Case Studies

Client: A leading electronics company with an annual turnover of $175 million.

Client’s Goal: To improve collection performance and reduce the overall costs for the accounts receivable and credit functions.

Solution: Already an STA International debt recovery client for many years, this company outsourced its entire accounts receivable function, including cash posting, to us in 1999.

Outcome: Working closely with STA International’s Receivables Management team, the efficiencies of the tailored outsourcing permitted their credit staff to be redeployed to vacancies within the Finance Department. Taking into account the indirect costs of late payment, the minimum annual cost savings through managing their receivables were as follows:

The client’s goals were achieved by employing STA International to manage their receivables. Consistent follow up and proactive telephone credit control led to an earlier identification of problems, and swifter responses, which resulted in fewer debt recovery and legal cases. Cost savings in three areas reduced overall costs for the accounts receivable and credit functions.