Today the National Association of Credit Management released its monthly Credit Manager's Index. For the first time since the index was calculated in February 2002 the combined manufacturing and services index has fallen below 50, indicating an economic contraction.
[Excerpt from CFO.com] accounts receivable departments have been feeling a major crunch. Credit managers told The National Association of Credit Management (NACM), which conducts the monthly survey, that they've had to send out more late-notice letters to clients, while others report customers asking for more time to pay. "Collecting receivables is becoming more and more difficult," a furniture vendor said. Added a grocer supplier, "Customers just don't want to pay current bills."
Credit Managers Index for the last 12 Months:
As companies struggle to collect cash, pressure to maintain working capital increases just as recent market gyrations and more caution among lenders restricts the availability of credit.
More info
- CFO.com article "It's Getting Much Harder to Receive"
- National Association of Credit Management March 2008 CMI Report (PDF)
During her time at Glenbrook, Erin focused on client engagements in business payments, cross-border transactions, bill payment, and the intersection of corporate finance, banking, and ERP/accounting. She has nearly twenty years of experience leading increasingly complex payment initiatives for corporate clients and advising financial institutions and payment technologists on the development of their payment capabilities.
Erin is also the founder of Forte Financial, a consulting firm focused on corporate finance efficiency, technology, and process improvement. She is a past president of the Financial Women’s Association of San Francisco and also a two-term past president of the San Francisco Treasury Management Association. Erin is no longer with Glenbrook, but contributed greatly during her time at the firm.