Magazine article Business Credit

Clients Give Credit to Customized Credit Solution from Lexon

Magazine article Business Credit

Clients Give Credit to Customized Credit Solution from Lexon

Article excerpt

For years, the credit risk team at Reeds Financial Services, Inc. (RFSI), a subsidiary of Reeds Jewelers, Inc., a retail jewelry chain, used a DOS-based credit system that adequately served our needs. RFSI is the central credit office for the retail jewelry chain, and we manage credit services for all the retail stores including maintenance of our own in-house credit program. But, when we were confronted with being forced into investing in an expensive upgrade that appeared to have very little to offer us, the management team decided the time had come to find a product that better met our needs.

We shopped around for a new credit processing system for many months, but our search proved frustrating. We had a few demonstrations of the different products available. While the solutions on the market seemed capable, and in some cases even impressive, there just didn't seem to be a system geared toward the way REST does business.

We were looking primarily for a system that offered flexibility and management control. We wanted to be able to make policy decision changes on the fly, and we wanted those changes to take place immediately upon implementation. For example, if the risk management team detected a certain group of accounts or customers who consistently posed a risk to RFSI, we wanted the ability to adjust our system to either decline those customers or approve them with certain stipulations. REST found some systems on the market that had these capabilities, but those systems were either extremely expensive or they did not have the level of flexibility that our management team required. If RFSI had purchased a product off the shelf, the company would have had to spend a significant amount of time and effort to customize the system.

After exhausting our options, I decided to give an old colleague a call. John Dunning had worked with our previous credit system supplier, and I knew he had left about six years ago to pursue buying into an organization called Lexon Corporation. In our past business transactions, I was impressed with both his comprehensive knowledge of the credit industry and his work ethic.

It turned out that his company was currently working on a new credit solution that John thought might be of interest to RFSI. Lexon presented its concept, and although the product was still in its fetal stage, we were convinced that it held promise for us. John knew the ins and the outs of the credit business. When he showed RFSI his base programming, explained what the product would look like and what it would be able to do, my company was intrigued. We had such a high degree of confidence in Lexon's capabilities, we agreed to partner with them in an effort to co-develop a solution specifically tailored to our unique needs.

During the first few months after we made the decision to work with Lexon, we worked side-by-side with a development team specifying our needs for the product. Much of our work was based on our old system. We explained to the designers the limitations of our previous product and how we would like the new product to address needs that the old system neglected. In the retail jewelry industry, we are much more flexible than an institution, such as a bank, when we make our credit decisions. Our decisions can change based on new information that becomes available after the original decision has been made. …

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