Case Study 13
DSO reduced from 100 to 62 in 3 months and full team recruited to maintain best practice
summary
We successfully reduced the old debt (recoursed value) from £2.2m to £642k and the DSO from 100 to 62 within 3 months, for a Recruitment Business in London.
Facts
Credebt were asked by the Bank’s Invoice Finance Division to help a Recruitment business and engage directly with the business to get things back on track.
On a £45m turnover for the group they had an £8m ledger and £5.5m funds in use.
The 90-day plus column was over £2.2m and the DSO had drifted up to 100 days.
Following our initial visit and review, the business did not immediate engage with us. The business was under-staffed regarding Credit and Collections, and the resource they did have was poor and underperforming.
After a significant Bad Debt and staff changes (which we had advised were necessary), the business realised they required help and we were engaged to provide that help.
actions
Credebt worked with the company to attack the Aged Debt quickly.
In addition, we wrote a Credit Policy and Procedures for the business that would prevent the re-occurrence of the situation.
We also helped identify key positions that the business required, including salary levels and experience, and we assisted with the recruitment process.
Results
Within 3 months the DSO was reduced from 100 to 62 days.
The 90-day plus column was reduced from £2.2m to £642k.
Responsibility for all the collections and further progress was handed over fully to the in-house team that had been assembled.
Happy Client and happy Bank – a true win-win situation.
Old Debt significantly reduced
debt reduction
our offices
Bristol Office
Credebt Ltd
Trym Lodge
1 Henbury Road
Westbury-On-Trym
Bristol
BS9 3HQ
Manchester Office
Credebt Ltd
82 King Street
Manchester
M2 4WQ
London Office
Credebt Ltd
Hamilton House
Mabledon Place
London
WC1H 9BD
Credebt Limited: Registered in England Number: 6933734 Registered Office: Trym Lodge, 1 Henbury Road, Westbury on Trym, Bristol BS9 3HQ
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