Why is OnGuard opening an office in New York now?
Taylor: “The new branch perfectly suits our plans for expanding on an international level. Our goal is to become a global organization. We made our move to the United Kingdom in 2008 and we opened an office in New-Zealand last year. The USA is the next phase. We are already the market leader in Europe. New York is a logical choice. We are strong in the services industry, such as accounting firms and law firms. They are primarily established on the East Coast, in New York. It is the place to be, the market potential is huge. What’s more, the time difference with Europe is smaller compared to other parts of the USA.”
Why have you opted to send staff of your own abroad to set up branches in the USA?
Taylor: “They are very familiar with OnGuard, our culture and they have the necessary expertise. And so a new branch can be established much more quickly.” Eisenmann: “In time, I plan to create a team in New York that is made up of locals. We chose the accommodations with that future expansion in mind.”
Which clients do you hope to be of service to from the office in New York?
Taylor: “We plan to seek out larger companies. Which is the group that we also supply in Europe. We will start off with the clients that we already have in the USA. In addition, we intend to focus on our current client portfolio: the American daughter- and parent companies of our European clients.” Eisenmann: “We recently conducted a survey among our existing clients in the USA. They prove to be very satisfied with the OnGuard software, particularly in terms of its flexibility, among other things. What’s more, our solutions link up well with the strict compliance-regulations in the USA and there is a huge need at American companies to automate the management of the receivables.
Then you must have high expectations regarding the new office.
Taylor: “I anticipate a very successful future for OnGuard in the USA. Our software is very suitable for organizations in large areas, like the USA. Handling complaints is an important aspect of credit management, among other aspects. Finding solutions for complaints involves people, in which close contact with the client is crucial. It is a decentralized process. The larger the area, the more outlets and branches a company has. Using the DCMS-software by OnGuard, which makes use of Internet, credit managers can ensure that complaints regarding a service or product land on the right desk.” Eisenmann: “A complaint is an opportunity to show a client just how much service you can offer. Credit management not only takes less time with OnGuard, but the services also improve and become more professional too.”
Many software companies are having a very rough time, while OnGuard is expanding. How do you explain that?
Taylor: “Companies now place credit management and the importance of working capital high on the agenda. Companies must manage to remain liquid during this crisis. Banks are now less inclined to provide loans and therefore request more background information, such as payment risks and cash flow. OnGuard provides insight into this information. On the other hand, companies are nowadays forced, more than before, to timely collect amounts owed by the client. Companies often have to wait for quite some time before the realized returns are actually deposited into the bank. This is money that you, as an organization, are entitled to and that you can then use to make investments. There is much money to be earned by simply reducing the DSO (Days of Sales Outstanding) by a mere two or three days. That is the smallest amount of DSO-time that can be deducted with OnGuard. Companies now pay much more attention to credit management due to the economic crisis. That is a huge opportunity for OnGuard.”
How does that translate into results?
Taylor: “Last year was a very good year for us, with a substantial profit and a growth that we feel is satisfactory. Our goal is to increase our sales each year by 25 to 30 percent. Investments by Dutch small and medium-sized companies in particular have stagnated, but large, international companies still invest. I expect us to be just as successful in the USA as we are in the United Kingdom, where we experienced an exceptionally good year. That too is a large country that will find our software to be very suitable. The United Kingdom meanwhile accounts for a considerable part of our sales.”
Once the crisis is over, will the increased attention for credit management then slacken as well?
Taylor: “I am sure it will, but large companies will have then acquired a taste for adequately managing receivables. Smaller companies will follow. I expect credit management software to become widely accepted with time. If your credit management is in order, you no longer need go to the bank. Risk management is an important aspect of credit management. It is about adequately and timely assessing any changes in the pay behavior of clients. You know that something is wrong when a faithful client suddenly starts to pay his bills later and later. You can then accurately respond to this situation. The greatest risks in terms of pay behavior are not new clients, with whom you can be stern, or key accounts, with whom you have developed a personal relationship. No, the greatest risk lies with clients who make purchases every once in a while. The amounts can increase enormously before you know it.”
What else can we expect in the field of credit management software?
Taylor: “The software has become increasingly sophisticated during the past years, with more methods of analysis and risk models, for example. Consider, for example, the further development of the customer scoring functionality, which enables companies to evaluate the risks relating to the pay behavior of their clients more adequately, using up-to-date information from internal and external sources. These risk functionalities will be further developed in the years to come. The information will also be better tailored to the individual user, with handy tools and desktop gadgets. After all, different positions require different information on screen; a cash flow overview for the CFO, for example, a list of complaints for the account manager and an overview of outstanding entries for the manager receivables.”
What are the plans with OnGuard?
Taylor: “This year we plan to launch a series of innovating Internet products. Our strategy is furthermore to open a new branch abroad each year.” Eisenmann: “When I started working at OnGuard in June 2007, 40 people worked here. That number is now 75 and we intend to take on an additional 20 employees before the end of the year. Credit management is a high priority in times of crisis. OnGuard rises to the occasion.”
