Which Industry Credit Group Is Right For You?

icon Blog on Credit  •  posted 09/13/11

The value of belonging to a Credit Exchange Group (CEG) is illustrated by the fact that there are over 1,000 of them currently operating in the United States.

These groups pool credit knowledge and payment history regarding customers— and make it available to members on a timely basis. Most groups are industry-based (e.g., Metal Building & Components Group) but may also be further subdivided by region (e.g., Southeast Metals Distributors).

To avoid breaking antitrust laws, CEGs are strictly overseen and supervised. Groups zealously protect the confidentiality of their members’ customer relationships. Most groups have sanctions for any member found abusing its membership.

How Credit Exchange Groups Work

The way most CEGs work is by their members regularly supplying AR and other credit data to the group (potentially via FTP upload to a secured site with password access, which eliminates manual entry). The group data manager then compiles the data and distributes it to members, who can choose to print out or download reports relevant to them. Data is available, in many cases, 24/7, since it can be accessed from the secure site instantly—allowing faster and more informed decisions.

CEGs typically provide more relevant—and timely—information than reports from the larger credit agencies, giving you an added competitive edge.

In addition, many CEGs feature added services, including risk alerts for urgent information. The majority of groups meet regularly and educational seminars and peer networking opportunities are often incorporated into such meetings.

Examples of CEGs

The best way to start learning about CEGs is to research the sites of the major sponsors and supervisors of such groups:

RiemerNet. 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. For list of groups, click here.

NACM Industry Credit Groups. You must be a member of NACM to access actual groups.

FCIB Export Industry Credit Groups. With international business is even riskier than domestic, the value of belonging to a CEG is even greater on the global stage.

Inet Credit Exchange (ICE). ICE is a provider of administration and management for CEGs—among its other AR services.