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Industrial Goods

Fixing payments and protecting margin

How an established exporter stopped losing money to payment delays and protected its margin.

100%
on-time pay
+15%
net margin
5
LC deals
The challenge

Where they started

Northwind was already exporting, but recurring payment delays and a couple of near-defaults were quietly eroding profit. Their payment terms didn't match the risk of the buyers and markets they were selling into.

100% on-time payment after restructuring

Net margin improved by 15%

Five letter-of-credit deals secured

No more write-offs from late or defaulted payments

Our approach

How we helped

1

Risk review

We assessed each buyer and market for payment risk.

2

Term restructuring

We moved high-risk deals onto letters of credit and deposit structures.

3

LC setup

We structured and reviewed five letters of credit to ensure they were watertight.

4

Collection process

We put a process in place to ensure on-time collection going forward.

"They restructured how we get paid. The late-payment problem that was killing our margin is simply gone."

EB
Elena Brooks
CFO, Northwind Co.

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