Weekly Blog by Philip King, CEO of the ICM - 'Things to look forward to.....'

It has been quite a bit calmer this week after the frantic round of meetings and conferences since the beginning of December, but then the world of credit management never stands still for long.

I was delighted on Monday to meet with Mark Prisk, the Minister for Business and Enterprise, who is already establishing himself as a champion of the SME cause. It was clear from our discussion that the Minister is keen to continue working with the ICM in promoting the importance of cashflow to a growing business.

There was acknowledgement that even with the good work that has been done before between BIS and the ICM, there is still much to do to change the payment culture in the UK and that the Government had a key role to play in supporting and reinforcing the delivery of specific key messages. It wasn't a case of trying to find new initiatives on which to hang our cashflow 'hat', but rather doing more to promote schemes that already exist such as the Prompt Payment Code. I certainly came away with the impression that Mark Prisk means business, and look forward to working with him and his team closely next year.

Yesterday I spent the morning signing off the final proofs for the next issue of Credit Management magazine, and this is probably one of the best issues yet. We lead with the ongoing bank lending saga and research that contradicts the story from the banking community that they have plenty to lend, but no demand. In terms of consumer credit, the editor also takes a detailed look at what lies ahead for the debt sale and purchase sector in 2011.

So unless anything especially momentous happens next week, this is probably me signing off for 2010. It remains only for us all at the ICM to wish you a Merry Christmas and let us all look forward to a prosperous New Year.

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Weekly Blog by Philip King, CEO of the ICM - 'Disagreements and mixed messages'

As I mentioned last week, the momentum over the Doing Business Together initiative is gathering pace. The Business Secretary, Vince Cable, has clearly thrown his support behind DBT and the meeting last week in Richmond brought some real heavyweights to the table from the world of business and credit. But there are some issues.

There are, for example, some mixed messages coming out, especially from the politicians. On the one hand, the Government support EU moves to cut red tape for SMEs by reducing their obligations over the detail of financial reporting, while on the other they believe that financial data is essential for granting credit and therefore facilitiating growth.

Businesses need to be educated about the importance of producing, using and sharing information: they need to produce accounts, because in doing so they will be able to manage their businesses better; they need to use the information they have, and so identify how and where they can free up cash in their business; and they need to share that information to access finance or negotiate better terms with their suppliers.

I was also invited this week to the ABFA (Asset Based Finance Association) Conference, sharing the platform with my colleagues from the FSB and FPB among others in an event chaired by Fiona Bruce. The conference created a vigorous debate about late payment legislation. I disagreed entirely with the FSB position: legislation really won't change anything even though we might all wish it would.

Finally, I note an interesting thread on the ICM Bulletin Board this week about alternative approaches to cash collection. It touched on one of my soapbox themes: good credit management adds value across the entire business - creating profitable sales, improving the quality of the organisation at all levels, retaining customers AND maintaining vital cashflow; knowing - and understanding - our customers is a vital element if we are going to be successful and if we're going to make the contribution to our businesses that we can, and should!

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Weekly Blog by Philip King, CEO of the ICM - 'Information leads to finance'

Although you might not believe it, there has been quite a bit going on this week, apart from the weather. Perhaps the biggest news is around the progress of Doing Business Together, an initiative in which the ICM played an important role as part of the steering group that drafted and agreed the Operating Principles prior to their launch at the CBI in October. An event tomorrow will add to the momentum already created http://bit.ly/eTz8lO.

The aim of the Doing Business Together group is to help SMEs manage their own businesses better and obtain the finance and credit they require for a successful trading relationship.

The operating principles (http://www.doingbusinesstogether.org/) are designed to ensure that the relationship between SMEs and their finance and trade credit providers, is one of profitable partnership through a shared commitment to the principles of honesty and transparency. Put simply, they are designed to help get Britain back on its feet.

Trade credit supplies more finance to business than bank loans and overdrafts, and credit professionals are therefore key to the recovery that we all so desperately want and the country needs. In order to make informed decisions, we need information that is timely, relevant and accurate.

Credit professionals have a major part to play in encouraging businesses to produce, use and share information that will support their business, keep supply channels open, and aid the provision of finance. Getting management accounts from our customers can no longer be the exception. If we are really going to know our customers as we should, and be able to manage the relationship and risk effectively, access to such critical material must become the rule.