"If information is knowledge, then networking is the wellspring," says Kristine Petro, CCA, corporate credit manager for West Coast Insulation Co., Inc. (Fort Myers, Florida).

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter, which Credit Today purchased in 2006. This article was a Forum column.

Petro says networking through active membership in professional credit associations will improve the perception of your credit department within your company and your industry. "Networking is a cost-efficient tool that will put you on the sales team and keep your credit management skills streamlined and efficient."

To Benefit, You Have to Participate

"If the National Association of Credit Management has a chapter in your area, you should certainly join," says Petro. Additionally, she says, there are local associations that meet regularly. Some groups are more formal than others and offer expert speakers and seminars, as well as discussion groups. The others have informal breakfast and luncheon meetings that are informative and useful in establishing a core networking loop.

"At meetings, you will discuss such matters as new collection techniques, smalls claims, bankruptcy, and lien law," says Petro. She points out that this will not make you a lawyer, but "you will learn enough to stay out of trouble and not be intimidated by a customer spouting nonlaw."

Petro feels the informal meetings are an excellent way to meet your peers and establish personal lines of communication that will pay future dividends. "Meeting new people is great, and learning new problem-solving techniques is even better," she says. A 10-year veteran of credit management, Petro thinks that by attending a few meetings you will soon learn which groups best suit your needs and which deserve only cursory attention.

An Aid to Sales

An added benefit from your networking will be your ability to assist your company's sales force and improve customer relations. "At networking meetings you will learn a great deal about various customers and potential customers," Petro says.

Information sharing with the sales force can result in additional sales and time savings for the salespeople. "At times a salesperson needs a rush credit check on a hot prospect," she says. Your networking loop can provide the necessary information to make a decision, usually within a few hours.

Petro suggests that the salesperson first obtain a business card from the prospective customer's owner or decision maker. "You can then start calling your network," she says. Armed with this preliminary information, you can either give the salesperson the go-ahead or save him or her hours of unnecessary detective work.

The Bottom Line Petro says that networking can help you improve your standing within your company and your industry in these ways:

• You will learn how industry trends and legislative agenda affect your company.

• You will discover new management and collection techniques.

• You can assist Sales and improve customer relations.

• You can uncover marginal risks beforehand and manage them.

"Whether it's information about a prospective customer or a sticky procedural problem," says Petro, "your network will help."

Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006. This article originally appeared prior to 2000.