Restaurant Services Company

Reduces A/R overhead by 50%

Case Study

27,000+ restaurants

1,000+ employees

1 receivables solution

About the Client*

  • Leading service provider in the restaurant space for over 20 years.
  • Services 27,000+ restaurants in the United States.
  • 1,000+ employees.  

Managing a large customer base led to technology and coverage challenges in their trade receivables.

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

The Challenge

Growth requires change. This was quickly realized when their accounts receivables department began to experience high turnover.  Their portfolio strained from increasing past dues and bad debt as they had been operating without competent technology, utilizing spreadsheets for “account” management and an inadequate internal database tool.

Management sought a comprehensive collection and account management solution to augment their internal credit, billing and cash application solutions.

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 and queue follow-ups.

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

Discovery and Initial Actions

  • Determined key & high volume customers.
  • Instituted auto hold policy for small balances at certain days past due.
  • Divided collection efforts by division.
  • Assigned appropriate, experienced account managers at TCD to fit the complexity of the receivable customer.

Managing Days Past Due

  • Contact customers in timely & consistent manner.
  • Utilize collection database to queue follow-ups.
  • Identify disputes and quickly route files for resolution to collect on remaining balances.

The Results

Ongoing management of the trade receivables, resulting in:

Reduction of Past Dues

  • Dramatic reduction in past dues across all four division portfolios.
  • Continued successful collection control, leveraging TCD technology and services for 10+ years.

Increased Cash Flow

  • Reduced internal staffing requirements by outsourcing to TCD, resulting in a 50% reduction in A/R overhead costs and improving systematic collection efforts.
  • Increased sales by 37% while maintaining a high percentage of current receivables.

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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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