Executive Summary

A mid-sized manufacturing company faced significant challenges with overdue invoices, with 20% of its receivables exceeding 90 days past due. By implementing the CTOS Credit Manager’s Electronic Trade References (eTR) function, the company achieved a 30% reduction in overdue payments within six months, leading to improved cash flow and operational efficiency.

Challenges

• 20% of receivables were over 90 days past due, straining cash flow and limiting reinvestment in production.
• Existing practices failed to address delayed payments due to a lack of proactive monitoring and management of overdue accounts.

Solution

• Implemented the credit management solution – CTOS Credit Manager; Electronic Trade References feature to submit trade references for overdue accounts, providing real-time monitoring of customer payment behaviors.
• Discouraged defaulters by negatively impacting their creditworthiness, as being listed under eTR can cause a decrease in their CTOS Score.
• Reduced defaulters’ chances of securing loans, as banks and lenders may view a negative CTOS Score as a sign of high credit risk.

Outcome

• Achieved a 30% decrease in overdue payments within six months.
• Improved cash flow enabled reinvestment in production capacity and timely payments to suppliers.
• Clear communication and flexible payment plans helped preserve and strengthen customer partnerships.

Conclusion

This case underscores the importance of proactive credit management in today’s complex economic environment. By leveraging tools like the CTOS Credit Manager, businesses can enhance financial stability and support sustainable growth.

🔹 Take Control of Your Receivables Today!
Submit your Electronic Trade Reference (eTR) now and start reducing overdue payments effortlessly.