June 13, 2024

The 128th Annual Credit Congress & Expo, hosted by the National Association of Credit Management, recently concluded, marking another successful gathering of industry professionals from around the globe. Held in the vibrant city of Las Vegas, this year’s conference brought together over 1,300 credit and finance professionals for four days of intensive learning, networking and innovation.

Why it matters: Attendees were treated to a diverse array of sessions, workshops, and panel discussions that covered a wide spectrum of topics, from the latest in credit technology and automation to best practices in risk management and financial resilience.

Global trade

“The world is so interconnected now that any of these scenarios in the U.S. election would have serious implications on trade,” said David Kinzel, structured credit and political risk insurance consultant at Marsh McLennan (Denver, CO), during Global Hotspots 2024. “Every credit manager should be paying attention to global trends right now because of this. Our elections have very big implications for our trading partners.”

Technology

“We don’t fully appreciate the impact of technology on our careers, businesses, credit and every aspect of what we do,” said Chris Arrington, CCE, chief credit officer at SRS Distribution Inc. (Dallas, TX), during session Credit Operations and the Next Gen Credit Department. “Technology empowers credit to become powerhouses in the tech world with the massive amounts of data linked to the profession.”

Construction

“Work together with sales to at least know the background of the territory, it is beneficial to getting paid timely,” Adam Aune, credit manager at Butler Machinery (Fargo, ND), said during a Credit Congress session, Territorial Triumphs: Defining Responsibilities in Construction Credit. “I’m talking to every person and showing appreciation to people in that store to build that relationship. Also, help them understand the credit and why behind it.”

Best practices

“When customers are mad or yelling, as soon as you shout back, you’ve lost the conversation,” said Kevin Stinner, CCE, CCRA, credit manager at J.R. Simplot Company (Loveland, CO), during a Credit Congress session, Winning the Collection Argument. “That customer is mad at the situation, not you personally.”

Leadership

“Commit to your values while understanding and respecting the values of your team,” Kelly Simon, CCE, credit and collections manager at Outdoor Research (Seattle, WA), said during a Credit Congress session, Discover the Five Practices of Exemplary Leadership. “When achieving a common goal, it’s important that the team has input and knows that they’re contributing to something bigger.”

What’s next: Create a post-conference strategy so you can turn the insights and strategies gained into actionable plans that benefit your organization and professional growth. Follow these steps to maximize your learning:

1. Review and categorize your notes, session handouts, and business cards collected during the conference. Highlight key takeaways, actionable items and insights that are most relevant to your current projects and responsibilities.
2. Schedule a meeting with your team to share the most important insights and strategies you gathered. Prepare a brief presentation or a summary document highlighting the top three to five takeaways. Create a detailed report for senior management.
3. Prioritize learned strategies and tools based on feasibility and potential return on investment. Assign responsibilities and set timelines to ensure accountability and progress.
4. Reach out to the contacts you made during the conference. Send personalized follow-up emails to express your interest in maintaining the connection and exploring potential collaborations. Connect with these contacts on LinkedIn to expand your professional network and stay updated on industry trends and discussions.
5. Reflect on your conference experience by evaluating what worked well and what could be improved for future events.
6. Set personal and professional goals based on the insights gained. Outline steps to achieve these goals and periodically review your progress to stay on track.
7. Take advantage of any available conference resources, such as presentation slides and handouts. Review these materials to reinforce your understanding and discover any missed insights.

As NACM celebrates over a century of advancing the credit profession, the 128th Annual Credit Congress demonstrated the organization’s unwavering commitment to education, innovation and professional growth.

Building your personal brand is an important skill to acquire as a professional. Whether it is through networking in person with colleagues or speaking at a panel event—the way you present yourself leaves a lasting impression on those around you. But a more permanent way to build your brand can be done through social media.

Most companies have a social media presence, typically led by a public relations or special media team to handle their posts based on trends relative to their target audience. And in recent years, influencers, thought leaders, entrepreneurs, bloggers and more have used the same strategies to build their own social media presence and brand.

Why it matters: Creating and maintaining your personal brand can help you stand out from others and attract a unique audience and following. In the credit industry, being a leader can have several meanings: one important aspect being influential over others. Using social media to build that influence can help others who need guidance or inspiration.

Your personal brand summarizes your story, interests, skills and beliefs, like a bio. It is defined as the conscious and intentional effort to create and influence public perception elevating your credibility. Everyone’s brand is different. So, let’s look at some of the main ways to use social media to sharpen your professional presence online.

Discover where your passion lives. Before you start building, find out what social media platform you use the most and what audience base you want to reach. Jen Martin, director of credit at Carter-Jones Companies (Kent, OH), said LinkedIn is her main source to reach a larger audience.

“For me, it started off more as a way of recruiting employees rather than to be a social media influencer,” she said. “It's allowed me to contact a lot of great resources throughout the country and, in turn, it brings additional folks into the businesses that I've been involved in. It has been a large driver for me having the availability because it improves my reach.”

Once you have established the direction you want to go, it is important to remain authentic and honest to let your personality shine through. Even though you are a professional, using social media allows you to show the more human side of yourself so people can relate. “It’s okay to have an opinion,” Martin added. “Authenticity is extremely valued in the LinkedIn space and it’s the idea that not only one person is out here struggling with challenges in the profession. So, it creates a tribe, if you will, which is really nice.”

Put yourself out there. Because authenticity is valued in all spaces (not limited to LinkedIn), taking the risk of stepping outside of your comfort zone is important for both personal and brand growth. One example of this could be through joining industry groups or sharing something insightful that you learned in doing so.

Janet Elliott, financial services manager at Werner Electric Supply Company (Appleton, WI), is active on multiple social media platforms such as Facebook, Instagram and LinkedIn for business purposes. “I typically use my LinkedIn platform for talking about women's employee resources groups (ERG) or focusing on how to be an ally and advocate for women,” Elliott said. “But if you think about building your brand outside of just social media, I am super active in credit groups and make sure I'm networking within those groups and also being a resource to others.”

Commenting on informative posts on platforms such as LinkedIn or Facebook can help spread the message for others to see, which drives engagement. “It’s interesting that only around 2% of the people who follow you actually see your posts,” Elliott added. “I do try to come up with captivating topics and posts for my followers to see because it helps reinforce the brand image I have.”

Learning the algorithm of the social media platform is one of the most efficient ways to gain traction. For example, using relevant hashtags, keywords, pictures, videos or GIFs can help capture the attention of your audience. Posting informative information and asking questions in your post create an open environment for your followers to answer or engage with you. Another way to drive engagement is by collaborating with others and tagging them in your posts.

“To get the most engagement on your posts, it is recommended to have people comment at least seven words,” Elliott said. “You have to get others to want to write something meaningful for more people to see it. Since I’ve started paying attention to that, my impressions on LinkedIn have gone up to 1,500 people or more who are looking at my feed.”

Always be aware of your digital footprint. Don’t post anything you would not want your boss to see. Once you post anything online, it is out there forever for any person to see—even if you delete it. Social media etiquette is essential when building your brand and gaining popularity, especially if you are representing your company.

“You have to recognize that if you are going to be active on these platforms that people are going to conflate that with the business you're representing,” Martin said. “Be conscious of what you are putting out. I prefer to engage with positive folks, and I think that that resonates with most people. Your brand is larger than your business, but it also represents that business.”

The bottom line: Balancing your personal and professional brand is a needed skill in today's professional landscape. It enhances your credibility, helps you stand out, attracts a unique audience and influences others within your industry.

Supply chain compliance is vital for businesses to maintain ethical standards, mitigate risks and uphold reputation contributing to long-term success and resilience in a globalized economy.

Why it matters: To avoid security, financial or other risks from vendors, credit professionals must adopt best practices in supply chain compliance.

On February 14, 2024, U.S. Customs and Border Protection (CBP) detained thousands of Volkswagen Group (Volkswagen) vehicles for alleged nonconformity with U.S. forced labor laws. The vehicles contained a small electronic component that was prohibited from entering the U.S. under the Uyghur Forced Labor Prevention Act (UFPLA).

The UFLPA directs the Forced Labor Enforcement Task Force to develop a strategy for supporting enforcement of the prohibition on the importation of goods from China.

Situations like these are why U.S. regulations require importers to trace every product and its components from sourcing to consumer. This includes tracking the producers of individual components, their assemblers, the transporters and their routes.

What they’re saying: Shaun Papperman, CCE, CCRA, CICP, director, order fulfillment at Baltimore Aircoil Company, Inc. (Jessup, MD), says that during the supplier vetting process, they look deeper into the supplier’s values, financials, supply chain and where they source materials from.

“By understanding their supply chain, we can find out if we're dealing with a company that's higher risk for us, as we tend to avoid companies where that risk could exist,” Papperman said.

Vendor verification, assessing and confirming the legitimacy and reliability of a potential business partner, is key in supply chain compliance. It helps businesses with:

• Risk reduction: Commit to ethical business practices and compliance to enhance your organization's reputation.
• Improved decision making: Base your decisions on verified information to create better partnerships.
• Enhanced reputation: Reduce the risk of fraud, legal disputes and operational disruptions.

Papperman also looks for areas of concern, whether it be conflict, child or forced labor or a host of ethical issues that they’d want to avoid. This includes using the U.S. Homeland Security’s UFLPA Entity List, a list of entities in Xinjiang that mine, produce or manufacture wholly or in part any goods, wares, articles and merchandise with forced labor.

• “We also have our customers and vendors flagged in a monitoring software called Amber Road that we use for both credit and OFAC tracking,” said Papperman. “Once a quarter, we double-check against that list to make sure none of our vendors are showing up, but also to ensure that none of the sub-vendors that we're aware of are also appearing on that list."

Yes, but: Keeping up with regulations can become a challenge as some countries are less likely to divulge information. “Some regions are harder to collect information from, depending on who the supplier is and the scope of their operations,” said Justin Angotti, associate at Reed Smith LLP (Mc Lean, VA). “Chinese companies, for example, are very hesitant to give information and tend to be hypersensitive to questions that reference the UFPLA Act, which targets China specifically.”

Yes, and: U.S. regulations frequently compel people in other countries to track information they normally wouldn't, even if their actions are harmless or if they’re governed by different regulations. “And the more diversified the supply chain gets with various countries, the harder it will be to get the information required,” Angotti said.

What’s next: “I believe there's a growing global emphasis on knowing the origins of products,” Angotti said. “For instance, Canada has announced reporting requirements in May and the EU is talking about enacting similar supply chain compliance laws to the U.S.”

While China receives a lot of attention, Angotti has noticed a large amount of goods coming from Malaysia, Vietnam, Thailand, Mexico and several other countries. “It is largely products from Asian countries that may have been made using forced labor in China,” he said. “So, keep an eye on customs to see where your suppliers fall and see what the risk is as it can help you forecast issues in the supply chain.”

It’s still too early to reliably say what is going to happen in November; virtually every outcome is within reach for both parties. But we can look at a few of the more likely outcomes and start to evaluate what that might mean for businesses, trade, and other credit issues in 2025.

Biden Victory, Republican Senate, Democratic House

This is probably one of the more likely outcomes based on polling, Democratic candidate performance in special elections, and a potential cooling of Trump support as he starts getting back on TV in front of moderate and independent voters. For businesses, this outcome would be relatively good; President Biden would be somewhat restrained in his ability to have key Senate-confirmed positions filled unless they are proven moderates, and Democrats controlling the House would likely alleviate the shutdown and debt limit uncertainty that has plagued Congress the last two years. Furthermore, the gridlock in the House led by a few hyper-conservative Republicans would be broken, leading to potentially an uptick in bipartisanship, especially as Senate Republicans have continued to express a desire to pass more bipartisan legislation.

Trump Victory, Republican Senate, Democratic House

Trump’s polling in key swing states makes this outcome a real possibility, if conditions continue to trend as-is. This is probably the best-case scenario for businesses, as Trump will look to implement a number of administrative changes that would benefit businesses, and he would have the Senate to help ensure his cabinet is confirmed quickly. Democratic control in the House would also restrain the populist arm of the Republican party that is notably less pro-business than their more traditional counterparts. The downside to this outcome would be potential economic uncertainty that media and economists feared under Trump but that never really came to fruition during his first term. Another possibility to look out for would be government shutdowns, which occurred twice during Trump's first term and would be almost guaranteed in a contentious second term.

Biden Victory, Democratic Senate, Democratic House

The number of vulnerable Senate Democrats up for re-election this cycle makes this outcome unlikely, but it is technically possible, especially if Democrats hold all but West Virginia and successfully flip Florida. For businesses, this would be a mixed bag. On one hand, Democrats would almost certainly push through another large economic package, injecting new money into the economy. On the other hand, they would also look to pass tax increases on corporations and wealthier individuals to help pay for this new spending and other tax breaks like the child tax credit. Also expect a whirlwind of new regulatory activity as Biden attempts to make the most of his last term.

Trump Victory, Republican Senate, Republican House

If Biden’s popularity falls any lower, or economic conditions deteriorate leading up to the election, this outcome becomes more and more likely. While potentially good for businesses, as Trump would aggressively roll back many of Biden’s regulatory changes, potentially significant spending cuts could be detrimental to the economy which is teetering on the edge of inflation or recession. One almost guaranteed positive is that Trump would push through an extension of his tax cuts that were passed in 2017, extending and potentially even lowering the corporate tax rate and key business write-offs. Democrats will still have enough seats in the Senate to cause a government shutdown if Republicans try to go too far in spending cuts, creating both a backstop and heightened uncertainty.

For Trade, it’s Almost All Bad

Both Biden and Trump are relatively anti-trade, and while Biden has been pushing a number of sanctions related to labor standards or environmental protection, Trump is equally likely to impose trade limitations or tariffs that spark new trade wars or close off certain markets. If Biden is elected, businesses can expect a continuation of the last four years, with potentially the successful implementation of a non-binding trade agreement with Taiwan. Under Trump, it is much harder to predict. While he was able to successfully renegotiate NAFTA during his first term, he also created just as many trade fiascos with both the EU and China as he implemented retaliatory tariffs across a number of industries.

How to Plan for 2025

Any regulations put in place before June of this year will take years to change under a potential Trump Administration, so do not expect any quick changes on that front. Regulations finalized between now and the end of the year could potentially be rolled back through an expedited “Congressional Review Act” process, but that is only likely to succeed if Republicans control both the House and the Senate, which we view as a bit of a long shot. On the tax side, we are expecting a bipartisan tax bill to pass during the lame-duck session of Congress in November and December, which would likely include an extension of certain R&D and bonus depreciation deductions. We do not expect rapid tax-related changes in 2025, unless one party wins control of both chambers in Congress and the White House, and even then, any changes are unlikely to happen until at least halfway through 2025.

In short, businesses can expect a fairly long runway to prepare for the effects of the 2024 election.