Traditional Collection Agency Vs. Member-Owned Collections
What do Neimen Marcus, Stein Mart, and JCPenny all have in common? They each filed Chapter 11 bankruptcy this year (Neiman, luckily, emerged from it). As a credit manager, it is important to keep abreast of the latest trends in retail so you can make smart credit decisions. And we all know that the current pandemic environment has created more uncertainty than ever for retailers across the country.
The good news: The coronavirus vaccine has begun to be distributed across the United States.
The bad news: While the vaccine may slow the wrath of this raging pandemic, it will do little to help the harsh economic realities many businesses are currently facing.
The coronavirus has pushed companies beyond the brink of return, and they are now filing for Chapter 11 bankruptcy. Here is the latest list of retailers and restaurants to paint a picture of the state of the retail industry in the midst of the pandemic.
For credit professionals, it is important to consider the complexity of Chapter 11 filings and how seasoned credit teams are at risk. We have written at length on the chapter 11 bankruptcy topic here.
With so many complexities such as preference claims and legal strategy, it can be difficult to navigate the waters. That is where member-owned manufacturing credit associations most benefit their members. By specializing in an industry and bringing together a variety of credit professionals, you can find better results in your collections in a few ways:
In Depth Understanding of the Industry
With over sixty years of experience in the furniture and accessory industries, our debt collections team has familiarity with the process of collecting delinquent accounts. We specialize in strictly Home Furnishings and our members know the kind of credit information they are looking for in order to justify a decision. Our community aspect facilitates an additional way for members to create a trust in fellow members that the data being reported is accurate. Our association does not have to wear a lot of different hats in order to cater to a number of different industries. The home furnishings industry has a uniqueness to it that requires a special understanding of the business.
Industry Specific Reporting and Tools
Our reporting brings the furniture industry the most up to date information so that members can make real time credit decisions. We combine our credit reporting insights with a member engagement portal so credit managers can share collective insight.
With the latest information at their fingertips, our collections team can streamline member efforts for fast, effective collection of member accounts. Our debt collection specialists focus on collecting the highest value delinquent accounts and support our members in their own collections efforts.