Global Engineering Company

reduces bad debt by 28%

Case Study

global services

4,000+ employees

1 receivables solution

About the Client*

  • A global $800 million engineering services company.
  • Customers throughout North America, Europe, Latin America, Australia, and Asia.  

*Due to the sensitive nature of the data, the company name has been omitted from this study.

The Challenge

The company has a decentralized billing and receivables management function. They were surprised by several large customer bankruptcies where the risk had not been properly vetted; and the various subsidiary risks unknown across the globe.

The company sought a solution to identify the risks prior to the contract engagement and to manage the large/extremely past due accounts where routine efforts in the decentralized locations were ineffective.

The Solution

  • Client hires TCD to manage the A/R portfolio and solve receivables issues.
  • Immediate integration of TCD’s proprietary SMART system to manage receivables internally, utilizing the tools and benefits of SMART technology.

Discovery and Initial Actions

  • Instituted credit monitoring system and credit parents to supervise global customer risks.
  • Institute credit application  process for unsecured  credit lines of $10,000 to $20 million.

Managing Days Past Due

  • Negotiate secured payment notes on severely past due  accounts.
  • Institute bankruptcy program  for claims, payment preference and settlements.

The Results

Ongoing management of the trade receivables, resulting in:

  • Reducing bad debt by 28%.
  • Increasing cash flow to encourage company expansion without concern.

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Measurable Results

  • Cash flow improvements of up to 50%.
  • Shrink day sales outstanding by 25% or more.
  • Increase unauthorized deduction recoveries by 200%.
  • Improve receivable performance management.
  • Improved financing opportunities and lender relations.
  • Live Data that improved strategic decisions.
  • Streamline aged receivable collection.
  • Improve customer communication.
Trade Receivables Management Solutions. Outsourced receivables management.​

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The Credit Department is the first and only true credit management outsourcing firm in the U.S., managing trade receivables for companies worldwide. We have worked in more than 100 industries to bring about change and dramatic results in our customers’ order to cash cycles.

As your strategic business partner, we become a cohesive and transparent component of your daily operations — whether you have an internal credit department or not. We also work with private equity groups to increase the value of portfolio company receivables to maximize cash flow from the asset. Our solutions integrate easily and cost-effectively with corporate systems within 24-48 hours.

If you’re ready to take control of your trade receivables management — and gain access to real-time cash flow forecasting — it’s time to contact The Credit Department.

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