Global Real Estate Company Case Study2019-05-23T16:41:01-05:00

Cutting ADP by 54% at one of the Largest Global Retail Real Estate Companies


A large retail real estate company has dramatically reduced late paying and default tenants. By implementing a solution that has an easy to use interface, sales collection functionality, accepts a wide variety of payment methods, and has the ability to handle pre-payments, its average days to pay (ADP) within the new platform is 54% less then when compared to payments made outside of the platform.

Automating the accounts receivable process, including 100% auto-reconciliation for payments made via the new platform, has allowed the company to refocus energy on high-value tasks, instead of chasing tenants.


A highly manual AR process resulted in a number of the company’s tenants in default or not paying on time. Invoices were sent out via mail and provided tenants with limited visibility into the variable billings that change each month, including; credits, disputes, CAM backup, and reconciliation. Payments were accepted via checks mailed to a lockbox or delivered in person to one of the retail properties. With such a wide variance in tenant sophistication, from large national retailers to small mom and pop shops, tenants weren’t provided with payment options that suited their specific needs which led to late payment or no payment.

The company was lacking visibility. It was unable to easily track key AR metrics such as days sales outstanding (DSO), average days to pay (ADP), and paying/non-paying tenants. There was also little to no visibility as to which tenant received invoices, commented on invoices, or asked questions on invoices.

With limited visibility and tenants demanding better user interfaces and payment options, a change had to be made.


The company implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. WARC automated many of the manual tasks that proved inefficient in the AR process. ARC’s real-time reporting provides a clear view of the core accounts receivable metrics and both AR and mall staff now have complete visibility into tenant payments.

Using ARC’s in-platform messaging functionality, all of the back and forth communication between the AR team and tenants is now tracked and visible. Via the payment portal, tenants of all sizes have access to their accounts, including variable charges and the status of disputes, and can make payments easily within the platform with one-click.

Late paying tenants are paying faster, and delinquent tenants are making payments. Within the first few weeks of launch, one tenant made 8 payments covering 8 months of past-due rent. Tenants have called the new platform “awesome”!

Industry: Commercial Real Estate
Invoices per month: 5,000+
ERP: JD Edwards


Reviewed the impact current payment options and AR processes were having on level of non-paying or late paying tenants.
Solutions Research
Compared all major players based on three main criteria - General Vendor Information, Business Factors, and Technology Factors.
Provider Selection
Selected VersaPay due to its CRE experience, positive reference calls, breadth of functionality, and focus on compliance and security.
From contract signed to initial roll-out, ARC was implemented in 3 months. Launched with a pilot group of 2 properties then rolled out across remaining properties in 8 waves.
Success Management
With ongoing support from VersaPay, the company has nearly tripled adoption since launch by rolling out a Spanish language version, allowing credit and pre-payments by division, and enabling sales reporting.

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