Strangled by Slow-Turning Receivables
A corrugated box manufacturer was being strangled by slow-turning receivables. Although the terms of its receivables were 30 days, they were turning on an average of 60-70 days, causing undue strain on working capital. This resulted in tension with suppliers and forced the manufacturer to turn away larger jobs.
Our initial funding of $380,000 provided some breathing room. Following this, our collection department implemented a creative strategy that reduced the client's average pay days to 40. It now has the working capital it needs to take on larger and more profitable jobs.