The framework pays for itself the first time it catches a Day 60 shortfall — and the downside of not having it is a facility termination event.
Facility termination + penalty interest. The revolver is gone — and so is the business model that depends on it.
Lender seizes the retail AR portfolio. Customer receivables — the core asset — are no longer under REP control.
$500K–$2M+ in distressed terms. Short-notice capital at punishing rates, if available at all.
Customer service degradation, supplier contract uncertainty, procurement pipeline stall.
PUCT / PUC compliance flags triggered by financial instability. Retail license risk.
Counterparty and customer confidence loss. Supplier terms worsen. Acquisition channel dries up.
No surprise at Day 89. Treasury knows daily whether repayment is on track — 90 days of clarity, not one moment of panic.
30 days to course-correct. Billing acceleration, DSO push, dispute prioritization — all viable at Day 60, impossible at Day 85.
Billing cash accelerated 5–10 days. Every unbilled exception resolved before it becomes a late payment.
1–3 day DSO improvement = $150K–$500K freed per cycle. Collections rigor compounds over time.
Eliminate $500K+ true-up shocks. ISO charges accrued within 5% of actuals — no budget surprises at final statement.
Facility renewal confidence built. Structured reporting earns better terms, lower collateral thresholds, preferred supplier status.
Conservative estimates on a $30M retail energy portfolio. Actual value compounds with each subsequent revolver cycle.
Post-2023, revolver counterparties conduct more rigorous mid-cycle checks. A structured framework is increasingly a facility requirement, not a nice-to-have.
Capacity obligation charges, RPM true-ups, and congestion costs keep rising. Clock 8 exposure compounds every quarter without visibility.
Waiting another quarter pushes full rollout 90+ more days into the future. Every cycle that runs without the framework is a cycle relying on luck instead of process.
REPs with institutional-grade working capital discipline earn better facility terms, lower collateral thresholds, and preferred supplier status.
Not one more missed cycle. Let's align stakeholders and get started.