ShopOne Case Study2019-09-04T10:05:28-04:00

Reducing Receivables by 33% at Fast Growing Retail REIT

TODAY

ShopOne has provided unprecedented transparency to its tenants and cleaned up its receivables balance in the process. By implementing a solution that provides tenants visibility into their balances owing (including CAM billing and supporting documentation), allows them to self-serve on their own time, and lets them pay online using their preferred method, ShopOne has reduced its receivables by 33%.

With money coming in the door faster, ShopOne is able to make capital improvements to existing properties and buy additional properties, without having to rely on credit facilities. This new solution has afforded ShopOne the scalability required to achieve the company’s ambitious growth plans.

THE STARTING POINT

ShopOne had a visibility problem. Tenants didn’t know what they owed. Without the ability to provide easy access to CAM billings, among other issues ShopOne inherited from properties it had acquired, many tenants had receivable balances dating back years. Understandably, it led to a lot of disputes.

The AR Manager’s day was spent on the phone fielding questions and trying to get in touch with tenants to make them aware of their balances. In addition to that, she needed to pull all of the backup files to send to the tenant, and then following up when balances weren’t paid. With only one person responsible for AR, it was impossible to keep up and a lot of issues went unaddressed.

Payments were sent via check to a ShopOne office in Ohio where they were manually applied to the ERP system. It was tedious and time-consuming work and, from an internal control point of view, it wasn’t a good control.

Being a young company with ambitious growth plans, ShopOne needed to find a way to collect old receivables and build-in AR efficiencies in order to enable scalability.

THE SOLUTION

ShopOne implemented VersaPay ARC®, a cloud-based solution that automates the entire invoice-to-cash process: presentment, collaboration, collections, payments and cash application. With ARC, ShopOne improved communication with tenants, cleared up outstanding balances, saved time, generated efficiencies and enabled the business to scale.

“VersaPay’s solution is the perfect fit to help us scale our business and provide a great experience for our rapidly expanding tenant community, By providing better tools for our tenants we make it easy for them to do business with us and we receive payments faster and can manage the business more proactively.”

Joseph LoParrino, Chief Accounting Officer

ARC’s self-service tenant portal allows tenants to view their balances at any time and from any device so there are never any surprises. CAM billings, rent statements, tax billing and more are available to the tenant 24/7/365. When they do have questions or need clarification they can communicate with ShopOne directly within the platform. This level of transparency has cleared up balances dating back more than two years.

“ARC is a great system. It achieves everything that we were looking for. The overall implementation went well, much better than we thought. With the staff, the people from VersaPay helped us a lot. Very positive experience.”

Joseph LoParrino, Chief Accounting Officer

With ARC, many of the time-consuming AR tasks are now automated. ShopOne’s AR Manager now has time to focus on the real problem tenants. Due to ARC’s easy online payment options, more tenants are paying online which means less time is spent applying cash receipts to tenants accounts.

With time saved and more money coming in the door, ShopOne is positioned for success.

Industry: Commercial Real Estate
Invoices per month:
5,000
ERP:
MRI
Website:
shopone.com

ShopOne Centers owns and manages market-dominant, grocery anchored and necessity-based shopping centers across the country. ShopOne properties benefit from a diversified mix of high-quality national and regional tenants. The company has a self-managed, fully integrated operating platform led by an experienced management team. ShopOne leverages its best in class platform, local market knowledge, and operational expertise to maximize the value of the portfolio and support the growth of its retailers.

THE JOURNEY

Self-Assessment
ShopOne’s receivables balance was higher than it deemed acceptable.
Solutions Research
Looked to peers in the Commercial Real Estate space for recommendations and advice.
Provider Selection
Chose VersaPay ARC after seeing large CRE customers successfully roll it out.
Implementation
A smooth and quick implementation with the ShopOne team stating it was “the best” “implementation they had experienced.
Success Management
Working closely with the Client Success Manager to ensure further features are implemented – including sales reporting and credit card acceptance.

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