Recent Short Term Client
In December of 2011, this small moving company joined LSIsource because their cash flow was slow, the economy was still tough and the majority of their accounts receivable balances were too old to be used as collateral for a credit line loan. The average invoice was open for 95 days from the billing date although their credit terms were 21 days. Going into the off-season, they needed fast cash, a focused collection staff, but also needed to eliminate costs.
At the end of September, the average invoice age is 18 days. That’s 77 day reduction in less than 1 year.
Bottom-line: Full LSIsource outsourcing was the solution. By outsourcing they reduced expenses associated with staffing, increased cash flow and were in a position to qualify for a credit line at a lower interest rate. This process allows them to focus on their core business – moving, while we focus on our core business – collections.
The graph below tracks the average number of days an invoice remains open from the billing date.