International Leaders Join to Develop Western Credit and Receivable Management Best Practices in China

The association of professionals in Finance, Credit and International Business (FCIB), the international arm of the National Association of Credit Management (NACM), has signed a licensing agreement with FCIB?s longest-standing member, Henry Chan, and The ABC Companies, Inc. to form FCIB-China. The organization?s central purpose will be to provide training in credit and receivable management to Chinese businesses and government bodies, as well as to multinational organizations with offices in China or seeking to do business in China. The ABC Companies, a worldwide leader in international receivable management, and Mr. Chan are in the process of forming a corporation, ABCredit. The corporation will hold the license and work closely with FCIB to expand its initiatives into the Chinese marketplace.

In recent years, credit management has become a major focus of Chinese government and business. Top ministry officials are convinced that the competitiveness and profitability of Chinese international and domestic business ventures hinges on Western-style credit management practices. David I. Herer, chief executive officer of The ABC Companies, states, ?I am astounded with the far reaching vision and commitment China?s governmental leaders are giving to credit management. The ABC Companies has been involved in the Chinese marketplace since the early 1990s. In those early years, credit and receivable management systems were practically unknown to the average Chinese businessperson. But the Chinese were quick to catch on to the concept of controlling credit as an important key to reaching and maintaining profitability.?

The training provided by FCIB-China will not only familiarize participants with the basic principles of international credit, but will feature a professional certification program designed to equip them in the area of international risk management. FCIB is working with Ren Min University in Beijing to develop the Fundamentals of International Credit certification course that will serve as an introduction to international credit management. Upon completion, participants will be recognized as Certified International Credit Analysts (CICAs). According to Kenneth F. Garrison, CAE, president of FCIB, ?The CICA certification will be the precursor for the FCIB 13-week, instructor led online course in international credit and risk management leading to a CICP (Certified International Credit Professional) certification, which was created in partnership with the U.S. Department of Commerce and Michigan State University.?

FCIB-China is in the process of recruiting founding members. Many leading companies involved in global business, credit information and credit insurance have expressed interest. Regular membership will be open to international, multinational and Chinese enterprises interested in supporting and participating in international business.

About FCIB
FCIB, founded in 1919, is an organization devoted to international trade and to assisting global companies and exporters attain best practices in accounts receivable management and trade finance. The organization enjoys an international reputation as a business educator and premier provider of business credit intelligence to exporting companies of every size ? from small and midsize manufacturers to Fortune 500 multinationals. It has offices in the United States and Europe, and maintains operations in Mexico and Canada. ?Expanding our services and expertise into China has been a long-term goal for FCIB,? states Garrison.

With the assistance of the China Council for the Promotion of International Trade (CCPIT), FCIB was able to hold its ?First China International Credit and Risk Management Conference? in Beijing, October 27-29, 2004. ?It was a resounding success,? said Garrison. ?The attendees included many important government and industry leaders, as well as representatives from some of the largest and most prestigious companies in China. We?re very excited about working with CCPIT, and now ABCredit, on future conferences.

When asked what drives FCIB?s interest in the Chinese market, Garrison explained, ?China has become a major force in the world economy. Nearly every FCIB member company has China in their strategic plan either as a joint venture partner, a source for manufacturing capacity, or a rapidly growing market for sales expansion. How well they incorporate China and the Asian expansion into their global planning process might well define their relevance in a competitive market in the next fifteen years.? Garrison continues, ?And, the pace of change in China is incredible. It has rapidly moved from a command economy to a market driven economy, while performing as one of the world leaders in overall economic growth. This demands a review of each company?s operating assessment, not on an annual basis, but on almost a monthly basis. On almost every trip to China, the assessment of the market has to be updated and re-evaluated. What is often seen as a multi-year task for change occurs in a phenomenally shortened time frame. While, at the same time, many of the cultural aspects of the business cycle do not change at this rapid pace. So, doing business in this environment requires being prepared to move forward both quickly and slowly at the same time. Our existing members require an organization that can help them keep up with this pace, as well as train their credit personnel and offer education, networking and other services. And, the Chinese are very open to our involvement in helping them understand and implement credit management principles.?

About Henry Chan
FCIB selected Henry Chan to help lead their move into China for several reasons. Mr. Chan is an honorary life member of FCIB, honorary director of the New Jersey World Trade Council, and chairman of the Philippines Chinese Association of America (Northeast, USA). He has held executive positions with prestigious corporations including Warner Lambert Company, Midland International Trade Services, and Union Carbide, and is very experienced in international credit management and trade finance.

Chan states, ?FCIB has provided me invaluable assistance over the years. I could not have been as successful in my career without their guidance. Now I?m in a position to give something back to them, for all they have given me. And, of course, I want to help improve business practices in Asia, and China in particular, as well as strengthen the bridge with the West.? Regarding The ABC Companies, FCIB has been working with them for several years. States Garrison, ?I?ve been particularly impressed by their international expertise and their commitment to accounts receivable management best practices.?

About The ABC Companies, Inc.
The ABC Companies entered the international marketplace in 1960. They provide services in more than 200 countries and every U.S. trading partner, and are one of the few US-based receivable management firms specializing in international debt collection. The ABC Companies Inc. is the first and only private receivable management company honored with both the ?E? and ?E Star? Awards from the President of the United States, the ultimate recognition of their commitment to global trade. For further information on FCIB-China or any of the other organizations mentioned above, please contact Loral Narayanan, Marketing Director, The ABC Companies, Inc. (phone 1-716-878-2850; email loral.narayanan@abc-amega.com).