Supplier of skilled labour to the oil and gas industry
Market - Global
Turnover- £50m
Our client had considerable outstanding debt tied up in disputed invoices. A diagnostic report was carried out to cover their whole order to cash process and measurements where taken. Our client used invoice discounting to fund their business, a condition of which was credit insurance.
The solution was to compile an in-depth credit policy that complied fully with the credit insurance policy, and was rolled out to all areas of the business to gain 'buy in' with the sales force and other departments. A dispute resolution management system was set up along with meaningful management reporting. KPI's were set. We also assisted our client with the recruitment of skilled and motivated credit control staff to ensure effective cash collection.
Within 8 weeks, our client was able to collect £2m that had previously been disputed. Our client gained the improved working capital due to a robust credit policy being implemented resulting in reduced interest rates with their financiers.
Recruitment consultancy
Market - Accountancy, Sales & admin
Projected Turnover £40k
Our client is a new start up company and wanted to protect themselves from bad debt and know how to go about collecting any outstanding invoices effectively.
The solution was to provide advice on terms and conditions of sale, look at credit risk assessments, provide template letters and advice on how to incorporate terms and conditions of sale, be proactive in collecting any outstanding payments whilst complying with current legislation and improving their client relationship.
Our client now has a bespoke framework to work within for credit control issues that is directly relevant to their business and their market place. Our client also has peace of mind.
Training provider
Turnover £4.5m
Our client had considerable outstanding debt.
The solution was to offer a third party debt recovery service; we effectively collected all undisputed debts on behalf of our client. We provided regular updates regarding progress of outstanding debts and any action to be taken as part of our service. We negotiated with debtors on our clients behalf to resolve disputes and gain payment.
To date, we have had successfully recovered 90% of debts passed to CMG for collection. This results in collection of more than £130k for our client that they had been unable to collect themselves.
Our client now has greatly improved cash flow and under the late payment of commercial debts legislation, our client's didn't pay a penny, their debtors paid for our services.
Mechanical and electrical contractor
Turnover £26m
Our client had problems getting outstanding retentions paid from main contractors.
We used our considerable experience in the construction industry to negotiate payments with their client's quantity surveyors. We collected £36k in unpaid retentions for our client.
Control systems contractor
Market - Construction
Turnover £500k
The directors of this small but rapidly growing company in the Construction industry, found they spent too much time chasing outstanding payment which greatly impacted on their ability to carry out their normal day to day work. Our client didn't want to involve a third party such as a factoring company as they where concerned about handing their clients to a third party who where only interested in collected payment of invoices, not improving their customer relationship.
The solution was to offer our client an outsourced, customer focused, credit control service where CMG acted as an undisclosed third party.
Our client now enjoys improved cash flow, we have helped them to reduce their overdraft facility by £30,000. Our client also has more time to carry out their day to day work, and has effectively delegated the cash collection side, the part they did not enjoy to CMG, a commercial credit management specialist.
Structural engineering firm
No. of credit Control staff - 3
Our client wanted to improve their collections staff's efficiency. After discussions with the client an in house training course was agreed upon. A training needs analysis was conducted and a training course delivered that was relevant to our clients business.
Our client's collection staff are now more efficient and motivated. Our client received funding from Skillworks towards our fees and therefore had an excellent return on investment.
Solicitor
No. of credit control staff - 4
Our client, a local, medium sized practice with several offices in the Liverpool and Wirral area, needed to improve collection performance to gain additional working capital to allow for much needed expansion.
The solution was an in house training course for the whole credit control team. Designed to be specifically relevant to solicitors, the training course helped the team to effectively negotiate with their clients, to show empathy together with firmness.
Our client now has improved collection performance in a customer focused way, thereby maximising working capital.