FAQs for NACM Certification Program and Career Roadmap

  1. Do I have to complete the Education Department Registration form before taking the required courses?

    You should complete the registration form either before you begin taking your courses or after you have completed your first course.
  2. Do I need to be an NACM member to sit for NACM's designation exams?

    You are not required to be an NACM member to sit for our designation exams, however, NACM members do qualify for discounted application fees.
  3. Do Continuing Education points apply only to NACM-sponsored conferences, seminars and meetings?

    Employee-sponsored training may also be entered in the Continuing Education at Conferences, Seminars and Meetings section.
  4. What do CAP and ACAP stand for?

    The Credit Administration Program (CAP) and the Advanced Credit Administration Program (ACAP) refer to courses that are offered through NACM Affiliated Associations.
  5. How do you prove that you are the registered participant for NACM-National webinars and teleconferences?

    The NACM Education Department will verify your registration with the NACM-National Meetings Registrar.
  6. If I took an accounting course in college, do I still need to take the accounting course through NACM?

    You may submit an official college transcript for review by the Education Department to determine if the course fulfills NACM's requirements.
  7. How can I get information on seminars and classes I've attended?

    For local events, please contact your local NACM affiliate. You may find a listing of your NACM National education history by visiting www.nacm.org. After logging in, click on Check My Account and then Participation to view your CEU earnings, NACM meeting history and CMI survey participation.
  8. Does work experience outside of credit count, such as accounting, accounts receivable or accounts payable?

    If your work experience was in the financial management field, points may be awarded in the work experience area.
  9. Do I need to complete the Career Roadmap if I am applying for the CBA designation?

    The Career Roadmap is only required for the CBF and CCE designations. We do recommend keeping a record of any educational programs you attend, however, if you plan on working towards your CBF and/or CCE designation.
  10. Why aren't additional points awarded for the CCRA designation to those that achieved the CBF designation prior to 2013?

    Prior to 2013, the Financial Statement Analysis 2 course was required for the CBF designation. Since all the courses for the CCRA designation would have been required for either the CBA or CBF designation prior to 2013, no further coursework would be necessary, therefore no further credit may be given.
  11. How do I participate in NACM-National surveys?

    Please visit our website to receive monthly email reminders to take the CMI survey.

NACM Career Roadmap

Along with the CBF and CCE designation applications, you must submit the NACM Career Roadmap. (The CCRA and CBA designations do not require the submission of the Career Roadmap. The Roadmap enables you to assess your professional accomplishments. There are more than 500 points available on the NACM Career Roadmap. A total of 75 Roadmap points is needed to apply for the CBF designation and a total of 125 points is needed to qualify for the CCE designation. Points are awarded for both formal and continuing education, work experience, participation with your local and National NACM offices, as well as special activities in which you may be involved. You must send your completed Career Roadmap to the NACM-National Education Department for evaluation with the CBF and CCE application form and fee. Your Roadmap will be reviewed and verified, after which you will be notified of your status. Completed paperwork is due eight weeks prior to the scheduled exam date to ensure time for a thorough evaluation.

Keep a copy of your Roadmap accessible and add points to it as you attend classes and participate in activities and events. Save a complete copy of your Roadmap for future reference each time you submit it with a designation application.

Career Roadmap (pdf)

Career Roadmap Sample #1 (pdf)

Career Roadmap Sample #2 (pdf)

Certified Credit Executive® (CCE®) Exam Study Guide

About this Guide:

This guide presents a listing of suggested study topics and recommended books and material to prepare for the CCE designation exam. Due to the comprehensive nature of the exam, this guide cannot present a listing of every possible topic that can appear on the exam. Depending on your level of proficiency, you may not need to read every book. Some topics are duplicated in these publications. Be sure to spend time on legal and financial issues when preparing for the exam.

About the Exam:

The length and scope of each CCE exam may vary. Traditionally, the exam is comprised of two sections: short answer/essay questions covering a variety of credit, legal and management issues and a case study. The exam measures a candidate's ability to apply concepts to situations or explain how they relate to the field of business credit. The case study will require a candidate to analyze a case company and apply your findings to specific questions.

Candidates may take up to four hours to complete the exam. Many candidates have difficulty with the time constraint. We suggest you take questions from the Charles Gahala text listed herein, and attempt to answer the questions in one or two well-developed paragraphs. To get a feel for the testing environment, time yourself. Gauge your progress after fifteen minutes. If you are unable to thoroughly discuss a topic in a timed situation, focusing on the topic's primary issues, you may wish to review the topic in greater detail or continue with these timed exercises.

During the exam if you are uncertain about a question, move on and come back to it later or provide as much information as you know since partial credit is given. If the exam instructions state that a fully developed answer is composed of two or three paragraphs, do not over or under respond to the question. Providing a two-page answer where two paragraphs will suffice only eats away at your time. Also, keep in mind that the opposite is true. If you are familiar with a subject, writing a two sentence response is clearly too brief based on the instructions.

Please be aware that the essay portion of the exam and the case study section are each worth approximately fifty points. No one section is more important than the other. The exam you take will note the precise value of each question. Texts and notes may not be used during the exam. Hand-held calculators may be used. Candidates must earn a final score of 70% to pass this examination. And finally, please keep in mind that every test-taker is different. You are the best judge of your study habits and testing strengths and weaknesses.

Suggested Reading:

Depending on an applicant's proficiency, some or all of the following publications are recommended:

  • Credit Management: Principles and Practices, 4th edition by Dr. Charles Gahala, CCE
  • Understanding Financial Statements by Lyn M. Fraser
  • Manual of Credit and Commercial Laws, by NACM
  • Antitrust, Restraint of Trade, and Unfair Competition: Myth Vs. Reality by Wanda Borges, Esq.

All of these publications are available for purchase through the NACM Bookstore.

Credit Management: Principles and Practices by Dr. Charles Gahala

This book presents a comprehensive review of the many topics covered by the exam. It is recommended that candidates read the entire book and answer the end of chapter questions. Depending on a candidate's level of knowledge, the other publications listed in this guide should be consulted.

Understanding Financial Statements by Lyn M. Fraser

This book, written in an easy-to-read format, presents a comprehensive look at the subject of financial analysis.  Candidates should focus on the meaning of information or interpreting the information presented in financials.  Candidates should review this entire book.

Manual of Credit and Commercial Laws by NACM

The Manual presents a comprehensive look at the legal environment of credit. Candidates should pay particular attention to the following chapters:

Vol. I, Chapter 5: The Formation, Performance and Enforcement of Contracts
Vol. 1, Chapter 7: Antitrust and Trade Regulation for Credit Groups and Grantors
Vol. 1, Chapter 9: The Sarbanes-Oxley Act:  Compliance Issues and Regulations
Vol. II, Chapter 3: Uniform Commercial Code: An Overview
Vol. II, Chapter 4: Negotiable Instruments: Notes, Checks, and Drafts
Vol. II, Chapter 6: Secured Transactions: A Step-by-Step Explanation
Vol. II, Chapter 7: Bad Check Laws
Vol. II, Chapter 10: Consumer Protection Legislation
Vol. IV, Chapter 1: Reclamation, Stoppage in Transit and Adequate Assurance Rights, Administrative Claim in Favor of Goods Suppliers, and other Return of Goods Remedies
Vol. IV, Chapter 2: A Creditor's Guide to the Bankruptcy Process
Vol. IV, Chapter 3: Alternatives to Forcing a Financially Distressed Debtor into Bankruptcy

Please note that volume and chapter numbers refer to the 2014 edition of the Manual of Credit & Commercial Laws.  If you have an earlier edition, the chapter numbers will be different.

 

Credit Business Fellowsm (CBFsm) Exam Study Guide

About this Guide:

This guide is a listing of suggested study topics for the Credit Business Fellow (CBF) designation exam. The study topics are based on textbooks recommended and used by NACM. The textbook listed may be purchased through the NACM Bookstore. This outline is intended to be used as a general guide for preparing for the examination. In-depth preparation (additional texts, study sessions, seminars, self-study courses, etc.) is recommended in conjunction with reviewing the material within this study outline.

About the Exam:

The CBF exam typically consists of approximately 100-125 multiple-choice and true/false questions having equal point values. Candidates may take up to three hours to complete the exam. The exam covers topics presented in the CBF required courses:

  • Business Law (the law of contracts and negotiable instruments)
  • Credit Law

Candidates may not use notes, reference materials, or books during the exam. Candidates must earn a final score of 70% to pass the exam. If you are uncertain about the references listed or the topics noted or have questions, please be sure to contact the National Education Department for clarification prior to the exam.

Suggested Reading:

While the following textbook is used by NACM, other college textbooks may be substituted. You should compare the topics listed in this guide with topics presented in any alternative texts used to prepare for this exam.

Click on the title below for more information...

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Business Law Today (10th edition) by Miller and Jentz

Chapter 1: The Legal Environment
Chapter 2: Constitutional Law
Chapter 3: Courts and Alternative Dispute Resolution
Chapter 4: Torts and Cyber Torts
Chapter 5: Intellectual Property and Internet Law
Chapter 6: Criminal Law
Chapter 7: Cyber Crime
Chapter 8: Ethics and Business Decision Making
Chapter 9: Nature and Classification
Chapter 10: Agreement in Traditional and E-Contracts
Chapter 11: Consideration
Chapter 12: Capacity and Legality
Chapter 13: Voluntary Consent
Chapter 14: The Statute of Frauds – Writing Requirement
Chapter 15: Performance and Discharge
Chapter 16: Breach and Remedies
Chapter 17: Third Party Rights
Chapter 18: The Formation of Sales and Lease Contracts
Chapter 19: Title and Risk of Loss
Chapter 20: Performance and Breach of Sales and Lease Contracts

Chapter 21: Warranties and Product Liability
Chapter 22: Negotiable Instruments:  Transferability and Liability
Chapter 23: Checks and Banking in the Digital Age
Chapter 24: Security Interests in Personal Property
Chapter 25: Other Creditors’ Remedies and Suretyship
Chapter 26: Bankruptcy
Chapter 27: International Law in a Global Economy
Chapter 28: Agency Relationships in Business
Chapter 31: Sole Proprietorships and Franchises
Chapter 32: All Forms of Partnerships
Chapter 33: Limited Liability Companies and Special Business Forms
Chapter 34: Corporate Formation and Financing
Chapter 35: Corporate Directors, Officers and Shareholders
Chapter 39: Promoting Competition
Chapter 40: Consumer Law
Chapter 42: Liability of Accountants and Other Professionals

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Credit Business Associatesm (CBAsm) Exam Study Outline

Recommended Texts:
The following textbooks, all of which are available for purchase through the NACM Bookstore, should be used to prepare for the exam:

  • Principles of Business Credit, by NACM
  • Accounting by Warren, Reeve & Duchac or any college level financial accounting text
  • Understanding Financial Statements by Lyn Fraser
  • Credit Management: Principles and Practices by Dr. Charles Gahala, CCE (optional, review text)

This guide outlines the chapters covered by the CBA exam. Please be aware that this study outline is intended as a general guide for preparing for the examination. In-depth preparation (study sessions, seminars, self-study courses, etc.) is recommended in conjunction with reviewing the material within this study outline.

CBA Exam Format:

The CBA exam typically consists of approximately 125-150 true/false and multiple choice questions of an equal point value. Exam questions are drawn from the recommended texts covering any or all of the suggested topics. The exam may require the preparation of a balance sheet, an income statement, a statement of cash flows, or common size analysis (vertical or horizontal). Candidates have three hours in which to complete the exam and may not use texts or notes, but may use hand-held calculators during the examination. Candidates must earn a score of 70% to pass this examination. NACM reserves the right to change the format of the exam at any time.

If you are in any way uncertain about the references or topics listed, please contact the National Education Department for clarification prior to the exam.

Click on the titles below for more information...

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Principles of Business Credit, 7th Edition

Chapter 1: Credit in the Business World
Chapter 2: Credit in the Company
Chapter 3: Organizing the Credit Department
Chapter 4: The Legal Environment of Credit
Chapter 5: Credit Policy and Procedures
Chapter 6: Terms and Conditions of Sale
Chapter 7: Negotiable Instruments
Chapter 8: The Uniform Commercial Code
Chapter 9: The Legal Forms of Business
Chapter 10: Credit Investigations

Chapter11: Know Your Customer
Chapter 12: Making Credit Decisions
Chapter 13: Financing and Business Insurance
Chapter 14: Business Credit Fraud
Chapter 15: International Trade
Chapter 16: Customer Visits
Chapter 17: The Credit and Sales Partnership
Chapter 18: Out-of-Court Settlements
Chapter 19: Bankruptcy Code Proceedings

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Accounting, 25th Edition

If you are using another accounting text, compare these topics against those in a different text.

Chapter 1: Introduction to Accounting and Business
Chapter 2: Analyzing Transactions
Chapter 3: The Adjusting Process
Chapter 4: Completing the Accounting Cycle
Chapter 5: Accounting Systems
Chapter 6: Accounting for Merchandising Businesses
Chapter 7: Inventories
Chapter 8: Sarbanes-Oxley, Internal Controls, and Cash

Chapter 9: Receivables
Chapter 10: Fixed Assets and Intangible Assets
Chapter 11: Current Liabilities and Payroll
Chapter 12: Accounting for Partnerships and Limited Liability Companies
Chapter 13: Corporations: Organization, Stock Transaction, and Dividends
Chapter 16: Statement of Cash Flows

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Understanding Financial Statements

Chapter 1: Financial Statements: An Overview
Chapter 2: The Balance Sheet
Chapter 3: Income Statement and Statement of Stockholders' Equity
Chapter 4: Statement of Cash Flows
Chapter 5: The Analysis of Financial Statements

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Credit Management: Principles & Practices, 4th Edition

Part I: An Introduction to Business Credit Management
Chapter 1: The Changing Nature of Credit Management
Part II: Credit Policy and the Extension of Credit
Chapter 4: Managing Credit Policy
Chapter 5: Legislation and Regulations Pertinent to Business Credit Decision Making
Chapter 6: Conducting the Credit Investigation
Chapter 7: Business Credit Reporting
Part III: Credit, Collection and Analysis
Chapter 8: A Systematic Approach to Effective Collection Activity
Chapter 9: Financial Statement Analysis Part IV: Secured Credit and Bankruptcy
Chapter 11: Secured Credit Arrangements and Letters of Credit
Chapter 12: Bankruptcy and Reorganization

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