Latest version of the commercial credit industry's policy priorities includes updated section on consumer and commercial credit reporting and all-new construction law positions.
Columbia, MD: May 13, 2014â€”The National Association of Credit Management (NACM) released the latest edition of its Legislative Introduction and Issue Brief today, in conjunction with National Small Business Week. In addition to reiterating its suggested reforms to make the Chapter 11 bankruptcy process work better for commercial trade creditors and smaller companies, NACM's 2014 Issue Brief also includes an updated, expanded section on the important differences between consumer and commercial credit reporting and an all-new section detailing NACM's first-ever positions on reforming construction law in order to better enable small businesses to participate and grow through both public and private construction projects.
"During Small Business Week last year, NACM released the 'Commercial Credit Reporting: What Every Company Needs to Know' fact sheet, which was designed to give smaller companies the information they needed to manage and grow their company's own commercial credit profile, and how this type of credit differs from its consumer counterpart," said NACM President Robin Schauseil, CAE. "This year NACM's Issue Brief charges lawmakers to recognize these same differences, so that when they attempt to enact legislation that regulates the vital resource of business credit information, they do so in such a way that doesn't limit the exchange of this data, which does nothing less than fuel the majority of business commerce."
"Recent efforts by legislators in Virginia and California to enact bills that extend consumer credit regulations to the commercial arena would ultimately end up making it harder for small businesses to grow through credit," said NACM National Chairman Chris Myers, president and CEO of Professional Alternatives LLC. "Rather than regulating commercial credit information, NACM believes that lawmakers should join us in educating small companies about how their commercial credit differs from their consumer credit and how they can grow their business by encouraging their suppliers to report their payment data to credit reporting agencies."
The 2014 Issue Brief also includes NACM's first-ever policy prescriptions that pertain to a specific industry, particularly construction. More than 50% of NACM's membership of commercial trade credit grantors is involved in the construction industry, and as such the brief urges Congress to make it easier, through a series of common sense reforms, for small businesses to participate in the construction industry and the federal procurement process. "Too often the risk of nonpayment keeps companies from providing goods and services to construction projects on credit. This risk is especially acute if the trade supplier is a small business," Schauseil said. "Congress can boost small business subcontractors and materials suppliers while increasing value to the American taxpayer by expanding the Miller Act's bond licensing requirements to individual, as opposed to corporate, sureties, and by extending the Act's payment protections to construction jobs financed through public-private partnerships, as NACM's 2014 Issue Brief recommends."
"These reforms would generally facilitate the extension of credit between businesses, the process of which NACM was founded to support and protect," Myers added. "That they stand to increase small business access to the federal procurement market and drive down costs for taxpayers makes these reforms, which have the support of other like-minded associations, a win-win that all lawmakers should support."
The full 2014 Issue Brief, in PDF format, can be downloaded for free at http://www.nacm.org/images/pdfs/Issue_Brief_2014.pdf. For more resources on NACM's efforts to support small businesses by protecting the extension of credit between companies, please contact NACM at 410-740-5560.
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. NACMâ€™s collective voice has influenced federal legislative policy results concerning commercial business and trade credit to our nationâ€™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.
Source: National Association of Credit Management