Consultancy Case Studies

Waste Management Company
Market: small retail companies & independents in hospitality | 7212 Live Accounts

Issue

• Debt levels increasing towards £1m overdue 
• No processes in place for chasing failed or cancelled Direct Debits accounts or escalating accounts 
• 50% or more customers opening times were evenings or early mornings only 
• Client hadn’t contacted customers for payment for more than 3 months, therefore, no knowledge or disputed or undisputed debt 

Solution

• With agreement from client, temporary and current staff worked overtime in early mornings and evenings to target specific customers 
• Worked with client to implement on hold process for customers failing to sign up to Direct Debits or clear outstanding debt within agreed timeframe 
• Designed & implemented collection strategies 
• Automated process where possible keeping human intervention where necessary  
• Introduce statuses for each type of customer or service to allow team members to concentrate on specific groups 
• Create reports with client splitting disputed and undisputed debt and separate teams into two  
• Implemented disputed debt management process setting KPI’s with dispute resolution owners 

Result

• 80% of customers re-signed back up on Direct Debit to reduce time spent chasing debt 
• Disputed debt levels reduced by £100k in 2 months 
• Overdue debt levels reduced significantly due to accounts being placed on hold

Technical Testing and Analysis Company
Market: Construction & Retail| Turnover: £10.8m | 340 Live Accounts

Issue

• Poor cash collection
• Client wanted better understanding of where the outstanding debt was sitting

Solution

• Worked with client to produce reports that highlighted disputed debt and value that was collectable
• Weekly conference calls to discuss high profile accounts and any disputed debt that require input from multiple teams and how to coordinate this

Result

• Debtor days reduced from 100 to 59
• Improved Ownership of disputes and agreed timescales for resolution
• Improved forecasting

Supplier of skilled labour to the oil and gas industry
Market: (Global) | Turnover: £150m | Invoice Finance

Issue

• Considerable outstanding debt tied up in disputed invoices
• Used invoice finance to fund their business, a condition of which was credit insurance

Solution

• Carried out a diagnostic report to cover the whole order to cash process
• Compiled an in-depth credit policy that complied fully with the credit insurance policy and rolled out to all areas of the business to gain ‘buy in’ with sales force and account managers
• Set up dispute resolution system along with meaningful management reporting
• Set KPIs
• Assisted with the recruitment of skilled and motivated credit control staff to ensure effective cash collection

Result

• Within three months our client was able to collect £2m that had been previously disputed
• Gained improved working capital due to robust credit policy
• Resulted in reduced costs with financiers

Recruitment consultancy
Market: (Accountancy, Sales & Admin) | Projected Turnover: £40k

Issue

• Client was a new start-up company and wanted to protect themselves from bad debt, and know how to collect outstanding invoices effectively

Solution

• Delivered advice on terms and conditions of sale, and provided template letters and advice on how to incorporate the terms
• Looked at credit risk assessments
• Advised them how to be proactive in collecting any outstanding payments whilst complying with current legislation and improve their client relationship

Result

• Client now has a bespoke framework to work within for credit control issues that is directly relevant to their business
• Peace of mind

Building Services Consultants
Turnover: £600k

Issue

• High debtor days

Solution

• Carried out a diagnostic review covering ‘Order to Cash’ process, identifying under-performing areas.
• Designed & implemented an in-depth credit policy.
• Coached existing staff to carry out credit control functions

Result

• Skilled and motivated credit control staff
• Reduction in debtor days from 92 to 45

IT Support Company
Franchised

Issue

• Credit policy and procedures required to roll out to all franchisees
• Policy to include general advice to franchise holders to help them implement the policy

Solution

• Designed & implemented an in-depth credit policy together with training notes
• Ran classroom style training course for franchise holders

Result

• Consistent and proactive approach to credit management across the brand

Marketing Company
Market: Local Government, Health Authorities, Corporate

Issue

• Client typically agreed to their customer’s terms and conditions
• Lack of understanding the commercial aspects of accepting their Client’s terms without negotiation
• Client lost money on several contracts as the scope of their quote was not specific enough

Solution

CMG UK provided advice on:

• What to be aware of in customer’s terms and conditions and what points to negotiate on
• Ensuring there are consequences for late payment in all contract terms or they can rely on Late Payment Legislation
• Ensuring the scope of work was very specific and how any works outside the original scope would be charged
• Being aware of their contract obligations to ensure they deliver as per the contract and cannot be held in breach of contract.

Result

• Client now has reduced exposure to risk
• T&Cs can now be used as a form of leverage to receive payment from late paying customers.

Provider of security systems and man-guarding
Turnover: £3.7m

Issue

• Client wanted to improve cash flow by invoice financing but their current credit management process was not compliant to underwriter’s requirements

Solution

• Refined all aspects of credit management
• Set up management reports and set collection targets based on debtor days
• Addressed the viability of invoice financing for the business and made them aware of the restrictions it would place on the business
•  Liaised with provider to find most suitable deal for client
• Recruitment of credit control staff

Result

• Collection performance has improved dramatically, significantly improving overall cash flow of business and therefore the business has not needed to use invoice finance
• Morale of staff has greatly improved through significantly increased confidence in the work they carry out

Provider of monitoring service to vulnerable and elderly
Turnover: £800k | Approximately 5500 live accounts

Issue 

• Client has large volume of customers and invoice types that made allocation of receipts very time consuming with a high error rate
• Outstanding debt was considerable due to the volume of customers

Solution

• Identified and implemented a software package that could be amended to suit the client’s needs that would deliver the following:
  • Automatic allocation of standing orders
  • Workflow steps to allow credit control calls and letters to be more efficiently managed
  • Coached staff in credit control techniques, general sales ledger management and reconciliations
  • Set up management reporting to chart improvements in collection performance and to aid strategic management decisions
  • Set up process to reconcile the operations system to the finance system for revenue protection

Result

• Significantly improved cash flow
• Reduction in accounts not billed in error
• Accounts staff trained and motivated
• Reduction in number of staff hours spent in accounts due to efficiencies

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