Case studies
Case study: Cold-Fix
The scenario
Cold-Fix was experiencing late payment of invoices by a major customer causing severe cash-flow issues and threatening the future of the business. This highlighted the need to diversify, to attract and work with a broader range of clients so as to limit the risk of disaster that could be caused through the non-payment of outstanding debts, in essence spreading the risk and not holding all their eggs in one basket.
To achieve this the client needed to firstly address the issue with the outstanding and overdue debt and secondly free up investment for expansion and growth.
The brief and challenge to Credebt
To initiate a process to collect the overdue debt whilst exploring the options to secure monies to be used to fund the acquisition of new clients.The solution provided by Credebt
Initially, drawing on our many years of collections experience we went about chasing and collecting the outstanding debt from the client in question. By following our tried and tested methods we successfully recovered all of the outstanding debt, providing an immediate injection of much needed cash back into the business.Secondly, through Factoring we were able to make available additional monies that allowed the business to remain solvent, thus funding the growth and expansion plans in their search for a new and more varied client base. Through our existing relationships with Factoring companies we were able to source the best and most appropriate deal based on our client's specific set of circumstances.
Finally, by providing ongoing outsourced Credit Control we have implemented a set of procedures and policies to ensure the efficient management of our client's credit department, allowing them focus their time and energies in their business.
Client testimonial
"Credebt are just like Ronseal, they do exactly what it says on the tin! Taking away the chasing and recovery of old debt by outsourcing our Credit Control to Credebt freed up valuable time and more importantly freed up monies owed to us, allowing us to continue trading and not let debtors bankroll their companies on our money free of charge. Many thanks to Glen and his team."
James Fey, Cold-Fix
Case Study: Standfast Security
The scenario
Over time the level of overdue debt within the Standfast Security had grown resulting in pressure being placed on cash-flow and Debtor Days Outstanding reaching unsustainable levels. The collection agency previously appointed to help resolve these issues had proved ineffective and their heavy-handed attitude had resulted in deterring rather than encouraging timely payment. The outcome, a continued cycle of bad debt coupled with discontented customers.
The brief and challenge to Credebt
To reduce the overdue debt and Debtor Days Outstanding to an acceptable level and to regain the trust of our client's customers by helping them meet their payment commitments in a fair and timely manner.The solution provided by Credebt
A dual strategy of:1. Resolving the issues with any outstanding debt. Using our many years collection experience we went about sucessfully collecting and reducing outstanding debts, thus improving short-term cash-flow and providing an injection of cash into our client's business.
2. Improving the process of collection of monies owed, thus reducing the amount of ongoing overdue debts and improving the Debtor Days Outstanding situation. By implementing a set of bespoke Credit Policies and Procedures we were able to enhance the process by which any overdue payments were pursued and collected. These Policies and Procedures benefitted both our client and their customers. Correspondence and communications with customers was designed to be firm yet fair, taking the customers through a structured process and giving them every possible chance of meeting their payments in a timely manner. This resulted in customers feeling they were being treated in a just and professional manner, resulting in swifter payment of invoices and ultimately, a reduction of 15 days in Debtor Days Outstanding.
Client Testimonial
"Credebt has recently set up a complete credit control system for us and within two months of starting the process we have reduced our average debt time by 15 days – I am confident that this figure will reduce even more as we continue to use the processes."
Philip Dadd, Owner/Managing Director, Standfast Security
