Friday Rant: The Receivables Exchange Needs to Market Less Like a Loan Shark

I'm a big fan of collaboration between supply chain financing and procurement/accounts payable to reduce supply risk and enable vendors to access working capable at more reasonable rates. I'm even a fan of The Receivables Exchange, one of the pioneering providers in the space. I'm not a fan, however of its marketing techniques to suppliers, which remind me of the type of pitch that a loan shark or used-car salesman might use if they had access to my email. For this Friday rant, I'll present a string of emails I received from a TRX account rep, and let you draw your own conclusions. I've added my own comments (in caps and brackets). Here goes:

From: Darryll Gillard
Sent: Friday, February 05, 2010 9:10 AM
To: Jason Busch
Subject: Information Request

Jason,

Many of the Financial Executives and CEOs we work with claim it's one of the biggest challenges of the downturn: more and more customers demanding extended payment terms while cash reserves and credit lines remain tight or non-existent. Business executives tell us this is creating numerous operating challenges, including:

  • Fluctuating cash flow
  • Helplessness to plan for future growth
  • Inability to manage cost of capital
  • Reduced cash-on-hand …
  • (Email continues)

***************

From: Darryll Gillard
Subject: RE: RE: Information Request
Date: February 11, 2010 11:54:40 AM CST
To: Jason Busch

Jason,

I don't mean to interrupt [YES YOU DO] but I just wanted to follow up to see whether you, or someone you could direct me to would be available for a very brief discussion about your operating capital needs. Please just respond to this email with a "Yes", call me at ------ to schedule a time for us to talk.

Regards,
Darryll Gillard

***************

From: Darryll Gillard
Subject: RE: RE: Information Request
Date: February 25, 2010 8:33:14 AM CST
To: Jason Busch

Jason,

I don't mean to be a nuisance [BUT I KNOW I AM BEING ONE BASED ON SPAMMING YOU SO MANY TIMES], but I wanted to try one more time to see if you, or someone you could direct me to would have a couple of minutes to discuss how my company can increase your access to working capital, a process which the Wall St. Journal calls, 'An idea whose time has come.' Just reply to my email, or contact me at the number below and I'll follow up with you.

Best,
Darryll Gillard

There's no need to rehash the rest of this spam trail; I think you get the point. It's a shame that The Receivables Exchange is resorting to marketing campaigns that provide anything but substance in describing its specific value proposition and using the old "re" game to get someone to open an email. Moreover, it's humorous that a marketing/analyst/PR contact made its way into their lead database. If I were a supplier in need of cash, at this point I'd be annoyed, not educated. And that's too bad, given the real value that TRX and others like it can provide.

Jason Busch

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