On its way to becoming a global company with operations in 85 countries, the Mircom Group of Companies had to come to terms with several important business challenges, including credit risk. As the company expanded into new markets, it required new customers to pay cash in advance or obtain a letter of credit basis until it realized how cumbersome and growth-limiting this approach was to the business. No matter where they are located, reliable customers want credit terms that reflect the trust they have earned.
Vaughan, Ont.-based Mircom, which manufactures and distributes products and solutions that make buildings smarter, safer, and more livable, is loyal to its customer base. “We like to help small companies grow and credit is one component of that,” said CFO Ed Mattei. “But credit is not something Mircom wanted to take on from a risk perspective.”
As a result, something had to change. “The last thing we wanted to do was to limit our growth and our customers’ growth because of cash flow,” said Mark Falbo, Mircom’s president. “When we hit our stride internationally in the size and sophistication of the business we took on, risk became more prominent in our thinking.”