Credit groups are an effective management tool. They permit credit professionals of different companies servicing the same customer, regardless of industry or trade, to compare information on collection history and provide a forum for the exchange of data as to the most recent payment practices. The purpose of exchanging information is to help group members segregate fiction from fact, so individually competent and realistic credit decisions about a customer can be made.
Each month, participating members contribute up to five companies for discussion. Group members then provide input regarding their A/R experiences with those companies. From this information, a credit report booklet is then compiled for all those who have contributed accounts receivable information for the current month.
This collaborative effort results in the reduction of outstanding delinquent receivables and write-offs. Members obtain critical input, and garner networking opportunities are of immeasurable benefit.
