The Challenge: A specialized healthcare furniture company was struggling to achieve timely payment from customers. Quite often, as outstanding invoices remained unpaid, the company was forced to threaten its clients with placing their accounts with an interruption in service until the aged payments were made. This situation required the company to devote employee staff time to monitor accounts and follow up for receipt of payments. This additional expense was added to the cost of its clients’ products and services. In essence clients were absorbing these "hidden" costs without knowing it. When the company learned of the BLS model payment program, they felt it was worth investigating to see what it would do for their "bottom line".

 

The Solution: After a short time in the program, the company began to realize the financial benefits of having their invoices paid by the new method. The expense of assigning employees to collect on accounts went away. Payments were made timely and directly into the company bank account, eliminating the need for handling and manual recording of payments. Clients benefited by eliminating the added costs applied to their products/services by the company.

Company Profile: International Manufacturer of Medical Beds

The Challenge: A large international healthcare equipment manufacturer based in Europe was looking to expand its business in the United States. Typical terms in its industry were 3-4 months before payment was received. One of its US clients was offering a BLS model program, which promoted better terms and more timely payments. The company recognized that by accepting this payment method they might gain an edge on their competitors and achieve a larger market share in the United States.

 

The Solution: After one year in the program more clients adopted the new method of payment and the company enjoyed an expanding US presence. They are now considering this as a new payment model for their business in Europe and Asia.

Company Profile: Major Northeast U.S. Construction Company

The Challenge: A construction company doing business in a large metropolitan area in the northeast was struggling to achieve timely receipt of payment for multi-million dollar projects. As a result, the company was forced to go out and borrow money in order to pay subcontractors and, at times, meet payroll. One of the company’s clients made them aware of the BLS model which offered assurances that payments would be made in a more timely manner and paid directly into their bank account. The company signed up for the program to safeguard their client's relationships.

 

The Solution: After 6 months in the program, the company now pays its subcontractors on time, has eliminated the need to borrow money to meet payroll and other expenses, and has avoided having to build the "cost of money" into future project pricing.

Company Profile: Large Office Supply Wholesaler

The Challenge:A large company that wholesales office supplies was not being paid in a timely manner and was often forced to negotiate settlement payments at the end of the year for outstanding payables. It was not uncommon for them to lose upwards of $50,000 in the year-end settlement. As a result the company had to build this cost back into their client's pricing the following year. When the company learned of a new method of payment, they wanted to see if it could do away with the year-end settlement losses.

 

The Solution: After only 3 months of participation, the company began to realize the efficiencies of this program. Payments were being made timelier and the need to negotiate a settlement at the end of the year was eliminated. Therefore costs to the customer did not have to be increased, protecting their relationship.