Should someone else manage your credit program?

|f'\unneNr FoRECASTs for 2013 show continued growth in \-rthe housine market. Last year, new home sales hit a two-year higtr ritrite builder .onfid.n.. ratings rose to prerecession levels on the National Home Builders/ Wells Fargo Housing Market Index.

As the economy continues to improve, merchants should prepare for greater stress on recession-tightened inventory, staff, operations and resources. Credit screenings, approvals and reactive extensions, as well as billing, collections and providing quality customer service, can significantly and swiftly drain working capital. By outsourcing your trade credit needs to a trusted financial services company, you can shore up your cash flow and unintentional risk and focus on expanding your business for success.

As a building supply dealer amidst a housing markct upsu inc. ) ()u are going to need cush llow to inrest in your top-line drivers things likc additional outsidc salcs rcps and value-added selviccs. Attcmpting to go it alone coulcl potcntially stunt growth. By selecting a tradc crcdit supplier that specializcs in thc building supply industry. and sharcs thc srrme values. you will guin l purtncr r.r ith virluablc cxpcriL'r)t.c. expertisc. tools and intuition.

Most importantly. a trade crcdit supplier can offer an attractive alternative to the kind of financing that increarses your risk portfolio and incurs unnecessary debt (e._e.. pursuing the increasingly elusive bank loan). Unlike banks. which make money from interest and hidden fees, the right financial partner will align incentives completely with your business and develop ii customized program to suit your and your customers' specific needs.

Third-party trade credit prof'essionals are risk-reducers. Thcy undcrstand the irnportance o1' rcliablc cash flow. and their ob.jectivc is to providc it on your terms guarantccd whcn you want it and nccd it thc n'rost. With the ability to offbr higher approval ratcs. acccss to larger credit lincs. and llcxiblc terrns. credit providcrs incrcasc siiles while minirnizin-r dcalcr risks.

A quiility credit provider will tlcat your customers the way you do. and replace the headaches of un-euatanteed accounts receivable with consistent, predictable payments lbr all customer purchases. As a result. you are fiee to invest in rebuilding your services. stock and personnel in preparation for growth.

If ceish flow is like water, you shouldn't wait until you're thirsty tct clrink. Think ahead. Cash flow supports scvcriil key components to expansiclr.r and growth, such as your salcs tcam and the additional invcntory you'll nccd to keep pace with largcr ordcrs and sreater demand. Takc advantasc ol' carly paynrent discounts. ancl be wary of the self-fLrnded cash gap. On avcragc. dealers are expectcd to pay suppliers every 30 days. but receive paymcnt fkrm clients everl' 48 days. Over the course of a five-month period, you could end up funding your own expenses 50% of the time. These gaps are unnecessary and dangerous to your business.

Of course, the thought of letting Building-Products.com someone else manage a financial program that you have controlled fbr so long cnn be a frightening ()ne. purlie ularly after an extt:ndcd pcriod of downsizing cl'lbrts and loon'ring econornic unccrtainty. But it doesn't have to bc. In fact, outsourcing trade credit should have thc opposite effbct. Pick il pirrtr)cr with the surnc irtecnlirc lrr trcat your custonrcrs thc way you do onc that grows whcn your customcrs spcnd rnorc.

Takc comfort in the knowledge that you are not alone. Ask your associations and trusted partners who they use. Thc sooncr you alleviate the burden of an in-housc tradc credit pro-uram. the sooncr you will gain greater control to movc filrwarcl with financial conf idcncc ancl pcacc of rnind.

A.s t .t'.o., Scott Sitttltsott ot,ersat.s lhc orcrull .ttrutcgit dircctiort urtd ytrt.lltlio ntutlu,q(nI(tIt of Illua'l'ttr1t I,'inunciul. Hc curt bc raut ltcd ut (207 ) 797 5900 rtr .s.t ittt 1t.sr ttt Gi' bltr( lu rp .( ( )nt

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