RiemerNet

About Credit Groups

What Credit Groups Do

Members of credit associations, such as those in the Riemer network, exchange historical and factual information on common customers.  The interchange is accomplished by fax, mail, and through industry group meetings.

This is how you identify and contact the suppliers that the customer will NEVER list on your credit application. —Riemer Credit Association Member

Most meetings take place in a hollow square format. This allows all attendees to have equal access to the discussion. Attendees are easily identified by large nameplates showing their names, companies, and member numbers.

The dialogue centers on the Payment Experience Reports distributed at the meeting, and consists of a rather rapid series of comments on each company. Members often ask questions of peers who are more knowledgeable about an account; these queries may concern the business background of a company’s new principals, the availability of financial information, or even the number of cars parked in an employee parking lot.

Meetings may also feature educational programs relating to financial management, for which Continuing Education Units can be obtained. Written summaries of these presentations are available after the programs for members to share with associates.

In many groups, the books of credit reports are augmented by flash reports covering critical activity. Some groups also compile DSO (days’ sales outstanding) and other benchmarking and industry trend data. Riemer Reporting Service provides many other services to make sure that members have all they need to make informed credit decisions.

There is no average Riemer group. They are all unique! — Lois Riemer

Membership ranges from 150 companies to one group with just five member firms. Associations are independent and self-directing. Each decides how many and what types of accounts to cover. They say how many credit interchanges per year to conduct (four to twelve, with the average around six), as well as the number and location of meetings (two to twelve, with an average of around five).

Bylaws governing each association are carefully constructed and followed.

Social events are designed to increase the level of trust among members in order to produce confidence that sensitive information shared within the group will not be misused.

The Highest Legal and Ethical Standards

An extremely important role of the Association Coordinator is that of an objective, outside observer, to assure that all discussion meets the highest legal and ethical standards. At each meeting, all attendees sign an agreement to adhere to these standards, and the "Rules Governing Credit Groups" are carefully read and recalled as necessary during the proceedings.

For the steps taken to assure that all members are familiar with and abide by the spirit and letter of all related laws, please go to Rules Governing Credit Groups.

Types of Credit Groups

The Riemer industry groups are clustered in several major areas. This benefits members by increasing the range of data available. Information from one association is generally available to the rest of the network.

Approximately half the associations are in some area of the electronics industry, and a good many of the rest are related to sporting goods. Another cluster involves original equipment manufacturers, while computers and entertainment are also well represented. See List of Associations.

Credit’s Role in Marketing Support

The old view of credit as the “Sales Prevention Department” has disappeared. The strategy now is to use professional credit personnel to:

I couldn’t sell half these accounts if I didn’t have Riemer!—Riemer Credit Association Member

Increase sales by extending credit to marginal accounts that can be profitable when they are carefully monitored and managed. Credit group information is a crucial part of the monitoring procedure.

Discover problem situations early enough to, wherever possible, find positive solutions. Here, again, information provided by credit group members is vital.

In addition, the inexpensive, up-to-date data shared within a credit group allows members to quickly approve sales to small firms, which are not always adequately covered by giant information data banks such as D&B.

Credit Managers Are Also Customers’ Allies

Credit managers are universally concerned with the financial well-being and continuing success of their companies’ customers, making the credit community a strong partner with sales in building the strength of an industry.

The most unique Riemer association may be the Retail Action Group, which was organized several years ago under the guidance of Riemer’s Mass Merchandisers Suppliers Credit Association.

Composed of financial executives of the largest mass merchandising companies, the Retail Action Group meets twice a year in conjunction with the MMSCA to share roundtables and speakers on subjects of common interest such as EDI and account reconciliation.

A number of important advances in vendor-customer relations have resulted from this alliance. Naturally, each group limits its confidential association meetings to members only and conducts them in complete confidence.

Traditional credit groups often invite customers to speak to the group—a tremendous time-saver for members who would otherwise have to visit the customer to get this depth of information. The customer executive saves a huge amount of time, as the company’s story is told in detail to dozens of suppliers at one time.

The questions may be pointed, but everyone in room knows very well that everyone is on the same side.

Suppliers need dynamic customers to sell their products; customers need healthy suppliers to provide the merchandise on attractive terms.