

variations in the Australian dollar or

more focused marketing campaigns

as three examples. In the case of Dick

Smith, there are media reports that

accredit the marginal sales growth

to heavy discounting put in place to

drive sales targets, however ultimately

left suppliers and distributors holding

the bag for debts of over $250 million.

Changes in Payment Arrangements With the significant growth in sales,

the temptation was certainly there

for suppliers and distributors of Dick

Smith to extend payment terms.

Early warningsBy Adam Lysle*

Adam Lysle

Insolvency


Lucky for two suppliers, they refused

and in fact, insisted on the residual

debt being paid back in full and COD

status being initiated. As a result,

when Dick Smith did fall over, they

were protected. There is a risk that

may prejudice suppliers to ‘preference

payments’ once a Liquidator is

appointed and is afforded specific

powers under the Corporations

Act, however, that’s another topic

for a future article. That said, it is

understood that the restrictions on

the credit provided to Dick Smith

were made long before the first public

signs of trouble were surfacing in early

November 2015.

The key point here is that if

payment term relief is requested,

it’s often because of other factors

that aren’t disclosed to suppliers,

distributors and lenders. More

detailed analysis, investigation and

interrogation are required to protect

any potential exposure. Responding

to such requests with a reciprocal

request for increased security, bonds,

bank guarantees and the like are often

a great tool to test the validity of the

initial request and further, ensure your

exposure is registered appropriately

on the PPSR. That is, if the payment

term relief is of a genuine nature, there

would be no resistance to providing

more protective measures for the

creditor.

There is merit in having good

information flow, credit reporting

systems, regular credit file reviews and

taking a stand against debtors from

time to time to ensure that the market

understands that a creditor isn’t a

soft touch. However, such protective

practices need to be married with

the sales side of the organisation.

We often see creditors suffer the

consequences when the sales side

of the organisation get dazzled by

the flashing lights of growth in sales

and the change evolving within the

customer’s organisation.

There is nothing wrong either

with strengthening the utilisation of

the Personal Property Securities Act.

Ensuring that transactions involving

the provision of inventory, equipment,

plant, vehicles and other supplied

goods are recorded on the Personal

Property Securities Register (“PPSR”)

is more than a valid notion but it’s

more important to ensure that the

recording on the PPSR is accurate and

within the correct categories rather

than to use a ‘hit and miss’ approach.

The investment inadequate recording

systems and annual review models

often prevent disasters and are just as

important as to reviewing trade credit

insurance policies.

There is a lot of talk about the

economy coming off the rise we are

currently enjoying and using some

of the profits being generated now

to boost protection regimes is not a

fanciful idea.

Veritas Advisory provides

confidential advice to:

z lenders on their security and likely

exposure;

z retailers, suppliers, distributors

who want to grow their business;

z directors who could be exposed

due to personal guarantees;

z retailers who have stretched their

ability to meet obligations with

existing turnover; and

z representatives of employees that

routinely become the real sufferers

of collapses.

We are expecting a long list of collapses

in 2016 and hopefully by considering

some of these observations, we

will be able to contribute to the

prevention of some. n

*Adam Lysle is Senior Manager at Veritas Advisory.

Insolvency


Insolvency on the riseThe number of insolvencies in

Australia rose 13 per cent year-on-year

in 2015, according to ASIC insolvency

statistics released in March this year.

Insolvencies jumped from 8,794

in 2014 to 10,164 in 2015, marking a

reversal of the downward trend in

external administrations that had

been seen since mid-2013. The most

frequently cited causes of failure in

2014-15 were cash flow issues, poor

strategic management and trading

losses.

The number of companies entering

external administration rose in all

Australian states and territories except

Tasmania, with insolvencies in Western

Australia hitting a record high in 2015.

Business failures no surpriseThe upward trend in insolvencies

has been illustrated by a number

of recent, well-publicised cases of

business closures, including major

retailers Dick Smith and Koko Black.

These are the kinds of closures

that spark headlines about big

businesses failing ‘out of the blue’. But

the reality is, these events can be seen

well in advance.

In the case of Dick Smith, the

signs of financial difficulty were clear

for two years before the business

folded. The company was trading in

a competitive space and had slow

turnover, poor capital structure,

unsustainably high levels of debt and

poor cash flow.

Over those two years, Dick Smith’s

credit behaviour became increasingly

unreliable, which should have been a

red flag to its lenders and suppliers.

Similarly, the closure of Koko Black

was preceded by the business paying

its creditors later and later over a

period of several months.

Understand the warning signsWhen a company starts experiencing

financial trouble, one of the first things

it will do is stop paying its suppliers.

Cash flow can make or break a

business. If a company stops paying

its suppliers, a ripple effect can

begin, radiating out from the original

insolvent business and damaging any

unprepared company it comes into

contact with.

To avoid being caught unawares,

business owners and operators need

to be able to see the signs of financial

distress ahead of time, and have

proper processes in place to keep

themselves safe.

Doing an initial credit assessment

before taking on new customers,

maintaining regular credit monitoring

practices and registering interests

and assets on the Personal Properties

Securities Register (PPSR) can help

businesses significantly minimise

their losses in the event of customer

insolvency.

If a company is showing signs

of being at risk of insolvency, that

doesn’t necessarily mean other

organisations shouldn’t do business

with them – they just need to go into

these relationships with their eyes

open.

Veda’s top tips to keep your business safeVeda’s wealth of data and expertise

means we are well placed to help

organisations see potential risks

when renegotiating terms with

clients or entering into new business

relationships. Try these three tips to

steer clear of risky relationships:

1. Be careful when signing new

customers – Businesses can be

blindsided by the promise of big

revenues. But there’s no point

signing up a customer who seems

lucrative if the payday never

comes. Do your due diligence

before you take on a new business

relationship.

2. Do checks upfront – Don’t be

shy when it comes to doing

initial checks. If you know your

customers’ credit profiles you can

minimise risk and won’t be caught

unawares by a business entering

external administration.

3. Don’t get complacent – Ensure

you have a structured process in

place for all existing customers.

Cash flow is king, and a customer’s

cash flow could change at any

time. Check in with all your

customers on a regular basis and

use the available tools, like the

PPSR, to protect your business

against losses. n

Imelda Newton is General Manager Fraud and Identity Solutions, Veda. www.veda.com.au

Trends in insolvencies- businesses don’t fail overnight

Imelda Newton


aicm Training News

Online courses are a great way to improve

your skills and knowledge whilst fitting in around

busy professional and personal lives. Another benefit

of online learning is that it is a great way to put your

time management skills, self-discipline, willpower, and

motivation to the test. In this article, we would like to share

9 key study tips for online learners, in order to help you

stay focused and motivated when taking courses online.

1. Understand online learning practices and expectations.

The first thing you need to realise is that online courses

are not an easier way to learn, but rather a more

convenient one. Just as you would for a regular course,

to successfully learn online you need to dedicate

blocks of time, consistently attend the program, be

concentrated while studying and fully commit to your

learning process. You should also have in mind that when

you take an online course, you may be expected to:

z Fully commit yourself and participate in the forums as

required.

z Be, or be willing to become, tech-savvy.

z Work with others effectively.

z Complete your learning tasks and assignments on time.

z Be self-disciplined.

If you are not able or willing to do all of the above, you will

probably not be a very happy online learner.

2. Make sure that you have reliable internet access.

Technology glitches happen all the time. Imagine

you are working in the middle of the night and your

computer crashes. To avoid mishaps, ensure that

you save your work repeatedly and backup regularly

using Cloud storage, for example Dropbox or Google

Documents, in order to be able to access your previous

work from your smart phone or tablet, if needed.

Furthermore, ensure that you not only have a backup

of your online course material and assignments, but

also you have saved your instructor’s or trainer’s

contact information in your cell phone or in your

email. A reliable internet access will also give you

the opportunity to check in, stay current with your

eLearning course, and deal with sudden schedule

changes.

3. Have a dedicated study space.

Whether you decide to study in your workplace or

in your living room, ensure that this place is quiet,

organised, distraction-free, and available for use

at any time. Your study environment should be

one of your main concerns when you are an online

learner, so make sure that it enables your study

routine. Furthermore, ask your friends, relatives, and

colleagues to respect your “work mode” and consider

turning off your phone and logging off of all social

networks when studying; you will want to be neither

interrupted nor distracted.

4. Identify your learning objectives and goals.

To stay on track with your online course, make sure that

you always keep in mind what you hope to accomplish

by the end of it. The learning objectives and goals of

the eLearning course can be an excellent road map

during online learning; read carefully your online course

requirements, create notes that are closely related to

your objectives, and make sure that you review them

thoroughly every time you start an assignment, so

that you stay focused on your goals. Finally, consider

starting with the most difficult tasks, as this will

improve both the effectiveness of your study and your

performance.

5. Build a study plan.

A study plan is critical to online learning. Here are some

tips to help you build it:

z Plan ahead.

Never wait until the day before an assignment

due date to start working on it. It will stress

you and stress will prevent you from effectively

completing the online task. Furthermore, knowing

when all of your assignments are due until the end

of the eLearning course will facilitate your time

management; for instance, if you are going on

vacation in the middle of the eLearning course, you

can study ahead.

Study tips for online learners

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aicm Training News

z Have an effective calendar system.

Online learning needs structure; create a study

calendar that will help you remember all important

dates, or deadlines for submitting your assignments.

You can save your calendar in your computer or in

your mobile device, or you can even create a wall

planner, which you can mark up and check every

time you study.

z Create to-do lists.

At the start of each week, make a to-do list of the

tasks you need to complete by the end of the week.

This is an excellent way to prioritise your study plan

and stay on track with your studying.

z Set time limits.

Before you start studying, estimate how much

time each task will take to complete, whether it is

a specific assignment or simply reading a chapter.

Try to stick to your time limits, as this will help

you develop your self-discipline. Furthermore,

when you realise that despite your best efforts you

cannot concentrate, consider stopping for an hour

or for the night; it is better to wait until you are

able to start afresh than to waste your time trying

to focus.

z Stay on schedule.

Finally, stick to your study plan. Procrastination is

the worst enemy of online learners, so make sure

that you stay organised and you are not falling

behind in your online class. If you are having

difficulties submitting your assignments on time,

contact your online course instructor and let them

know, so that they can help you create a consistent

study routine.

6. Ask for help when you need it.

While it may be constructive to look for answers to

your online course-related questions independently,

hesitating to contact your online facilitator when you

are stuck may be problematic. If you don’t ask for help

when necessary, you may end up falling behind, which

may lower your self-esteem, as you may not be able to

keep up with the online course. By asking your online

instructors to clarify problems, you will also help them

not only to evaluate learners’ level of understanding of

the online material, but also to get an idea of the overall

effectiveness of the online course. Finally, due to the

open nature of online courses, by asking a question, you

also help at the same time your other online classmates,

in case they are having similar difficulties. Keep in mind

that if you don’t ask for help when you need it, your

online instructor may never know that something is

wrong.

7. Take study breaks.

Your performance will decrease if you are feeling

tired or frustrated while studying. Integrate some

personal time into your study routine and you will be

able to work more effectively on your online course

goals. When taking a break, make sure that you get

Congratulations to…

The following have recently completed whole qualifications:

Neddieco Francisco Certificate IV in Credit ManagementAnnabelle Aquino Certificate IV in Credit ManagementJanice Tolosa Certificate IV in Credit ManagementMike Butcher Certificate III in Mercantile AgentsNykky Storm Diploma of Credit Management

The following have recently successfully completed assessments:

Kim Tu FNSCRD401 Assess credit applicationsChristine Adams FNSCRD504 Manage the credit relationshipLola Teece FNSCRD504 Manage the credit relationshipKelly Dunlop FNSCRD404A Utilise the legal process to recover outstanding debtHelen Fraser BSBCUS403 Implement customer service standardsDonna Smith BSBCNV506 Establish and manage a trust account

In-House Training has recently been completed at the following companies:

BOCBaiada Australia

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away from your study space; you need

to have a change of scenery. A mild

physical activity, such as a walk around

the block, will help you maintain

balance, renew energy, and go back to

studying with a clear mind.

8. Participate in online discussions.

Online learning doesn’t necessarily mean

learning in isolation. Connecting with

your virtual classmates on social media or

your online course’s forum will enhance

tremendously your eLearning experience,

especially if you are an introvert and

visual barriers hinder you in expressing

yourself. Participate actively in online

forums and activities. Just ensure that

you are mindful of your online tone;

be respectful when you disagree with

other members of your online group,

and always write in complete and clear

sentences to avoid misunderstandings

and tone mishaps.

9. Stay motivated.

Finally, don’t underestimate the

effort needed to fully commit to your

online course. To make sure that you

stay motivated and engaged in your

online learning experience, consider

following these tips:

1. Feel free to create your study routine

at your own comfortable pace.

2. Decorate your study space

with inspirational quotes and pictures.

3. Never forget the reason why you have

undertaken your online course.

4. Accept that you will have productive

and less productive days.

5. Have healthy snacks nearby to boost

your energy.

6. Reward yourself every time you

complete a challenging task or

assessment.

7. Make sure that you take some time

for yourself from time to time, it is all

about balance.

AICM online training courses are available

for immediate enrolment, so if you feel you

have what it takes to undertake training and

advance your career go to the aicm website

for more information.

aicmCan We Help?

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.

TrustsQuestion We receive a lot of questions about how to deal with trusts

and how to make my debt more secure, but just how many

trusts are trading in Australia and what do we need to

consider when dealing with trusts?

Answer From Giles Woodgate, Senior Partner and Richard Rowley,

Partner WOODGATE & CO. Chartered Accountants

According to statistics released by ASIC, in December

2015 there were 2.3M companies incorporated in Australia.

The latest statistics from the ATO recorded that there

were 780,105 trusts that filed income tax returns, of which

609,450 were discretionary trusts. Given the role of the

discretionary trust in tax planning and asset protection, it

would be reasonable to assume that most of the trustees

were companies with nominal capital. The ATO recorded that

there were 448,225 self-managed superannuation funds,

many of which would also have companies as trustees.

Therefore, it is probable that about a third of companies are

trustees of trusts or self-managed superannuation funds.

This creates a real public policy issue in insolvency situations,

if the Corporations Act (Cth) 2001 does not apply when

a trustee company becomes insolvent in respect of trust

assets and liabilities, as noted by Justice Brereton In the

matter of Independent Contractor Services (Aust) Pty Ltd

(in liquidation) (No2) [2016] NSWSC 106. In that case the

company was in liquidation. Its only function was to act as

trustee of a trust. It owned no assets in its own right and

there was a significant deficiency in trust assets compared to

the claims of trust creditors.

There is no central public registry of trusts. Consider

performing ABN searches and obtaining copies of the trust

deed and ancillary documentation. Providing credit to a trust

can result in increased credit risk. Guarantees from trustee

company directors and possibly the beneficiaries are more

important than usual.

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AR

OU

ND

TH

E S

TA

TE

SNew South Wales

Data & Technology Panel and Forum – guests.

President’s ReportWow another frantic start to the year with a lot going on.

Since the March issue NSW has been busy with some great

sessions that have informed and connected members.

On 16 March, Joseph Scarcella Partner at Ashurst Lawyers

presented Practical Steps to Maximise Recoveries. Joseph and

Ashurst provided a great morning with all leaving with some

inside tips on how to get the best results from legal action and

enjoyed the breakfast in the brand new Ashurst meeting rooms

on Martin Place.

The Ashurst breakfast was followed by the Wine tasting

night and Data and Technology events, see reports below.

We are very lucky to be supported by great Partners in NSW.

Our partners support us in many ways including extending the

reach of the AICM beyond its members and providing their

expert knowledge. I would like to thank all of our National

Partners Dun and Bradstreet, Veda and Austral Mercantile as

well as our divisional partners Randstad, Results Legal, AMPAC,

OnGuard and NCML.

In addition to our National Partners we have received great

support from Ashurst, KPMG and Austral Mercantile who hosted

events, making them much more viable than when utilising

commercial venues.

I urge you to make a conscious effort to return the support

these organisations give to our industry body whenever you

can.

A reminder that the WINC luncheon is scheduled for the 20

May a great opportunity for Women in Credit to get together

and network, I encourage everyone to support such a great

cause and get out there and enjoy the day.

Lastly the applications for the Young Credit Professional

(YCP) close on the 31 May. This award is very close to my heart

and with NSW having so many past winners I am sending a

call to arms to all the Credit Managers, Supervisors and Team

Leaders who read this and feel that they have a standout credit

professional within their team who would do NSW proud and

represent the State as our YCP delegate for the National title.

Equally any credit professional who feels they are ready to

approach your manager and foster their support in applying.

The roll call of past winners and finalists is quite impressive with

all of them going onto big things in their career. Be part of an

impressive alumni and make sure you send in your applications

before the close date.

– Arthur Tchetchenian

Data & Technology Panel and Forum – 5 April A very informative night thanks to our esteemed panel, Terry

Eames Director of Accounts Receivable & Payment Automation

at Icepay, Kristin Witt Solutions Consultant and founding

Director at Decision Intellect and Brad Smith National Credit

Manager at Network Ten. This is a huge topic and one the

panel and myself could of spent all day on.

We discussed where we have come from as well as the

goals and challenges in implementing a Data & Technology

strategy. The panel provided excellent insight into their

experiences with implementing Data & Technology strategies,

how they themselves identified the goals, overcame the

challenges and implemented the strategy.

Data & Technology Panel and Forum Panel: Terry Eames, Kristin Witt and Brad Smith.

Data & Technology Panel and Forum Chair David Hunt.


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Thanks to some great commentary from the audience we

covered off some of the products available to:

– Automate the new business process including an online

credit application form, credit scoring, etc,

– Credit Management systems including automated

customer notifications, prioritised daily work runs, an online

customer web portal, etc,

– Automated PPSA management systems,

– Payment Gateways, “how easy are you to pay?”

– Electronic statements and invoicing,

– Automated litigation software, “you actually don’t need a

lawyer to litigate!”

Including many more options with the goal to create a

“seamless automated end to end credit management solution.”

A case study on how a data and technology strategy is

being developed at Fujifilm was used to focus how automation

can help with:

– Auto Stop and Release,

– Auto Cash Allocation,

– Automated Claims Process including approvals,

– Approving and processing write offs, refunds, etc,

Wine Tasting.

Wine Tasting.

Friday 20th May 2016

WINC LuncheonKIRRIBILLI CLUB, MILSON POINT

Tuesday 14th June 2016

Networking Breakfast – FraudPARRAMATTA

Thursday 14th July 2016

YCPA DinnerKIRRIBILLI CLUB, MILSON POINT

Tuesday 9th August

City Networking NightVENUE: TBC – CITY LOCATION

Friday 9th September

Golf DayOATLANDS GOLF COURSE

9th-12th September 2016

Online CCE Exam

Friday 16th September

WINC High TeaVENUE: TBC

Tuesday 11th October 2016

National Golf DayGOLD COAST

12th-14th October 2016

AICM 2016 National ConferenceSEAWORLD, GOLD COAST

Thursday 17th November 2016

YCP Barefoot BowlingVENUE: TBC

Thursday 8th December 2016

Masterclass and Pinnacle AwardsVENUE: TBC

Events Calendar

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


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Wine Tasting.

The Australian Institute of Credit Management welcomes our Partners for 2016.

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.

National Partners

Professional Partner

Official Division Supporting Sponsors

Divisional Partners

– Auto reporting to sales, management, etc,

With the goal to reduce the manual tasks to free up Credit

Controllers to make that all-important phone call!

Many thanks to Austral/QBE for hosting the event.

For any more information on this presentation contact Dave

Hunt.

NSW Wine Tasting eveningSparked by the enthusiasm of members for an opportunity to

connect with other credit professionals over a shared passion…

wine, the event lived up to its promises.

The evening was held at the KPMG offices overlooking

Darling Harbour and everyone enjoyed learning about and

sampling some of the best wines from South Australia’s Bird in

Hand winery.

The networking discussion focused on the Dick Smith

collapse and considering what lies ahead in 2016. A considerable

debate was also held on which was the best wine. The opinion

was split between the Mt Lofty Ranges Shiraz and the Adelaide

Hills Pinot rosé.

Wine Tasting.

Wine Tasting.

http://nci.com.au

http://veda.com.au

http://dnb.com.au

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

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

http://www.onguard.com


http://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://byronthomas.com.au


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President’s ReportRecent AICM Qld events have proven that topics bring the

crowds and the topics presented have stimulated conversation

as well as member numbers. Some attendees have even

travelled to Brisbane from as far away as Northern New South

Wales (thank you John Playfair) for these events.

Firstly (as always) the ongoing support in 2016 from our

Partners, Veda, Dun & Bradstreet, Austral Mercantile, Vincents,

Results Legal and Randstad is greatly appreciated. The

engagement and commitment by their people make us all

proud to be AICM members.

As you all know, “save the dates” have been sent out for 9

September 2016 Qld WINC Luncheon, with generous support

from our Premium Sponsors Veda, and supporting sponsors

Results Legal and NCI. Make sure that you get your seats

booked early as Julie McNamara (Patane Lawyers) will likely

have to knock back late comers.

Our March CNN was entitled “How the PPSA can help you

defend against preference claims” and was extremely well

supported. Anna Taylor (Results Legal) provided excellent

practical advice on how and what to do, both at the “front end”

compliance through to the “back end” disputes to reduce unfair

preference claims by liquidators being successful. I am sure

that members will appreciate the tips and took plenty of value

back to their employers.

Our April CNN breakfast panel discussion format held at

the offices of Randstad Brisbane tested many an early riser

(p.s. my apologies, however I was at Emerald in outback Qld

testing their golf course). The question of what employee

engagement tools to use, as well as generational differences

in engagement, are fascinating topics. I understand that the

audience both brought and took away valuable tips from the

superb panel.

On Council, we lost “half” of a YCP/Youth Development

councillor in Maria Schandl (currently on reduced AICM

workload) but gained a superb portfolio collaborator in

Melinda Grob (councillor and of AICM Partner Randstad) to

share the portfolios with Maria. We also gained a “whole” new

membership councillor in Felicity Ford (of national Partner

Austral Mercantile). For those of you who have not met Felicity

before, she is a fantastic promoter of AICM and is working

hard 24/7 to engage new and old members alike all over

Queensland. Felicity has been engaging with organisations

such as CCIQ and brings lots of fresh ideas as to how other

organisations engage with their members.

March CNN: Anna Taylor.

March CNN.

March CNN: Karl Hill, Roger Masamvu, Anna Taylor and Peter Mills.

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


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11th May 2016

Credit Network Night – ComplianceVENUE: TBC

13th May 2016

Credit Toolbox – Collect with ConfidenceRANDSTAD OFFICES

8th June 2016

Credit Network Night: Q&A – Time ManagementTATTERSALLS CLUB

13th July 2016

Personal Development Breakfast – InsolvencyVINCENT’S OFFICES

20th July 2016

AICM AGMRYDGES SOUTH BANK

20th July 2016

Awards Dinner – Young Credit ProfessionalsRYDGES SOUTH BANK

August 2016

Personal DevelopmentMagistrates Court Visit and Procedures

MAGISTRATES COURT

8th August 2016

Credit Toolbox – Risk AssessmentRANDSTAD

9th September 2016

Women in Credit LuncheonCUSTOMS HOUSE


Online CCE Exam

14th September 2016

Personal Development BreakfastQ&A – Credit Network Forum

VENUE: TBA

11th October 2016

National Golf DayGOLD COAST

12th – 14th October 2016

AICM National ConferenceSEAWORLD GOLD COAST

Events Calendar

Speaking about “new members”, Maria Schandl and her

partner Greg have a new addition, Lachlan Schandl, born just

recently. You do not get a bigger AICM event than that I am

sure.

Qld AICM is also organising local assistance for the AICM

2016 National Conference. Carla Seirlis (CCE and PD) was

recently appointed to also head a state sub-committee for

welcoming and making sure our interstate colleagues enjoy

their stay at conference.

Thank you all again for your support to the Queensland

Council and making the AICM informative and “fun” for its

members.

– Peter Mills MICM, President

9 March CNN – PPSA and how it can help defend preference claimsThe wonderful Anna Taylor was our speaker for the night

presenting – PPSA and how it can help defend preference

April CNN: Greg Young, Diana Tartaglia, Paul Burgess, Julie McNamara and Melinda Grob.

April CNN: Paul Burgess and Diana Tartaglia.


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April CNN: Jason Spencer, Julie McNamara and Michael McDowell.


Divisional Partners

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.

National Partners


New Members: Gemma Poore, Dane Lydford, Maria Teodosio, Kirsty Gray and Erin Stewart from Stoddard Group.

claims at Tattersalls on 9 March. Anna did a brilliant job and had

the audience engaged in what was a very insightful evening

around the PPSA.

13 April CNN – Employee Engagement and RetentionThe topic of Employee Engagement and Retention is one

of the most important HR topics facing organisations. The

QLD division of AICM hosted a great breakfast event on

Wednesday 13 April to discuss the importance of employee

engagement and retention within Credit teams as a panel

discussion.

Speaking with two highly experienced National Credit

Managers – Julie McNamara from Patane Lawyers, and

Paul Burgess from Steelforce – facilitated by Diana Tartaglia

(Operations Manager from Randstad’s HR Consulting division)

we had great interaction from the audience and it was very

interesting to hear the successes (and learnings) from some of

the Credit industries most respected Credit professionals.

Councillor Profile

Felicity Ford – MMIC, PGDIPBUS

Austral Mercantile Collections, Queensland Sales Manager

Felicity has over 20 years’ experience

in Sales and Marketing, 6 years

of which were spent with her own

contracting company as a Sales and

Marketing Consultant.

Having relocated from New

Zealand to Australia 10 years ago, she has worked across a

broad variety of industries including 9 years in FMCG as well as

Pharmacy and now Debt Collection.

Felicity specialises in business analytics, key account, sales,

product and relationship management, bringing a strong

business acumen to Austral Mercantile Collections. She is also

on the AICM council as Membership Councillor.

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

http://nci.com.au

http://vincents.com.au

http://veda.com.au

http://dnb.com.au


http://randstad.com.au



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April Breakfast meeting: James Neate.

South Australia

President’s Report

We would like to welcome our members to Autumn! A little

depressing as daylight saving ends but refreshing for the

garden and those of you who like to throw on your track suits

when you walk in the door at night! This weather change

does not dampen the SA councillors who are heating up with

constructive ideas on how to educate members and credit

professionals in 2016!

St Pat’s Power Panel was full of whit, wisdom, enthusiasm

and most of all knowledge. Three long standing Credit

Manager’s gave their time to answer all the questions you

dared to ask and more. Those who attended certainly went

away with a lot to think about and a new respect for credit

managers’ of this calibre. The day-to-day hurdles that they face

by ‘thinking on their feet’ and ‘outside the square’ to gain the

best results was very enlightening.

SA’s first breakfast for 2016 welcomed the Rear Admiral the

Honourable Kevin Scarce as guest speaker. He captured the

audience with his findings on the Nuclear Fuel Cycle. It would

be great to hear the outcome once the final report is submitted

on 6 May. Should they receive the ‘green light’ this will certainly

have an impact not just on South Australian business, but all

of our wonderful country. It was good to see some members

attend that do not have the opportunity to make it to many

functions. Hope to see you more often in the future.

The Professional Development committee are busy working

on the full day symposium which is sure to be a cracker with

star speakers and a great confirmed venue – the Bendigo and

Adelaide Bank in the CBD. Vice President, James Devonish is

well known to put together a great day and we look forward to

a brain-smashing day on credit management.

Women in Credit (WinC) is being launched in late June. Some

of our well-known female Credit Managers will be sharing their

stories, good and bad, and enlightening us with their challenges

in this ever-changing industry. Certainly an event to look forward

April Breakfast meeting: Gail Crowder (State President).

April Breakfast meeting: Guest Speaker Rear Admiral the Honourable Kevin Scarce.

April Breakfast meeting: Attendees at the breakfast.


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to so watch for the flyer coming out over the coming weeks.

Some committee news! I would like to congratulate Nick

Cooper and Yulia Petrenko, from Worrells, who got married

earlier this year. A well-kept secret event! We all wish them

much happiness for their future together.

Don’t forget to always speak with our committee and give

us your feedback and thoughts for future events. We welcome

your feedback at all times.

See you soon.

– Gail Crowder, SA Division President

Breakfast Function

The South Australian division held its first Breakfast Network

function for 2016 on 8 April at the Next Gen Memorial Drive

Function Centre located by the picturesque River Torrens and

Adelaide Oval complex.

Events Calendar19th May 2016

Networking YCPAVENUE: TBA

2nd June 2016

Credit Symposium

23rd June 2016

Women in Credit

22nd July 2016

Function – Quiz Night

14th September 2016

Mock Court – Preferences

6th October 2016

Breakfast

12th – 14th October 2016

AICM National ConferenceSEAWORLD GOLD COAST

9th November 2016

Meeting of Creditors

24th November 2016

End of Year Event

April Breakfast meeting: Michelle Moore (Lynch Meyer), Jeremy Pomeroy (Metcash), James Devonish (Lynch Meyer), James Neate (Lynch Meyer), and Alice Carter (Lynch Meyer).

April Breakfast meeting: Attendees at the breakfast.

It was a privilege to have as our guest speaker Rear Admiral

the Honourable Kevin Scarce AC CSC RAN (Rtd). Kevin currently

serves numerous roles which include Commissioner of the

Nuclear Fuel Cycle Royal Commission. Kevin’s honest and open

approach was well received. He spoke to attendees on the

tentative findings from the Commission which everyone found

extremely interesting and informative. The commission have

been very thorough and looked into all aspects, even travelling

overseas to compare and receive input from countries around

the globe.

It was a great opportunity for the 72 people who attended

to hear from the leading authority on a topic that is making

national headlines and has significant implications for the South

Australian business community.

Born and educated in Adelaide Kevin is also well-known as

he was the 34th Governor of South Australia from 2007 to 2014.

All attendees enjoyed the serenity of the venue, its central

location and the quality and service it offered.


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National Partners


Divisional Partners

We look forward to seeing you all again at our next event

which is in the planning stages. Details to be released shortly.

– Trevor Goodwin and Gail Crowder, Functions

Panel Report – April 2016

The Credit Pearls of Wisdom “secret stories from insiders”

breakfast was an engaging morning featuring an esteemed

panel of Credit professionals including Peter Brewer LICM

Former National Credit Manager with Hills Industries, Rachel

Coomblas MICM CCE National Credit Manager, Walker Stores

Pty Ltd, Paul Westo MICM National Credit & Consumer Financial

Solutions Manager, Toro Australia Pty Ltd.

The panel created lots of discussion with all attendees sharing

some of the great ideas and insights that are only learned from

sharing experiences with like minded professionals in a forum

such as this. Everyone, including the panel members, left with

thoughts and ideas to implement within their business.

The Quote of the day was – “Praise in Public, Counsel in

Private”

The realisation of the day for many was – “No one withholds

information in the Credit industry. Credit Professionals share,

we use each other to be the best we can.”

– Anne Wilkins FICM CCE, Councillor SA

Nigel Hillier (Coopers Brewery) and Des Munro (BRI Ferrier).

Guest Speaker Rear Admiral the Honourable Kevin Scarce and Gail Crowder (State President).

Merna Spain (Southern Steel Group) , Rod Sims (NCI), John Antoniadis (NCI) and Laurie Pengelley (Metal Manufactures).

http://nci.com.au

http://briferrier.com.au

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

http://www.worrells.net.au

http://veda.com.au

http://dnb.com.au




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President’s ReportThe Vic/Tas division has commenced with some great Network

and Social events, the first being the CCE event network

evening hosted by our newest state partner Sharp and Carter.

In February the famous Golf day took place which always has a

fantastic attendance and enjoyable day. Mid-March had the first

professional network night on bankruptcy.

Well done to all the members who sat and were successful

in passing the CCE exam, congratulations and well done. CCE

is an award given for recognition of best practice and credit

knowledge in the credit industry.

The Young Credit Professional award has been opened

and we are seeking worthy Young Credit Professionals to

participate in this award. This award is held in the highest

regard within the credit profession. I therefore encourage all

Credit professionals under 30 years to give it a go when the

new application window is open.

All members are encouraged to attend our upcoming

professional Network and Social events, we have some great

speakers lined up. This is an important opportunity to meet

industry peers and other credit professional. The calendar of

events can be downloaded from the AICM website and I look

forward to meeting many of our members and non-members at

monthly upcoming events.

– Lou Caldararo MICM CCE, Vic/Tas President

February Network Night – CCE Information and Evolving in the Digital WorldA very successful Network Night with 27 members and

guests attending on the 17 February, where Sharp & Carter

Recruitment Specialists, our new national partner, hosted

the CCE Information Night and delved into the fascinating

topic of ‘Evolving in the digital world’. Stephen Sharp (Sharp

& Carter) spoke enthusiastically about how technology has

revolutionised the credit industry in Australia and how it is

continually evolving.

Golf Day – Runners up.Golf Day – Winning team (prize donated by Veda).

Golf Day: Prawn BBQ – Creditor Watch.Golf Day: Intense Concentration – Putting competition.

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


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We covered how the onset of paperless invoices being

delivered via email systems has reduced mailing expenses for

many businesses and has increased net returns, by providing a

faster and more trackable delivery service. The night included

an information session about becoming a Certified Credit

Executive (“CCE”).

A fantastic evening of information about technology and

the CCE was enjoyed by all, with special thanks to Sherif

Hussein (Credit Manager – REA Group) for organising key

speakers Stephen Sharp (Sharp & Carter), Nick Pilavidis

(AICM CEO), David Haysom (National Credit Manager – Fuchs

Lubricants (Australasia)), and Lou Caldararo (Vic/Tas AICM

President).

In the latter part of the session prospective CCE candidates

gained valuable information regarding the CCE exams and

what to expect. We experienced a lot of interest on the night

with seven registering for the CCE exam.

– Amaran Navaratnam

Golf – Prizes Galore as the Presentation Dinner is Prepared.

QBE Golf Team.

5th May 2016

Youth NetworkingTopic: Creating high performance work teams

VENUE: TBC

19th May 2016

Network EventTopic: PPS Registration Made Easy

VENUE: TBC

16th June 2016

Network EventTopic: Being Up Front- Presentation Skills

VENUE: TBC

21st July 2016

Awards Dinner: Young Credit ProfessionalVENUE: TBC

18th August 2016

Network EventTopic: Time Management Skills

25th August 2016

Youth NetworkingTopic: The future and direction of debt recovery

2nd September 2016

WINC LuncheonVENUE: TBC


Online CCE Exam

22nd September 2016

Seminar/WorkshopTopic: See you in Court!

12th-14th October

National Conference

28th October 2016

Youth Networking – Trivia Night

11th November 2016

CCE Breakfast

17th November 2016

Network EventTopic: Telephone Techniques

1st December

End of Year Function – Pinnacle Awards

Events Calendar


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CCE Exam 11-14 March 2016Congratulations to all who sat the exam, fourteen sat the exam

nationally in March, with seven from Victoria. I have it on good

authority that there was a 100% pass mark on the exam in

March, however that only forms part of the CCE requirements.

All registrants must now submit their essay before

September to complete the CCE application process. If you

would like more information about becoming a CCE, please

contact Sherif Hussein via email [email protected]

VIC/TAS Annual Golf Day – Friday 20 February 2015AICM Vic/Tas Annual Golf Day held on Friday 20 February

2016 was another sellout event this year. The weather looked

ominous in the morning but held out to unfold another glorious

day for the Best Call Ambrose Competition which kicked off

11:00am at Southern Golf Club in Keysborough.

The day began with punters being able to practice at the

Network Night – Bankrupcty: Ersilia Barbone (White Cleland Lawyers) presents on Bankruptcy.

Network Night – CCEInformation: Nick Pilavidis (ACIM CEO), David Haysom (Fuchs Lubricants Australasia), Lou Caldararo (Vic/Tas President and National Credit Manager Spicers).

driving range followed by social time and

a fabulous barbeque lunch, with steak

and sausages supplied by Centreway

Steak House in Keilor, and prepared and

served by Southern Golf Club.

The course as usual was in great

condition with the greens running a

medium pace. A shotgun start had the

players away at about 12:30pm finishing

with a dinner and presentation.

Winners: Michael Caporale, Angelo

Demon, Tim Noonan, Jeff Hurst with a

handicap of 10 and final score of 56.

Runners Up: David Graer, Merryn

Graer, Russell Allen, Luke Young with a

handicap of 6.75 and final score of 56.25

coming in at second place on a count

back.

Third Place (Surnames Missing from

Scorecard): Aidan, Jonnie, Anthony, Mark

with a handicap of 8.75 and a final score

of 56.25.

The NAGA award for our last place getters goes to

Will Gilbert, Joshua Shardlow, Mac Hill and Michael Hartman,

with a handicap of 10 and final score of 74.

Our other winners on the day were:

Nearest the Pin (“NTP”) 6th Hole – Craig Adams 113cm,

NTP 16th Hole – Craig Adams 130cm,

Longest Drive (Men) 7th Hole – Steve Schofield,

Longest Drive (Ladies) 4th Hole – Merryn Graer,

Longest Drive (Ladies) 13th Hole – Kristie Gatt,

Longest Drive (Men) 17th Hole – Steve Schofield, and

Straightest Drive 1st Hole – James English.

We must express our most sincere and gracious thanks

to all of our Event Sponsors for the day, without whose

generosity it would not be possible to bring you these

prodigious events at such a reasonable price; National

Collection Services (Naming Day and Dinner Sponsors) and in

no other particular order Veda , Brooke Bird. ARMA, Advisory

Business Solutions, QBE Insurance, Atradius, Melbourne

Parkview Hotel, Kemps Peterson, Forbes Dowling, Mercantile

CPA, Sharp & Carter, Rodwells, Doncaster Volkswagen, Euler,

Network Night – Bankruptcy: Carole McTavish (Toll), Lou Caldararo (Spicers), Donna Smith (Reliance Recoveries), Ersilia Barbone (White Cleland), Piera Rushton (White Cleland), Daniel Sutherland.

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

mailto:sherif.hussein%40rea-group.com?subject=


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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.

National Partners

Divisional Partners

Professional Partners


Hall & Willcox, D&B, ARL, Ampac Debt Recovery, Mills Oakley

Lawyers, Cor Cordis, KBH Solutions, ALM, Creditor Watch,

Advisory Business Solutions, Credit Solutions/Smith Leonard

Fahey, Trade Bureaux Australia, Mint Payments, Austral

Mercantile, and Lindt.

Thank you again for all your invaluable support. We cannot

thank you enough for your generosity, participation and support

of the AICM.

We ran a raffle at dinner and doubled efforts from last year

raising over $1,800.00 for Peter MacCallum Cancer Centre.

Thanks to some very generous donations the prizes were

again a-plenty and of excellent quality this year. Special thanks

to Lou Caldararo from Spicers (President) and Charles Timms

from Tuftmaster (Vice President) for outdoing themselves

again this year and organizing yet another fabulous and

successful golf day. I say this every year but it does get better

every year.

If you missed out this time and wish to attend the 2017

or 2018 golf days please express your interest to Charles

Tims [email protected] as soon as possible as 2017

is almost sold out already, an outstanding testament to the

popularity of this day.

– Donna Smith

March Network Event – Bankruptcy – The process explainedAn intimate group of members and guests attended the March

Network Night where Ersilia Barbone, Lawyer with White

Cleland Lawyers and Consultants delivered a fast paced and

lively session on the Bankruptcy Process.

Ersilia has been practicing law for over 20 years and for

many of those her focus has been Bankruptcy so she was a

very fitting keynote speaker for the event. Ersilia delivered on

many levels with confidence and clarity and kept all participants

engaged with what can sometimes be a very dry and involved

topic.

One credit manager even commented on how engaging the

presentation was and that it had been one of the best

Network Night – CCE Information: Chris Belegrinos (Sharp & Carter) and Maria Quayle from HJ Heinz Co Australia Pty Ltd.

Network Night – CCE Information: David Haysom (Fuchs Lubricants (Australasia), Carole McTavish (Toll) and Wade Bekesi (Mercantile CPA).

Vic/Tas network nights that she has attended. We are hoping

to encourage Ersilia to deliver more presentations in the future,

so if you missed out this time we would highly recommend that

you get in next time when she presents again on this topic.

– Donna Smith

http://veda.com.au

http://dnb.com.au

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

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



http://sharpandcarter.com.au

http://nci.com.au

http://petermac.org

mailto:charles%40tuftmaster.com.au?subject=


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Western Australia/NT

May provides our members with knowledge and

information on how to get the best out of themselves and their

teams. We strongly encourage all members to attend for the

opportunity to potentially learn something new. The Breakfast

Club for May is presented by Cynthia Thomas at Matilda Bay –

Driving Culture: Getting your teams working together. We are

always seeking better ways for business to work to produce

better results. REGISTER NOW.

2016 – Autumn in WAIt’s coming into the cooler months in WA – just when things

start to heat up for the WA Credit Community. Early indications

suggest 2016 may be The Year of the West. I want to thank our

members for coming out and supporting our events to date.

We commenced the year with our first Barefoot Bowls

Evening. Teams came from all parts of Perth, appearing with

naked feet to compete for our only trophy event of the year.

Hotly contested were the greens at the Leederville Sportman’s

Club. Special thanks to all Councillors for getting this one off

the ground and to our photographer on the day: Malcolm Field

from Ferrier Hodgson who are great friends of the WA Credit

Community. Our winners on the day were Team Capricorn. Talk

is, they will be back to defend but want a bigger trophy!

Our Breakfast Club’s are off to a great start. It has been

some time since we had our own Economic Outlook for the

WA market. We were keen to have the question answered:

Is the WA Economy in recession? As the rule suggests, two

quarters of negative growth constitutes a recession, however,

Alan Langford from Bankwest provided an incite to the market

and how it is performing today and countered with sound

information that suggested all is not what it seems in the WA

Economy.

Barefoot Bowls evening: Watching the good times roll.

Barefoot Bowls evening: Team CAP.

Barefoot Bowls evening: Getting the roll on.

Barefoot Bowls evening: Watching how it’s done.

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

http://aicm.com.au/events/driving-cluture-and-getting-your-teams-working-better-together/


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Breakfast Club: Guests.

Breakfast Club: Flourence Matimati (new CCE) and Lisa Marr.

25th May 2016

Networking BreakfastVENUE: MATILDA BAY RESTAURANT

June 2016

Credit ToolboxVENUE: QBE CONFERENCE ROOM

15th July 2016

YCPA DinnerVENUE: THE CROWN

August 2016

WINCVENUE: TBC

September 2016

Credit ToolboxVENUE: QBE CONFERENCE ROOM

October 2016

Sponsors LunchVENUE: TBC

November 2016

Credit ToolboxVENUE: TBC

8th December 2016

End of Year EventVENUE: TBC

Events Calendar

By the time this e-zine reaches the masses it will be

known that our long time Councillor and State Director Steve

Mitchinson has resigned from council and the AICM Board. I

would like to take this space to thank Steve for his support of

the AICM. Without his contribution, the association would not

be where it is now. His commitment to the cause has been

phenomenal. Accountability and transparency are his legacy.

On a personal note, without him and his support, I doubt I

would have been able to continue to take these steps as State

President for West Australia. He will be missed.

– Lisa Marr MICM, WA President

Steve MitchinsonWhere do you start?

Steve first joined the WA division in

July 1979 as student subscriber.

Highlight’s of Steve’s

involvement most importantly

include those people he met

through his work with AICM and

those he had the opportunity to

work with on both State Council

and the National board (twice)

WA Council Members D&B and Alinta.


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Divisional Partners




National Partners


Steve was also the inaugural winner of the Basil Dunn

award, an award named in honour of an AICM legend and the

first person he met when he joined.

He joined State council in 1984 and held positions on the

membership, functions, sponsorship and education portfolios.

Steve was also the Division President from 1988-1991 and

was the AICM face of the privacy Act in WA

In 1991 he joined the National board.

During his 6 year’s he held the membership and professional

education directorates initiating CCE and was the National

president from 1995- 1997.

Steve re-joined the National board in 2013 and has just

announced his retirement from the board.

Other highlights over his tenure were:

z Made a life member in 2004

z Australia’s inaugural member on the Global Credit

Management Forum

z Developing the application with Loretta Winstanley to

secure funding to develop the National competency base

training framework

z Presiding over the strongest period of membership and

financial growth in AICM’s history

z Representing the AICM in the initial Privacy Act debate in

the early 90’s.

Breakfast Club: Alan Langford.

Breakfast Club: Guests.

Frank Vredenbregt, Byron Savage, Lisa Marr and Jason Louis.

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

http://ferrierhodgson.com.au

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

http://www.fticonsulting.com/

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

http://veda.com.au

http://dnb.com.au


http://nci.com.au


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SNew Members

NEW SOUTH WALES

Catherine Williams Alliance Distribution Services

Christina Lecuna Pfizer Australia

Wojtek Randla Baycorp

CORPORATE

Insurance and Care NSW (icare) Collections Branch

QUEENSLAND

Kirsty Jorgensen Stoddart Group

Shanel Lambert Silver Chef / GoGetta

Charlene Evans Coffey Pty Ltd

SOUTH AUSTRALIA

Rob Maslin Elders

Michelle Moore Lynch Meyer Lawyers

CORPORATE

Elders Rural Services Australia Limited

VICTORIA/TASMANIA

Kurt Harrop Pepkor South East Asia

Peter Sikand Marshall Power Australia

Kimberly Rapson DKSH Australia Pty Ltd

WESTERN AUSTRALIA

Brad Green Aus Fleet Solutions

Damien Barr Austral Mercantile Collections

NEW ZEALAND

Michael Moseley Fletcher Building Limited

Sharon Lockhart Fletcher Building

Michael Hope Fletcher Building

Tom Archibald Fletcher Building

CORPORATE

Fletcher Building Limited New Zealand

NEW MEMBERS

The Institute welcomes the following credit professionals who were recently admitted to membership in April 2016.

Call 02 9906 4563 or vist aicm.com.au

(or improve results from your credit staff)

Want to progress your credit career?

Consider an AICM Qualif cation course

Key credit issues such as personal & corporate insolvency, developing credit

policies & compliance.

Issues relating to credit applications & securitisation, compliance, managing

bad & doubtful debt & customer service.

All aspects of enforcing payment obligations & obligations of mercantile

agent & debt collection activities.

Diploma of Credit Management

Certificate IV in Credit Management

Mercantile Agents Training

A qualification course can help you achieve your targets. Offered nation wide, you can study in your own time (24/7) -

with support available. RPL credits could fast-track your qualification: If you have industry experience or prior

education, you may be eligible for Recognition of Prior Learning. Employer Grants: You may qualify for a training grant.

Find the qualification course that best suits your needs:

Or start small with a single unit: Each qualification is made up of a number of single units. You can start by completing one unit at a time, contributing to the relevant full qualification course, should you decide to complete all of the units in due course.

Stop putting it off & take the frst step:

Enrol to propell your credit career (or staff) to the next level.

Call 02 9906 4563 or vist aicm.com.au

(or improve results from your credit staff)

Want to progress your credit career?

Consider an AICM Qualif cation course

Key credit issues such as personal & corporate insolvency, developing credit

policies & compliance.

Issues relating to credit applications & securitisation, compliance, managing

bad & doubtful debt & customer service.

All aspects of enforcing payment obligations & obligations of mercantile

agent & debt collection activities.

Diploma of Credit Management

Certificate IV in Credit Management

Mercantile Agents Training

A qualification course can help you achieve your targets. Offered nation wide, you can study in your own time (24/7) -

with support available. RPL credits could fast-track your qualification: If you have industry experience or prior

education, you may be eligible for Recognition of Prior Learning. Employer Grants: You may qualify for a training grant.

Find the qualification course that best suits your needs:

Or start small with a single unit: Each qualification is made up of a number of single units. You can start by completing one unit at a time, contributing to the relevant full qualification course, should you decide to complete all of the units in due course.

Stop putting it off & take the frst step:

Enrol to propell your credit career (or staff) to the next level.

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