A Florida-based construction materials distributor wanted to eliminate bottlenecks in their credit management process. The client employs over 1,000 workers across 30+ warehouse and storefront locations. They process over 400 credit applications annually.
The bottlenecks that occurred in their credit management process increased their credit-to-cash cycle which negatively impacted their working capital management. These bottlenecks were primarily caused by the reliance on paper, faxing, incomplete applications, and other issues related to the storage and retrieval of physical documents. Due to the volume of applications and documentation needed for each application, paper represented a significant headache for the credit department. By utilizing an electronic system, the client aimed to eliminate paper and tedious manual tasks from their credit management process.
Proposed Solution & Onboarding
The base platform features include credit management workflow, customized credit application, electronic application and reference system, credit analysis & reporting, management dashboard, and tax exempt certificate management. The electronic application eliminates paper applications and faxing by corresponding with prospective customers and their references through emails. References are automatically emailed upon completion of the application by the prospective customer. All subsequent information gathered is stored electronically and analyzed by a custom scoring model in order to arrive at a credit decision.
The company was fully onboarded in 3 weeks. This includes customization, testing, and training. Immediate processing of live credit applications commenced upon completion of integration. There was no IT involvement to release and deploy the Bectran platform. During this onboarding process, the Credit Manager was the main point of contact.
Once implemented, the client’s credit management processes were significantly improved. Average number of days to complete a credit application and submit was reduced from 3 days to less than 1 day. 95% of credit applications are approved in under 24 hours. Monthly cost savings from elimination of paper average between $500-1,000 per month. The required number of employees needed to fulfill the credit function dropped to 3 FTEs from 4.5 FTEs. Quicker approval resulted in a shortened order-to-cash cycle which improved the client’s working capital. Communication tools embedded in the platform eliminated frustration