Staffing Firm EmployBridge Puts Credit Management Best Practices to Work
Staffing firm EmployBridge is a $3 billion enterprise that provides employment solutions to thousands of companies across North America.
Their credit and collections team manages thousands of new accounts. Challenges include setting meaningful credit limits, monitoring a large portfolio, and staying on top of changing macro risk.
Recently, Director of Credit and Collections Ray Sims shared the best practices his team uses to stay ahead of risk, and manage the workflow. They include:
Automation and Scorecarding
Thanks to a well-integrated onboarding and scorecarding process, EmployBridge is able to manage by exception. Only a fraction of accounts requires Ray’s team to be "hands on.”
Multiple Data Sources
Ray’s philosophy is “more data means better decisions”. To assess creditworthiness, the team chooses the best data source for the specific job at hand. This means using different financial information for small private companies than for big public companies, a best practice.
Public Company Risk Analysis
Ray considers CreditRiskMonitor "the gold standard” for assessing public company risk. In addition to easy access to all the financial data needed for analysis, here are a few of his favorite tools and timesavers:
- News Alerts: Daily portfolio alerts provide up-to-date customer monitoring, alerting him to changes in financial condition and increasing distress
- Contributing trade receivables: By analyzing their trade receivables data, EmployBridge gains deeper portfolio insight and a better handle on risk.
- Bankruptcy risk scores: Customers with the lowest bankruptcy prediction scores are given particular attention (FRISK® scores of "1's and 2's" –indicating customers with the highest risk of bankruptcy)
- The Credit Limit Calculator: used for confirming and setting appropriate, explainable credit limits.
Final Advice: “Use the Training”
In a company whose main job is supplying a productive workforce to others, it’s fitting that Ray’s team relies on training to become as productive as possible themselves. Ray suggests “Even the best tools are for naught, if no one uses them”. So, the team takes full advantage of CreditRiskMonitor training that’s offered.
As a result of Ray’s efforts, his credit team has created a seamless model that provides a great example for his peers. Thanks for sharing it!
Learn how EmployBridge uses the right data for the right decisions to stay productive: Read the complete customer story!
CreditRiskMonitor is a financial news and analysis service designed to help professionals stay ahead of public company risk quickly, accurately and cost-effectively. More than 35% of the Fortune 1000, plus thousands more worldwide, rely on our commercial credit reporting and predictive risk analytics for assessing the financial stability of more than 56,000 global public companies.
At the core of CreditRiskMonitor’s service is its 96%-accurate FRISK® score, which is formulated to predict public company bankruptcy risk. One of four key components calculated in the FRISK® score is crowdsourced subscriber activity. This unique system tracks subscribers' patterns of research activity, capturing and aggregating the real-time concerns of what are essentially the key gatekeepers of corporate credit. Other features of CreditRiskMonitor’s service include timely news alerts, the Altman Z”-Score, agency ratings, financial ratios and trends. CreditRiskMonitor’s network of trade contributors provides more than $150 billion in trade data on their counterparties every month, giving them visibility into their biggest dollar risks.