Outsource Your Collections for Better Cashflow
The Receivable Manager® program works in conjunction with your bank’s line of credit and offers an effective, professional and timely service through which the bank can monitor and control its collateral position. For a variety of reasons, many bank customers do not qualify for an unmonitored open line of credit. These reasons may include: seasonality, erratic financial performance, rapid growth, weak balance sheet, heavy customer concentrations, high levels of bad debt, start-up businesses, etc. Rather than turning a customer down or offering a fraction of their request, your bank can present the Receivable Manager® program as a viable alternative.
With Receivable Manager® your bank’s customer outsources their credit and collection administration to First Vancouver Finance (FVF ). FVF provides your customer with up-front credit investigation on all accounts, then ledgers the customer’s invoices on its system, makes prompt collections calls, lockboxes all payments, applies the payments to open invoices, and remits collected funds to your bank.
The following list summarizes some of the benefits that the Receivable Manager® program offers to your bank:
- The bank’s collateral will be controlled by an objective third party who specializes in accounts receivable management, reporting, and collection.
- Receivable Manager® provides a credit guarantee on all approved accounts. This significantly strengthens your bank’s collateral position by eliminating the risk of bad debt.
- This credit guarantee flows through to the bank. At 90 days past due, invoices will be charged off and funds will be transferred from FVF to pay down the line of credit.
- As a result of our credit guarantee the bank can offer a larger line of credit and/or higher advance rate. This provides the customer with greater flexibility and the bank with increased income potential.
- Customer payments are remitted directly to FVF . Collected and cleared funds are then transferred to the bank, paying down the line of credit.
- The need for periodic audits is reduced or eliminated.
- Weekly reports are submitted to your loan officer, thereby promptly alerting your bank to any potential disputes or bad debts that may adversely effect the borrowing base.
- Utilizing this reporting, your bank can accurately assess the quality of their collateral and make appropriate informed decisions on limiting or increasing the bank’s exposure.
- With Receivable Manager®, your bank will strengthen the customer relationship without sacrificing credit quality.