We reviewed and audited the Order to Cash process and produced a Report showing the collectability of the £5.5m Ledger with a £3.9m Funds Out position.

We carried out an extensive verification exercise to ensure the potential new Funder was comfortable with the level of verified Debt prior to buying out.

The first Funder couldn’t get credit approval for taking on the Ledger, so we reported to two further Funders who were interested, all at no charge to them.

One of them bought the Ledger and agreed to fund the New Company, as well as take on the Collection of the Ledger with their in-house Collection service.

We were instructed by the Administrator to monitor the Collections and ensure the Collection performance was adequate. We were also asked to advise when the surplus was reached and exceeded, and payment was therefore due to into Administration.

The New Company proposed a deal to purchase the surplus Ledger with a £50K payment on day one and a 70:30 split thereafter.

The Funder was repaid in full prior to Administration, with a minimum of fuss.

We advised the Administrator to get a better deal from the New Company and they ended up agreeing to pay £200K on day one and an 80:20 split thereafter, resulting in the Administrator getting £135K more than they would have with the original deal.

This is an example where Credebt ended up taking only a small fee for the Monitoring of the Collections. Long term relationships are very important to us and we continue to work with this Insolvency Practitioner, and all the Funders that we dealt with on this occasion.