Managing Your In-House Trade Credit Program

In-house trade credit management – a costly distraction and unnecessary risk 

Managing your in-house trade credit program may once have seemed like a good idea – but much has changed: costs and complexity have spiraled. While new technology can help, processes have remained manual and expensive. That means inefficiencies and poor customer experience don’t reflect well on your brand or bottom line. And your business carries the considerable risk of underwriting credit for clients in these times of great economic uncertainty. While your trade credit program may remain strategically important, scaling it is impossible, and managing it is a costly distraction from your core business.

The Solution: An Outsourced Trade Credit Solution

TreviPay offers an all-in-one outsourced solution for your trade credit program. You can digitally transform your processes and customer experience while reducing resourcing and costs associated with a non-core task. At the same time, the risk of underwriting trade credit is also eliminated – taking the hassle out of the order-to-cash process.

Credit Scoring

Credit scoring is an important aspect of an outsourced trade credit solution because it helps assess potential customers’ creditworthiness. This information can be used to determine the level of risk associated with extending credit to a particular customer. It can help to inform decisions about the terms of the credit, such as the amount of credit extended and the interest rate charged. Credit scoring can also help identify potential customers who may be more likely to default on their payments, which can help minimize losses for the company providing the trade credit. 

Underwriting

Underwriting is the process of evaluating the creditworthiness of potential customers to determine the level of risk associated with extending credit to them. TreviPay takes on the underwriting process to eliminate your risk and ensure on-time payment.

Billing

TreviPay automates your invoicing to limit errors and inefficiencies, streamlining the process.  

Accounts Receivable

With automated accounts receivable for trade credit, you can rest assured that your teams will have what they need, when they need it. When A/R teams aren’t equipped to meet buyer demands, they risk frustrated customers, cart abandonment, and increased days sales outstanding (DSO) — all of which can lead to diminished customer loyalty. The bottom line: A/R can positively impact an organization’s EBITDA, but manual tasks, resource-heavy processes, and dated technology are currently holding them back. 

Collections

With TreviPay, there’s no chasing down late payments from trade credit. Instead, TreviPay underwrites the trade credit, ensuring that you get paid on time, every time. 

Benefits of Outsourcing Your In-House Program

What could you do with improved cash flow?

The greatest motivation for most companies to outsource their trade credit program is to improve cash flow. The readily available cash flow is often used to fund capital infrastructure projects to enable growth. Other TreviPay clients have leveraged their ability to pay their own suppliers earlier to negotiate pricing discounts.

Improved Service For Your Clients 

Your clients can preserve their cash flow with access to an alternative source of credit offered by your business and underwritten by TreviPay. They will enjoy a great brand experience with rapid onboarding and 100% digital processes, including one-click purchasing.

Financial benefits

• Eliminate DSO, as you can get paid in days, no matter when your clients settle their invoices
• Reduce the need for Full-Time Equivalients (FTEs)
• Save time, infrastructure investment and cost
• Negotiate supplier discounts for earlier payment

Managing an in-house trade credit program can be costly and complex, with inefficiencies and poor customer experience negatively impacting your brand and bottom line. An outsourced trade credit solution such as TreviPay offers a digital transformation of your processes and customer experience while reducing costs and eliminating the risk of underwriting credit. With features such as credit scoring, underwriting, billing, accounts receivable and collections, TreviPay can provide improved cash flow and service for your clients, as well as financial benefits such as reduced DSO, reduced need for FTEs and supplier discounts for earlier payment. Outsourcing your in-house trade credit program with TreviPay can significantly benefit your business.