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A catalogue record for this book is available from the National Library of New Zealand.
ISBN: 978-1-77547-013-7
2014 CCH New Zealand Limited
Published by CCH New Zealand Limited
First published September 2005
This edition published March 2014
All rights reserved. No part of this work covered by copyright may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying, recording, recording taping, or information retrieval systems) without the written permission of the publisher.
About the Author
Graham Pomeroy has been involved in senior positions in credit management and associated fields since the late 1980s. He has owned a number of businesses, including a licensed private investigations company, and has advised numerous New Zealand organisations on how to restructure company credit functions.
Graham has run numerous training seminars on various aspects of credit. He has held the position of national president of the New Zealand Credit & Finance Institute Inc, as well as holding board and local committee positions. His involvement in these organisations has given him broad connections across the credit and finance industry, providing wide ranging opportunities to enhance and share his knowledge within the credit profession.
Graham is a fellow of the New Zealand Credit & Finance Institute Inc and a Justice of the Peace.
Author Acknowledgments
I would like to thank the Board of the New Zealand Credit & Finance Institute for their continued support and encouragement as this book goes into its second edition.
This book is dedicated to my wife, Lisa, and my daughters, Anna and Kirsty. A special thank you to my wife for allowing the kitchen table to be covered in research material and unable to be used while this book was being written. As to the dogs, thanks for letting me kick the ball under the table while I was researching the book and for never giving up hope that I would!
Endorsement by the New Zealand Credit & Finance Institute Inc
Historically, credit personnel have been seen as telephone collectors, rather than as professionals with a high level of understanding of legislation, human resources, management disciplines, and commercial awareness. It is books such as this, and the New Zealand Qualifications Authority certificates in credit management, which are helping to change this view and to acknowledge the important role effective credit management practices play within an organisation.
The latest revision and updated version of this book clearly documents the important aspects of credit management and the latest endorsements of the current Credit Acts and policies pertaining to the Credit fraternity within New Zealand.
This enables the reader to understand the steps necessary to develop an effective credit management department/function, which minimises risk without preventing business growth. For those new to the credit function and those involved in small business, it will be a valuable resource providing insight and practical steps to manage credit risk, while serving as a refresher for experienced credit professionals clarifying skills learned as a result of years of experience.
It is my pleasure, on behalf of the New Zealand Credit & Finance Institute Inc, to endorse and recommend this book on credit management as a valuable resource for those in the industry and for those looking to make credit management a career of choice.
Michael Wright
National Vice President
New Zealand Credit & Finance Institute Inc
CCH Acknowledgments
CCH New Zealand Limited wishes to thank the following who contributed to and supported this publication:
Managing Director: Bas Kniphorst
General Manager: Julie Benton
Head of Content: Andrew Campbell
Product Manager: Dione Kimpton
Editor: Reshma Korah
Composition Editor: Barbara Hodgson
Indexer: Carol Linthwaite
Cover Designer: Envisage Design
FINDING AIDS
Index
A
Acknowledgement and acceptance of terms clauses |
Address for service clauses |
Address verification resources |
Application forms |
advantages |
accepted commercial practice |
basis for recovery actions |
comparisons between credit applications |
effective accounting and communication system |
fulfilling legal information collection requirements |
highlighting information required but not supplied |
identifying additional security requirements |
identifying customers |
legally binding contract |
outlining terms of trade |
procedural process |
risk management |
setting credit limits |
undertaking applicant screening |
uniform records |
alteration of terms |
designing a form |
layout |
legal enforcement |
target audience |
key requirements |
acknowledgement and acceptance of terms |
information gathering |
terms of trade clauses |
legislative requirements |
Consumer Guarantees Act 1993 |
Credit Contracts and Consumer Finance Act 2003 |
Fair Trading Act 1986 |
Human Rights Act 1993 |
Minors Contracts Act 1969 |
review and validation |
credit interviews |
Approving or declining credit |
Assessing risk see also |
credit checks |
authorisation and privacy |
company affiliations |
costs involved |
court-based information |
credit default information |
credit monitoring |
credit scoring |
debt-collection files |
information required |
obtaining and analysing financial information |
positive credit information (give all, get all) |
previous credit enquirers |
trade references |
credit checks, reasons |