NACM CMC study guide
NACM CMC · Work through your exam, one topic at a time.
The Credit Management Certification (CMC) is a professional designation in the business-to-business credit field, offered through the National Association of Credit Management (NACM), an organization that describes itself as "the advocate for business credit and financial management professionals" and as "the primary learning, knowledge, networking and information resource for commercial creditors nationwide." The CMC is aimed at credit and accounts receivable professionals who assess commercial credit risk, set terms, manage portfolios, and handle collections. Candidates typically include credit analysts, credit managers, and AR leaders seeking to formalize their expertise; NACM's own materials note that professional certification "signals expertise industry wide." The exam spans five domains: business credit and financial management fundamentals; credit policy, investigation, and risk assessment; financial statement analysis; credit decisioning, terms, and collections; and credit law, security instruments, and professional ethics. The NACM CMC study guide has 5 sections and about 1,710 words.
01Business Credit and Financial Management Fundamentals
Business credit is the sale of goods or services on open account, converting a sale into a receivable. The credit department manages the trade-off between sales growth and the cost and risk of carrying receivables.
378 words, about 2 min02Credit Policy, Investigation, and Risk Assessment
A written credit policy defines credit standards, terms, credit limits, approval authority, documentation, review cadence, and escalation rules. It should state maximum exposure by customer and by portfolio, and define acceptable security (guaranty, letter of credit, UCC filing).
349 words, about 2 min03Financial Statement Analysis
Liquidity: current ratio = current assets ÷ current liabilities; quick ratio = (cash + marketable securities + receivables) ÷ current liabilities. Leverage: debt-to-equity; debt-to-tangible net worth (exclude goodwill and other intangibles).
307 words, about 2 min04Credit Decisioning, Terms, and Collections
A credit decision is approve, approve with conditions, or decline. Conditions include a lower limit, secured terms, a guaranty, cash in advance, COD, or a letter of credit.
324 words, about 2 min05Credit Law, Security Instruments, and Professional Ethics
UCC Article 9 governs security interests in personal property. Attachment requires value, a debtor's rights in the collateral, and a security agreement.
352 words, about 2 min