August 17, 2009

Provider of Accounts Receivable & Credit Management Solutions Helps Small Businesses Protect Themselves by Gaining Insight into the Creditworthiness of their Customers

ATLANTA, July 29 /PRNewswire/ -- FTRANS Corp., a leading provider of accounts receivable and credit management solutions, is migrating its clients to a credit scoring model in order to provide small businesses with insight into the credit standing of their customers. The credit scoring model can be used as an alternative to commercial trade credit insurance, making it particularly appropriate in light of recent developments at CIT Group, one of the largest credit protection providers in the U.S. This model uses front-end credit data to qualify a small business's B2B customers, eliminating the need to purchase blanket insurance on all of a business's trade credit. This strategy, similar to how B2C companies issue individual credit checks prior to extending personal credit, enables small businesses to make better- informed decisions on which customers are worthy of trade credit.

"In today's economic environment, it is simply not enough to ask customers for a credit application up front and check a few references," said Dan Drechsel, CEO of FTRANS. "At FTRANS, we've developed a model to help our customers determine the creditworthiness of their buyers. Small businesses need stability now more than ever and using a credit policy based on solid credit information is one way they can insure themselves without entirely relying on a third party."

FTRANS' credit scoring model offers several important benefits to their customers. First, credit information allows businesses to analyze the credit history of their customers. For example, by reviewing a credit classification based upon a commercial credit score from Equifax and reviewing customer financial statements, businesses can determine the likely delinquency rate of their customers. In addition, businesses can set customer approval rates based on the credit classification of their customers and approve only applications with a high enough credit score to insure their sales goals. Also, businesses can continuously monitor the credit progress of their customers and be notified within 24 hours of any derogatory credit information that may affect their customers' credit standing and ultimately affect a business's accounts receivables.

A business that acts proactively based on the credit data of its customers is more likely to increase the portfolio value by establishing a stronger stream of revenues with less bad debt and fewer slow paying customers. In addition to consultation on credit insurance strategies, FTRANS manages its customers' accounts receivables to help businesses make the most informed decisions on the front-end to protect themselves on the back-end when collecting payment.

"We switched to a credit scoring model because we can't afford to take a hit from bad loans and there's no guarantee our credit will be fully insured by third-party lenders that may not be able to withstand the recession themselves," said Mark Wecker, CFO of Southland Graphics. "FTRANS' credit scoring policy is a simple, precautionary step I can take to ensure that I'm working with the right customers and protecting my business."

About FTRANS

FTRANS Corp., located in Atlanta, GA, provides innovative technology solutions for businesses and financial institutions. We provide a complete accounts receivable and credit management solution which enables businesses to operate more efficiently and with greater access to capital. From payment matching and account reconciliation to credit approvals, access to capital, and collections - FTRANS has the tools businesses need to achieve superior business results. We provide financial institutions with a program that enables them to lend to small and medium sized businesses with accounts receivable as professionally managed and transparent collateral for banks.

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