How SCal Mobile Doubled Order Volume with Net Terms

Learn how SCal Mobile, a fast-growing leader in the global recommerce market doubled Order Volume with Ecommerce Integrated Net Terms

Overview

SCal Mobile, a fast-growing leader in the global recommerce market, specializes in refurbishing and distributing mobile devices to retailers. With operations spanning both domestic and international markets, SCal Mobile handles high-volume transactions with tight margins, requiring precise financial management. As their business expanded, they faced the challenge of maintaining smooth cash flow while offering their customers flexible payment terms. Additionally, they needed to streamline their operations by integrating financial processes with their ERP systems, all while ensuring a high level of customer satisfaction.

To address these challenges, SCal Mobile partnered with Resolve, a B2B BNPL platform that could provide the financial infrastructure they needed. Resolve helped SCal Mobile automate their invoicing, integrate dynamic discounting, and implement same-day payouts, all of which were critical to sustaining the company’s rapid growth. By leveraging Resolve’s tools, SCal Mobile was able to offer customized payment options to its customers while improving their own cash flow and operational efficiency.

"Working with Resolve feels like having an extension of our finance team. They’ve made it easier for us to offer net terms to our customers without taking on excessive risk, all while helping us grow."

Alan Bidgoli, CEO of SCal Mobile

Challenge

SCal Mobile’s rapid growth and international reach brought several complex challenges. Their quick turnaround recommerce business model relies heavily on rapid inventory turnover and substantial credit lines to maintain its operations. Some operational challenges include:

• Cash Flow Management: SCal Mobile’s high-volume, low-margin model made maintaining liquidity essential. Their customers required flexible payment terms, yet waiting too long for payments created cash flow bottlenecks that could disrupt operations.
• Payment Terms Flexibility: With a wide range of customers, SCal Mobile needed to offer tailored payment terms that matched each customer’s unique requirements, but manual interventions were consuming too many internal resources.
• Operational Integration: As they grew, SCal Mobile sought to streamline processes and automate financial operations. They needed Resolve to integrate seamlessly with their ERP (Netsuite) and their planned eCommerce platform (BigCommerce).

Solution

Resolve provided SCal Mobile with a tailored financial solution that addressed their unique challenges:

• Improved Cash Flow: Resolve’s net terms and credit line extensions allowed SCal Mobile to turn inventory faster, maximizing cash flow.
• Flexible Payment Terms: Resolve enabled SCal Mobile to offer net 30 and early payment discounts, which incentivized faster payments from customers.
• Credit Line Optimization: Resolve provided scalable credit lines, allowing SCal Mobile to adjust credit limits based on buyer behavior, reducing risk.
• Streamlined Invoice Management: Resolve’s platform integrated with SCal Mobile’s processes, automating invoicing and payment tracking, freeing up their finance team.

Results

The partnership with Resolve led to significant, measurable improvements for SCal Mobile:

• Cash Cycle Reduction: Same-day payouts reduced the cash cycle by four days, improving liquidity and allowing SCal Mobile to reinvest faster in new inventory.
• Operational Efficiency: Automation of invoicing and payment processes resulted in a 30% reduction in manual finance operations, saving SCal Mobile hundreds of hours of manual work per quarter.
• Revenue Growth: With flexible payment terms and dynamic discounting, SCal Mobile saw a 2x increase in the volume of orders placed by customers who could take advantage of extended credit lines.
• Customer Satisfaction: Offering tailored, transparent financing terms improved customer retention, leading to a 15% increase in repeat orders from major clients like Ingram Micro.

"Resolve has been a game-changer for us. Their ability to extend flexible credit lines has allowed us to increase our sales volume while managing our cash flow efficiently." - Jonathan Hanitio, CFO of SCal Mobile