In Focus Commercial Credit


A time of intense uncertainty


A nervous political and economic time is precisely when businesses need their credit professionals to shine


David Thornley Group credit controller, Fort Vale Engineering DThornley@fortvale.com


As I write, it is three days since the country was thrown into yet another state of political turmoil as a result – if ‘result’ is the appropriate word – of the general election. It is entirely possible that, by the time you read this, events will have accelerated to the point where this piece has been left trailing in their wake; if so, my apologies. What we in Britain are currently


experiencing is uncertainty: uncertainty over the form the minority government will take; uncertainty over how long it will be able to function; uncertainty over its policies and uncertainty over the path the impending Brexit negotiations will take.


Time to shine Uncertainty, as we know, makes the markets nervous, which leads directly to a period of economic turbulence and has a trickle-down effect on the industrial and commercial landscapes in which most of us credit professionals ply our trade. Incidentally, I am not personally


acquainted with any commodities or currency traders, but they strike me as a particularly jittery bunch, unable to take even the mildest fluctuations of their perceived wisdom in their stride. But I digress, the central theme of this


article is to once again emphasise how we, in credit management, are able to shine in such periods of turbulence, when the companies we work for, and the industries we operate in, face the challenges imposed upon them.


An ‘intractable conundrum’ Brexit, in particular, is likely to prove an even more intractable conundrum without a sufficiently mandated government at the


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helm. Heaven knows, it was going to be tricky enough before! Brexit will inevitably provide the


framework and future direction of our trading arrangements and ongoing dealings, not just with the EU, but with the rest of the world. For those of us who, like me, work in export credit, this will be of immense importance. And whilst I do not pretend to know how the negotiations will play out, I am nevertheless seized of the


importance of ensuring the procedures and policies I have in place are robust enough to withstand whatever Brexit agreement (if any!) emerges. And that is how we, in credit management,


can best serve our employers in the testing times that lie ahead; by keeping abreast of developments and accurately interpreting their effects; by looking ever forward; by never resting on our laurels. There is no better time to enhance and develop our skill-set as credit professionals. I would urge each one of you to do this. The credit crunch of 2007 and 2008


Incidentally, I am not personally acquainted with any commodities or currency traders, but they strike me as a particularly jittery bunch, unable to take even the mildest fluctuations of their perceived wisdom in their stride


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emphasised the importance and value of good credit management and revealed the steadiness of our hand on the tiller amidst the raging storm. Now similar forces look likely to challenge


us. It is time to rise once more to those challenges; to be clear of vision and remain focused and informed. To use a phrase now laced with tragic


irony: it is our time to be strong and stable. CCR


July 2017


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