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Example 1
A supplier of reinforcing steel, Northridge Rebar, sold and invoiced a large amount of reinforcing steel to a concrete contractor, J&M Concrete. Northridge had other big jobs coming up but the mill required cash payment for the purchase of inventory. Northridge decided to offer J&M Concrete a payment incentive to receive early payment. The Controller for Northridge instructed Marge, the accounts receivable person, to collect the four invoices totaling $170,800 using our E-Collection solution to offer a 3% discount if paid in 12 days. Marge entered the request online and the offer was immediately faxed and e-mailed to J&M Concrete via our site. We followed up the request for payment with a phone call to the payables department at J&M, further notifying them of the offer. After several phone calls, J&M decided to take advantage of the discount on the 11th day. J&M contacted us and provided the necessary information to process a check for Northridge over the phone in the amount of $165,676. We express mailed the check to Northridge for next day delivery.
Example 2
Wally's Window Company installed windows as a subcontractor for a Public School renovation project. Wally learned that payment would be held up on several projects and was short on cash due to the delays. Wally chose to use our E-Collection solution to collect at least $150,000. Wally went over the accounts receivable list and instructed Ruth, the accounts receivable person, to list four major invoices online for 3 different customers. The first was for $180,000, the second was for $234,000, the third was for $18,500 and the fourth was for $37,000. Ruth offered a 2% discount on the first two and a 4% discount on the last two because it was least likely those would be paid in a timely manner. She specified that the offer would be open for 7 days. Faxes and e-mails went out via our system notifying the contractors of the incentive offers and we immediately began making calls to collect. Two companies decided to take advantage of the discounted terms; both went online and entered the check information required. Druml Group processed two checks, one for $176,400 and the other for $17,760 and sent them express mail to Wally's.
Example 3
Ridgeline Roofing performed a roof job for General Construction but feared getting paid because of knowledge it had about the owner of the project. To encourage payment from General Construction, Ridgeline Roofing listed its invoice for $380,000 on our E-Collection system. The terms offered were a 5% discount if paid in 20 days. Ridgeline Roofing gave such a discount because they had already built in an unusually high markup in the original bid to General Construction since no other roofers would bid the project knowing the owner's history. We proceeded with the collection efforts, finally getting General Construction to process a check on the 16th day in the amount of $362,000 taking advantage of the $18,000 discount. Ridgeline Roofing received the check from us via next day express mail. Sixty days later, Ridgeline learned that the owner filed for bankruptcy and General Construction will be seeking full payment for the project in court.
Example 4
Safety-Sign, a provider of a wide array of safety equipment for the construction industry learned of our E-Collection solution. Having failed to receive payment on its 2%-10 day terms listed on its invoices, Safety-Sign decided to use our E-Collection solution for a more proactive approach. Safety-Sign has decided to eliminate the discount offer on its invoices and use us to advance the discount to select customers. On a weekly basis, Jan, the accounts receivable person, goes over the receivables with the Controller. Together they target incentives to specific customers and Jan lists the invoices online. We fax and e-mail the customers instantaneously creating a heightened awareness of the invoices. We then proceed to call and collect on the invoices serving as Safety-Sign's monthly collection partner, bringing in over 60% of all invoices listed. We regularly process checks via the Internet and phone and deliver them to Safety-Sign by express mail the day following receipt of the check information.
Now that you have some ideas of how we can help you in your collection effort, all you need to do is just choose a way that's right for you.
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