By Casey J. Dickinson
Journal Staff

SYRACUSE —While the sales staff may be bringing in orders, credit managers ensure that those sales sheets turn into money in the bank.

“The sale isn’t complete until you collect the money,” says Ralph Rimualdo, chief financial officer for Case Supply, Inc.

Rimualdo began working in Case’s credit department three decades ago. He’s risen to the position of vice president at the building-supply company, but still keeps close control over its credit operations.

“As a credit manager, you’re in charge of one of the company’s largest assets — accounts receivable,” he says.

Rimualdo began working as Case’s credit manager after he discovered inconsistencies in the former credit manager’s policies. While the credit manager was on vacation, Rimualdo decided to take over for awhile. He found the department kept no records and sometimes put personal relations over good-credit practices. Rimualdo stepped in to take over the position though he had limited experience with running a credit department.

In order to learn about how credit works, he turned to the National Association of Credit Management (NACM). The century-old organization helped Rimualdo learn about credit policies and practices. After 30 years as a member of NACM and serving in several positions with the organization, he was elected its chairman of the board. Rimualdo has served as president of the group’s local affiliate twice.

The “secret” of good credit management, he says, is to have a policy that all customers know and to enforce that policy.

“Set the ground rules and follow through,” he adds.

The process begins with a thorough credit application that will give the department a clear picture of the customer’s fiscal health. A credit manager may supplement the credit application with commercial or trade-group reports on the customer’s credit worthiness.

Not paying a bill may transform a customer into a debtor.

A typical credit manager’s day, says Rimualdo, begins with taking account of all the checks and payments that have come in. After seeing where the accounts stand, he compiles a new list of past-due accounts and begins to work the telephones. Other past-due accounts may receive payment requests in the mail.

When the account gets to a certain point, Rimualdo refers it to the company’s attorney. The attorney will send a letter notifying the debtor that the company intends to file suit to collect. If that doesn’t work, he starts the legal process.

“One of the biggest mistakes a credit manager can make is not to put forth every effort to collect,” he says.
Alternative collection methods such as collection agencies can produce results as well, but a collection agency’s tactics are typically the same as the credit managers’.

Once a debt goes to an attorney, a credit manager has to follow up with the attorney to ensure the process is moving forward, he adds.

Another way to ensure collection is filing a lien against the property where the debtor used the materials, says Rimualdo.

Good-credit practices might run in the Rimualdo family, he says. Prior to taking over Case’s credit department, Rimualdo’s only experience with credit had come while accompanying his father while he successfully collected business debts. Rimualdo’s son Scott also seemed to pick up credit management when he ran a paper route.

After receiving a phone call from a neighbor who hadn’t gotten his paper, he asked his son why he hadn’t made the delivery. The neighbor, his son explained, hadn’t paid his bill in a week. Rather than letting the man’s account slide, he had taken steps to cut his losses.

“My son said to me ‘Dad, that money comes out of my pocket’,” Rimualdo recalls.

Founded in 1958, Case Supply, Inc. traces its roots back to 1918 when the company began as a subsidiary of a national distributor. Case Supply employs 55 at its 200,000-square-foot facility. The company sells kitchen- and bath-building supplies in New York, Pennsylvania, and Massachusetts.

Contact Dickinson at cdickinson@cnybj.com