Should My ITAD Provider Be Offering Positive Net Cash Flow Services?



The goal of any business is to have a positive net cash flow. You want more money coming into your business than is going out. You need enough money to cover salaries and other standard bills and expenses. If you have a strong positive cash flow, the money that’s left over after bills can go into savings and be used to upgrade your company’s building and equipment.

Reinvesting and growing your business is important, but it can be hard for companies that are starting out or have missed vital opportunities to boost income. Most companies create cash flow by selling a product or service. There are other ways to boost cash flow, however. The best place to start is by choosing an ITAD provider that offers positive net cash flow services.

How Can an ITAD Provider Help Create a Positive Net Cash Flow?

IT and Electronics Asset Disposition (ITAD) services are all about recycling and refurbishing electronic devices in a responsible way. There are three main areas of consideration when it comes to responsible recycling and reuse:

  1. Protecting the environment
  2. Protecting private information
  3. Securing data

How does this help create a positive net cash flow? It does in several ways. It helps you avoid hefty fines from the EPA or state agencies. It keeps you from being sued for failing to take precautions with the private information of your clients, consumers, contractors, vendors, and/or employees. It also returns the value of electronics your business no longer needs but still are worth money. Here’s a closer look at how ITAD services help you keep your cash flows strong.

ITAD Protects You From Fines

Currently, half of all the states in the U.S. have legislation in place that requires electronics recycling. Most states require the manufacturers to pay the cost of recycling, which helps keep costs low. Nineteen of the states expressly ban electronics from landfills and others consider the items to be hazardous waste and also have bans in place. If you dispose of electronics incorrectly, such as tossing them in the trash, you face fines.

AT&T faced millions in fines back in 2014 when they were caught disposing of old equipment in California landfills. In an agreement with the state, the company had to pay just over $23 million in civil penalties and another $28 million for improvements over several years.

Partner with an ITAD provider and ensure your recycled electronics are properly disposed of. With a company like ERI, nothing is sent overseas. We have eight facilities in the U.S. that process e-waste responsibly following AAA NAID, e-Stewards, ISO 9001, ISO 14001, OSHAS 18001, and R2 (Responsible Recycling) protocol.

Data Destruction Protects Private Information From Theft

It’s a company’s responsibility to protect the private information of customers, employees, vendors, etc. Data destruction must be utilized to ensure this information is wiped from any electronic device that’s been recycled or resold.

ERI Direct provides data destruction services both at their site or yours. You can witness the data destruction, access MyTrackTech to “watch” exactly where your electronics are and what stage of the process is currently happening. We provide four levels of data destruction. Most clients require Standard Compliance that meets NIST 800-88 Rev1 standards for clearing, purging, and destroying data. If you need a higher level of data destruction, we also offer:

  • Enhanced Compliance – Uses TSA certified drivers, lockboxes, and video verification that meets NAID certification protocol.
  • High-Security Services – Follows NSA/CSS Storage Device Sanitization protocol that includes specially trained personnel who are U.S. citizens, electronic shredding to pieces that are no larger than 2 millimeters in edge length, and client approval of the recycling specifications.
  • Demilitarization: Follows NSA/CSS Storage Device Sanitization protocol and requires the client and a government representative to escort materials into the secure facility. Non-essential staff is removed from the area prior to this level of data destruction.

When you make sure the data is destroyed properly and at the required level for your business, you avoid fines for allowing data theft or a breach. Think about the amount Equifax was fined for not keeping private information safe. The FTC fined Equifax up to $700 million for failing to secure the data that was stolen.

Remarketing Captures Remaining Value in Unnecessary Electronics

For the electronics that have value, you can recapture some of the resale value. That older laptop you don’t use could be valuable to someone else. ERI tests and audits the electronics you have to see if it’s worth refurbishing and reselling. Sensitive information is removed, the items are repaired, and it’s then valued using current market values to see what the return-on-investment is. Even if an entire device isn’t useful for resale, some of the components may be. You’ll capture some of that income and add it to your positive cash flow.

Should My ITAD Provider Be Offering Positive Net Cash Flow Services?

This greatly depends on the quality and quantity of your electronic devices.  ERI has worked with many new clients on developing cash flow positive ITAD programs, even when other vendors have charged them for the same services.  The best examples of these can be found on our case study and white paper page, where we highlight several campaigns that ERI has been able to turn ITAD from an expense to a revenue generator.

Give ERI a call to learn how the ITAD services help you maintain positive cash flow. We’re happy to walk you through the services that will benefit your company and answer your questions.

Author: ERI Direct