A recent survey of 13 NACM affiliates across the U.S. revealed that they collected over $25 million in outstanding overdue bills for their members in 2005. Members of NACM's Asset Management Service Committee conducted the survey. Dean Wangsgard, CCE, chairman of the committee and President of the NACM Affiliate Business Credit Services in Salt Lake City, UT, noted that the 13 NACM-Affiliated organizations had a total membership of 7,863. Of that number, 2,208 took advantage of the collections services offered by their respective NACM Affiliate organizations. Collections is just one of several services offered to NACM members by their Affiliates.

There was about $89 million in total claims submitted for collection to the 13 NACM Affiliates. The $25 million collected on that amount resulted in a recovery rate of 28.3 percent on the 30,848 claims submitted to the NACM Affiliates' collections departments. Wangsgard noted that there were 914 claims that were either provided free or for a fee to members. These collections, called Free Demands (because they are collected within a 10-day period), yielded the members $1,638,147 in 2005.

"I have been using our NACM Affiliate's collection services for over 18 years and am still very pleased with their consistent effort and strong results," said Gary DiFrank, Credit Manager of Babcock Lumber Co. "I can always count on quick contact with our customer, regular status reports and a good turnaround of our accounts receivable dollars. They treat each claim with the same strong work ethic regardless of the amount or location. I would recommend their collection service to any credit manager looking for a trusted partner to handle their problem receivables."

An effective collections program doesn't just happen automatically. It must be strategically planned by management and executed by qualified, well-trained and experienced professionals; such as the 48 collections employees of the 13 Affiliates involved in the survey. The effectiveness of their collections efforts is not only reflected in the dollar amounts collected, but by the high level of satisfaction of the members who utilize their services.

"Jones-Blair Paint has utilized the Commercial Collection Department of our NACM Affiliate for collection of past due accounts for over 10 years," said Mike Ewing, the Company's Corporate Credit Manager. "The collection department is highly trained and always willing to go the 'extra mile' to collect from our delinquent accounts. Their excellent services include prompt attention given to each account placed, and responsive communication between the collector and Jones-Blair Paint, which also includes prompt payment reports on the status of each account."

"My NACM Affiliate provides fantastic results on our placements," said Barbara Davis, CCE, Credit Manager for Liberty Northwest. "The staff is professional, dedicated and great to work with. This is an excellent collection service!"

Toni Drake, CCE, TRM Financial Services, Inc., said of collections services provided her NACM Affiliate: "Considering the quality and the age of my placements, they have done wonders with their collection work… I know that I can utilize almost any collection agency for my needs—but I think that NACM's service and professionalism truly sets them apart from the others."

"I can't say enough good things about our NACM Affiliate's collection group," said Judy Snider, Credit Manager for Tektronix, Inc. "We've had wonderful responses from them on all the items we've turned over. Their prices are reasonable, their results are terrific, and the guidance we've gotten from them on items requiring legal assistance has been invaluable."

Stan Murphy, CCE, Credit Manager, Bay City Television, Inc., wholeheartedly recommends NACM's Affiliate collections services, as well. "As a credit manager with over 30 years experience in various industries, I can unequivocally say that my NACM Affiliate will do a good job for your company when it comes to collecting from that difficult customer," Murphy said. "I have personally dealt with my NACM Affiliate since 1979, and the services provided by their management team have been first rate."

NACM's collections services work seamlessly with any organization, as if the NACM collections personnel were part of that firm's staff. "Thompson Steel Company started using NACM collections services about two to three years ago," said the company's Accounting Analyst, Renee Hibbert, CBA. "At that time, we were between collections companies. We wanted to use one company exclusively and build a rapport with them, to the extent that we would consider them an extension of our internal credit department. We needed a reputable company that could offer us effective, professional collections services that would result in the retrieval of money owed to us. NACM has helped us to collect thousands of dollars owed to us by debtors. We are pleased with their services and applaud their success."

Those statements represent a small sampling of customer responses regarding the quality of collection services delivered by many NACM Affiliates throughout the country. In most cases, this service is offered to both members and non-members of the Affiliates—but members get reduced fees, among the many other benefits of NACM membership.

Find out more about CMA's Commercial Collection Service by clicking here.