CMA Industry Credit Groups, Your Best Search Engine, by Larry Convoy

Larry Convoy, lead group facilitator

My kids find it hard to believe that when I was in school, the place you went to find answers to your homework or to gather information for a paper was the Encyclopedia Britannica. This was several thick books with information on anything you needed, although the accuracy depended on what edition you had. My edition claimed the US had only 48 states.

The current generation has it much easier since Google came along, just enter, click and multiple results appeared with everything you needed.

Your membership in CMA and an Industry Credit Group makes it just as easy. Have a question on Chapter 11 BK; call Molly Froschauer in the Adjustment Bureau. Need an effective Demand Letter, go to the Encyclopedia of Credit. If it is the most current trade information on a customer, draw an anscers report or enter an RFI. Looking for accounts receivable software that is credit friendly, poll your group. Need to further your credit education, CMA has that covered.

If you utilize CMA and the Industry Credit Group as your primary search engine for all credit related issues, the results will reduce your time and expenses.

It will not be necessary to pay your corporate attorney an hourly fee for researching Bankruptcy questions that CMA can answer for free. Whose recommendation means more, salesmen trying to sell you a $100K computer system or someone in your group performing the same job as you using the system? Need to file Lien, get a D&B, place an account for collection, take a financial statement class, start your search with CMA.

You have the support of a Business Association that has been around for over 130 years. Behind each tab on the anscers home page are people waiting to assist you.

Whether you have been in credit for 30 years or 30 days, there are laws and procedures that are changing daily. CMA membership guarantees you the most current edition.

Does Your Company Sell Software as a Service Solutions & Products ? We Have a Group for That!

CMA is currently recruiting companies for its new Software as a Service (SaaS) Industry Credit Group. The group will be comprised of interconnected companies that provide cloud computing models in which a third-party provider hosts applications and make them available to customers via the internet, and have a common customer base.

The initial meeting will be a networking event on Feb. 2, 2017 in Livermore, CA. If you’re interested in attending the networking event, please RSVP by January 17, 2017 with Amber Jackson ((702) 636-4323, ajackson@emailcma.org) or Ann Westpy ((702) 903-2643, awestpy@emailcma.org ).

We look forward to a great turnout, and hope to see you there!

Welcome Back, by Larry Convoy

To some, January 1st is like the first day of school. Everything starts out fresh and clean (even though I know many of your fiscal years start at different times of the year). For those group members who attend and contribute regularly, the beginning of the year is just a continuation of what you have done in the past.

However, some of you have not attended your Industry Credit Group meetings in months (and for others years) and you may feel a bit embarrassed showing up. Others may not be in an Industry Credit Group at all.

As someone who has facilitated meetings longer than many of you have been alive, let me inform you that nothing could be further from the truth. Your contributions and attendance will be welcomed by all, whether it is at a meeting or joining a conference call. By including your trade data and credit knowledge, the other members have more information to make informed credit decisions. The real embarrassment would be you opening an account that the other group members have previously discussed and determined individually to be risky.

There are two ways to increase the value of an Industry Credit Group; bring in new members and bring back current members who have for whatever reason, have gone astray. Either way, EVERYONE WINS.

As we begin a new year, we ask you on behalf of the other members of your group, to commit to attending each meeting/call, to contribute daily through alerts, RFIs and monthly if your group has a report. Take your calendar and mark off the meeting days for the entire year so nothing else can be scheduled during that time period. Prepare the accounts you wish to discuss prior to the meeting and any topic you would like to bring up. Let’s make 2016 the Year of the Group.

Happy New Year!

The Price is Right for Industry Credit Group Membership, by Larry Convoy

There’s a lot that’s bundled in the $99 a month Industry Credit Group dues that group members pay. But, for sake of argument, let’s pretend for a moment that CMA unbundled those items and that you had to pay for each of those benefits separately.

Many service providers, including CMA, have weighed the advantages of an unbundled price structure versus a bundled one; to charge for each item or service as opposed to a monthly fee. I have devised the following pricelist and an approximate cost for a typical month in most groups to see what that $99 a month really gets you.

INDUSTRY GROUP STATEMENT FOR COMPANY XYZ FOR OCTOBER, 2015

  • Received 10 RFIs in month @ $22.50(cost of average Experian or Dun & Bradstreet, most groups use double that amount)
  • 12 NSF check notifications @ $5 each
  • 4 placed for collection notices @$50 each
  • 1 change of owner announcement -NO CHARGE
  • 1 Chapter 7 bankruptcy alerts @ $500
  • 2 “business is closed” alerts @ $250 each
  • 1 mechanic’s lien filed @ $300
  • 4 clearances at group meeting @ $5 each
  • Educated by group member on various topics-PRICELESS
  • Recommendation NOT TO BUY computer system or software package by member-$10,000
  • Informed of new A/P contact at customer’s or owner’s cell phone #- NO CHARGE

This adds up to $11,805 for one month, considerably higher than the bundled price of $99/month now charged to most groups. This does not include a Past Due list or Meeting Review reports.

While I do not think this will ever become the standard, it does make you realize how cost effective participation in a group is. The more RFIs submitted and alerts posted, the Return on Investment becomes even greater.

With the holidays upon us, make sure you set aside time to attend the meetings and submit your reports. The survival of many businesses will be determined in the next 2 months.

Have a great November,

Larry Convoy

It’s a Wonderful Credit Group, by Larry Convoy

Some of you remember the great Jimmy Stewart movie, “It’s a Wonderful Life,” in which he envisions what life would have been like if he wasn’t born and its effect on his loved ones. At the conclusion, he is thrilled that it was only a dream and realized how good he actually had it.

Consider what your life would be if Industry Credit Groups did not exist and its effect on your company’s bottom line. You can put any music or special effect to signify that a dream sequence is next.

Without an Industry Credit Group, how would you know?

• If your new customer came to you because of your product and not because everyone else in the industry has taken him legal
• If there was changes in management or key personnel
• If they are ignoring phone calls from other suppliers or passing bad checks
• How high in dollars and far in days are they are extended with others in your industry
• Who controls the checkbook, or who to really contact for payment,
• Recommendations for software, service providers, legal experts
• If they filed BK, had liens placed, or worse, if they are GONE

You can relax. If you are a member of a credit group, you have access to all this information. You can enter alerts and respond to RFIs (or contribute your A/R). You can network with your peers and exchange the latest Best Practices. Hopefully, your management’s support allows attending the meeting/conference call a priority.

Relax, This was just a dream.

Larry Convoy
Credit Management Association
Lead Group Facilitator

Not The Top Ten List You Want To Be On, by Larry Convoy

With due respect to David Letterman and Sports Center’s nightly “Top 10” lists, there are some lists that you would be better off not being on.  One that directly affects you and your company is “The Top 20 Creditors in a Bankruptcy Case,” a document that is easily obtainable by accessing Pacer. No company likes to see their losses published for all to see.

CMA Industry Group Leader Larry Convoy
CMA Industry Group Leader Larry Convoy

However, this document of doom will now be turned into an excellent prospect list for any industry credit group (ICG). Whenever you post an alert of a Chapter 11 in your industry, CMA will run a list of the top 20 creditors. These companies could be competitors of yours, or they are at least selling into the same market as you and have just taken what could be a major hit. A phone call from a group member informing them about the group, and mentioning that the group was aware of the problem and therefore had minimal exposure, could get the group a new member very easily.

Therefore, effective with the next Chapter 11 alert posted on anscers, the ICG department will forward this list of names to the group chairmen and group facilitator. There will probably be some banks, factors or lending companies that would not fit but you should be able to identify some HOT prospects. Tell them that the best way to avoid the next BK is through membership in your credit group.

Thank you for your support throughout 2014, and we wish you and your family a Happy and Healthy Holiday Season and a Prosperous 2015.

Larry Convoy
Lead Group Facilitator
lconvoy@emailcma.org