Free fact sheet aims to help business owners understand the process of business credit reporting and their rights regarding their business' commercial credit report.
Columbia, MD: June 26, 2013—The National Association of Credit Management (NACM) is offering its recently-released "Commercial Credit Reporting: What Every Company Needs to Know" fact sheet as an alternative solution to a problem that Virginia House Bill 2198 (HB 2198) aims, but fails, to address.
Allegations of aggressive sales tactics on the part of certain commercial credit monitoring services in Virginia originally drove the introduction of HB 2198 earlier this year. NACM has opposed the bill since its introduction, believing that the bill's onerous new requirements on commercial credit reporting agencies and providers of commercial credit information would restrict the exchange of this vital type of data between businesses and ultimately make commercial credit reports on Virginia businesses weaker and less useful to trade suppliers hoping to make an accurate credit decision about whether or not to sell to these businesses.
"HB 2198 punishes commercial credit reporting agencies for the unscrupulous sales practices used by certain employees of these commercial credit monitoring services," said NACM President Robin Schauseil, CAE. "The bill would do nothing to address the tactics used by these employees to dupe small business owners into believing that they had to pay for a service to fix their company's commercial credit report. NACM responded by creating the 'Commercial Credit Reporting: What Every Company Needs to Know' fact sheet that gives business owners the knowledge they need to not fall prey to such misleading sales practices."
The fact sheet is an easy reference document that includes information about how commercial credit works and how companies can build and manage their commercial credit profile and commercial credit report. It was released last week in support of National Small Business Week, but will also be shared with the Virginia Small Business Commission, a legislative body comprised of Commonwealth lawmakers and citizens that makes recommendations to the Virginia legislature, when it considers HB 2198 at their meeting today, June 26.
"If the businesses that were tricked into purchasing commercial credit monitoring services had been armed with the 'Commercial Credit Reporting: What Every Company Needs to Know' fact sheet, they would've known that these salespeople were making false claims about how they can build and fix their company's credit report," said NACM National Chairman Toni Drake, CCE. "Instead of passing a bill that would ultimately make it harder for Virginia businesses to acquire trade credit from their suppliers, lawmakers should work to educate businesses about the rights they have when it comes to their commercial credit report, which is exactly what this fact sheet does."
The "Commercial Credit Reporting: What Every Company Needs to Know" fact sheet is available, for free at http://www.nacm.org/images/pdfs/general_2013/NACM-factsheet.pdf.
About the National Association of Credit Management
NACM, headquartered in Columbia, Maryland, supports more than 15,000 business credit and financial professionals worldwide with premier industry services, tools and information. NACM and its network of affiliated associations are the leading resource for credit and financial management information, education, products and services designed to improve the management of business credit and accounts receivable. NACM’s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nation’s policy makers for more than 100 years, and continues to play an active part in legislative issues pertaining to business credit and corporate bankruptcy. Its annual Credit Congress is the largest gathering of credit professionals in the world.
Contact: Jacob Barron, 410-740-5560
Source: National Association of Credit Management