Prior to implementing Upflow, Passport’s cash collection efforts were hindered by a cumbersome manual system that involved creating and reviewing Excel spreadsheets, assigning collection tasks manually, and following up with customers one by one. This inefficient approach resulted in several critical issues.

The manual process was time-consuming and prone to errors, diverting valuable resources away from core business activities. The lack of real-time tracking and automation led to delayed cash flow, impacting the company's ability to meet operational expenses and invest in growth. The departure of Passport's accounts receivable person further exacerbated the challenge, creating an urgent need for a more efficient and scalable solution.

Added to that, the old process provided limited visibility into the status of outstanding invoices, making it difficult to identify and address potential risks. The inability to effectively manage smaller accounts increased the risk of write-offs, impacting the company's overall financial health.

As Evan Riesman, Controller at Passport, noted, "We were really only addressing the larger accounts and the higher risk accounts, but a lot of those little accounts would continue to grow and grow and not get collected. Left unchecked, they were becoming a big risk for write-offs or having to send to a third-party collections agency."

Finally, taking a macro view, the international shipping industry within which Passport operates requires quick turnaround times for payments. This is due to the nature of their business, which involves floating cash for operations and paying suppliers who are also on tight payment terms. As a result, efficient cash collection is crucial for their financial stability and success.

Before Upflow, Passport struggled to offer a reliable autopay option to their customers. This was a priority for the team - working to shift as many of their customers as possible over to online payment methods that could be coupled with an automatic ‘pull’ of funds on the invoice due date.

Passport knew that a key to revolutionizing their cash flow was being able to save credit cards in the system and have customers agree to ‘autopay’ each invoice.

However, manual processes and limitations with existing tools made it difficult to scale and manage these autopay payments effectively.

Since implementing Upflow, Passport has seen a significant increase in online payments and autopay sign-ups, particularly among their midsize and smaller business customers.

“Most of our autopay customers are our midsize to smaller businesses, which is actually great for us because those are the ones that tend to be higher touch. This has saved countless hours for our AR team having to do manual outreach”, said Evan.

Passport has fully automated their accounts receivable process using Upflow, resulting in significant time savings and improved efficiency. By automating routine tasks, such as sending dunning emails and processing payments, Passport's team can focus on more strategic activities and personalized outreach to customers.

As Evan explained, "By us not having to have employees go into Upflow and click through a hundred tasks, that saves us hours and hours. We can trust Upflow to do what it was designed to do”.

This automation has freed up valuable time for Passport's team to address more complex issues and provide personalized support to customers. For example, they can now focus on resolving invoice inquiries and building stronger relationships with their customers.

In addition to improving efficiency, automating the accounts receivable process has also enhanced the customer experience. By providing customers with easy access to their invoices, payment history, and account information via the Upflow Customer Portal, Passport has increased transparency and reduced the need for manual inquiries from customers on payment statuses and lost invoices. As Evan noted, "Upflow provides much more visibility for a customer than we can give by ourselves”.

Passport has experienced significant improvements in their accounts receivable process since implementing Upflow. Key improvement areas include:

• 32% reduction in DSO: The company's Days Sales Outstanding (DSO) has decreased from 32 days in September 2023 to 22 days in August 2024, indicating a significant improvement in cash flow. By accelerating the collection of outstanding invoices, the company has been able to reinvest these funds into growth initiatives, operational improvements, and other strategic priorities.

• 75% decrease in overdue invoices: The number of invoices exceeding 30 days overdue has been reduced by 75% within the first year of using Upflow. Reducing the risk of bad debt and improving cash flow have enhanced the company's overall financial stability and resilience.

• Improved customer relationships: The ability to provide customers with a more efficient and transparent payment experience has positively impacted Passport's customer relationships. By making it easier to pay and providing easy access to account information, the company has been able to build trust and loyalty with its customers.