What is an Industry credit group?
Industry credit groups give members in the same field of business an opportunity to participate in informative roundtable discussions of accounts, and share concerns about credit management procedures and techniques on a regular basis. Credit groups operate in virtually every industry, including but not limited to advertising, construction, consumer products, industrial supply, agriculture and steel.
How often do they meet?
Some groups meet monthly, some quarterly, some only three times a year. Meeting schedules vary and are set based on the member needs.
Why join a credit group?
Credit groups offer open lines of communication for the exchange of information with other credit executives in your industry. Group members receive invaluable factual credit information that may be used to make independent decisions with respect to the extension of credit. This exchange of data allows you to make better choices that can reduce outstanding delinquent receivables and write-offs for your company.
What about Anti-Trust?
All Credit Groups are monitored by certified and trained NACM Connect administrators to insure compliance with Federal Antitrust Regulations.
A Real World Example of the Power of Industry Credit Groups
A recent Bloomberg article announcing the closing of an internet shopping site garnered the attention of one of NACM Connect’s industry credit groups, whose members acted quickly to ensure that their fellow group members were aware of the planned closing.
Information was shared to the group via use of NACM Connect’s Express Flash feature, and within minutes of receiving the email one of our group members that had trucks on their way to the merchant was able to turn those trucks around, potentially saving his company $32,000! We have no information that the customer was going to stop paying their invoices, but if not money, the member was most likely able to save himself some extra work. It’s likely the story saved other members extra work as well.
By sharing this kind of information with each other, you are demonstrating the power behind belonging to a credit group. If cost is a deterrent to joining a credit group, just one situation like this proves it is money well spent. Tell anyone you know in the credit industry that isn’t currently in a group why they really need to be!