A shoe importer was happy with their sales and marketing team and didn’t require funding for cash flow. However, they were unhappy with the lack of credit coverage on receivables. The client didn’t have a credit manager or any personnel in place to follow up on customer collections, and processing customer payments was time consuming. In addition, they were selling all their customers on various terms without investigating whether they were good or bad credit risks.
Collection Factoring was the best solution. Milberg agreed to handle the credit, collections and check processing functions. The client would receive credit protection and get paid after “collection” of their receivables.
With Milberg handling all aspects of receivables, the client is able to focus their resources solely on sales and marketing. They have the credit protection they never had, and save overhead by outsourcing collections and payment processing.