Expense Reduction Analysts’ consulting services in credit risk management have helped Romcab to see a significant increase in revenue and profit.
Romcab is a leading Romanian company, manufacturing copper and aluminium cables. The company achieved a turnover of over 120 million Euros in 2013, which is forecasted to grow annually by 40% over the coming years, and employs over 250 employees.
When the top Management team at Romcab met with Expense Reduction Analysts - Cristian Ionescu and his team -, it was at a very important time for the company as the Board had just approved a fast expansion on new European markets, such as Germany, Austria, UK, Italy, and others. To fuel this ambition development, Romcab needed some support for both larger exposure and more credit from their raw material suppliers; they also needed better credit limits from the credit insurance partners protecting clients’ portfolio against the risk of bankruptcy and payment default.
Expense Reduction Analysts experts Cristian Ionescu and Constantin Galchis soon succeeded in securing significant trade financing growth from several credit insurers and payment-guarantee partners, which boosted Romcab’s supplier credit; this enabled the company to almost double their supplier base and to decrease their dependency on a small number of suppliers. In parallel, this also helped Romcab to finance the acquisition of raw materials through means other than bank financing which contributed to further decrease in financial costs.
Additionally, Expense Reduction Analysts experts worked with Romcab’ Credit Risk Manager to advise on improving credit limits granted by credit insurers to allow the company to meet their sales targets and related profits. Thanks to this improved credit, the Romcab sales team was able to achieve a significant increase in the volume of sales and related profitability.
"I am delighted with the professionalism and great service delivered by the Expense Reduction Analysts team and I am proud to say that they are playing a very important role in our development plans. I feel that they are part of our company, and we developed a sound partnership based on trust, respect and exchange of ideas. With Expense Reduction Analysts’ support we are definitely stronger and we will be able to reach our very ambitious target of becoming a strong European player."
Zoltan Prozsser, CEO and major shareholder at Romcab