Case Study 8

Bank expecting a £1.2m loss gets full repayment of their Capital


We successfully assisted with verification and monitoring of a South East Food business after Fraud was discovered on our initial visit, following an Audit that came back inconclusive.

The business had been ‘Fresh Air Invoicing’ for a period, and the real value of the Debt was less than a third of that being reported on monthly reconciliations.


On the day we were instructed to carry out a Debtor Collateral Review, the Invoice Funds Out position was £2.7m with an alleged Ledger of £5.4m with more than 1400 Debtors.

Credebt discovered that from a £5.4m Ledger, over £2m was inter-company and connected party transactions, and £1.6m was confirmed Fresh Air Invoicing, with a further £300K suspected as being so too.

The real value of the Ledger was therefore £1.5m versus the £2.7m Funds Out.


This was a complex case, and a decision needed to be made that would recover the Funder’s position to a point where the Funds Out and real value of the Ledger at least matched, otherwise a large write off would be required.

In discussion with the Funder it was agreed that a substantial verification exercise would take place. Collections would be monitored closely, and all new invoices being uploaded would be scrutinised to ensure they were correct. The Client was left to believe that their story surrounding the Ledger had been accepted.

Only Critical payments would be allowed and the Client was given Notice of Termination and told to look for an alternative Funder, as well as the majority shareholder being expected to fund the business in the interim period.



Within 3 months of our initial involvement, all invalid invoices had been written off, new invoices uploaded were correct and the Funds in use had been reduced from £2.7m to £600K while the Ledger had been tidied up and now reflected the true value owed to the company.

This resulted in the business being far more attractive to alternative Funders, and the client was managed away and our Funder Client was repaid in full.

We cannot stress enough that if we had pushed for the Collect Out (for which we had already agreed a rate), then our Client would have lost money, so it was not the right thing to do. 

As a result, we were paid for the verification and other work, but it was a fraction of what we would have earned through a Collect Out. It is more important to us that our Funder Client obtained the best possible outcome, and we will always work in our clients’ best interests, even if it means a lower Fee for us.

Funder repaid in full



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

I initially contacted Credebt through LinkedIn and followed up with a meeting in person. Glen is a well presented and commercially sound. Glen and his team have worked on an extremely tedious debtor ledger and they have managed to work their magic, realising part of the ledger.

Derek Morton - Kay Johnson Gee

Get In Touch

We work for Invoice Finance companies, Insolvency Practitioners and Turnaround Specialists throughout the country. If you would like us to contact you to discuss our services please send us your details.

our offices

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Credebt Certifications

Credebt Limited: Registered in England Number: 6933734 Registered Office: Trym Lodge, 1 Henbury Road, Westbury on Trym, Bristol BS9 3HQ
Data Protection License Number: Z1837677 | Credit Services Association Membership number: 804

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