Eco Distributing: Expediting a 46% Volume Growth YTD Without Credit Risk
September 1, 2022
Solar panel distribution for domestic properties in the U.S.
Eco Distributing is a regional distributor of solar panels for installation in residential properties. Established in 2008, based in Arizona, Eco relies on a network of local distribution agents who install their units.
Eco had an existing credit program in place to enable local distributors to place orders and finance the manufacturing of the units. However, due to the emerging and fast-growing nature of the industry, there is often some volatility in the installation services.
The company discovered that its credit provider was struggling to achieve a satisfactory credit assessment and declining credit applications for a growing number of Eco’s potential installation partners. This had serious consequences. Without the required number of installers, Eco was unable to take orders and revenues were declining.
The Eco team needed to resolve the situation quickly.
Given the size of their distribution partners and typical order values, Eco knew it would need to find a solution where they could offer multimillion-dollar credit lines. But to do this in-house, Eco would have to take on the risk and overheads associated with underwriting such large credit lines. It would also need to allocate substantial internal resources to the complex accounts receivables and collections tasks.
Why did Eco choose TreviPay?
Highest credit approval rates
Willingness to work with challenges of the industry
Rapid speed of deployment
Ability to integrate with QuickBooks
Eco began discussions with TreviPay as a payment and invoicing network provider because TreviPay understood the specific challenges of the sector and the importance of distributors to the success of the program.
As Eco did not have an existing eCommerce system, no technical integration was required. This meant that Eco could deploy TreviPay in manual entry mode, enabling rapid set up and deployment.
Eco was live, taking orders within one month of signing its contract with TreviPay.
Quickly optimizing order value and revenue for Eco was top priority. TreviPay monitored the credit line usage of Eco’s large customers and extended their credit line to maximize their spending power where possible, to provide additional purchasing power for their clients to scale their business.
As a result, Eco saw a spike in order values and have achieved 46% growth in volumes and nearly 36% increase in transactions in the year to date. Eco has seen month-over-month a growth in processing volume since the program began.
Among the other aspects of the TreviPay solution that Eco have found most valuable have been the intuitive nature of the online portal and the variety of payment methods, including ACH and check.
Benefits for Eco:
46% volume growth YTD
36% growth in transactions YTD
Higher credit lines allow for higher spending
Increased credit line for high-performing installers
Benefits for Eco clients:
Higher chance of acceptance given industry volatility
Bigger credit lines than previously available
Ability to use a range of payment methods
Eco’s primitive credit program operated by a third-party was unable to cope with the needs of this complex and changing industry.
With many clients requiring credit lines into the millions of dollars, Eco needed to implement an alternative solution that could accommodate the large amounts of credit. The scale of the risk, underwriting requirements and process overheads meant it was impossible for Eco to offer such a program in-house.
Eco is now able to onboard new distributors and ensure its revenue targets are met. New distributors can place larger orders without negatively impacting their cash flow. And because the trade credit is underwritten by TreviPay, Eco is protected from industry volatility and never needs to chase late payments or bad debts again.