Building Your Credit Network
November 6th, 2009 by Alex Coté
A few weeks ago I attended a credit group meeting that I help manage with a NACM affiliate. Like many credit groups, we gather 2-3 times a year to discuss a list of submitted customer accounts from the various members. Meetings for these offline professional social networks follow a straightforward process. The accounts are grouped together in a spreadsheet so that each member can see their most recent trade with a specific customer as well as others in the credit group. The group leader then moves through the accounts and discussion ensues, as necessary, covering a range of insights. The process is remarkably efficient and more importantly, the information shared is unlikely to ever show up on a credit report – which is really the whole reason such credit groups exist.
What made this particular meeting standout for me was that for the first time in memory, there were a handful of new members that had never been to this credit group (or any other) before. When a curious but slightly timid newcomer was tapped to discuss one of his accounts first, he requested “Can someone else go first? I’ve never been to one of these – I want to learn how it works.” It was a reminder to veterans that while this may be an essential part of how they do their job, the process of sharing such information – and the realization of resulting benefits – is something that needs to be experienced to be fully understood. Following the meeting, a 30-year veteran of the group recalled his initial experience and why he’s remained committed to collective information sharing throughout his career. Put simply, he felt like it was his duty to pass along his knowledge, techniques and even his network to the next generation, just as the previous generation had done the same for him. And he credited the group and extended network of contacts it has created with an ongoing ability to perform his job at a superior level.
And therein lies the key to such networks — why members remain so committed. Credit and collections decisions are a year-round effort. On the one hand, such meetings provide a period, invaluable opportunity to gain insights that simply don’t show up on a standard business credit report. But equally if not more importantly, they offer the opportunity to broaden a network of peers who can provide similar insight on a when-needed basis.
Given such the added benefits at a time when so many businesses are looking to reduce risks and improve cash flow, we want to know: Are you seeing an uptick in membership and participation in your credit groups? Are you joining new ones? Do you find yourself tapping into such networks more often? We’d love to hear from you. How are you leveraging your credit network?
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