Interview: Corporate Credit Management in 2023

We recently interviewed one of our clients: Richard Matis – Director, Credit and Collections at Vibrantz Corporation. Richard has been the global credit manager of Ferro Corporation since 2013. In April 2022, Ferro was acquired by Prince International Corporation alongside Chromaflo Technologies. The three organizations have since combined to form Vibrantz Corporation.

Richard gave us some good insight into the credit industry, challenges when dealing with international credit, and some of the credit policies that he has put into action. We have summarized the main takeaways below.

What are the main changes that you have seen transform the credit industry in the past decade?

• Due to COVID, since 2020, a decline in Credit meeting attendance by Credit Managers
• Third-party IT software companies offering to manage Finance processes
• More communication via e-mail rather than direct phone contact

What are some of the biggest challenges you have faced at Ferro/Vibrantz when dealing with international credit?

• Governments managing challenging economics dictating when companies or banks remit payment (i.e., Egypt, Argentina, Pakistan, etc.)
• Disputes over quantity received (shortages)
• Delays due to port overcrowding

What are some of the credit policies that you have implemented during your time at Ferro/Vibrantz?

• Utilizing Bierens as our primary international collection firm
• Moving Bad Debt Reserve analysis to quarterly basis (not monthly review)
• Focus to maintain AR aging categories to 88-90% current; 8-10% 1-30; and 2% 31 days+

What is your forecast for the credit market for the next three years and how may that impact your company's policies and credit decisions?

• Greater demand for Credit Managers and collection experts due to retirement
• Continued use of IT to highlight key indicators, credit line reviews, collection of past due balances and cash