Credit Management in Australia

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

www.aicm.com.au

Volume 22, No 2 December 2014

> Privacy> PPSA> Development> Credit

Management

2014 Conference Report & Photos

CREDIT MANAGEMENT IN AUSTRALIA • December 2014

QLD Division: Rachael Ryan, Sarah Mizon, Fiona Doherty, Scott Goodrick.

SA Division: Gail Crowder and Rebecca Edmiston.

VIC/TAS Division: Jason McCutcheon has members enthralled.

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42

44

WA Division: Great tea and lovely venue.

NSW Division: Golf Day Winners – Charles Kinsella, Daniel Grace, Nick Pilavidis and Doug Rouessart.

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48EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:The Editor, Level 1, 619 Pacific Highway, St Leonards NSW 2065or Email: [email protected]

DIRECTORS

Australian President – G.L. Morris MICM CCE

Australian VP, Law & Regulation – J.A. Neate MICM

Professional Development – S.D. Mitchinson LICM

YCPA & CCE – G.C. Young MICM

Member Services – J.G. Hurst FICM CCE

Finance – G. Odlum MICM CCE

CHIEF EXECUTIVE OFFICER

N. Pilavidis MICM CCELevel 1, 619 Pacific Highway, St Leonards NSW 2065Tel: (02) 9906 4563, Fax: (02) 9906 5686Email: [email protected]

EXECUTIVE SUPPORT

SA Division – Kerry HammillPO Box 2131, Felixstow SA 5070Tel: (08) 8365 9021, Fax: (08) 8365 9021, Email: [email protected]

EDITOR/PUBLISHER

Nick Pilavidis | Email: [email protected]

CONTRIBUTING EDITORS

Colin Magee NSWMurray Ashford QLDKerry Hammill SAWarren Meyers WADonna Smith VIC/TAS

ADVERTISING MANAGER

Tony PaulAssociation MediaTel: 0401 917 799Email: [email protected]

EDITING & PRODUCTION

Anthea VandertouwFerncliff ProductionsTel: 0408 290 440Email: [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 1, 619 Pacific Highway, 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, 2014.

December 2014 • CREDIT MANAGEMENT IN AUSTRALIA

Volume 22, Number 2 – December 2014

Message From the President 4

National Conference 6- Certified Credit Executive Dux 8- Young Credit Professionals of the Year 11 - Credit Team of the Year 12- President’s Trophy Award 14

Learned LegalSection 64 – PPSA Act 2012 15AICM - Can We Help 15

Credit ManagementDivergent trends set to trend in 2015 16By Stephen Koukoulas

Voluntary administrations to rise as record 18 numbers of ASX companies face collapseBy Antony Resnick and Gavin Robertson

Veda National Credit Manager’s Survey 20

PrivacyPrivacy Awareness 26By Debra Kruse and Michael Hartman

Privacy Act Participant Membership Promotion 27

PPSAThe Six Reasons 30By Kim Powell

Personal Property Securities and bailments, 32 consignments and a receiver’s lienBy Leigh Adams

DevelopmentTrust me I’m the boss 35By Daniel Kehoe

Daniel Kehoe

35

ASSOCIATION MEDIA

For Advertising Opportunities

in Credit Management In Australia

CALL Tony Paul

Phone: 0401 917 799

Email: [email protected]

AICM Training News- AICM Training News 36- Manage bad and doubtful debts 37- Factoring and invoice discounting 38- Unique Student Identifier 39

Around the StatesQueensland 40South Australia 42Victoria/Tasmania 44Western Australia/Northern Territory 46New South Wales 48New Members 51

Kim Powell Leigh Adams

30 32

Wishing you all a Merry Christmas and a Happy New Year

4 CREDIT MANAGEMENT IN AUSTRALIA • December 2014

aicmf rom the p res iden t

Welcome to our first ever

online or soft copy magazine

which replaces the traditional

magazine we have been

mailing for 20 years. We hope you enjoy it as

we aim to deliver to you more timely news and

better event coverage at a reduced cost to the

AICM thus allowing us to divert funds to other

areas of benefit to credit professionals.

As the year draws to a close and a new year

commences it is opportune to reflect back on

2014 and look forward to what will be in 2015.

In March the Privacy Amendment

(Enhancing Privacy Protection) Act 2012 kicked

in. The Act required a credit provider to be

a member of an External Dispute Resolution

Scheme (EDR) and after lobbying by the AICM,

it’s members and supporters and other parties

this requirement was deferred for 12 months.

Unless further lobbying is successful, which is

unlikely as the major objection of cost has been

overcome, all credit providers will be required

to join an EDR Scheme in March 2015. We

have been in discussions with Raj Venga the

Ombudsman and CEO of Credit Ombudsman

Service (COSL) and COSL are now offering a

discounted membership to all AICM members

for the fixed annual cost of $850 incl GST in

year 1 and $650 incl GST in each subsequent

year. This is a considerable discount on

standard fees and covers all Privacy disputes

which may be lodged with COSL rather than

their standard additional fee for each dispute.

Put simply “get on board”. You can register

your interest at https://www.surveymonkey.

com/s/AICMCOSL to ensure you receive

registration forms when an announcement

is made regarding the extension of the

exemption.

Our October conference on the Gold Coast

was our most successful for many years with

the largest gathering of Credit Professionals for

a long time. There were over 200 companies

represented and some 3 dozen of those were

ASX100 companies. The sessions were well

attended and the dinner was a sell-out.

At the conference we announced the Veda

sponsored 2014 Credit Team of the Year which

is Reece Pty Ltd and the Dun & Bradstreet

sponsored 2014 Young Credit Professional of the

Year winner which, for the first time in AICM’s

history, was awarded jointly. The winners are

Rebecca Edmiston (Bendigo & Adelaide Bank

– SA/NT) and Anna Golubeva (Hilti Australia –

NSW). Congratulations to Rhys Buzza and the

team at Reece and Rebecca and Anna who were

very deserving winners of the awards in very

strong fields of finalists.

Our conference survey is still open and

I would encourage you to please complete

the survey and provide your thoughts and

suggestions towards the 2015 conference in

Sydney. The link is https://www.surveymonkey.

com/s/AICMConference

I would like to share with you part of my

address to delegates at the conference:

“Did you know that in the 3 years ended

June 2008 the average number of appointments

of Administrators, Liquidators and Receivers &

Managers was 12,390 and it was fairly steady

around that figure in each of those years. In

2009 , as a result of the GFC, it jumped to 15,567

a staggering 24% increase and has remained at

these increased levels over the following 4 years

closing in 2013 at 15,815.

In the year just gone ie to June 2014, the

number of appointments fell by nearly 2,000 or

12% to 13,985.

So all is good, or is it?

Perhaps we should not be complacent when

we see historical signs of improvement as 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.

CPA Australia analysed some 16,000 annual

reports of listed companies between 2005 and

2013. On reviewing the 2013 results they noted

11 per cent more companies attracted financial

distress warnings that year than during the GFC.

These reports are completed by independent

auditors, who are required to flag in a company’s

annual report if they believe there is “significant

uncertainty” in a company’s ability to continue

as a going concern.

The report shows that almost a third of ASX-

listed companies attracted “going concern”

warnings from their independent auditors.

Most of the warnings were concentrated in the

bottom 500 listed companies.

Put simply, 58 per cent of Australia’s smallest

Grant Morris CCEAustralian President

https://www.surveymonkey.com/s/AICMCOSL

https://www.surveymonkey.com/s/AICMCOSL

December 2014 • CREDIT MANAGEMENT IN AUSTRALIA 5

aicmf rom the p res iden t

500 listed companies in 2013 attracted going

concern warnings by auditors. This is something

CPA boss Alex Malley describes as a “sobering

reminder of the fragility of the Australian

economy and the challenges many businesses

face”.

Energy and mining companies are at the fore

with more than 40 per cent of these sectors

facing serious financial uncertainty. The report

notes going concern warnings also increased in

sectors including consumer staples, industrials,

healthcare and utilities.

The report makes sobering reading indeed,

and a good reason to be here this week and to be

a member of the AICM.”

We need to stay a step ahead of the game

and we need to not only be across legislative

changes but also lobby for change ourselves. On

7th November the Attorney General released its

draft Insolvency Law Reform Bill 2014 and noted

The draft Bill comprises a package of

proposals to amend and streamline the

Bankruptcy Act 1966 and the Corporations Act

2001. The proposed amendments will:

z remove unnecessary costs and increase

efficiency in insolvency administrations;

z enhance communication and transparency

between stakeholders;

z promote market competition on price and

quality;

z boost confidence in the professionalism and

competence of insolvency practitioners; and

z remove unnecessary costs from the

insolvency industry resulting in around $55.4

million per annum in compliance cost savings.

This Bill requires submissions by December

19 and is currently being reviewed by James

Neate, our Legal Affairs Director, with a view to

providing a submission on behalf of the AICM

and it’s members. I would encourage you to

provide any comments to James through our

CEO Nick Pilavidis at our office or nick@aicm.

com.au.

At the forefront of the AICM are our CCE’s

and I am pleased to be able to say that this year

11 have completed the exam and assignment

and become CCE’s. A special acknowledgement

to the 5 Credit Managers at Coates Hire who

took the step and this year became CCE’s (onya

Anthony, Denise, Kathy, Mel and Sev) and a word

of encouragement to others to encourage your

team leaders and managers to come on board

just like the 16 who sat the exam in September

and will shortly join the ranks.

Last month 2014’s top performers were

recognised at the second annual AICM Pinnacle

Awards. I congratulate the following winners:

– Credit Manager of the Year (teams > 10) -

Adam Clarke - Star Track

– Credit Manager of the Year (teams < 10)

Nicole Chesher - Ecolab

– Senior Credit Officer of the Year Imelda

Quiros - Coates Hire

– Legal Representative of the Year Paul

Hutchinson - Force Legal

– External Collector of the Year Andrew Smith -

Australian Recoveries & Collections

– Recruiter of the Year Vanessa Alkon -

Randstad

– High Five Award Sev Indrele - Coates Hire

Please take the time to read the various

articles and sections in this magazine including

“Around the States” to see what is happening

in your neck of the woods and an interesting

question raised in “AICM – Can We Help”.

I encourage you to submit your questions to

[email protected] and we will seek answers

from experts in the topic. By sharing your

questions you may obtain additional information

or a different perspective free of charge and you

will definitely help share some knowledge and

experience with your fellow Credit Professionals.

It has been a long and successful year for

the AICM with a successful national conference,

growth in membership and CCE’s and the

deferral of the requirement to join an EDR and

negotiation of a great deal with COSL for 2015

and beyond.

Max has been to Turkey and the Gold Coast

and like the rest of us is looking forward to the

Christmas break. Use the break to reflect back

on your achievements in 2014 but also use it to

plan what you are going to do bigger and better

in 2015 – perhaps obtain your CCE or encourage

a team mate to do so, undertake a Certificate

or Diploma qualification, enter the Credit Team

of the Year or Young Credit Professional of the

Year, include the Sydney conference in your

FY16 budget or help the AICM to put together

submissions for legislative reform to make your lot

better. Give it some thought and get on board.

I look forward to seeing you at an AICM

event soon as you support the Institute which

supports you.

mailto:[email protected]




2014 National Conference

Mark Robberds and Maurine Grant Debbie Leo and Jeff Hurst.

Nick leads the way. Thirsty work.

Our MC – James Neate. Exhibitor alley.

The 2014 National Conference was full of Great Sessions, Awards, Exhibitors and Networking opportunities.

Some Conference highlights include:

– Great Golf Day

– Informative presentations, Slides and photos are now on the Credit Network

http://www.creditnetwork.com.au

– Engaging exhibitors, featuring Video Games, Barista’s, ice cream, prizes and even a Cash Cow!

– Networking and Social event, the highlight being the Presidents Dinner sponsored by D&B.

– CCE Dux Award – David Haysom was the Dux of this year’s CCE candidates

http://www.creditnetwork.com.au



The Girls from Results Legal Veda – let the games begin.

NCI – We are always ready to meet your needs.

The Cash Cow. (creditor)Watch – boys just want to have fun.

– Credit Team of the Year Winner – Congratulations to Reece Pty Ltd

– Young Credit Professional of the Year Winner – Congratulations to Anna Golubeva, NSW and

Rebecca Edmiston, SA

– President’s Trophy Winner – South Australia, Congratulations to Gail Crowder and the SA Council

The AICM is your Institute and The Conference is your Conference so your thoughts are vital to ensuring your

needs are met. Please complete the survey at https://www.surveymonkey.com/s/AICMConference or email

[email protected] with any thoughts, comments or Feedback. Please complete the survey whether or not you

attended as it will help us review and plan future conferences.

https://www.surveymonkey.com/s/AICMConference




Prior to the opening of the National Conference

it is tradition for all CCE’s to attend the annual

CCE Luncheon, where new CCE’s are welcomed

and CCE’s who have re-certified receive their

certificates. This year Peter Mills, Special Counsel,

PPS, Finance & Credit Recoveries, Herbert Greer

Solicitors spoke about the challenges of doing

business in Papua New Guinea and the South

Pacific.

Also at this lunch, it is traditional to announce

the Dux of the year. The Dux is chosen based on the

exam and essay that candidates submit as part of

the requirements to apply for CCE status. This year

the winner was David Haysom of Fuchs Lubricants

(Australia Pty Ltd).

As David was not able to attend the luncheon so

Terry Duffy of NCI presented Vic/Tas President Lou

Caldararo with a bottle of Grange Hermitage. When

David arrived at the conference an official handing

over ceremony took place with photographic

evidence taken to show that the bottle was

transferred with full contents.

Lou Caldararo and Terry Duffy from NCI.

Certified Credit Executive Dux

CCE Re-certifications – Class of ‘99.

Lou handing the prize to David Haysom.

CCE Re-certs – Class of ‘08.

Janelle Madge – 2014 graduate.



Grant Morris, National President – Opening address.

Peter Mills addressing CCE Luncheon.

Darin Milner from D&B.

CCE’s at Luncheon.

A captured audience.

Tim Courtright, Veda – Welcome. Chris Caton – Conference Keynote Speaker.



EDX Australia.

Noble Systems.

The D&B Team.

CreditSoft Solutions.

Austral Mercantile.

AMPAC Debt Recovery.

NV Group



This year we had a record number

of expressions of interest and the

feedback from the judging panels

at Division and National levels was

that the quality of the candidates

was extremely high.

Mark Russell, Director at Dun

and Bradstreet, in announcing the

winners, commented that a handful

of points separated all 5 National

Finalists. Zero points separated the

top 2 with Rebecca Edmiston and

Anna Golubeva being announced

joint winners. It is the first year in

the almost 20 year history of the

award that we have two Australian

Young Credit Professional of the

year winners.

AICM and all of the candidates

thank Dun and Bradstreet for their

continued support of this award. Rebecca Edmiston and Anna Golubeva.

2014 Young Credit Professionals of the Year

The YCPA Finalists.

YCP Winners – current and past.Rebecca Edmiston. Anna Golubeva.



Reece Pty Ltd and Recoveries Corporation Pty Ltd were

the top two National Finalists to attend the conference.

Grant Morris, AICM National President and Debbie Leo,

General Manager Major Accounts, Veda announced

Reece Pty Ltd as the 2014 Credit Team of the Year. This

year’s Judges were:

– Grant Morris, National President and National Credit

Manager at Coates Hire

– Simon Holloway, Credit Manager National Accounts

at Carlton and United Breweries

– Andrew Le Marchant, Credit Manager at Allens

Linklaters

We thank the Judges for their time in this year’s

judging and to Veda for their continued support of this

award, including making it possible for the judging to be

held face to face in both Sydney and Melbourne.

The Reece Team with Grant Morris and Debbie Leo.

Credit Team of the Year

Recoveries Corp representatives.The Reece Team celebrate.



Lou and Jeff – feeling the love.

2013 Credit Team game show. Cheers.

Delegates at the President’s Dinner.

Getting to know you! Let’s dance.

Elegant evening ahead. Hair, Hair, Where, Where!



WA President Gail Crowder.

President’s Trophy Award

Girls just want to have fun.

This will pack in my luggage.

Winners are grinners.

Each year the National President announces the

President’s Trophy which recognises the division

that has excelled with their engagement with their

members. This year’s winner was South Australia.

Congratulations to Gail Crowder, SA Division

President and the SA council.

Learned Legal

QuestionHardly a day goes by without receiving notification of the

appointment of an Administrator, Liquidator or Receiver and

Manager (ALRM) and then the reports flow through. I notice

the reports always include a not insubstantial amount of fees

paid to solicitors and wonder why this is so. Often the legal

fees are equal to the ALRM’s fees. This is a substantial drain

on funds and reduces or eliminates dividends to creditors.

Why do ALRM’s find the need to seek such legal advice? Are

they not knowledgeable in the handling of the appointments?

Why do they use solicitors to submit initial claims for alleged

preferential payments as this would seem to double the cost

ie the ALRM reviews the matter and then the Law Firm does

the same? Any negotiations which are subsequently entered

into then mean the Law firm has to tic tac with the ALRM for

decisions on whether to accept any offers made – a doubling

up of time and fees. I can understand why they might be

used to pursue payment but why doesn’t the ALRM make the

initial claim? How do they select the Law Firm? Are there any

commissions paid? Is this required to be reported? Why don’t

they negotiate reductions in fees especially for the volumes of

business they pass to them? I know the firms we use to assist

us with collection action are very competitive and commercial.

– National Credit Manager Sydney MICM CCE

ResponseA good series of questions. We will put to them to ARITA and

a number of Insolvency Firms and seek their comment.

AICM receives questions from Credit Managers that it puts to a panel of lawyers 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.

It is not unusual for customers to seek to factor their accounts

to assist with the cash flow of their businesses.

Suppliers should seek to ensure that their Terms and

Conditions of Sale (‘Terms’) provide that customers cannot

factor their accounts without their consent. Terms should

provide that customers give suppliers a security interest under

the Personal Property Securities Act 2012 (‘PPSA’) in all present

and future inventory and accounts as original collateral.

This means that customers agree that the suppliers’ security

interest includes not only sale proceeds of stock but in the

accounts of customers and so requiring customers to obtain

the suppliers’ consent to factor the accounts.

Terms should further provide a negative pledge which

specifically provides that customers agree not to grant any

security interest in any accounts as original collateral under S.

64 of the PPSA.

By creating in Terms for suppliers a security interest in

accounts as original collateral and requiring customers not

to grant a security interest for financiers and factors in such

accounts then in the event customers do factor accounts

suppliers may give customers notice of default under Terms

and seek to seize unsold stock and incorporated product from

customers. However where accounts have been factored in

default of Terms, this does not prevent financiers or factors

from registering their security interest under S. 64 of the

PPSA with the Personal Property Securities Register. Such

registration will provide priority over the pmsi security interest

of suppliers concerning sale proceeds.

Section 120 of the PPSAOn occasion a supplier may become aware that the stock

supplied to a customer has been onsold to a third party and

the third party owes an amount to the customer on the stock.

Where the supplier has a security interest in the stock in the

form of an account the supplier may provide the third party

with a notice pursuant to S. 120 (3) of the PPSA requiring that

within 5 days of receiving the notice from the supplier, the

third party is to pay to the supplier the amount that the third

party owes to the customer on the stock. In the event that the

third party fails to do so, the supplier may commence Court

proceedings for orders that the third party pay the amount

owed to the customer to the supplier on the stock.

The use of S. 120 depends upon the supplier knowing that

the supplier’s stock has been supplied by the customer to a

third party and the third party owes an amount on the stock to

the customer.

Section 64 of the Personal Property Securities Act 2012 (‘the PPSA’)The Learned Legal section provides quick tips on specific areas of law that affect credit management.

aicm Can We Help?


Credit Management


This year is coming to an end

with the Australian economy

having experienced 12 months of

divergent trends. Overall, the rate

of economic growth has slowed, the

unemployment rate edged upwards

and inflation has eased, yet business

conditions have remained buoyant

despite the government announcing

budget tightening measures to

achieve a surplus.

The influence of global

economic and market conditions

on Australia have been generally

negative this year, highlighted by

sharp falls in commodity prices

and loose monetary policy settings

throughout the industrialised world.

Persistent weakness in the Eurozone

has created a drag on the global

economy, including China which

continues to experience a slowdown

in its performance.

The good news globally has

come from the United States,

which has registered sustained

GDP growth and an improvement

in employment to levels that were

last seen before the global financial

crisis unfolded.

The year’s mixed story has seen

the Reserve Bank of Australia hold

official interest rates at a record low

level throughout the year, while in

recent months the Australian dollar

has fallen to a five-year low.

For the credit industry and the

business sector more broadly, 2015

appears set to deliver continued

mixed news.

Despite the challenges of 2014,

the business sector is looking at next

year favourably. Dun & Bradstreet’s

(D&B) latest Business Expectations

Survey reveals that the corporate

sector is upbeat on expected sales,

profits and, to a slightly lesser extent,

employment and capital expenditure.

Encouragingly, there are signs that

the non-mining side of the economy

will lift its capital expenditure plans,

although more substantial investment

levels will be necessary to see overall

growth improve next year.

Businesses will also be looking for

an improvement from the consumer

side of the economy, which has been

problematic over the last 12-months.

Despite record-low interest rates,

consumers have been cautious in their

spending and borrowing (outside of

property), with weaknesses in the

labour market, a record low pace

for wages growth, and high levels

of household debt proving major

obstacles. Unsurprisingly, given these

conditions, D&B’s Consumer Financial

Stress Index has deteriorated over the

past year as more Australians struggle

to meet their current obligation or

take on new credit.

Summing up these economic

indicators, D&B is forecasting real GDP

growth in 2015 at around 2.5 per cent,

a little below the pace that is seen to

be consistent with strong activity.

With below-trend activity, the

unemployment rate is likely to edge

higher and could well exceed 6.5 per

cent by the middle of the year. As a

result, wages growth is set to slow

Divergent trends set to trend in 2015By Stephen Koukoulas, Economic Adviser to Dun & Bradstreet

For the credit industry and the business sector more broadly,

2015 appears set to deliver continued mixed news.

Stephen Koukoulas

Credit Management


to a new record low of around two

per cent. Inflation is forecast to ease

to around 2 per cent, with prices

contained by the combination of a

subdued economy, negative global

influences and weak wages growth.

In this economic climate and with

soft revenue growth, the government

will struggle with its fiscal policy objec-

tive of returning the budget to surplus.

Meanwhile, the RBA will most likely

continue with a period of steady mon-

etary policy – although if house price

growth eases, the central bank would

be inclined to be cut interest rates.

A wildcard for the economy next

year is the Australian dollar. Reflecting

the fall in commodity prices, the

dollar has so far eased from peak

levels around $US1.10 to around

$US0.87, with further falls to a range of

$US0.75–0.80 not out of the question.

At this level, the sections of the

economy that need to begin replacing

mining sector output will benefit,

including agriculture, manufacturing

and Australia’s sizeable services

industries. This outcome is significantly

more realistic following Australia’s free

trade agreement with China.

The bottom line is that the

Australian economy is subdued and

there may need to be more policy

stimulus in 2015. While the business

sector is optimistic and economic

fundamentals stable, growth will

remain below-trend in the near-term.

On the upside, following years of

slow economic progress since the

global financial crisis, businesses

are better placed to manage soft

conditions and also exploit the

opportunities that exist. Business-

to-business payment times are the

healthiest level since 2007, fewer

operations are concerned about

cashflow, and more startups are

commencing operations.

The consumer position, however,

has not improved and a divergence

has developed between business

and consumer outlooks. Whether

businesses drag consumers out of

their funk or whether the reverse

occurs next year could be the decisive

moment for the economy. u

The bottom line is that the Australian economy is subdued and there may need to be more policy stimulus in 2015.

Improve cashflow and reduce bad debtBeing able to quickly pin-point the financial risks

and opportunities across your customer base

is critical to effective risk management

and business growth.

Contact us to arrange a demonstration.

13 23 33 portfolioinsight.dnb.com.au

Portfolio Insight

Credit Management


Voluntary administration rates for

listed companies look set to soar as

directors of growing numbers of small

and medium companies in financial

dire straits, opt for administration as

a potential lifeline for the business,

rather than face personal exposure

for insolvent trading.

Recent research from CPA

Australia* has shown that nearly a

third of all ASX-listed companies were

close to insolvent in 2013, including

more than half of the smallest

500 and 28 per cent of medium

companies. And of the more than

700 small and medium companies

in serious financial distress, those in

the energy and mining, consumer

staples, industrials, health care and

utilities sectors were at greatest risk of

collapse.

Specifically, it is small and medium

companies that are facing a perfect

storm of financial woes. The capital

markets have been brutal, making it

especially challenging for small caps

to fund working capital. Coupled with

low levels of consumer confidence,

falling commodity export prices and

stagnating household incomes, it’s

no wonder many listed entities are

struggling.

Directors who have exhausted

conventional funding options are

more likely to turn to voluntary

administration, causing an uptick

in voluntary administrations in the

months ahead. ASIC statistics for July

and August 2014, recorded an 8 per

cent rise in voluntary administrations

over the previous two months. This

upward trend should continue as more

directors opt for administration as

a final resort attempt to salvage the

business when the realisation dawns

that the company no longer has the

means to continue trading.

While voluntary administration is

sometimes regarded as a precursor to

liquidation, perceptions are changing

and more companies are proactively

using this as a positive tool to save the

business.

If initiated early enough and

the directors have a considered

plan for restructuring the business,

an administration can in fact be a

valuable lifeline, giving distressed

companies the maximum chance

of survival. There are many brands

and businesses which have emerged

successfully from the process

including Darrell Lea, St Hilliers Group,

Spring Gully Foods and many more.

Administrators can implement

many options that are not readily

available to the directors, including

capitalising debt using a deed

of company arrangement or

restructuring for the purposes of a

backdoor listing.

And for directors, administration

can be a viable strategy to save the

company because of the various

benefits available to the company and

directors.

The company gains a freeze on

its creditors, giving it vital breathing

space to restructure and preserve the

value of company assets, including

trading businesses, for the benefit of

all stakeholders. And where assets

sales are part of the solution, the

administrator will in most cases be

able to achieve a better result than

the directors because of their strong

Voluntary administrations to rise as record numbers of ASX companies face collapseBy Antony Resnick, principal BRI Ferrier and Gavin Robertson, principal M+K lawyers

Gavin Robertson

Antony Resnick

Credit Management


commercial reputation and ability

to inject competitive tension into

any bidding process. Additionally,

shareholder and director approval

are not required to carry out the sale

which can save significant time and

money.

Another of the major advantages

of a voluntary administration is that

directors are protected from exposure

to claims of insolvent trading

which can leave them vulnerable to

significant personal liabilities.

The law requires directors to

protect the interests of creditors.

They can be held personally liable

if they incur debts once a company

becomes insolvent. But by placing the

company in administration, directors

are protected from further liability and

the company can then efficiently carry

out a reconstruction.

The chances of rehabilitating

a company can be significantly

improved if companies act at the

earlier stages of financial distress.

Putting a company into administration

is a finely balanced decision but at

the end of the day, erring on the

side of being proactive can allow the

directors to preserve a measure of

control over the company’s destiny

and enhance their chances of saving

it through a reconstruction that

can mean the difference between

liquidation and a new lease on life. u

*Source: CPA Australia: Audit Reports in Australia 2005 – 2013: Preliminary findings (September 2014)

ABOUT THE AUTHORSAntony Resnick is a Principal of BRI Ferrier and is a Registered and Official Liquidator with 22 years’ experience attained internationally in a variety of industries

Gavin Robertson is a Principal of M+K Lawyers with particular expertise in mergers and acquisitions, corporate finance and governance.

Another of the major advantages of a voluntary administration is that directors are protected from exposure to claims of insolvent trading...

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Credit Management


27%

EDR

DSO

45%

KEY FINDINGS

Economic conditions have

affected business sentiment,

with a majority of credit managers

reporting a negative impact from

general economic conditions to their

business

Veda National Credit Manager’s SurveySince the GFC Veda’s National Credit Manager Survey has provided valuable insights into credit risk management practices. The key findings from the 2014 Survey are summarised below:

86% of credit managers

consider default information to

be either very important or critical

when making a decision to extend

credit, up from 73% in 2013. At the same

time, the proportion of participants

willing to provide credit when an

adverse is present has fallen to 34%,

the lowest level seen in three years

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

That left a net balance of 27%

of participants reporting an

increase in the number of credit

applications over the past 6 months,

a strong rise in demand compared

with a net balance of only 13% in 2013

The introduction of changes

to the Privacy Act have had

minimal impact on how new credit

risk is assessed

27%

EDR

DSO

45%

27%

EDR

DSO

45%

27%

EDR

DSO

45%

There has been a substantial

improvement in expectations

of future economic conditions, with

27% of participants expecting a

positive impact compared with only

16% in last year’s survey

Credit managers have

tightened credit policies in

response to economic conditions,

although this is expected to relax in

the next six months

There has been an overall

improvement in Days Sales

Outstanding (DSO) performance with

the average DSO at 43.89, compared

with 44.91 in 2013

82% of participants feel that

membership of an external

dispute resolution (EDR) scheme

should not be mandatory, while

75% express some level of interest

in joining an EDR scheme that has a

primary focus on privacy issues only

Despite poor business

conditions, the number of

credit applications has risen for 45%

of credit managers and has fallen for

only 18% of credit managers over the

past year. This compares to 40% and

27% in last year’s survey, for rises and

falls in credit applications respectively

Payment terms have become

shorter compared with last

year’s survey, with average payment

terms estimated at 30.61 days in 2014,

compared with 33.65 days in 2013

60% of participants feel the

introduction of the Personal

Property Securities Register (PPSR)

has benefited their business and a

higher percentage of credit managers

are now using the PPSR

MANAGING CREDIT

Economic conditions are affecting the demand for credit and are having an impact on credit management processes.

In 2013, the generally negative

economic backdrop of the previous

12 months appeared to be slowing

the growth in credit applications,

but different economic conditions

across industries and regions had

differing influences on the demand

for credit.

The economic backdrop has

improved over the 12 months

preceding the 2014 survey, although

economic conditions continue

to present challenges to many

businesses. This means that the

management of credit outstanding

is of critical importance. Participants

reported that the frequency of

account reviews has remained

broadly unchanged from last year.

On balance, Day Sales Outstanding

(DSO) has improved for many

Credit Management


participants over the past year, almost to the levels

reported in 2012, with most participants reporting little

change. This is in contrast to 2013 where, on balance, DSO

deteriorated.

Demand for credit Survey participants reported varied conditions when it

came to the demand for credit. The survey results revealed

that:

z the demand for credit was rising for 45% of

respondents, up from 40% in 2013;

z the demand for credit was falling for 18% of

respondents, down from 27% in 2013; and

z 37% reported a neutral change in the demand for credit,

up from 33% in 2013.

That left a net balance of 27% of participants reporting

an increase in the number of credit applications over

the past six months, a strong rise in demand compared

with 2013.

As such, the survey results suggest that economic

conditions are now having a more uniform impact for firms

and households across the economy – compared with last

year’s survey, fewer participants saw a decline in credit

demand, while more participants are now seeing a rise in

credit demand.

However, varied conditions are still evident within

industries with some businesses seeing an increase,

and some a decrease. On balance, businesses in the

construction, finance and insurance, wholesale trade, retail

trade, and manufacturing industries reported seeing an

increase in the number of credit applications over the past

six months, while some industries with a small number

of respondents reported seeing a decrease, including

agriculture, utilities, government, and property and

business services industries.

It is also informative to consider the change in the net

results from 2013 to 2014. The net proportion of survey

respondents reporting an increase in credit applications

rose from 13% in 2013 to 27% in 2014. This suggests that the

extent to which the demand for credit is rising has gained

momentum since the last survey, when averaged across all

survey respondents.

This improvement in credit demand was seen across

most major industries, with the net balance of participants

reporting an increase in credit applications in the

construction, finance and insurance, manufacturing, mining,

retail trade, and wholesale trade industries. The net balance

reporting a positive change increased in all of these

industries except for mining, compared with last year’s

survey.

Chart 5.1: Net balance of participants reporting an increase in credit applications

These results are broadly consistent with what Veda has

seen on its bureau. Following a fall in trade credit enquires

in late 2013, growth in the number of trade credit enquires

picked up in early 2014, with growth in trade credit

enquiries still remaining positive in mid-2014.

Chart 5.2: Change in the number of credit applications over the last six months

Chart 5.3: Net balance of those reporting an increase in the number of credit applications over the last six months (%)

Chart 5.1

Construction

12%

30%

13%

22%26%

30%

6%

18%

50%

31%

-10%-15%

Financeand

Insurance

Manufacturing Retailtrade

Wholesaletrade

Mining

-20

-10

10

0

20

30

40

50

2013 2014


Significantdecrease

Moderatedecrease

Neutral

Moderateincrease

Significantincrease

0 10 20 30 40

7%

4%

20%

14%

33%

37%

29%

35%

11%

10%

2013

2014


0 10 20 30

2013

2014

13%

27%


0 5 353025201510

5000+

3001 to 5000

1001 to 3000

501 to 1000

251 to 500

151 to 250

101 to 150

51 to 100

1 to 50

4%

2%

5%

4%

14%

7%

3%

8%

11%

11%

11%

9%

7%

8%

12%

17%

33%

33%

2013

2014

Chart 5.4: Amount of new accounts opened in the last six months

Chart 5.1

Construction

12%

30%

13%

22%26%

30%

6%

18%

50%

31%

-10%-15%

Financeand

Insurance


Wholesaletrade

Mining

-20

-10

10

0

20

30

40

50

2013 2014


Significantdecrease

Moderatedecrease

Neutral

Moderateincrease

Significantincrease

0 10 20 30 40

7%

4%

20%

14%

33%

37%

29%

35%

11%

10%

2013

2014


0 10 20 30

2013

2014

13%

27%


0 5 353025201510

5000+

3001 to 5000

1001 to 3000

501 to 1000

251 to 500

151 to 250

101 to 150

51 to 100

1 to 50

4%

2%

5%

4%

14%

7%

3%

8%

11%

11%

11%

9%

7%

8%

12%

17%

33%

33%

2013

2014


Chart 5.1

Construction

12%

30%

13%

22%26%

30%

6%

18%

50%

31%

-10%-15%

Financeand

Insurance


Wholesaletrade

Mining

-20

-10

10

0

20

30

40

50

2013 2014


Significantdecrease

Moderatedecrease

Neutral

Moderateincrease

Significantincrease

0 10 20 30 40

7%

4%

20%

14%

33%

37%

29%

35%

11%

10%

2013

2014


0 10 20 30

2013

2014

13%

27%


0 5 353025201510

5000+

3001 to 5000

1001 to 3000

501 to 1000

251 to 500

151 to 250

101 to 150

51 to 100

1 to 50

4%

2%

5%

4%

14%

7%

3%

8%

11%

11%

11%

9%

7%

8%

12%

17%

33%

33%

2013

2014


The economic backdrop has improved over the 12 months preceding the 2014 survey, although economic conditions continue to present challenges to many businesses.

Credit Management


Reflecting the broad nature of survey participants,

around one third of participants have opened less than

50 accounts in the last six months, while a further 46%

of participants opened between 50 and 500 accounts.

The remaining 21% of participants opened more than 500

accounts in the last six months.

This is broadly similar to the 2013 survey, although there

are now slightly more organisations opening between 50

and 500 accounts, and slightly fewer opening more than

500 accounts in the last six months.


Importance of default information Default information continues to be very important when

making a decision to extend credit.

In the 2014 survey, 87% of participants reported that

default information was either very important or of critical

importance when making a decision to extend credit, with a

further 10% reporting it as important.

There has been a substantial increase in those

considering default information to be either very

important or of critical importance. Compared with the

2013 survey, 73% of participants reported that default

information met these criteria, with a further 22%

reporting it as important. Some credit managers noted

that default information is being used as a preventative

measure to help manage additional risk. The increased

importance of default information is consistent with

elevated perceptions of risk amid the difficult economic

conditions still prevailing.

Chart 5.5: The importance of default information when making a decision to extend credit

In terms of the type of default or adverse information

considered as important to the credit decision process,

external administration or bankruptcy, director or

proprietor default, court writs and actions, and company/

business default, were all felt to be important by survey

respondents.

Every year, survey participants have continually

reported the importance of each type of default or adverse

information, and responses have varied by only a small

amount. Almost all participants indicate that every type of

default or adverse information is important.

Chart 5.6: Type of default or adverse information considered as important when considering extending credit

The 2014 survey reveals that the proportion of

participants who would provide credit if there was an

adverse present was at 34%. Over the previous three

years, the proportion of participants providing credit in

the presence of adverse increased significantly from just

above 30% in 2011 to 51% in 2012, and to 64% in 2013. The

proportion of participants willing to provide credit when an

adverse is present has therefore fallen to the lowest level

seen in three years. This is a reflection that credit policies

have continued to become tighter in 2014, and is consistent

with higher perceptions of risk among credit managers as

well as the increasing importance being placed on default

information reported earlier.


Other

Externaladministrationor bankruptcy

Directoror proprietor

default

Court writsand actions

Company/business default

0 20 40 60 80 100

4%

96%

86%

98%

94%


Critical

Veryimportant

Important

Slightlyimportant

Notimportant

0 10 20 30 40 50

34%

39%

39%

47%

22%

10%

4%

2%

1%

1%

2013

2014


Other

Externaladministrationor bankruptcy

Directoror proprietor

default

Court writsand actions

Company/business default

0 20 40 60 80 100

4%

96%

86%

98%

94%


Critical

Veryimportant

Important

Slightlyimportant

Notimportant

0 10 20 30 40 50

34%

39%

39%

47%

22%

10%

4%

2%

1%

1%

2013

2014

Chart 5.1

Construction

12%

30%

13%

22%26%

30%

6%

18%

50%

31%

-10%-15%

Financeand

Insurance


Wholesaletrade

Mining

-20

-10

10

0

20

30

40

50

2013 2014


Significantdecrease

Moderatedecrease

Neutral

Moderateincrease

Significantincrease

0 10 20 30 40

7%

4%

20%

14%

33%

37%

29%

35%

11%

10%

2013

2014


0 10 20 30

2013

2014

13%

27%


0 5 353025201510

5000+

3001 to 5000

1001 to 3000

501 to 1000

251 to 500

151 to 250

101 to 150

51 to 100

1 to 50

4%

2%

5%

4%

14%

7%

3%

8%

11%

11%

11%

9%

7%

8%

12%

17%

33%

33%

2013

2014


Credit Management


Chart 5.7: Providing credit when an adverse is present

Payment terms Most organisations request 30 days for payment.

81% of organisations represented in the survey provide

30 day payment terms, 27% request payment in 60 days,

and 58% operate with COD or other payment terms. The

average payment term, as weighted by the responses

shown in Chart 5.8 and factoring in non-standard responses

in the other category where possible, was estimated at

30.61 days in 2014 compared with 33.65 days in 2013. This

suggests that there has been an increase in the number

of credit managers requesting shorter payment terms,

reflecting the tightening of credit policies over the past six

to 12 months.

The survey results show that the standard payment

terms for most credit managers remains 30 days.

Chart 5.8: Payment terms offered

DSO activity Average DSO amongst survey participants has improved

over the past year, almost returning to the levels seen in

2012.

DSO showed an improvement in 2012, decreasing

from 44.89 in 2011 to 43.22 in 2012. In 2013, the average

number of DSO increased to 44.91. In 2014, the average

number of DSO has subsequently reduced to 43.89.

This improvement may be reflective of some improved

economic conditions for some businesses recently. It

may also be a reflection of the finding reported earlier

that fewer applications are now being approved when an

adverse is present.

Chart 5.9: Average current DSO performance (days)

Indeed, the survey findings on the proportion of

participants reporting a change in DSO are also consistent

with an overall improvement in DSO performance in 2014.

The proportion of participants reporting deterioration

in their DSO activity fell by 11 percentage points in 2014

while there was an increase of seven percentage points for

those reporting an improvement, compared with 2013. The

changes in the 2014 survey suggest that, on balance, DSO

performance improved in 2014.

Chart 5.10: DSO change over the past six months (%)

Key indicators of payment performance As in previous years, DSO is still the most commonplace

KPI for account receivables performance. This is closely

followed by past overdue, and accounts in each period. In

2013, bad and doubtful debts was the third most important

KPI, although the importance of accounts in each period

has increased substantially.


Chart 5.7

2011 2012 2013 2014

0

10

20

60

50

40

30

70

31%

51%

64%

34%

Other

60 days

30 days

14 days

7 daysor less

No terms/COD

0 20 40 60 10080

25%

26%

24%

27%

73%

81%

16%

24%

19%

22%

24%

34%

2013

2014


Chart 5.7

2011 2012 2013 2014

0

10

20

60

50

40

30

70

31%

51%

64%

34%

Other

60 days

30 days

14 days

7 daysor less

No terms/COD

0 20 40 60 10080

25%

26%

24%

27%

73%

81%

16%

24%

19%

22%

24%

34%

2013

2014


Chart 5.9

2011 2012 2013 2014

37

41

39

43

45

47

44.89%

43.22%

44.91%

43.89%

Deteriorated

Improved

No

0 10 20 30 40 6050

29%

18%

19%

26%

52%

56%

2013

2014

Chart 5.10: DSO change over the past six months (%)0 10 20 30 40 50 60 70

Degree to which yourROT security interests

Other

Dollars in each period

Bad and doubtful debts

Accounts in each periode.g. current, 30 days,

60 days, etc.

Past overdue

Day Sales Outstanding (DSO)

61%

66%

69%

51%

34%

12%

4%

3%

Chart 5.11: 2013 KPIs for account receivables/payment performance (%)


Chart 5.9

2011 2012 2013 2014

37

41

39

43

45

47

44.89%

43.22%

44.91%

43.89%

Deteriorated

Improved

No

0 10 20 30 40 6050

29%

18%

19%

26%

52%

56%

2013

2014



Other




60 days, etc.

Past overdue


61%

66%

69%

51%

34%

12%

4%

3%

Chart 5.11: 2013 KPIs for account receivables/payment performance (%)

Credit Management


89%

87%

86%

71%

used ASIC information;

used company or business credit reports;

used information from an application form; and

used directors/proprietors histories and their other business relationships.

Proprietor or directorfinancial information

(e.g. income, expenses)

Property and assets ofthe proprietor or director

Property and assets ofthe company/business

PPSR grantorsearch results

Company orbusiness financial

information (e.g. revenue,profit, expenses, etc.)

Credit scores

Trade paymentinformation/references

Directors’ / proprietors’credit histories andtheir other business

relationships

Information froman application form

Company or businesscredit reports

ASIC information

0 20 40 60 80 100

30%

24%

32%

28%

38%

41%

33%

35%

49%

48%

54%

61%

56%

66%

75%

71%

84%

86%

82%

87%

80%

89%

2013

2014

Chart 5.12: Information types used to make decisions about credit policies for new customers (%)

89%

87%

86%

71%

used ASIC information;

used company or business credit reports;

used information from an application form; and

used directors/proprietors histories and their other business relationships.

Proprietor or directorfinancial information

(e.g. income, expenses)

Property and assets ofthe proprietor or director

Property and assets ofthe company/business

PPSR grantorsearch results

Company orbusiness financial

information (e.g. revenue,profit, expenses, etc.)

Credit scores

Trade paymentinformation/references

Directors’ / proprietors’credit histories andtheir other business

relationships

Information froman application form

Company or businesscredit reports

ASIC information

0 20 40 60 80 100

30%

24%

32%

28%

38%

41%

33%

35%

49%

48%

54%

61%

56%

66%

75%

71%

84%

86%

82%

87%

80%

89%

2013

2014



Chart 5.9

2011 2012 2013 2014

37

41

39

43

45

47

44.89%

43.22%

44.91%

43.89%

Deteriorated

Improved

No

0 10 20 30 40 6050

29%

18%

19%

26%

52%

56%

2013

2014



Other




60 days, etc.

Past overdue


61%

66%

69%

51%

34%

12%

4%

3%

Chart 5.11: 2013 KPIs for account receivables/payment performance (%)Chart 5.11: 2013 KPIs for account receivables/payment performance (%)

Types of information used to help make decisions about credit policies The types of information most frequently used by survey

participants in their credit decision-making process were as

follows:

In addition to those key information types, the results

showed that credit managers also used a broad range of

other information types in their decision making.

These results have generally remained similar to prior

years. However, ASIC information and credit scores have

become increasingly important in the last two years, up

13 percentage points and 17 percentage points since 2012,

respectively. Directors’ or proprietors’ credit histories

and property and assets of companies have become

less important, down 10 percentage points and eight

percentage points since 2012, respectively. It is possible

that the changes to the Privacy Act have caused the

decline in the importance of director information. This

change will need to be monitored closely over the coming

year.


Account reviews Account review frequency

Account review frequency has remained broadly

unchanged from 2013. In 2014, 27% of respondents

conducted annual reviews of accounts, 12% conducted

quarterly reviews, and 7% conducted bi-annual reviews.

55% of credit managers conduct reviews at the request

of the customer, or have some other review arrangement.

These proportions were similar to those in 2012 and 2013.

Chart 5.13: When to complete account reviews (%)

Account review frequency has remained broadly unchanged from 2013.

At customer request/Other

Annually

Bi-annually

Quarterly

0 10 20 30 40 50 60

54%

55%

5%

7%

24%

27%

17%

12%

2013

2014


I do not usetriggers to

review accounts

PPSR alerts onnew registrationsagainst a grantor

Score movement

Tradepayment report

Other

Amountoutstanding

External alertse.g. external

administration,court actions

Past due

0 20 40 60 80 100

4%

7%

8%

9%

11%

10%

18%

21%

34%

27%

54%

65%

63%

65%

71%

80%

2013

2014

Chart 5.14: Triggers used to review accounts

Credit Management


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Triggers for reviews Past due is the main trigger for conducting reviews.

80% of survey participants reported that a trigger used

to review accounts is when they are past due, while

65% reported the use of external alerts such as external

administration or court action, and 65% reported the use of

amount outstanding.

While the top three triggers for conducting reviews

remained the same from last year, some changes were

recorded in how common it was for particular triggers to

be used. Notably, more participants reported using amount

outstanding (up from 54% to 65% of participants), while

more participants reported using past due (up from 71% to

80%) as triggers. u




Annually

Bi-annually

Quarterly

0 10 20 30 40 50 60

54%

55%

5%

7%

24%

27%

17%

12%

2013

2014



review accounts


Score movement

Tradepayment report

Other

Amountoutstanding



Past due

0 20 40 60 80 100

4%

7%

8%

9%

11%

10%

18%

21%

34%

27%

54%

65%

63%

65%

71%

80%

2013

2014




Annually

Bi-annually

Quarterly

0 10 20 30 40 50 60

54%

55%

5%

7%

24%

27%

17%

12%

2013

2014



review accounts


Score movement

Tradepayment report

Other

Amountoutstanding



Past due

0 20 40 60 80 100

4%

7%

8%

9%

11%

10%

18%

21%

34%

27%

54%

65%

63%

65%

71%

80%

2013

2014


The full survey can be found at www.creditnetwork.com.au


Privacy

In Brief: Recent changes to the Privacy ActThe Privacy Amendment (Enhancing

Privacy Protection) Act 2012 was

signed into law on 12 December 2012

– and the changes made by that Act

commenced on 12 March 2014. It was

the most significant reform of the

Privacy Act 1988 since the privacy

regime was extended to cover private

sector businesses in 2001.

The 10 National Privacy

Principles were replaced with

13 Australian Privacy Principles

(APPs). In addition, the regulator

(the Privacy Commissioner) has

published extensive legally binding

APP guidelines. With respect to

“credit reporting”, the provisions in

Part IIIA of the Privacy Act which

deal with “credit reporting” have

been completely replaced with a

new Part IIIA that enables a more

“comprehensive” credit reporting

system and imposes more restrictions

and obligations on credit providers

(which includes trade credit

providers), credit reporting bodies

and others who deal with credit

related information (such as debt

collectors). A new legally binding

Credit Reporting Privacy Code (CR

code) has also been published.

In addition, the changes

introduced a significant new civil

penalty regime and the regulator,

has been given significant additional

powers, including the power to

accept and enforce Enforceable

Undertakings.

Key changes: the APPsPrivacy by design: APP 1 introduces

a positive obligation for businesses

to take reasonable steps in the

circumstances to have and implement

practices, procedures and systems

that will ensure compliance with the

APPs and enable them to deal with

inquiries or complaints about their

compliance. This is often referred to

as “privacy by design”. Businesses

may be able to demonstrate this,

for example, by developing and

maintaining training programs,

staff manuals, standard procedures

and other relevant documents that

demonstrate awareness of, and

compliance with, their obligations.

Businesses should also be able to

demonstrate that their systems, such

as their data management systems,

will enable them to comply with their

obligations.

This requirement for an internal

framework is perhaps the biggest

change and the one most often

overlooked.

In addition to the internally

documented practices, businesses

must update (and make publicly

available) a clearly expressed

external privacy policy about their

management of personal information

(and it must be kept up-to-date

policy)..

One way to think of this, is that

your external privacy policy explains

to the public and your customers

what you will do to protect their

privacy. On the other hand, your

internal framework tells your staff how

your privacy compliance program

will be implemented, monitored and

managed.

New potential liability for

overseas disclosures: There are

new restrictions on disclosing

personal information to overseas

recipients (which includes allowing

someone overseas to access personal

information that resides on systems

located in Australia). Businesses may

be deemed to be responsible for

(and held liable for) any breaches by

overseas recipients.

Privacy AwarenessBy Debra Kruse and Michael Hartman

Michael Hartman

Debra Kruse


Privacy

Increased notification

obligations: When collecting

personal information (whether

directly from an individual or from

a third party), businesses must take

reasonable steps in the circumstances

(if any) to notify additional matters

to individuals – or to otherwise

ensure individuals are aware of the

additional matters. These include

information about the business’

access, correction and complaints

processes (replicating much of what

is contained in their external APP

privacy policy), and also the location

of any likely overseas recipients of

individuals’ information.

Direct marketing: There are

additional restrictions and conditions

on direct marketing. These include

telling the individual, if they request,

the source of their information

used to direct market (when the

information is not collected directly

from the individual – for example,

when businesses buy marketing lists)

and conditions relating to opt-out

mechanisms.

Corrections: There are new

obligations in relation to correcting

personal information if either

the business is satisfied that the

information is inaccurate, out-of-date,

incomplete, irrelevant or misleading,

or the individual requests correction.

A business must notify others (that it

had previously provided the personal

information to) of any correction if the

individual asks them to.

Key changes: Part IIIA and the credit reporting systemPersonal information in the

context of commercial credit:

The new Part IIIA applies to credit

providers, including commercial

lenders and trade credit providers

who provide credit to individuals

(sole traders, partners, trustees)

or who take guarantees from

individuals for credit provided

to someone else (for example,

a director’s guarantee for credit

provided to a company).

We’ve got you covered

www.cosl.com.au

02 9273 8455

Under recent privacy law reforms, credit providers who want access to consumer credit reports must join an external dispute resolution (EDR) scheme recognised by the Office of the Australian Information Commissioner (OAIC). The Credit Ombudsman Service Limited (COSL) has been recognised by the OAIC.

An exemption from the EDR requirement until 11 March 2015 has meant that commercial credit providers have not had to join an EDR scheme. With that date fast approaching, commercial credit providers should be considering their next steps. Any commercial credit provider can join COSL.

If your core business is not related to financial services, we can also offer you a tailored membership option at a capped fee. The types of complaints we can deal with is also limited to privacy-related complaints. Contact us for further information.

Access to consumer credit

history: The types of consumer credit

related information that can be held

by a regulated credit reporting body

has been expanded. If a commercial

lender or trade credit provider

wants to access an individual’s

consumer credit history (from a

regulated credit reporting body) to

assist in their commercial lending

decision, the lender or trade credit

provider will be subject to all of the

restrictions in Part IIIA that include

highly prescriptive rules about the

collection, use and disclosure of

credit related personal information

by and to credit providers and credit

reporting bodies.

From both a reputational and

regulatory risk perspective it is

important you understand the privacy

management practices of those from

whom you obtain credit reports. In

particular, you need to understand if

any consumer credit history (including

information derived from such

information such as credit scores) is

included in credit reports that you get.

If so, certain obligations will apply to

your handling of that information.

Privacy by design: Similar to

APP 1, Part IIIA introduces a positive

obligation for commercial lenders

and trade credit providers to take

reasonable steps in the circumstances

to have and implement practices,


procedures and systems that will

ensure compliance with Part IIIA,

the new Credit Reporting Code

of Conduct and the Regulations

made under the Privacy Act and

enable them to deal with inquiries or

complaints about their compliance.

In addition to the privacy policy

required under APP1, commercial


must have a clearly expressed and

up-to-date “credit reporting policy”

about their management of credit

related personal information (this can

be combined with the APP1 privacy

policy)

Mandatory EDR scheme

membership: This is a new

requirement. From 12 March 2015, a

commercial lender or a trade credit

provider will need to be a member

of a recognised external dispute

resolution scheme (EDR scheme) to

get consumer credit reports from

regulated credit reporting bodies.

A temporary exemption from this

requirement is currently in place as

a result of an exempting Regulation,

but will expire on 12 March 2015 unless

a further Regulation is made prior to

that date that has the effect of making

the exemption permanent.

It is not yet clear whether a

permanent exemption will be

granted, so it may be wise to consider

registering your interest to become

an EDR scheme member sooner

rather than later, as there may be a

last minute ‘rush’ of applications if

the final decision is that a permanent

exemption will not be put in place.

AICM members were recently

advised that Raj Venga, CEO

and Ombudsman of the Credit

Ombudsman Service Limited

(COSL), has announced an offer of

“Commercial Privacy Act Participant”

membership category for AICM

members who provide commercial

credit, but whose core business is not

the provision of financial services. This

will apply to businesses that extend

“trade credit” terms in connection

with their core business of providing

goods or services. The offer from

COSL will enable those businesses to

become members of COSL for a fixed

annual cost of $850 (inc GST) in the

first year, and $650 (inc GST) annually

thereafter. There will be no additional

COSL costs for handling complaints

made. You can register your

interest in this offer at https://www.

surveymonkey.com/s/AICMCOSL1

Additional notifications

obligations: In addition to the

requirements of the APPs, commercial


must also notify individuals of

other matters, or otherwise ensure

individuals are aware of those matters,

which generally replicate the matters

set out in their “credit reporting

policy” about their collection and

handling of credit related personal

information. When a commercial

lender or trade credit provider intends

to get a consumer credit report,

the individual must be notified of

(or otherwise made aware of) the

name and contact details of the

relevant credit reporting body.

Access, corrections and

complaints: There are increased

obligations (over and above the

APP requirements) that apply to

access, corrections and complaints

with respect to certain credit related

personal information. The main

feature of the new correction and

complaint provisions is the ‘first-

contact” obligation, where the

obligation to resolve a correction

request or complaint lies with

the first credit reporting body or

credit provider that the individual

contacts.

Audit: Credit reporting bodies

have an obligation to monitor and

audit their customers’ compliance

with key elements under Part IIIA.

Key changes: penalties and powers Civil penalty: The Federal Court,

hearing proceedings brought by the

Privacy Commissioner, will have the

power to impose civil penalties of

up to $1.7 million for a breach by a

corporation of specific provisions of

Part IIIA or, more generally, for serious

or repeated interferences with the

privacy of an individual under the

APPs.

Compensation: If a court finds that

a business has breached a civil penalty

provision, any individual affected by

that breach can apply to the court for

compensation for any loss or damage

suffered (which can include injury to

the individual’s feelings or humiliation,

in addition to monetary loss).

Assessments: The Privacy

Commissioner can conduct an

assessment of whether personal

information held by a business is

being managed and maintained in

according to the APPs and Part IIIA

(which includes the Credit Reporting

Code of Conduct).

Investigations: The Privacy

Commissioner can initiate and

conduct investigations of a business’s

compliance with the Privacy Act on

its own initiative or as a result of a

complaint made by an individual.

Privacy

If a court finds that a business has breached a civil penalty provision, any individual affected by that breach can apply to the court for compensation for any loss or damage suffered (which can include injury to the individual’s feelings or humiliation, in addition to monetary loss).


At the conclusion of an investigation, the Privacy

Commissioner can make determinations that include

ordering compensation to individuals and ordering a

business to take specific action to prevent further repeats

of the acts or practices investigated.

Enforceable Undertakings: Significantly, the Privacy

Commissioner can accept Enforceable Undertakings

from businesses that they will take, or refrain from taking,

specific action to ensure compliance with the Privacy

Act, or to ensure that, in the future, they do not interfere

with the privacy of an individual. The undertakings are

enforceable by the Privacy Commissioner on application to

the Federal Court.

Note: There is no mandatory obligation to report

data breaches to either individuals or to the Privacy

Commissioner – yet. A Bill was tabled in tabled in May

2013 to make breach reporting mandatory. The Bill lapsed

when the federal election was called. However, there

appears to be bi-partisan support for the Bill and it may

be re-introduced into parliament and passed in the not too

distant future. u

This briefing was prepared by Debra Kruse and Michael Hartman, Principal Consultants, Inflexion Point Consulting.

www.inflexionpoint.com.au You can contact Debra at [email protected], or Michael at [email protected]

FOOTNOTE:1. Registration of interest does not commit you to membership. Your

registration will be followed up in early 2015 if it becomes clear that the temporary exemption will not be extended.

Privacy

Credit Managers: what you should do now As a result of the changes to the Privacy Act,

credit managers should consider whether their

credit application and privacy notice documents

meet the new requirements. For example, if you

obtain reports about individuals (credit applicants

or their guarantors) from credit reporting bodies

that include any information about the individual’s

consumer credit activities (or any information

derived from consumer credit activities, such

as credit scores), do your consents meet the

regulatory requirements?

Some other things to consider, (even if you

don’t obtain any consumer credit reports) - does

your credit function have:

z external policies and notifications that meet

the required transparency standard?;

z internal policies and procedures to ensure that

your use, disclosure and protection of personal

information meet the regulatory requirements?

And what about beyond the credit function?

The new Privacy Act requirements generally apply

to all personal information collected and held by

businesses. Do other functions in your business

have appropriate measures in place to meet the

new requirements?

As Australia’s only National PPSA advisers (it’s all we do), EDX understands the implications of the PPSA for you and your business.

We offer practical, no nonsense advice on how to deal and comply with the PPSA.

Of the many compliance reviews we’ve performed, more than 95% fail to appropriately or completely comply with the PPSA. At best this may limit the scope of the security interest and at worst invalidate the security interest altogether.

EDX’s PPSA Compliance Reviews are designed to review your PPSA policies and procedures and to identify anomalies in your application of the PPSA.

If you think you’re complying try our Free Desktop Compliance Review – we’ll conduct a high level review of your registrations and let you know how compliant you really are.

To request a Desktop Review or further advice on the PPSA please contact our National Office on – (03) 9866 4559 or through our website www.edxppsr.com.au

Complying with the Personal Property Securities Act?Are you really sure?





PPSA

trying to register when you start

to get worried about the account.

If your customer is using your

goods as inventory you lose the

super priority of your Purchased

Money Security Interest (PMSI)

for all goods delivered prior to

registration. If your customer is

not using your goods as inventory,

you would still only get the PMSI

priority for goods delivered during

the 15 business days prior to

registration on the PPSR.

2. The “6 month rule” – most people

are unaware that the Corporations

Act was changed to take account

of the PPSA, to prevent companies

with knowledge of imminent

insolvency fraudulently granting

security to related or preferred

parties. The rule can also catch the

innocent. The (abridged) rule is

that if (i) you register your security

interest more than 20 business

days after the security agreement

is created and (ii) your customer

becomes insolvent within 6 months

of registration then your security

interest will vest in the insolvent

company. In other words, you will

lose your goods. This means that

if you delay registration until you

become concerned about your

customer, you are taking on a 6

month risk with your highest risk

customer on the other side.

3. The hidden cost of monitoring –

if you do decide on credit limits as

your registration criteria, someone

in your organisation has got to

monitor this. You may have to

redesign your business processes

to tightly monitor your sales team

so that customers cannot go

above their limit. There may be a

direct cost in lost sales and there

is certainly the hidden staff costs

of monitoring the credit limits in

this way. And in any event, doesn’t

your staff have better things to do?

4. The scourge of unfair preference

claims – your team has done a

fantastic job and collected lump

sums on account from your

customer in the months leading

up to liquidation. It is then that the

liquidator comes knocking to claw

some of that money back under

the unfair preference regime in the

Corporations Act. If the claim is for

$30,000 or less, it is probably not

worth fighting in court. A properly

registered security interest is a

very good line of defence.

5. And then there are “shoot

throughs” – businesses with a

“long tail” of low value debtors will

be well aware of businesses which

sell their assets and disappear

without settling their debts. Even

if the location of the proprietor is

known, it is often not economic

to pursue him/her. This is where

registration can sometime provide

an unexpected benefit. If the

business is being sold it is common

practice for the purchaser’s

solicitor to complete a PPSR

search to see if the business assets

are encumbered. If your interest

is disclosed, the vendor has no

choice but to approach you with a

discharge request – which you will

gladly provide on full settlement of

your account.

6. Ledger integrity – is a task often

left until tomorrow (which never

comes). Everyone knows that

having accurate legal names for

customers and signed terms of

trade is best practice and increases

the chance of successful legal

action against slow payers. But it is

a task we often put off, particularly

for businesses with large ledgers

and mature companies who have

been trading for many years.

There may soon be no choice. As

Australia’s concern with terrorism

increases it is likely that the scope

The six reasonsBy Kim Powell

Kim Powell

Many businesses are reluctant to

register all their customers on the

PPSR, due to cost. The reluctance

may increase if they need to register

multiple security interests against

each customer to obtain the desired

level of protection.

This is understandable; if you have

5,000 customers, each requiring

dual registrations, the Registrar’s

fees alone are $80,000 for 7 year

registrations – and more if you opt for

a longer period. A typical response

is to select a credit limit and only

register customers with a higher limit,

or actual exposure.

If this is your policy, there are 6

reasons to reconsider. Let’s work

through an example where the

business has chosen not to register

against any customers with a credit

limit of less than $30,000.

1. Overtrading – it is well known

that overtrading is a primary

cause of insolvency. The customer

with a $25,000 limit manages

to get $75,000 of goods before

being placed on stop credit. Six

weeks later the company goes

into administration. It is no use


PPSA

of anti-money laundering and

counter terrorism initiatives will

be broadened to include many

more companies. At that point

“knowing your customer” will

become mandatory. Why wait for

the inevitable? Your PPSR project

requires you to have accurate

customer details and your ledger

integrity will be greatly improved

as a result.

Please do not think, “It won’t

happen to me.” The following example

demonstrates the risks of relying on

credit management alone, rather than

the PPSR.

Risky business: A true storyWe had one very frustrated business

approach us after losing out twice

with the same customer.

The business had failed to

register against its customer, but

was otherwise pretty good at

credit control. The customer had

been placed on “stop credit” and a

payment was offered to secure the

next delivery. The goods had been

delivered and had not even been

cleared from the loading dock when

receivers were appointed. The cheque

was dishonoured, the vendor could

not get any goods back and was

understandably annoyed.

Regrettably, they had no one

to blame but themselves. To make

matters worse, if the customer now

goes into liquidation, there is the risk

of earlier lump sum payments being

clawed back as preferences.

Striking the right balanceIf businesses wish to achieve a higher

level of protection after reading this,

there is normally some remedial work

that will be necessary on existing

customers, particularly to overcome the

adverse impact of the “six month rule”.

There will always be risk

in business and good credit

management is all about managing

the risk involved in extending credit.

The PPSA can be an excellent risk

management tool if used properly.

We hope this article will be of some

assistance when deciding your

registration policy. u

ABOUT THE AUTHOR: Kim Powell is co-founder of EDX a national firm specialising in PPS registration and consulting. EDX has its roots in New Zealand where similar legislation was enacted in 2002. In his earlier career, Kim has been an insolvency practitioner, headed the commercial credit recovery division of a major bank, as well as a period as a business banker advancing funds on a secured basis. This background made the PPSA a natural area of interest. Kim moved to Australia in 2010 to lead EDX’s entry in to the local market and is based in Melbourne Contact Kim: [email protected] or 0410 475 100.

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resultslegal.com.au 1300 757 534 legal recovery coMMercial disputes insolvency law



PPSA

The recent case of Re Arcabi Pty

Ltd; ex parte Theobald [2014] WASC

310, is an interesting insight as to

how the Courts will interpret the

interaction between the rights of

secured creditors under the Personal

Property Securities Act 2009 (the

Act) and the rights of an external

controller to a lien over property

(whether or not the subject of

such a security). It also clarifies the

application of the Act to bailments

and consignments.

FactsArcabi stored and sold rare coins and

bank notes (Goods). They were stored

in Albany WA (the Premises). The

Goods were owned by third parties

(Investors).

Arcabi defaulted on its loan

from Westpac (the Bank) and the

question for consideration was

whether the Bank’s receiver could

take the Investor’s Goods and sell

them and apply the proceeds to

reduce the indebtedness of Arcabi to

the Bank.

The Goods were of two types.

Firstly “Mixed Storage Goods”: the

arrangement here was that these

Goods were stored only, and the

Investors owning the Mixed Storage

Goods were charged a storage fee

and issued with an invoice.

The second type were

“Consignment only Goods”. These

Goods were part of an arrangement

between Arcabi and some Investors

whereby the Investor in each instance

requested Arcabi to sell the Goods on

consignment to third parties.

BailmentThe Court concluded that the

arrangement in relation to the Mixed

Storage Goods was a bailment. By way

of background, a bailment is where

a bailor delivers goods to a bailee

upon a promise, express or implied,

that they will be delivered back to the

bailor, or dealt with in a stipulated

way. If the bailment secured payment

or performance of an obligation, then

it gave rise to a security interest under

s 12 of the Act and enlivened the

operation of its priority provisions.

The Court accepted that there are

four factors indicative of a bailment

arrangement securing payment or

performance of an obligation, those

factors being:

(i) Where the bailment provides that

the ownership of Goods would

vest in the bailee on the expiry of

the bailment;

(ii) Where the bailee would have an

option or obligation (at any time)

to purchase the Goods;

(iii) Where the term of the

arrangement was likely to be for

the major part of the economic life

of the Goods;

(iv) Where the minimum payments

under the bailment amount

substantially to the cost of the

Goods.

None of these indicia applied in

this case.

But if the bailment was a PPS lease

under s13, then it would be deemed

to give rise to a security interest,

and the provisions of the Act would

therefore apply.

One of the requirements for a

Personal Property Securities and bailments, consignments and a receiver’s lien

By Leigh Adams

One of the requirements for a bailment to be a PPS lease is that the bailor must be regularly engaged in the business of bailing goods.

Leigh Adams


PPSA

bailment to be a PPS lease is that

the bailor must be regularly engaged

in the business of bailing goods.

However, the Investors were not

regularly engaged in the business

of bailing goods. They were in

the business of profiting from the

exchange of rare coins and bank notes.

The issue of the bailment was merely

incidental to this main purpose.

Consignment The Court then turned to the

Consignment Only Goods. Generally,

consignments are to be distinguished

from retention of title (RoT)

arrangements. RoT arrangements

provide for title to pass only when

full payment has been received. RoT

arrangements do secure payment or

performance of an obligation.

Nevertheless, if the consignment

in substance secured the payment or

performance of an obligation, then the

operation of the priority provisions of

the Act would be enlivened.

The Court looked at the 15

indicators relevant to determining

whether a consignment exists. They

are:

(a) the merchant is the agent of the

supplier;

(b) title to the goods remains in the

supplier;

(c) title passes directly from the

supplier to the ultimate purchaser

and does not pass through the

merchant;

(d) the merchant has no obligation to

pay for the goods until they are

sold to a third party;

(e) the supplier has the right to

demand the return of the goods at

any time;

(f) the merchant has the right to

return unsold goods to the

supplier;

(g) the merchant is required to

segregate the supplier’s goods

from his own;

(h) the merchant is required to

maintain separate records;

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PPSA

(i) the merchant is required to hold

sale proceeds on trust for the

supplier;

(j) the goods are shown as an asset

in the books and records of the

supplier and are not shown in the

books and records of the merchant

as an asset; and

(k) the supplier has the right to

stipulate a fixed or floor price.

The Court held that there was a

consignment. But the consignment

did not in substance secure payment

or performance of an obligation

because:

(i) the Goods were not held as

security for a debt as no moneys

were payable by Arcabi unless or

until it sold the Goods, but title by

that time would have passed to

the third party purchaser;

(ii) if an item was not sold then title

would remain with the Investor

and there was no obligation on the

part of Arcabi to pay the Investor;

(iii) the Investor remained entitled to

take back its consigned Goods –

even in circumstances where all

that was involved was a change of

mind on behalf of the Investor.

Conclusion for bailments and consignmentsThe Act did not apply and the

Investors were allowed to keep

their Goods, subject to some riders

explained in more detail below.

The case confirms that businesses

offering storage services including

businesses storing for example,

furniture for travellers, old &

completed files for professionals,

and other similar businesses like

those running bus depots, or indeed

retaining rare coins and notes of

investors for subsequent sale, will

likely not be subject to the provisions

of the Act.

It is interesting that the Court did

not consider the meaning of “value”

in s 13(3). Section 13(3) provides that

a bailment is only a PPS lease (and

therefore, a deemed security interest)

if the bailee provides “value” and

value is defined in s 10 to include any

consideration sufficient to support a

contract. To be consistent with the

Arcabi conclusion, “value” should

just mean ‘money’. In the Arcabi

case, it was the bailor who provided

the money. The bailee provided the

services. However, this issue is still

unresolved for the time being.

Receiver’s lien The Court then considered whether

the Receivers were entitled to an

indemnity in the form of a lien over

the Goods for the work undertaken by

them in relation to the Goods.

The Court noted the long

established legal principle that

whenever an external controller

is appointed, they have a right of

indemnity out of the company’s

property for their remuneration and

expenses. These principles extend to

an out of court receiver.

The Court also noted the Universal

Distributing case which established

that where an external controller

expends a material part of his time

and energy in recovering assets

enuring for priority creditors, and

where the controller’s duties must

be performed before a surplus might

arise to which the unsecured creditors

may participate, then the cost of

the work should be thrown upon the

proceeds of the assets and even if

no benefit to unsecured creditors

eventuates, a lien is not denied to the

controller.

On this basis, the Court held that

the Receivers were entitled to an

indemnity in the form of a lien over

the Goods for their work despite the

fact that a substantial amount of that

work related to identifying Goods

which were eventually held not to be

part of Arcabi’s assets.

The Court also held that the

Receivers were entitled to an

indemnity in respect to their costs and

expenses in arranging insurance in

relation to all Goods including those

owned by the Investors.

As for any unclaimed Goods,

the Court considered that the

Receivers were justified in treating

them as property of the Company

to which their lien would attach

if after appropriate advertising of

the intended sale and writing to

the relevant Investors, no relevant

response had been received.

Conclusion for Receiver’s lienIt is interesting that whilst the Court

clearly accepted the principle that

the Receivers were entitled to

exercise a lien over the Goods of

the Investors in respect to (i) their

costs of and incidental to identifying

those Goods and (ii) their costs and

expenses referrable to insuring the

Investors’ Goods, the orders only

fully implemented this principle in

respect to ‘(ii)’ but not ‘(i)’, in that the

Receivers’ lien for ‘(i)’ was applied

to the company’s assets (including

Investors’ Goods which were

unclaimed), but not to the Investor’s

Goods which were claimed.

One can only presume from this

result that there were enough funds

available to pay the Receivers without

having to further white-ant the equity

in the Investor’s Goods. u

Leigh Adams LawyersNorth SydneyPh: (02) 99640022

...the long established legal principle that whenever an external controller

is appointed, they have a right of indemnity out of the company’s property

for their remuneration and expenses.


Development

Respect the rights of all people.

Do this by listening to them and

acknowledging their point of view. You

may even present their perspective to

others. You don’t have to agree with

their point of view, but at least they will

feel they have had a good hearing.

Be seen to treat all people equally

and fairly. A hard one because no two

situations are the same. Ensure that

your processes are transparent and

consistently applied to all. Explain the

rationale for your thinking, how you

came to your conclusions, why you

followed a particular course of action.

Always do what you say you are

going to do. The moment you don’t

deliver as promised your credibility

starts to come into question. So don’t

make wild promises. Check what it is

that people really need and check that

you can deliver.

Speak confidently about what you

believe will and should happen.

Instil confidence in your ability and

the decisions you make. Provide a

sound rationale for why you believe

something should happen and the

reasons why something will happen.

Be prepared to listen to an opposing

view point and make a shift in your

thinking if what is presented makes

sense.

Make informed decisions. Know the

‘ins’ and ‘outs’ of a situation. Weighing

up the ‘for’ and ‘against’. Gather the

evidence and facts that will support

the decision you make. Don’t guess.

Don’t assume that others see the

situation as you do or have the same

knowledge as you.

Inform others of the reasons for your

decisions. Establish a credibility, a

rationale for your thoughts and just

how this decision evolved. Be aware

of the ramifications of decisions on

others.

Minimise the risk of failure. Seek

input from others about potential risks

and take steps to check that they are

minimised. If the things you do are

seen as being successful people will

trust your judgement and ability.

Provide counsel to those who seek

it. When asked for advice, give it. This

is not saying solve their problems

for them. It is about you assuming

the role of a mentor and assisting

them to make the all important

informed decision. Help them see the

range of choices and the possible

consequences.

Keep confidential conversations

between those who are authorised

to know. The quickest way to lose the

trust of someone is to breach their

confidence. This can be tricky because

in some situations you may feel others

should know of a problem about

which someone has come to you in

confidence. Whenever you feel this

to be the case, seek permission from

the person concerned to discuss this

matter with others.

Provide others with the space to

manage their own priorities. In other

words, keep your nose out of areas

where it doesn’t belong. Allow them

to be responsible for the outcome and

to achieve it in the best way possible.

You must be sure that they are

capable of doing the job. u

Daniel Kehoe: Author of the best-selling You Lead, They’ll Follow books, Daniel has worked as a management consultant since 1979 in Australia, Indonesia, Malaysia, Singapore, and UAE (Dubai, Abu Dhabi and Al Ain). He is a Fellow of the Institute of Management Consultants

Reprinted with permission

Trust me. I’m the boss.By Daniel Kehoe

The moment you don’t deliver as promised your credibility starts to come into question. So don’t make wild promises.

Daniel Kehoe

Trust is the basis of every effective

workplace relationship, be it with

your boss or the people you manage.

If the trust between people has died,

then so has the relationship.

Trust is also a key component of

being an effective leader. Some would

say the most important component. It

is difficult to get people to follow you

if trust is missing.

Some of the key elements of being

able to demonstrate trust start with

the following.

aicm Training News


Opportunities to continue your development in 20152015 is yet to get started; however, we

have received enrolments already for

our Sydney and Brisbane face to face

courses in February 2015. AICM will

be conducting training in both Sydney

and Brisbane in February for –

z 1 day training – Manage bad and

doubtful debts

This course covers all facets of the

collection process from invoice to

managing bad and doubtful debts

z 2 day training – Manage factoring

and invoice discounting

A must do course for anyone

working with factoring and/

or invoice discounting and is

endorsed by DIFA (Debtor and

Invoice Factoring Association)

See the following pages for more

information on these courses.

Additional public courses will

be offered throughout 2015 in

Sydney, Brisbane and Melbourne.

Please email Debby Manners at

[email protected] if there are

any specific units that you would

like to see tabled for training in 2015.

Whilst our public courses require a

minimum of 8 students to proceed,

our Online Learning platform is open

for immediate enrolment.

Recent Graduates AICM would like to acknowledge

and congratulate the following AICM

students that have successfully

completed their qualification/courses

in the past 3 months.

Laura Jenkins

Juliana Widjaja

Elizabeth Morris

Amanda Tarling

Emma Elphinstone

Michaela Novak

Kirstin Atkins

Aimee Martin

Nikole Vamarasi

Michael Honeybone

Bonnie Chapman

Kate Pattison

Matthew Robertson

Bineeta Kotak

Daniel Guarino

Suong Nguyen

Kalinga Perera

Carly Rae

Debra Briggs

Deepika Vyasnarayanan

AICM Training NewsWelcome to the first edition of AICM Training News. The AICM RTO is the Registered Training Organisation arm of your institute. Through these updates we aim to highlight the opportunities and benefits of undertaking individual courses or working towards a Certificate or Diploma in Credit Management.

Experience of Vanessa Betland, Team Leader Wyong Council, recent Graduate of the Diploma of Credit Management.

As someone who fell in to debt recovery and was quite successful I decided in 2011 I had rested on my laurels

long enough and needed to increase and formalise the knowledge around my inadvertently “chosen” career.

With the end goal in mind I started liaising with our peak industry body which resulted in the release of, and my

commencement in, the components that would result in attaining a Diploma of Credit Management (fancy). As

someone who had not formally studied after the completion of year 12, I was concerned that I had bitten of much

more than I could chew and made a solid decision to “chew faster” – this just had to be done, so off we went in June

2011 rather afraid but determined. After recently completing the required components, on track for my self-set

3 year completion timeframe I cannot thank and compliment the Institute, their staff and their education facilitators

enough. I FINISHED, I finished with a minimum of fuss and while maintaining the constraints of motherhood and

a very demanding full time role in credit management. To all who would like that qualification, whatever it may

be, and the knowledge and confidence that goes with it, sign up – the Institute of Credit Management Learning

Services know what they are doing and can and will hold your hand start to finish – YIPEE – onwards and upwards.



Anja Bonnard

Brian King

Nicolette Thomson

Michael Ludbey

Yvonne Harrison

Kellie Frahm

Nicholas Samojenko

Julie Cuskelly

Cindy McDonald

Jasmine Lynch

Rashmi Canagasabey

Vanessa Betland

New Regulatory requirementsThe past 3 months have been

exhausting and exciting with new

regulatory requirements being

introduced for Registered Training

Organisations as at 1st January. These

new changes will see the introduction

nationally of the New Unique Student

Identifier, which all existing and new

students will be required to register

for. How to register information has

been included in this edition of RTO

News. In addition from the 1st January

2015, new reporting processes have

been implemented for AVETMISS

Student Data Reporting, which we

have been working tirelessly with

our IT Management Team to ensure

that we have all of our data reporting

processes in place to meet our

reporting obligations. I can now report

that all AICM data has been validated

and all of our processes are in place

for 1st January 2015. u

Build the skills of your credit team.

This unit is beneficial to loans

officers, collections and credit

officers and credit team leaders.

This course ensures candidates

have the understanding and skills

of best practice in the area of debt

collection.

The ability to identify and

recover an overdue customer

account is a core requirement of

a credit professional.

Outcomes are covered within

this unit:

This course deals with the key

aspects of dealing with a debt that

has been categorised as bad or

doubtful including:

z The steps involved in reviewing

an account to determine if a

debt is likely to become bad or

doubtful

z Understanding the difference

between a bad and a doubtful

debt

z Methods for dealing with a

customer’s excuses for not

paying the outstanding amount

z Negotiating with the customer

to recover the outstanding

payment

z Monitoring and documenting the

outcome of the recovery action

Topics Covered:

Negotiating the recovery process

of an outstanding debt. The

importance of the reporting

function. Identify customer excuses

and reasons and strategies to

avoid payment. Commonly used

reports used in consumer and

commercial credit. Identifying a

bad and doubtful debt. Managing

the outsourced recovery process.

Strategies for minimising

uncollectable debt. Preparing

recommendation for write off.

z This unit will be offered face

to face in Brisbane on the 9th

February and Sydney on the

18th February 2015. Register

your interest early as these 1 day

public courses fill fast. Contact

Debby Manners on 02-9906

4563 for further information.

z Participants that undertake

and successfully complete

the assessment requirements

for FNSCRD403A Manage

bad and doubtful debts

which is a Core unit from the

FNSFNS40111 Certificate IV in

Credit Management will receive a

nationally recognised Statement

of Attainment.

Experience of Julie Cuskelly, Senior Credit Controller at Australian Liquor Marketers, Recent Graduate of the Certificate IV Credit ManagementI was given the opportunity to do this course and couldn’t be happier with

myself and my work colleagues who completed alongside me. I did not

think I would be doing assignments and having to study again at my age.

The skills and laws I have learnt from this course have improved my skills

and also helped me move forward in my job role and career. The help and

support we received from Tony Sawyer the whole time was a massive and

am proud to now call her a friend. The information gained throughout this

course I would recommend to anyone entering the Credit environment.

Manage bad and doubtful debts

aicm Training News

aicm Training News


There has been substantial growth in the use of

factoring and/or invoice discounting arrangements over

the past few years. This course is relevant to people

in all areas of business that provide factoring and/or

invoice discounting arrangements. This course is also

beneficial to businesses that may intend to undertake

such arrangements.

The following outcomes are covered within this unit.

z Differentiating between the types of factoring and

invoice discounting arrangements that may be

offered to prospective clients

z How to effectively communicate to clients the

different policies and procedures that the client

would need to follow depending upon the type of

product provided

z Strategies to ensure that clients understand how

legal assignment will vary depending on the type of

product

z What information should be provided to debtors

when an arrangement has been entered into with a

client

z The advice that should be given to debtors of the

debt recovery process that will be followed as a

result of the introduction of the factoring and/or

invoice discounting arrangement

z How to manage the relationship between the

client and the factor and/or invoice discounter and

establish ongoing monitoring procedures

Topics Covered:

The History of Factoring and Discounting,

Introduction to Factoring and Discounting, The

Approval Process, Verification, Securities, Risk

Monitoring and Maintenance, Why was the PPSA

Introduced.

z This unit will be offered face to face in Sydney,

Brisbane and Melbourne quarterly in 2015. Register

your interest early as these 2 day public courses

fill fast. Refer to the AICM website for dates, or

contact Debby Manners on 02-9906 4563 for

further information.

z Participants that undertake and successfully

complete the assessment requirements for

FNSCRD502A Manage factoring and invoice

discounting arrangements which is an Elective unit

from the FNS51511 Diploma of Credit Management,

will receive a nationally recognised Statement of

Attainment.

AICM are proud to deliver this unit in collaboration

with DIFA

Factoring and invoice discounting

aicm Training News


From the 1st January 2015 if you are undertaking nationally

recognised training delivered by AICM you will need to

have a Unique Student Identifier (USI).

A USI gives you access to your online USI account

which is made up of ten numbers and letters. It will look

something like this:

3AW88YH9U5.

A USI account will contain all your nationally recognised

training records and results from 1 January 2015 onwards. Your

results from 2015 will be available in your USI account in 2016.

When applying for a job or enrolling in further study, you

will often need to provide your training records and results.

One of the main benefits of the USI is that you will have easy

access to your training records and results throughout your

life. You can access your USI account online from a computer,

tablet or smart phone anywhere and anytime.

Do you need a USI?You will need a USI when you enrol or re-enrol in training

from 1st January 2015 if you are a:

z student enrolling in nationally recognised training for

the first time, for example certificate III, certificate IV or

diploma course;

z student’s continuing with nationally recognised training.

You are a continuing student if you are a student who has

already started your course in a previous year (and not yet

completed it) and will continue studying after 1 January 2015.

Once you create your USI you will need to give your

USI to each training organisation you study with so your

training outcomes can be linked and you will be able to:

z view and update your details in your USI account;

z give your training organisation permission to view and/

or update your USI account;

z give your training organisation view access to your

transcript;

z control access to your transcript; and

z view online and download your training records and

results in the form of a transcript which will help you

with job applications and enrolment in further training.

If you are an international, overseas or an offshore student

please visit usi.gov.au for more information.

How to get a USIIt is free and easy for you to create your own USI online.

While you may create your own USI, training organisations

are also able to create a USI for you.

Steps to create your USIThe following steps show how you can create a USI:

Step 1 Have at least one and preferably two forms of ID

ready from the list below:

– Driver’s Licence

– Medicare Card

– Australian Passport

– Visa (with Non-Australian Passport) for international

students

– Birth Certificate (Australian)

– Certificate Of Registration By Descent

– Citizenship Certificate

IMPORTANT: To make sure we keep all of your training

records together, the USI will be linked to your name as it

appears on the form of ID you used to create the USI. The

personal details entered when you create a USI must match

exactly with those on your form of ID. If you do not have

proof of ID from the list above, you can contact AICM on

(02) 99064563.

Step 2 Have your personal contact details ready (e.g. email

address, or mobile number, or address).

Step 3 Visit the USI website at: www.usi.gov.au

Step 4 Select the ‘Create a USI’ link and follow the steps.

Step 5 Agree to the Terms and Conditions.

Step 6 Follow the instructions to create a USI – it should

only take a few minutes. Upon completion, the USI will

be displayed on the screen. It will also be sent to your

preferred method of contact.

Step 7 You should then write down the USI and keep it

somewhere handy and safe. u

IMPORTANT STUDENT INFORMATION

Unique Student Identifier

http://www.usi.gov.au

aicma r o u n d t h e s t a t e s


queensland

President’s ReportMy report this month is being written from a secured bunker

just outside Brisbane’s city limits. The G20 Summit has

descended and leaders from around the world are meeting.

There are attack helicopters overhead, armoured motorcades

making their way to and fro the secret meeting place (the

Convention Centre in South Brisbane).

All of this is still nowhere as exciting as the AICM

National Conference that was held in October on the Gold

Coast, we farewelled our leader Terry Collins CEO and

welcomed Nick Piliavidis. Another magnificent preceding

Golf Day (Much Thanks Greg Young). With the Conference

proper under way, there were more ex-presidents than

the G20 but much less hair. The energy and hunger for

knowledge was exhibited by the high attendance figures,

even the morning session following the Presidents dinner.

So many things were highlights, the standard of the YCP

candidates was outstanding – thank goodness I do not

have to go up against them for a role. I loved James

Neate’s Master of Ceremonies performances, which

brought it all together and the very high caliber of the

speakers and presenters.

On behalf of Queensland Council I would like to thank

all the delegates, sponsors and booth holders for coming

to our part of the world. It was certainly a rewarding

experience for myself, and my fellow councilors. We look

forward to having you back when the conference comes

back to the Gold Coast.

As soon as Brisbane has emerged from the G20 and we

are not in lock-down, Queensland Council is holding our final

function for the year at the historic riverside Regatta Hotel in

Toowong. It promises to be a great opportunity to get together

with like-minded individuals and wrap up 2014.

If you have not attended our functions previously, 2015 is the

time to start. If you want to attend short sharp sessions

that will give you some insights and the opportunity to do some

networking after, our Monthly Credit Network Nights will be just

right for you. Look out for details.

I wish you all a safe and happy holiday break if you are

having one. If not, love what you do.

– Brian Kay FICM CCEAICM Queensland Council President

September 2014 Credit Network NightOur last event before National Conference was held in

Randstad’s Boardroom in their office in Queen Street.

This was a change of venue for us and quite a social event

was enjoyed by all. Thirty people attended to hear Alison

Jardie, who is a psychologist and a facilitator in Leadership

Development to give her presentation on leadership and

team building.

Alison presented an interesting, educational and often

motivational segment about issues which are relevant, not only

in the workplace, but also in our personal lives. To understand

the individual personalities of the team is an important

strategy to keep the team at peak performance and highly

motivated. Where gaps in performance or communication

become evident, the development of the team is critical.

Alison identified the ability to analyse the strategy of the team

to keep the team members participating at full capacity. These

strategies are naturally adaptable from the workplace to our

personal lives and our family commitments in an effort to build

a life with a little less stress!!!

Our thanks go to Alison, the Randstad crew for their

hospitality and the use of their venue.

Rachael Ryan, Sarah Mizon, Fiona Doherty, Scott Goodrick.

Stacey Woodward QLD YCPA 2014.



Ron Freier & Haley Kuhn.

queensland

The Australian Institute of Credit Management Queensland welcomes the following organisations as our

sponsors for 2014

The Australian Institute of Credit Management and our Sponsors benefit from a cooperative and supportive

relationship that provides high profile branding opportunities to sponsoring organisations and gives the credit industry greater recognition and the opportunity to work together to promote best practice in the credit

industry and in so doing provide professional development opportunities for credit practitioners in Australia.

Introducing Queensland Council

QUEENSLAND DIRECTOR – GREG YOUNG BA, LLB, JP, MICM, MQLS

Greg is a Partner of Forbes Dowling

Lawyers in the Brisbane office at

North Quay. Greg has extensive

knowledge in the experience in the

areas of debt recovery, insolvency

and personal injury and specialises

in these areas of commercial

litigation, insolvency and personal

injury litigation. In a previous

life Greg obtained considerable

experience in these fields as a

Partner with McGillivrays.

In being able to handle these matters with some

considerable aplomb, Greg holds a Bachelor of Arts (Uni of

Qld), A Bachelor of Laws (QUT), is a Justice of the Peace,

is a QLD Law Society Accredited Specialist in Personal Injuries,

is a Member of the Institute of Credit Management and a

Member of the Queensland Law Society.

Greg joined AICM in 1997 and during this time has

been able to contribute his time to the development of

the Queensland Division. It was during Greg’s time as

Queensland President that Queensland won the ‘Presidents

Trophy’, which is awarded to the highest performing state.

Greg has been serving on council for ten years and his

quiet bearing and his wise council has guided the council

over many sensitive issues. At the present time Greg is

half way through his tenure as Queensland’s Director,

representing Queensland members and relevant matters

at National Board level.

For those who know Greg well, we would also add that he

specialises and practices regularly his golf with any and every

opportunity taken to practice or enhance his skills upon the

green and maybe an occasional visit to the 19th hole.

Karen Leggett and Julie McNamara.

QLD delegates.



south australia

President’s ReportNow in my second year as President of the SA Division I must

say it has proven to be an exciting challenge for me!

Supported by an enthusiastic committee, loyal sponsors

and members has enabled our State division to receive the

honourable “President’s Trophy” for 2014. Thank you to

all members for your dedication to the AICM and what we

continue to achieve each year.

I would like to take the opportunity to say how extremely

proud we are of Rebecca Edmiston, Team Manager – Legal

Mortgage Help Centre Third Party at Bendigo and Adelaide

Bank for being awarded joint winner of the YCP. Rebecca is

keen to work with the committee over the year ahead and we

look forward to her input.

Congratulations to Janelle Muegge for achieving her CCE

this year. We all understand it is hard to juggle the time to fit

this in whilst holding a full time position, so well done!

Our Annual Award’s Dinner was full of fun and frivolity with

our humorous James Neate, SA Director, hosting the evening.

Our special guest speaker was Nick Pilavidis, AICM CEO, who

shared his career highlights and thoughts for the future of the

AICM. What a star studded event it was with high attendance

from all sectors of the credit industry.

We continue to search for new presenters at our monthly

Credit Focus mornings and have worked hard to improve the

quality and contents for our attendees in 2015.

The end of year Christmas Networking evening will be held

at the Bombay Bicycle Club, quirky and unique with it’s animal

themes, particularly the elephants, delicious mixture of Indian

food and jungle noises! Guaranteed to be a super night and a

great way to toast 2014 and the festive break. In the meantime

the Functions committee are brainstorming some new events to

bring some spice to the New Year.

Currently the PD committee are busy putting together a

Credit Symposium for next year which will be held in March, in

the picturesque Adelaide Hills. Our annual Symposiums are a

full day event and prove to be very popular offering high calibre

speakers and great networking opportunities. We have also

been able to negotiate discounted rates for those attendees

who wish to stay on to enjoy “Adelaide Hills hospitality”

On behalf of the SA committee, members and sponsors we

would like to wish all of our national colleagues and friends a

very Safe and Merry Christmas. Ensure you take the time to

spend special moments with your loved ones and prepare for

another eventful and exciting year ahead. Look forward to

seeing you all soon!

– Gail Crowder, SA Division President

Credit Focus ReviewThe South Australian Division has had a very successful few

months with some excellent opportunities for our members

to gain valuable knowledge in the essential areas of Financial

Statements & their value presented by Des Monroe and his

team from BRI Ferrier in July, Risk Free Credit By Security

presented by Alice Carter of Lynch Meyer in August, Effective

Communication by Jane Calleja from NCI Insurance Brokers

September, & Credit Management 101 presented by Adrian

Stewart in November.

We are very fortunate to have all of these above mentioned

people and many more other Credit Professionals who are

willing to give their time to the institute to ensure that we are

able to continue offering a prime source of Credit Training and

networking opportunities that these events provide.

We are looking forward to an exciting program for 2015 with

many new topics & speakers combined with a few of the old

favourites which have been requested by you, “our members”

Wade Bekesi and Megan Bekesi.Gail Crowder and Rebecca Edmiston.



south australia

so please keep on contacting us with your suggestions and any

ideas as this is the best way for you to get the most out of your

membership.

– Lyn McKell, AICM South Australian DivisionCredit Focus Chair

GAIL CROWDER MICM

SA Division President

Having worked in the credit

industry for nearly 20 years,

Gail commenced her career

in one of the toughest areas

of collections, the transport

industry. These challenges

encouraged her to continue

to work in credit having

roles at Lux Ltd, Receivables

Management Ltd and then

7 years at Collection House

where she managed insurance

and commercial accounts. Gail was offered a newly created

role in Business Development and then went on to manage

several credit departments. At National Credit Management

she was the Business Development Manager for SA, WA and

was overseeing VIC for a short term. Gail continues to focus

on improving/building client and staff relations in the credit

industry. She has a strong enthusiasm for delivering the best

results possible! Her 3 children are her pride and joy and she

believes that good communication and understanding each

individuals needs is the the key to all relationships. She is

currently embracing her second year in the role of President

of the AICM, SA Division and thanks her dedicated and

professional committee !

WADE BEKESI MICM

Managing Director, Mercantile CPA

SA Division Councillor

Growing up in the middle class

Wester suburbs of Adelaide, I hated

school but had a real passion for

owning my own business one

day and helping other people

in business. I have hundreds of

books on business and finance

and through this have learnt the

two most important aspects of

business are sales and cash flow.

I started my career as in sales in 1999 and worked for

various small businesses for over 5 years. This included

working in sales and business development for Mercantile

Collection Services for 2 years. I then worked in the credit

management area of GE debt collection for 2 years before

being offered the opportunity to purchase Mercantile

Collection Services in 2006. This gave me the opportunity

to own my own business and help other businesses

by assisting them with their cash flow through debtor

management.

In 2012 we merged with Creditors Protection Agency

bringing experts in consumer and commercial debt collection

to the business, we are now known as Mercantile CPA and has

come a long way over the past 9 years and has grown year on

year. Over this time, I have learnt a great deal about managing

and running a business. I understand that there are many

aspects of running a successful and profitable business. One of

the most important aspects is cash flow. By offering affordable,

effective and efficient accounts receivable and debt collection

services I believe that we are helping business to prosper and

become more resilient in an increasingly more challenging

financial climate. I am glad to be part of the South Australian

AICM council and look forward to ensuring the growth of the

AICM members in South Australia.

Thursday 20 November 2014

Christmas FunctionVENUE: TBA

Events Calendar

The Australian Institute of Credit Management South Australia welcomes

the following organisations as our sponsors for 2014






victoria/tasmania

President’s ReportIt was great to see some many old faces at this year’s National

Conference held at the Gold Coast, what was more pleasing

was the large number of first timers attending the conference.

Good to see the message is spreading and our future is the

credit profession is in good hands.

Congratulation to all the Victorian entrants for this year’s

Credit Team of the Year, Victoria had 3 out of the 4 finalists.

Congratulation to Rhys Buzza and his team at Reece for

winning this year’s Credit Team of the Year and Brooke

Lawrence and her team at Recoveries Corporation as a close

runner up, a special mention to Bianca Stephens and her

team at Seek for making it to the national finals. This is a great

recognition for the winning team but I believe that all the

participants would agree this process brings the team closure

together and it thrusts some of us outside our normal bounders

to strive for excellence. Therefore I would encourage as many

as you can to participate in next year’s Credit Team of the Year.

Congratulation to David Haysom from Fuchs Oils as this

year CCE Dux for 2015, great effort and well done. National

Credit Insurance (NCI) has been a great support of this event,

the bottle of Penfold Grange has always been well received by

the worthy winner. The CCE qualification will raise the level of

respect among colleagues in business, credit management and

the broader financial community. CCE is an important catalyst

to staff development. It will encourage managers and potential

managers to expand their knowledge beyond their particular

area of specialisation, whilst continuing to learn and grow in

the market place. CCE tells your employer you are motivated

and accomplished together with being up to date in your

knowledge of credit management skills.

It’s that time of year again and this year’s AICM Christmas

Party is going to be a night not to miss. Join your friends,

Credit Colleagues and staff at the Division’s End of Year Festive

Cocktail Party, being the credit industries Premiere Networking

opportunity for the year.

We’re trying something a little different this year, going for a

more relaxed environment and conducive to conversation and

catching up with all those important people you’d like to see

before year’s end.

We’re hoping to see a great turn out this year. Jump online

and check it out the venue at www.krimper.com.au and we’ll

see you there!

To our State partners Veda, DNB, Randstad, National

Collection Services, thank you for support and contribution

over the last 12 months and looking forward to a bigger and

better year in 2015.

Next year’s calendar is up on the web site we have new and

interesting topics and upcoming events therefore I will look

forward in see you in some and if not all of the events during

the year.

Many thanks to all the councillors for their support and

assistance over the last 12 months and we are looking forward

to bigger things in 2015.

Wishing everyone a happy and enjoyable festive season

and no doubt a well-deserved break over the holiday period.

– Lou Caldararo

September Networking BreakfastA great turn out to the September Networking Breakfast, where

Jason McCutcheon, recipient of the Swinburne University of

Technology Industry Engagement Award in 2010 and runner

up for Teacher of the Year at Box Hill TAFE in 2010 and 2012,

delivered and interesting and informative presentation on

Leadership and Career development for women. Jason

engaged in the topic of areas of career development where

women are not making the right moves to improve their

chances of advancement. Some of the areas Jason covered

were confidence, assertiveness, and resilience, reluctance

to self-promote, career choice, support, and over- analysis at

the expense of making decisions. Members and guests who

attended were delivered a male’s perspective as to some of

the issues that hold women back. Jason hoped that those

who attended came away with some positive action steps to

improve their career aspirations.

September Network Breakfast well attended.Jason McCutcheon has members enthralled.

http://www.krimper.com.au



victoria/tasmania

The Australian Institute of Credit Management Victoria/Tasmania welcomes

the following organisations as our sponsors for 2014




Credit Team of the Year AwardThe VIC/TAS Divisional Committee on behalf of all the

members would like to congratulate Rhys Buzza and the

Team at Reece for their submission to and outstanding effort

in winning the AICM Credit Team of the Year award. Tony

Mackwell of VMIA, newly appointed to the VIC/TAS Division

Committee, recently interviewed Rhys on the Credit Team of

the Year Award, on how they found the process and benefits

to him and his team.

What has winning the award has meant for the team?

Winning the award has been a tremendous boost for the team.

Recognition for 18 months of incredibly hard work. Having the

team buy into and engage in a massive change program that

encompassed, people, technology and process and to get an

ultimate reward for that engagement is outstanding. Winning

the award has meant the Team has gained terrific recognition

and allowed them to grow their own profile in the industry. This

growth and the new networking opportunities will deliver new

and long lasting relationships that will benefit them for many

years to come.

What has winning the award has meant for the company?

Reece Pty Ltd has been incredibly supportive of the work the

team has been doing and the changes they have been driving

throughout the business. The Senior Leadership Team for

the business have personally taken an interest in the teams

progress and the teams endeavours with the award. Reece

Pty Ltd is a very proud company very driven to succeed and is

never complacent, the winning of the award is confirmation we

are going in the right direction.

What are your thoughts on the process?

The process itself was outstanding. The team were stretched

in many ways throughout the application and presentation

process. During the process the team developed, leaderships

skills, teamwork, communication, initiative, confidence and

professionalism. As a leader of the team, to be able to drive

The Reece Team with Grant Morris and Debbie Leo.

this development into the team in such a short period was

invaluable. The process itself is enough reason to have the

team undertake the award.

What has winning the award has meant to you personally?

For the Team to receive such an accolade is a very satisfying

moment and an achievement I will cherish for my career. To see

the development in the team, and to be acknowledged for our

achievements and to have a team that in my opinion contains

the very best young talent and the future leaders of our industry

is something I am very proud of.

Are there any other comments you would like to make?

I would encourage other managers and leaders to seriously

consider nominating for the award. It is a great way to review

and assess your teams achievements and development, it

provides outstanding development and learning opportunities

for team members and it provides exposure to the team and

tem members that cannot otherwise be obtained in such a

short time.

Tuesday 16th December

VIC/TAS Division 2014 Christmas Party @ Krimper (Guilford Lane)

COCKTAIL PARTY; RELAX WITH DRINKS, CANAPÉS AND PLENTY OF MINGLE TIME.

Events Calendar



western australia/nt

President’s ReportWelcome to my final report for the 2014 year. And what a year it

has been. Is it me or is it that the pace of life and in this context

our working life, just keeps picking up momentum. Just when

you think everything is moving along nicely along comes a new

or more dynamic way of doing things.

The AICM National Office now has a new CEO in the form

of Nick Pilavidis (by the way welcome aboard Nick), there is

no doubt that Nick will continue the growth and development

of our Institute. With Nick being the Young Credit professional

of the year in 2005 I am looking forward to see what initiatives

he will bring to the National Office.

This brings me to my main point of reference in this report:

I was reading some literature lately that caught my attention.

The topic being ‘how to communicate to a new generation,

or in other words how to grab the attention of a generation

of short attention spans? The new generations, X and Y are

‘Digital Natives’ (love those words) as they have spent their

entire lives immersed in technology – computers, video

games, smart phones, internet, facebook, hashtags, tweets,

twitters and so on and their ‘Native Speak’ is that of digital

language.

These new generations think and process information

fundamentally differently from their predecessors!

Digital natives are used to receiving information really

fast, they like parallel processes and they multi-task.

They function best when networked and thrive on instant

gratification and frequent rewards. Some may even say they

prefer games to ‘serious work’- ah you would have to brave

to say that and it would be at your peril because if you are

not able to keep up with these Natives then you are surely

going to fall behind.

Take your website for example – they say that you have

3 seconds to engage with the new generation when and if they

visit, if no engagement they have gone. Digital natives can

smell a hard sell so your company’s communication strategies

need to be about others, not just you and your product. They

need to be focused on building connections and the broader

community.

And this brings me to my final message – Our new CEO will

be focused on building connections for our Institute and he will

engage with the broader community….and we have to support

him in any way we can, otherwise we run the risk of being left

behind!

Enjoy your upcoming Christmas festivities and I look

forward to catching up with you at our Sundowner on the

4th December.

– Colin Phillis MICM – WA President

Young Credit Professional ReportHigh numbers of young and new people join the world of

Credit and Collections every day, be it by choice or by accident!

To maintain and continue to improve standards, each of us

has a responsibility to ensure the staff working around us are

‘on the ball’ and using best practises. Less Experienced or

less confident people often need a mentor or an encouraging

manager to help us find our way!

So if each of us proactively ensure to Forward and Share

relevant institute communications and events with others in

the industry, we can help build awareness of the AICM Institute

and the training and network of contacts it can provide. Let’s all

encourage self-development as the better the staff around us,

the better we can perform as a whole!

Previous YCP Award winners Kristy Shrigley, Rosanna

Maugeri and now Tamera Russell (2014 WA winner), are all

involved in boosting youth awareness and career progression.

Currently focussed on building alliances with other young

Great tea and lovely venue.



western australia/nt

The Australian Institute of Credit Management Western Australia/NT

welcomes the following organisations as our sponsors for 2014




professional groups in WA ready for the 2015 YCP Award,

AICM is in the process of becoming an affiliate of Perth Young

Professionals (a membership group of Gen Y professionals

from various industries and sectors across WA) and other

groups such as the Young Finance Professionals and Young

Guns WA.

– Kristy Shrigley MICM – Media & Publications

Seminars and EventsAs our new Functions & Events managers, Steve Thomas

(NCI) and new council member Lisa Marr (Instant Waste)

have been very busy signing off on the new 2015 calendar of

events! With a lot of feedback received in recent months from

our WA members, we plan to take all that has been learned

and continue to improve the quality and attendance of these

events. Watch this space!

Inaugural “Ladies in Credit High Tea” – Friday 24th October 2014This 1st of what may be a series of events was held at The

Pagoda, South Perth recently and a good cross section of

industries represented. It was a great way to end the working

week and welcome the weekend. We are looking forward to

growing this event in 2015 and including the gentlemen, and

attracting some key speakers.

Check out our Facebook WA page for Photos of the event.

AICM Xmas Sundowner – Thursday 4th December 2014Hope to see you all at our social end of year function, held at

the ever popular South of Perth Yacht Club. There have been

some changes in 2014 so it is a great opportunity to meet your

council members and give us some feedback and suggestions

for 2015.

Keep an eye out in future issues of the AICM magazine for

a feature on each of our Councillors, who they are personally,

and more information on the AICM portfolio they manage.

Lisa Marr (Instant Waste Management) – WA 2015 Functions & Media co-chair.

Media and PublicationsThe WA AICM Facebook page has been up and running for a

while now, but this is really just for sharing photos. The name of

the page is AustralianInstituteOfCreditManagementaicm.

Pictures of AICM National events such as the conference

are available on our affiliate Credit Network website:

http://www.creditnetwork.com.au/

The Credit Network is a fantastic and free resource that

many of our AICM members have joined. With interactive

forums, presentation templates, fact sheets and more make

sure to check it out. Additionally, the national AICM – Australian

Institute of Credit Management Linkedin page is getting bigger

and bigger every day. Feel free to post submissions and

comments here for us to share.

Thursday 4 December 2014

XMAS Sundowner – Relax and NetworkVENUE – SOUTH OF PERTH YACHT CLUB

Events Calendar



new south wales

President’s Report

NSW GOLF DAY

We celebrated the re launch of the NSW Golf Day at Oatlands

Golf Course on 12th September. I would really like to say a big

thank you to all our sponsors for supporting this event, they were:

z Naming Day Sponsor: Australian Recoveries & Collections

(ARC) with (creditor)watch

z Drinks Cart Sponsor: Commercial Credit Services

z Putting Competition: Turks Legal

z Welcoming Pack: Trace Personnel

z BBQ Sponsor: Ampac Debt Recovery

z Premium Sponsors: IP Payments, Bing, Stone

Recruitment, Hall Chadwick,

Hymans Valuers & Auctioneers,

Veda and Wise McGrath

Hole Sponsors: Atradius, Byron Thomas Recruitment, EDX,

Cor Cordis, Debt Sale Brokers Australia P/L, Fortis Law Group,

TDX Group, Trace Personnel, Collexus P/L, Dun & Bradstreet

and Makinson d’Apice Lawyers.

We had just on 100 golfers that hit off just on Midday after a

lovely morning tea.

Jamie and Danielle from CCS headed around with the drinks

cart as well as selling raffle tickets for our chosen charity for

the day NeuRA, (Neuroscience Research Australia Foundation).

Len who attended the dinner on behalf of the charity was

overwhelmed with the $1500 we were able to donate to the

cause….a really huge thank you to everyone on the day for

making this happen.

Mark and David from Ampac kept everyone fed with some

beautiful garlic prawns whilst Will and Alison from Turks Legal

had the putting green decked out with cupcakes and bottles of

wine for a fantastically run putting competition that came down

to a playoff at the end of the day with Alistair Hewson taking

home the prize.

Chris, Matt and Patrick from (creditor)watch had the crowds

very interested running the “gambling hole” which was

eventually won by Steve Jardie who went home with his wallet

quite fatter than when he got there…

Kaeley from Stone Recruitment was making sure everyone

was prepared for the “19” happily supplying stubby holders to

all and a pro shop voucher for nearest the pin.We had our own

paparazzi for the day with the lovely Balveen Sani from BBW

making sure everyone was snapped “hitting that booming drive”…

Len Russell from Neuroscience Research Australia Foundation and Colin Magee.

Winners: Charles Kinsella, Daniel Grace, Nick Pilavidis and Doug Rouessart.

National President Grant Morris busy at work.



new south wales

Our lucky winners for the day were:

– First: Team (creditor)watch Charles Kinsella, Danial Grace,

Nick Pilavidis and Doug

Rouessart

– Second: Team Atradius Paul Daniele, Alister Hewson,

Mark Smith and Paul Morgan

– Third: Team Wise McGrath Matt Stokes, Simon Robinson,

Joe Kyayo and Kyle Grey

– Longest Drive Men: Lewis Greenup and Paul Mead

– Longest Drive Ladies: Louise Thomson (twice)

– Nearest the Pin Men: Steve Jardie and Kevin Hartin

– Straightest Drive Men: Andrew Smith

– Straightest Drive Women: Louise Thomson

– Raffle Winner: David Mann

– NAGA: Team Bing Nadine Butcher, Alexandra,

Mikey and John Gargen

We finished the day with drinks in the bar followed by a

lovely 3-course dinner. Big thanks to fellow organisers Andrew

Smith and Patrick Coghlan as well as Jennifer from the club.

Look forward to seeing you all there again next year.

– Colin Magee

Group photo on the putting green.

Drinks Cart Sponsor & raffle girls from Commercial Credit Services Jamie Kerry, Danielle Attard and Colin Magee.

Naming Sponsors ARC (Andrew Smith) and (creditor)watch (Colin Porter).

The Australian Institute of Credit Management New South Wales

welcomes the following organisations as our sponsors for 2014






new south wales

City Networking Night (Fraud – How to protect your company) – 16th SeptemberOver 40 people attended the KPMG boardroom to see Giles

Woodgate and Richard Rowley from Woodgate & Company

give us a very informative discussion on fraud, this was

followed by some drinks and canapés and plenty of good

networking done by the crowd at hand.

National Conference on the Gold Coast – October 15-17 October 2014It was good catching up with everyone at this years conference.

The program was great, and a fantastic President’s dinner was

enjoyed by all. Thank you to everyone involved. I, and the NSW

Council look forward to welcoming you all in Sydney in 2015

Lastly, Merry Christmas and a safe and happy new year to

all…hope Santa is kind to you.

Some of the teams...

aicma r o u n d t h e s t a t e s new members


QUEENSLAND

Kelly Anderson Hastings Deering (Australia) Limited

Gerard Burns Credit Collection Services Australia

Suzanne Hammond Data #3 Limited

Gale Petersen Hastings Deering (Australia) Limited

Patrick Quinn Creevy Russell Lawyers

John Shanahan Gervase Consulting

Ashley Stanton Creevy Russell Lawyers

Stacey Woodward Boral Construction Materials

NEW SOUTH WALES

David Beynon Kessler Financial Services Australia Pty Ltd

Tara Blake Imperial Tobacco Australia Ltd

Damien Brunell Austral Mercantile Collections Pty Ltd

Janne Capra Imperial Tobacco Australia Ltd

Tracy Do Imperial Tobacco Australia Ltd

Terence Eames Ice Pay Pty Ltd

Laura Harrison-Clancy Imperial Tobacco Australia Ltd

Suzanne Ingold Imperial Tobacco Australia Ltd

Linda Jacob-Flores Imperial Tobacco Australia Ltd

Lissa King Imperial Tobacco Australia Ltd

Asher Macdonald Dimension Data Australia

David Mahbub Imperial Tobacco Australia Ltd

Samantha Olyve Imperial Tobacco Australia Ltd

Moses Sub Raju Dan Murphys

Peter Tennant Imperial Tobacco Australia Ltd

Stipe Vuleta Chamberlains Law Firm

Ken Ward Austral Mercantile Collections Pty Ltd

Donna Willcocks Onesteel Pty Ltd

Stephen Wright GWA Group Limited

VICTORIA/TASMANIA

Kerrie Adams NEC Australia Pty Ltd

Zoe Cortese Cummings Flavel McCormack

Naomi Gibson Connect East

Rebecca Harris Petrogas Pty Ltd

Michael Hartman Inflexion Point

Lita Kalava GWA Group Limited

Gary Sartor GWA Group Limited

Rosemarie Sicari GWA Group Limited

Lynn Whelan GWA Group Limited

SOUTH AUSTRALIA

Rebecca Edmiston Bendigo & Adelaide Bank

Stephen Flamer-Smith Bendigo & Adelaide Bank Ltd

Leah Hanisch CCC Financial Solutions Group

Emma Trebilcock CCC Financial Solutions Group

Phoebe Hu CCC Financial Solutions Group

Mai Huynh CCC Financial Solutions Group

Leah Hanisch CCC Financial Solutions Group

James Marsionis CCC Financial Solutions Group

WESTERN AUSTRALIA

Paul Abbott Wesfarmers Kleenheat Gas Pty Ltd

Christine Griffiths Architectural Ceiling Systems Pty Ltd

Pania Henry Wesfarmers Kleenheat Gas Pty Ltd

Beverley Husk WestFarmers Kleenhaet Gas Pty Ltd

Tammy Kurek Wesfarmers Kleenheat Gas Pty Ltd

Tenille Miller WestFarmers Kleenhaet Gas Pty Ltd

Andrea Profant Wesfarmers Kleenheat Gas Pty Ltd

Jo Ralph National Credit Insurance (Brokers) Pty Ltd

NEW MEMBERS

The Institute welcomes the following credit professionals who were recently admitted to membership in September and October 2014

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Documents

Credit Management in Australia