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Debt Recovery Case Studies

Debt Recovery Services

Please find below our Debt Recovery Case Studies which provide feedback and success stories from past clients. 

Temporary Job Agency Firm
Market – Industrial, Hospitality & Event Sectors
Turnover: £18.2m 1200 live accounts
Issue
  • Debtor days an average of 100
  • Little management reporting
  • Debt status not visible
  • Account names in incorrect legal entity resulting in issues when taking legal action
Solution
  • Design and implement collection, escalation and legal process
  • Make recommendations for improvement to customer on-boarding process.
  • Credit check all new accounts and advise on credit limit setting
  • Designed and implemented dispute resolution process
  • Design management reporting to suit client’s requirements
  • Set up bulk automatic email for small value debt
  • Weekly account review calls with client
Result
  • Debtors days reduced to an average of 50 days
  • Reduced 90day+ outstanding debt figures by more than 75%
  • Improved disputed debt value & volume
  • Improved success of legal action
Training provider
Turnover: £4.5m
Issue
  • Considerable outstanding debt
Solution
  • Offered our third party debt recovery service
  • Provided regular updates regarding progress
  • Negotiated with debtors on our client’s behalf to resolve disputes and gain payment
Result
  • Successfully recovered 90% of debts passed over to CMG UK for collection
  • Resulted in collection of more than £130k that they had been unable to collect themselves
  • Client has greatly improved cash flow, and under late payment of commercial debts legislation, didn’t have to pay a penny, the debtors paid for our services
Mechanical and electrical contractor
Market: Construction | Turnover: £26m
Issue
  • Client had problems getting outstanding retentions paid from main contractors
Solution
  • Used experience in the construction industry to effectively negotiate payments with their clients’ quantity surveyors
Result
  • Collected £36k in unpaid retentions for our client
Recruitment Company
Permanent Placements | Market: Surveyors, Solicitors
Issue
  • Client had a number of outstanding debts from a few customers, with some disputed
  • Our client had invoiced for an introduction made between their customer and a job candidate; the customer subsequently used ‘behind your back’ tactics to hire the candidate without clients’ knowledge
Solution
  • The outstanding debt was passed over to CMG UK for recovery
  • Analysis of client’s terms and conditions found that they were entitled to payment from the introduction of the candidate to the company, disputed the fact the company hired the candidate at a later occasion
  • A letter before action was sent to the debtor showing all documents that would be relied on if the legal proceedings where issued proving that there was no doubt that our client was entitled to payment in full
  • The debtor paid the full invoice value however refused to pay interest, compensation and debt recovery fees. Court action was started to recover these costs, the Judge was requested to strike out their spurious defence as the principle debt had been paid in full
Result
  • The debt was paid in full
  • The debtor paid the additional costs and interest after application to strike out  the spurious was made. They did not wait for the Judge’s decision as it may have resulted in a County Court Judgment against them
  • Client proceeded to bring CMG UK on as their outsourced credit control team so that we could use our expertise to reduce the time taken in collecting invoices and resolving disputes

Roofing Contractor
Market: Sub-Contract and Construction
Issue
  • Client was owed £115,960 and had not been successful in collection the balance themselves
  • Wanted quick resolution of the issue
Solution
  • CMG UK were brought in to add greater impact to the matter
  • A letter before action was sent to the debtor showing all documents that would be relied on if the legal proceedings where issued showing our client was entitled to payment in full
Result
  • After much negotiation using contractual information as leverage, our Client decide to compromise and accepted payment of the principle debt only, to ensure quick resolution
  • Our client received 100% of the principal debt

Download our Commercial Debt Recovery Case Studies

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