Aug 17, 2022
A journey of a thousand miles starts with… tires
It’s not every day that you associate tire distribution with technology - but one growing company is leading this charge. It’s hard to find tire replacements and one B2B business saw an opportunity to help independent tire distributors leverage the same network in researching, purchasing, and providing the best tires to their retail customers across the US.
Fast growth is a blessing, but a growing organization also experiences growing pains as they attempt to scale their sales process quickly to keep up with demand.
The challenge
Manual credit approvals created more work
After two years in business, the company was already experiencing exponential growth with revenues already tripling in size. By contrast, back-office processes were not keeping up with this expansion.
The credit approval process was manual from the very beginning. The accounting and finance team would manually review historic account statements to determine whether a customer had a history of on-time payments. If customers were interested in ordering through credit, the CFO would conduct a manual business audit of new customers to confirm that they were financially viable.
Minimal options to offer or extend credit limited revenue growth
Due to the nature of their product, this company’s buyers preferred to purchase and stock as many tires as possible in inventory. But as the company started to see a rise in large orders from new and existing customers, they simply could not afford to continue extending credit without directly loaning the money and taking on the risk themselves.
Although they had an internal process to provide credit, they reached a point where the company was accumulating so much credit that they simply did not have more to give. In these instances when they weren’t able to lend the money, customers were given the option of paying with a credit card, PayPal, or a direct ACH payment. These options weren’t always possible for the customer. Unfortunately in these cases, the company was forced to deny many users’ requests for credit.
Losing potential customers was detrimental to business growth and finding the right financing solution became essential.
How Resolve’s net terms solution kept customers coming back for more
They knew they had to find a new terms solution soon. Credit lenders were an option–but the archaic system was slow and didn’t fit the company’s immediate needs.
When they started looking for a net terms and credit management tool for their customers, they found what they needed in a surprising place. They came across B2C payments provider Affirm while doing their research and discovered that they a B2B spinout, known as Resolve.
Like Affirm, Resolve offered what they were looking for: a third party that streamlined every element of the B2B payments workflow including accounts receivable and credit management, full B2B payment processing, net terms management, and even custom integrations.
Resolve’s ease of use, system integration, and quality of customer support was the exact solution that the company was looking for.
The impact: how Resolve helped boost customer retention and sales
New sales opportunities
The company now benefits from not holding any risk or credit while offering a quick and painless financing solution to both new and existing customers while growing sales. Historically, their inability to offer credit stifled growth, but Resolve helped the company move forward.
Sales expansion
While the company continues to receive larger orders than before, many customers now prefer to use credit through Resolve rather than the other payment options.
By proactively giving its customers credit, the company is able to offer buyers a strategic and customer-first approach that helps them find new ways to utilize their purchases so they can stock up on inventory at bulk prices.
Faster times to approval
Weekly communications and frequent check-ins have made Resolve’s customer experience and product stand out against competitors from the start. The internal sales, accounting, and finance team have benefited immensely from time savings as they rely on Resolve for help managing everything behind the scenes.
Previously, the team was not confident they could give credit as the process to pre-approve customers had been cumbersome, but with a streamlined Resolve process, they can now approve customers and receive credit on the same day.
Internally, this company no longer devotes resources to manual review and provision of credit, as it can now offer lucrative quotes to its customers, increase relationships with existing customers, and develop the business.
Impact at a glance
Things have changed for the company since partnering with Resolve. Recently, one of their largest accounts was approved for a single order of half a million dollars, an extraordinary amount. Before this, typical orders ranged from $5,000 to $20,000. Resolve’s net terms solution helped the team quickly approve and secure an order that was nearly 25 times that of their average order.
With 2–4% of all orders made through their Resolve, the company has seen a boost in sales with an impressive 128% lift in yearly average order value growth over the last three years. They expect to grow even more under aggressive sales goals in the near future.
Oh, the places you’ll go with Resolve
The company may be young–but it has big plans. By partnering with Resolve, they are now able to provide new value to existing and new customers by providing risk-free net terms management.
They have exponential growth targets and for good reason. They impressively tripled their business within three years and aim to be a nine-figure business in the near future.
Armed with a reliable net terms and credit management solution with proactive plans to build stronger customer relationships, Resolve is right by their side. The company is already helping businesses better service end users through expanded inventory by encouraging customers to take advantage of Resolve’s quick and easy online application for pre-approved credit. By partnering with Resolve, this business is getting ready to set this world on tire.
