Mid-Market Manufacturer improves

current accounts to over 90%

Case Study

mid-market manufacturer

3,500+ customers

1 receivables solution

About the Client*

  • $200 million manufacturer
  • 3500+ customers
  • Previously operated a centralized, internal Credit Department.

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

The Challenge

The company had 33 percent of its receivables past due, with eight percent over 90 days. Their internal Credit Department was unable to provide the Controller and CFO with accurate cash flow forecasts and up-to-date status of the past dues. The company sought out TCD to improve results and communication within the department.

The Solution

  • Client hired TCD to manage the A/R portfolio and solve receivables issues.
  • Immediate integration of TCD’s proprietary SMART system to manage receivables and queue follow-ups.

Click here to learn about the tools and benefits of SMART technology .

Initial Actions

  • Recognized inadequate credit analysis and updated credit files, notified CFO of
    high credit risks and  contacted customers for updated information to assess risks.
  • Created credit policy with CFO, Controller and VP of Sales to strategize trade receivables

Managing Days Past Due

  • Manage past dues alongside the millions of dollars in unresolved deductions and
    disputes through improved process.

The Results

Ongoing management of trade receivables that transformed archaic and chaotic processes into a streamlined solution powered by RPA (robot process automation), including:

Reduction of Past Dues

  • Percentage current improved from 67 percent to over 90 percent.
  • Reduced severely past due receivables over 90 days from 8 percent to 0.2 percent.

Increased Cash Flow

  • Increased cash flow of $10 million at the end of the first contract year due to improved receivables  results.
  • Client acquired a $30 million business due to additional influx of cash.
  • Influx of $250,000 due to recoveries of incorrect customer deductions.

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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.​

Optimize AR

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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