Since breaking away from its parent company in 2007, Module IT has continued to grow at a steady pace. However, the rise in demand added greater pressure to an already-stretched internal credit control and debt management function, which was already struggling to stay on top of invoicing and chasing payment.
When the demand reached the point by which the company needed to recruit an additional member of the finance team to help manage the workload, it had become apparent that new efficiencies were not only desirable, they were critical to the long term success of the business: debtor days stood at between 60 and 90 days and this was having a direct impact on the company’s cash flow and its bottom line.
The company needed to reduce its debtor days and streamline its credit management processes. This would enable those individuals performing the credit function to re-focus their energies on what they do best.
Module IT is an ambitious company but its existing systems were not only holding them back, they were costing them money too. That’s were Together came in.
The Together credit management solution was brought in to manage their debtor base, enhance the relationships the Module IT team had with their clients and improve cash flow with Togethers cost effective pricing model. Together have a simple pricing model; you pay per transaction regardless of the value of the invoice.
Module IT has seen significant improvements and increased efficiencies since partnering with Together. Firstly, their debtor days have been reduced from 60-90 days down to around 30 days. This has improved the company’s cash flow and protected it from the consequences of bad debt and late payments.
Secondly, because the entire credit control function is managed by Together, Module IT has been able to spend more time on plugging some of the holes in their existing invoice procedures. This has meant they were able to see where cost savings could be made, which in turn has made the company more profitable.
And thirdly, with improved cash flow and full access to Together’s comprehensive suite of credit control and debt collection services, Module IT is now in a position to realise its ambitious growth ambitions; because they no longer have to wait before their clients pay their invoices, key strategic business decisions can be made sooner rather than later.
The company has recently increased its headcount and now has plans to grow as a managed service provider – something that would not have been possible before partnering with Together.
On their partnership with Together, Eric Witheridge, Managing Director of Module IT, described Together as “Effortless – it just happens. It just works”.