International Credit Control Case Study
Inksmoor Credit Management has been engaged by a multi-million pound turnover business that operates worldwide with offices in 20 different countries. Cash flow was exceptionally tight in the business, DSO (Days Sales Overdue) was rapidly increasing and bank and creditor pressure was becoming evident. Even given their market sector and internal credit control personnel and procedures they could not find the right balance of experience and effectiveness versus costs. Typically a relationship led business with localised management decisions; long standing customers were beginning to take advantage over the company’s apparent leniency with enforcing their credit terms. The client had adopted the stance that they could not upset the client by sending out reminders or calling them as they were “good” customers.
The language barriers between all the countries meant that credit control was mostly conducted by email, if at all. This quickly changed by outsourcing to ICM where we began to offer multi lingual collections, specific to this client English, Polish, French, Spanish, Italian and German.
The service ICM provides the client;
- Multilingual credit control procedures from calls, emails etc
- Regular reporting on query resolution and payments promised (cash flow forecasting)
- Liaising with the relevant key decision makers in each country to resolve any queries
- Relationship building between our clients staff and their customers
Since implementing the change the debtor days have reduced significantly putting valuable cash back in to the company’s cash flow. Our client benefited by outsourcing this valuable function to ICM thus giving them a robust, effective and value for money solution.