In today’s competitive business environment, maintaining healthy cash flow is vital for the success of any company. The multi billion pound Sportswear industry is no exception.
Late payments and unpaid invoices can pose significant challenges, especially for industries with high production costs like sportswear manufacturing. This case study outlines how Federal Management, the UK’s leading business debt collection agency, successfully recovered 26 overdue accounts for a prominent sportswear manufacturer.
The Client
A well-established UK-based sportswear manufacturer, renowned for supplying high-quality apparel to football clubs, sports organisations and distributors nationwide, faced a growing problem of unpaid invoices.
The Challenge
Despite offering competitive payment terms, the company struggled with clients failing to meet their financial obligations.
Key Issues Faced:
- 26 Overdue Accounts: Ranging from 60 to 180 days plus past due.
- Cash Flow Concerns: Disrupted cash flow impacting operational efficiency.
- Resource Drain: Internal staff spending excessive time chasing payments.
- Client Relationships: Strained relations with non-paying clients.
The manufacturer recognised the need for professional intervention to recover these outstanding debts efficiently and maintain their focus on core business activities.
They had previously worked with a law firm but found that very often, they were spending more on the Law firms debt recovery services than the actual value of the debt itself in some cases. In addition, the progress made over time was minimal and not cost effective.
Why the Sportswear Manufacturer Chose Federal Management
After researching the top UK business debt collection agencies, the client selected Federal Management due to their:
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- Proven Track Record: Over 20 years of expertise in business-to-business (B2B) debt recovery.
- High Success Rate: Consistently achieving a 90%+ recovery rate on undisputed business debts.
- Ethical Approach: Fully compliant with FCA regulations and industry best practices.
- Commercially sensitive approach: Mindful of Company’s brand.
- Tailored Solutions: Bespoke debt recovery strategies tailored to specific business needs.
The Solution
Federal Management deployed a structured, multi-phase recovery strategy designed to recover the 26 overdue accounts while preserving valuable client relationships.
1. Initial Assessment and Strategy Development
The process began with a comprehensive assessment of the client’s situation. This involved:
- Analysing the 26 overdue accounts, including the age and value of debts.
- Identifying debtor profiles and the reasons behind non-payment.
- Developing a customised recovery plan aligned with the client’s objectives.
2. Professional and Persistent Communication
Effective communication is at the heart of successful debt collection. Federal Management initiated a strategic outreach campaign that included:
- Formal Demand Letters: Issuing legally compliant demands for payment.
- Telephone Engagement: Engaging debtors through professional and persistent phone calls.
- Email Correspondence: Providing digital documentation and payment options.
- Pro-active dialogue: Officers Attending premises to engage with Debtor where appropriate to do so.
3. Negotiation and Resolution
Federal Management prioritised amicable resolutions while ensuring firm action where necessary. This involved:
- Offering flexible repayment plans where appropriate.
- Leveraging industry knowledge to counter debtor objections.
- Escalating cases to legal recovery only when required.
4. Legal Action (If Necessary)
In cases where initial efforts did not yield payment, Federal Management provided seamless access to legal enforcement through their expert network of solicitors.
The Results: Successful Recovery of 26 Overdue Accounts
Through their meticulous and professional approach, Federal Management successfully recovered 24 of the 26 overdue accounts within a 12-week timeframe. The remaining two cases were escalated for legal proceedings.
Key Outcomes:
- £120,000+ Recovered: Secured payments across 24 accounts.
- Improved Cash Flow: Restored the client’s financial stability.
- Operational Efficiency: Freed internal resources to focus on business growth.
- Client Satisfaction: Strengthened the manufacturer’s confidence in debt recovery.
Client Testimonial
“Federal Management delivered exceptional results, recovering funds we thought were lost. Their professional, ethical approach maintained our business relationships while restoring our cash flow. We highly recommend their services to any company facing overdue accounts.”
Why Businesses Trust Federal Management
Federal Management’s success in recovering the sportswear manufacturer’s overdue accounts underscores why they are the preferred choice for B2B debt collection in the UK.
What Sets Federal Management Apart?
- Proven Expertise: Decades of experience in commercial debt recovery.
- High Recovery Rates: Industry-leading success rates exceeding 90%.
- Regulatory Compliance: Fully FCA-regulated and adherent to CSA guidelines.
- Cost-Effective: No hidden fees and transparent pricing.
- Client-Centric: Tailored solutions that prioritise business relationships.
Conclusion
If your business faces challenges with unpaid invoices or overdue accounts, Federal Management provides the expertise and dedication to secure your funds while safeguarding client relationships.
Partner with the UK’s Leading Business Debt Collection Agency
Contact Federal Management today to discuss how their tailored business debt collection services can support your financial goals.
