Case Study 10

We helped restructure a distressed business and collected £9.5m

summary

For a South East based Freight Company, Credebt greatly improved the overall Debtors position, reduced Debts, took over Collections, assisted with Staff Recruitment and wrote a Credit Policy and Procedures from scratch for the company to follow.

Facts

The family run business had grown from £12m to £22m in 12 months and was making a substantial loss while doing so. This was due to their internal controls being extremely poor.

They owed £3.2m on their Invoice Finance Facility and had a £1m overdraft.

We were instructed by the Bank’s Invoice Finance Team, as well as the Main Bank, to get the Ledger Management under control and reduce the Overdue Debt as soon as possible.

Once this was complete, it was agreed that we would create a Credit Policy and Procedures Manual, and assist with implementation, as well as Staff Recruitment.

actions

Credebt engaged directly with the Company and took over the Ledger in its entirety, at no cost to the Invoice Finance Company. We spent 4 months maximising the Cash Collection, whilst reviewing and reducing all bottlenecks with the Order to Cash process.

Two members of our Team were on-site several times each week to work through queries. Remote access to invoice, pad and bank systems were obtained to work as efficiently as possible.

We met up with some of the largest customers to assist with query resolution and we set up an adequate and effective Query Management System.

For the first month, we reported back to the IF Company daily, and weekly after that. We had conference calls or physical meetings to go through issues every morning at 10am for the first four weeks, and at least twice a week after that.

 

Results

We collected £9.5m in 4 months, whilst reducing the Invoice Finance Facility down to £1.8m. Queried invoices were reduced from £1.5m to £212K.

We wrote a robust Credit Policy and Procedures Manual, which ensured the Company was Invoice Finance compliant. We assisted with monthly reconciliations and repaired the relationship between the Company and the Invoice Finance Provider.

We helped them recruit 2 Credit Control staff, using our expertise to find the right people for the job. We conducted the interviews and prepared their job specifications.

We exited the business after nearly 4 months as they were now in a position to successfully cope themselves.

We kept in regular contact with the client to ensure that things went according to plan. Over a year later we were still in contact and things were very much still on track, with a happy Client and their happy Customer.

Business rescued in 4 months

million recovered

How can we help?

Terry Wo 

Credebt provide a full range of expert Receivables Management Solutions to the Insolvency Profession, the Invoice Finance Industry, advisers and their clients, from full sales ledger recovery to outsourced credit control.

For more information about how we can help call 08456-6385256
or email our MD, Glen Morgan at glen@credebt.co.uk

Glen is full of energy and gets results – fast. I would have absolutely no hesitation in recommending Glen and Credebt to my clients.

Terry Wolfendale - Shawbrook Bank

Get In Touch

We work with businesses of all sizes from all over the country. We’re happy to visit or work via phone and email so get in touch today and we look forward to helping you soon.

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Credebt Limited: Registered in England Number: 6933734 Registered Office: Trym Lodge, 1 Henbury Road, Westbury on Trym, Bristol BS9 3HQ
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