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Outsourced Collections Case Studies

Outsourcing Services

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

I.T. Support Company
Market: Schools and Universities and Media| Turnover: £1.6m | 95 Live Accounts
Issue
  • Debtor days an average of 65 days
  • Limited budget to spend
Solution
  • Dedicated credit controller with agreed monthly hours
  • Design and implement collection and escalation process
  • Implement bulk automatic email to reduce time required to chase debt.
  • Provide weekly reports to suit client’s needs

Result
  • Debtor days reduced to an average of 40 days
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
Control systems contractor
Market: (Construction) | Turnover: £500k
Issue
  • Spent too much time chasing outstanding payment which impacted on ability to carry out normal day to day work
  • Did not want to involve 3rd party such as factoring company who were only interested in collecting payment, not maintaining positive customer relationships
Solution
  • Provided outsourced credit control service that was customer focused
  • CMG UK acted as an undisclosed third party  that helped to maintain customer relationships
Result
  • Significant improvement in cash flow
  • Reduced their overdraft facility by £30,000
  • More time to carry out day to day work, after delegating cash collection to CMG UK
Downstream Access Company
Turnover: £105m | High Growth | Invoice Finance Facility
Issue
  • Debtor days at 97
  • No terms and conditions of sale
  • Manual invoicing using Excel
Solution
  • Provided outsourced credit management service
  • Worked with solicitors, directors and sales to  produce new terms and conditions appropriate for the industry
  • Set up process to roll out new terms and conditions to existing customers ensuring acceptance by conduct can be demonstrated if required
  • Identified and integrated billing software customised to suit business needs
  • Designed and implemented dispute resolution process gaining buy in from all departments
Result 
  • Debtor days reduced to an average of 30
  • Significant reduction in time for producing invoices and improved error rate
  • Protection from consequential loss claims

Recruitment Company
Turnover: £2.5m | Invoice Finance | 50 Live Accounts
Issue
  • High debtor days of 76
  • Needed help with disputed invoices
  • No credit limits set for customers
Solution
  • Full outsourced credit control service
  • Designed and implemented dispute resolution process, gaining buy in from all departments
  • Implemented a process to take legal action against delinquent debtors
Result
  • Reduction in debtor days to 43 within 4 months
  • Disputes dealt with in a timely manner for faster payment
Supplier of Services to Legal Sector
Turnover: £4.6 million | 700 live accounts
Issue
  • Poorly performing credit control processes
  • No credit risk assessment
  • Inadequate terms and conditions; resulting in poor collection performance
  • Considerable bad debt write off
Solution
  • Reviewed and updated T&Cs to make them more appropriate for business
  • Put credit risk management processes in place
  • Strengthened collection strategy
  • Amended their CRM to improve automation procedures
Result
  • Improvement in collections by 13.5% within a short period of time
  • More contact with customers therefore better customer relationships
  • Improved efficiency with updated CRM

Download our Outsourced Collections Case Studies

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