FGI successfully manages receivables collect out using SMART technology and in-house expertise
“No collect out is easy, and this one was especially challenging because our client’s sales ledger function had been impaired, and there were so many third parties. The big concern at the outset was to move fast. We needed a team that could respond quickly in the US and handle all the time zone challenges created by an international receivables base. FGI’s unique SMART technology enabled us to hit the ground running. The level of service and support from the FGI team gave us the comfort we needed and they exceeded early expectations and projections.”
Rosenthal & Rosenthal, Inc. (“Rosenthal”) had a challenged US portfolio client with an extensive and complex international customer base. The customer has not effectively implemented sales ledger management and dunning processes. Rebates, set-offs, and agency arrangements were a key feature, and there were a number of critical international third parties who would be essential to ensure smooth recovery of the receivables.
As the client struggled, it became clear that a collect out was required immediately to preserve Rosenthal’s collateral position. Time was of the essence, especially given the time of year with summer holidays in various jurisdictions fast approaching and likely to slow down collections. FGI attended the client’s premises and quickly identified the critical dependencies for establishing a collect out process including IT, essential client personnel, and documentation.
Working with key client personnel, the FGI team anchored the dunning process to classify the sales ledger and establish the level of collectability. FGI managed the various international third parties who were vital to the collections process and handled negotiations and settlements in respect of key accounts.
Critical to this collect out was a high level of reporting and communication. Using S.M.A.R.T.℠, FGI established reporting and communication protocols so that collections strategy and expectations could be clearly managed.
Within ten weeks of FGI’s engagement, Rosenthal’s position had been collected out.