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Transportation Service Provider
Collegiate Apparel Design Company
Recreational Vehicle Importer and Distributor
Commercial Heating and Air Contractor
Industrial Air Filtration Systems Manufacturer
Printing Company
Consumer Products Company
Company: Transportation Service Provider
Challenge: Grow business with credit administration
Solution: Trade Credit Express for B2B credit administration
This small business supplies and services truck tire needs, 24 hours a day, seven days a week, for large commercial carriers and consumers travelling along major interstates through middle Georgia. The company was involved with a traditional receivables discounter, but inquired about how Trade Credit Express from FTRANS could benefit their business after receiving a targeted mail piece. With Trade Credit Express, they were able to take full advantage of trade credit outsourcing, which eliminated their collections and administrative risk for a cost significantly less than what they were already paying in financing and transaction fees. They were able to obtain a $500,000 line of credit from their local bank because of the enhanced collateral provided by Trade Credit Express.
Company: Tire Rims Manufacturer
Challenge: Increase cash flow stability
Solution: Trade Credit Express as a cash management solution
Specializing in the manufacturing of tire rims for golf carts and ATVs, this small business owner's tire rims are sold to companies such as Yamaha, Suzuki, and Arctic Cat. Trade Credit Express was presented to the company by their local bank as a new and different cash management solution. By using Trade Credit Express, the owner received a lower cost of doing business than their previous receivables discounter could offer and moved their entire banking relationship, including deposit accounts, cash management, and potential leasing opportunities to the local bank. This small business has a $1.4 million line of credit with the bank and will increase their cash flow, as well as, take advantage of early pay discounts from their vendors to save money.
Company: Commercial Landscape Company
Challenge: Grow business with additional financing
Solution: Trade Credit Express to fund expansion
This company, a subcontractor specializing in the installation of irrigations systems, sidewalks, and landscaping was hoping to grow their business from $2 million to $8 million in 2007. Needing to obtain additional financing to expand a growing business, but not wanting to put up physical assets as collateral, Trade Credit Express from FTRANS provided a solution. With this product, they were able to reduce costly, time consuming administrative duties in collecting payments, while increasing their cash flow immediately. With the increased cash flow, this small business was able to pay their suppliers earlier and take advantage of additional discounts. Trade Credit Express helped them take their small business to the next level.
Challenge: Increase cash flow stability
Solution: Trade Credit Express as a B2B cash flow accelerator
Having recently gone through the process of a partner buyout after 6 years in business, this multimillion dollar company was faced with the challenge of starting from scratch because from their bank’s perspective they were considered a “new” business. Constrained by limited bank financing options, an inherited $750,000 line of credit, and an additional $350,000 in payables – this small business was looking for the answer to their cash flow problems. Trade Credit Express from FTRANS supplied a solution. With FTRANS the bank was able to make a safer loan and increase cash flow. The bank estimated it would take 18 months for their client to pay down their obligations – less than 3 months after starting the Trade Credit Express program, this small business had paid off their loans, obtained new leasing abilities from the bank, and decreased the time it took vendors to pay from 90 to 30 days. Trade Credit Express offered this company the flexibility they needed, reduced their administrative burden, and increased cash flow which ultimately grew the business.
Company: Collegiate Apparel Design Company
Challenge: Grow business with credit administration
Solution: Trade Credit Express for B2B credit administration
Wanting to “sleep at night”, this small business owner needed to make smart decisions about growing his new business through a strong, secure customer base. The owner needed a consistent method for obtaining credit information and monitoring potential customers. Unable to find this type of resource for small businesses, he was referred to FTRANS and introduced to Trade Credit Express. Through Trade Credit Express, this owner was able to receive credit approvals/disapprovals, monitoring, payment processing, and collections for each potential customer he was interested in doing business with. With these very valuable resources at his disposal - he engaged only approved customers, accelerated B2B payments, and no longer was responsible for making dreaded customer collection calls. By making Trade Credit Express an integral component of his business, this small business owner now had time to focus on the things he did best – operating his growing business.
Company: Recreational Vehicle Importer and Distributor
Challenge: Grow business with adoption of credit based sales
Solution: Trade Credit Express as a B2B payments accelerator
Recognizing the power of credit based sales, this company realized that in order to grow sales and profits they needed to move beyond their sole reliance on cash based sales. Credit based sales were the answer. They also recognized that accepting bank issued credit cards was not an alternative. Not only was this solution expensive for the seller, but most of their business clients did not want the rigid, interest bearing payment schedule associated with a credit card - they still wanted free and flexible payment terms from the supplier. Trade Credit Express from FTRANS met this company’s payment needs in three key areas:
1) Trade Credit Express accelerated payments from buyer to seller in an average of 4 to 8 days, therefore strengthening this company’s cash flow even when selling on credit.
2) Trade Credit Express allowed them to offer credit without incurring the cost of running an in house credit office.
3) Trade Credit Express eliminated bad debt risk.
Company: Commercial Heating and Air Contractor
Challenge: Grow business with new customer acquisition
Solution: Trade Credit Express as a B2B sales tool
While this company’s business was doing well, the owner wanted to acquire new, marquee customers by offering credit terms much better than those of his competition. Not willing to jeopardize the financial health of his company, he realized that in order to accomplish this goal he would need to find a solution which would not strap the company from a cash flow perspective. Trade Credit Express from FTRANS was the B2B payment solution that allowed this owner to accomplish his goals and acquire new customers by offering payment terms much better than his standard terms and those of his competition. Trade Credit Express allowed him to choose the terms he wanted to offer and use them as a competitive sales tool. Trade Credit Express accelerated payments from buyer to seller in an average of 4 to 8 days therefore strengthening this company’s cash flow even when selling on credit.
Company: Industrial Air Filtration Systems Manufacturer
Challenge: Accelerate Customer Payments
Solution: Trade Credit Express as a B2B payments accelerator
In manufacturing intense industries, such as the automotive industry, particulate matter such as dust is a byproduct of grinding, welding, polishing, mixing, and other activities. Untreated, this matter will pollute the air and lead to an unhealthy working environment. As a developer of high quality industrial air filtration systems, this company is a key supplier to the manufacturing industry. Accordingly, this company sells to tier 1 manufacturers who, due to their size, have the ability to require favorable credit terms from their suppliers. Given the upfront investment required by the company to develop these filtration systems, they were looking for a solution to accelerate their payments from their customers while at the same time meeting the customers’ credit requirements. Trade Credit Express from FTRANS met their needs. Trade Credit Express accelerated payments from buyer to seller in an average of 4-5 days while also allowing them to provide their customers with the required credit terms.
Challenge: Ease the burden of credit administration
Solution: Trade Credit Express for B2B credit administration
This printing company provides a wide variety of printing services to small-to-medium businesses as well as universities. In addition to printing, they provide creative design services for their customers for print and advertising collateral ranging from brochures to sporting event tickets. Desiring to keep their administrative costs at a minimum, while at the same time requiring professional credit administration for their diverse client base, this company turned to FTRANS. With Trade Credit Express from FTRANS, this company was able to ease the administrative burden of running a credit office while keeping their costs in check. With Trade Credit Express, they were able to have FTRANS run credit checks, monitor customer credit, match payments with invoices, and make collections for all of their accounts without increasing their staff. In addition, Trade Credit Express reduced their time spend depositing checks at the bank since Trade Credit Express performed this function electronically. This company realized that with Trade Credit Express, they were reducing their credit risk which ultimately made their business stronger.
Company: Consumer Products Company
Challenge: Introduce new consumer product at a big box retailer
Solution: Trade Credit Express to fund new product sales
This company is a developer of consumer products sold through big box retail outlets such as Wal-Mart, Target, Home Depot, and Lowes. They identified a new, hot product for the consumer market to wholesale for approximately $16.50 per unit. With a single retailer, the company estimated $1.5 million in sales by selling 10 SKUs with 6 turns per year at 1,500 retail locations. However, the retailer required 90 day payment terms. The company estimated an initial investment of over $250K to get the first products on the shelf with a subsequent receivables balance of over $350K. The opportunity to sell the new product at this retailer was in jeopardy, and the chance of selling to other large retailers looked slim. Trade Credit Express by FTRANS allowed the company to move forward with the opportunity. By accelerating buyer to seller payments to 4 to 8 days on average, Trade Credit Express allowed the company to increase their cash flow. In turn, the company had the funds to invest in the development and sale of a new product.
