We successfully reduced the old debt (recoursed value) from £2.2m to £642k and the DSO from 100 to 62 within 3 months, for a Recruitment Business in London.
Credebt were asked by the Bank’s Invoice Finance Division to help a Recruitment business and engage directly with the business to get things back on track.
On a £45m turnover for the group they had an £8m ledger and £5.5m funds in use.
The 90-day plus column was over £2.2m and the DSO had drifted up to 100 days.
Following our initial visit and review, the business did not immediate engage with us. The business was under-staffed regarding Credit and Collections, and the resource they did have was poor and underperforming.
After a significant Bad Debt and staff changes (which we had advised were necessary), the business realised they required help and we were engaged to provide that help.
Credebt worked with the company to attack the Aged Debt quickly.
In addition, we wrote a Credit Policy and Procedures for the business that would prevent the re-occurrence of the situation.
We also helped identify key positions that the business required, including salary levels and experience, and we assisted with the recruitment process.
Within 3 months the DSO was reduced from 100 to 62 days.
The 90-day plus column was reduced from £2.2m to £642k.
Responsibility for all the collections and further progress was handed over fully to the in-house team that had been assembled.
Happy Client and happy Bank – a true win-win situation.
Old Debt significantly reduced
How can we help?
Credebt provide a full range of expert Receivables Management Solutions to the Insolvency Profession, the Invoice Finance Industry, Turnaround Practitioners, 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 email@example.com
“I have instructed Credebt on several occasions and have always been happy with the results. Credebt are out on site quickly and provide feedback as soon as they are on site. Very useful for both in-life cases and new business opportunities.
I would have no hesitation in recommending the Credebt Team for Risk Management and Receivables Management work.”
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