As the UK’s leading business debt collection agency, Federal Management is trusted by companies nationwide to recover overdue payments professionally and efficiently.
This case study highlights how we achieved an 84% recovery rate on 41 overdue accounts totalling £246,000 for a UK-based security company providing manned security and concierge security services.
The Client
Our client is a well-established UK security company offering manned guarding and concierge security services.
They work with a diverse client base, including commercial properties, corporate offices, and executive residential developments, ensuring safety and professional front-of-house operations.
Despite delivering high-quality services, the client faced mounting problems with unpaid invoices. With a substantial amount owed across multiple accounts, they sought a trusted business debt collection partner to recover the overdue funds.
The Challenge
The client’s financial challenges stemmed from 41 unpaid invoices ranging in value from £1,500 to £18,000, amounting to a total of £246,000 in overdue payments in 2024.
Key challenges included:
- Diverse Debtor Profiles: The debts were owed by multiple clients from different industries, each with unique payment behaviours.
- Ageing Debt: Some invoices were over 12 months overdue, making successful recovery more challenging.
- Limited Internal Resources: The client’s internal team lacked the time and expertise to handle a large-scale debt recovery process.
- Maintaining Client Relationships: It was essential to recover the debts while preserving their professional relationships.
Faced with these difficulties, the company approached Federal Management for our proven expertise and high success rates in commercial debt collection.
The Solution
At Federal Management, we recognise that no two debt recovery cases are the same. We designed a custom recovery plan to maximise the 84% recovery rate while ensuring minimal disruption to the client’s operations.
1. Comprehensive Case Assessment
We began by conducting a detailed audit of all 41 overdue accounts. This included:
- Validating Each Debt: Ensuring that all invoices were valid and legally enforceable.
- Debtor Profiling: Analysing the financial status and payment history of each debtor.
- Prioritisation: Ranking debts by age, value, and likelihood of recovery for a targeted approach.
2. Multi-Channel Communication Approach
Our team used a professional and ethical approach to engage debtors across multiple communication channels:
- Formal Demand Letters: Issuing legally compliant letters requesting payment.
- Direct Engagement: Conducting direct conversations to negotiate repayments.
- Email Correspondence: Sending timely follow-ups and payment reminders.
We adapted our communication style to each debtor’s circumstances, ensuring a balance between firmness and professionalism to encourage cooperation.
3. Negotiation and Resolution
Understanding that some debtors faced financial difficulties, we provided structured repayment plans where appropriate. This allowed us to secure payments without resorting to legal action, ensuring faster and more cost-effective resolutions.
The Results: An 84% Recovery Rate on £246,000
Through our tailored recovery strategy, we successfully recovered 84% of the total debt owed to our client, equating to £206,640 across 41 accounts.
Key Results:
- £206,640 Recovered: A significant boost to the client’s cash flow.
- 84% Recovery Rate: Demonstrating our consistent success in business debt collection.
- Efficient Resolution: Over 70% of recovered funds were secured within 60 days.
- Client Satisfaction: The client praised our professional approach and effective results.
Client Testimonial
“Federal Management provided a first-class service. Their team was professional, proactive, and delivered an excellent recovery rate. We were impressed with how quickly they recovered the majority of our overdue debts while maintaining our business reputation.”
Why Businesses Trust Federal Management
As the UK’s No.1 commercial debt collection agency, we provide businesses with ethical, efficient, and tailored debt recovery services.
Proven Recovery Rates
Our 84% success rate in this case demonstrates our ability to recover substantial sums across complex debt portfolios.
Customised Solutions
We develop bespoke recovery strategies to meet the unique needs of each client, ensuring the best possible outcome.
FCA-Regulated and Ethical Practices
We operate under Financial Conduct Authority (FCA) regulations, ensuring all collections are conducted with integrity and compliance.
Cost-Effective Service
Our performance-based fee structure means you only pay us a commission when we successfully recover money.
Conclusion
If you’re dealing with overdue payments, Federal Management offers a trusted, efficient, and compliant solution.
Our expert Commercial Recovery teams can recover outstanding debts while allowing you to focus on the clients that do pay, rather than the clients that don’t!
Partner with a Leading Collection Agency
By choosing Federal Management, you can trust that your overdue accounts are handled with expertise, care, and a focus on maximising recovery. Let us help your business recover what you’re owed—efficiently and ethically.
