When a prominent UK-based toy manufacturer faced the challenge of recovering 52 overdue accounts totalling approximately £780,000, they sought the expertise of Federal Management, the UK’s leading B2B collection agency.
With a reputation for delivering efficient, ethical, and effective debt recovery services, Federal Management was entrusted to manage and recover these outstanding debts while maintaining the toy manufacturer’s valuable commercial branding and client relationships..
This case study outlines how Federal Management successfully reclaimed the outstanding funds through a strategic, professional approach while safeguarding the toy manufacturer’s brand image.
The Client
The client, a renowned toy manufacturer in the United Kingdom, produces and distributes high-quality toys to large retailers and wholesalers across the country.
The Challenge
Despite their long-standing industry presence and strong business relationships, they encountered an escalating issue:
- 52 overdue trade accounts ranging from £2,500 to £88,000
- Total outstanding balance of approximately £780,000
- Late payments were disrupting cash flow and affecting day-to-day operations
- Internal collection efforts were proving ineffective and time-consuming
The client needed a specialist B2B debt collection agency capable of recovering the overdue funds while preserving positive client relationships and ensuring discretion throughout the process.
Why the Toy Manufacturer Chose Federal Management
After researching various options, the toy manufacturer selected Federal Management based on several compelling factors:
- Industry-Leading Expertise – Federal Management’s proven track record in commercial debt recovery across a range of sectors.
- High Recovery Rate – An industry-leading recovery rate of 90% on undisputed business debts.
- Tailored Approach – A bespoke, client-centred approach to each debt recovery case.
- Regulatory Compliance – Full authorisation by the Financial Conduct Authority (FCA), ensuring ethical and compliant practices.
- Cost-Effective Service – Competitive, low commission rates that prioritise client profitability.
The Solution
Federal Management adopted a strategic, multi-phase approach to recover the 52 overdue accounts efficiently while maintaining professionalism and discretion.
1. Initial Assessment and Account Review
The first step involved a comprehensive review of the 52 overdue accounts to:
- Identify debt age, amount, and debtor profiles
- Analyse previous communication and payment patterns
- Establish current trading status of debtor companies
Federal Management’s expert team worked closely with the toy manufacturer’s finance department to gather detailed evidence, including invoices, contracts, and correspondence.
2. Tailored Contact and Negotiation
A bespoke communication strategy was developed to engage with each debtor. This included:
- Multi-Channel Outreach – Contact via letter, email, telephone and Field Agent dialogue
- Personalised Engagement – Customised messaging based on debt value and relationship history
- Amicable Resolution – Encouraging voluntary repayment while maintaining positive business relations
The professional, ethical approach ensured that long-standing customers were treated with care, reducing the risk of reputational damage for the toy manufacturer.
3. Escalation and Legal Consideration
For more challenging cases, Federal Management employed:
- Formal Pre-Litigation Action – Issuing Insolvency demands to escalate urgency
- Legal Pathway Consultation – Discussing potential legal action where necessary
- Mediation Services – Facilitating repayment plans for financially distressed debtors
The Results: Outstanding Recovery Success
Federal Management’s strategic, ethical, and professional methods led to the successful recovery of £458,000 – an impressive 95.5% of the total debt.
✅ 48 of the 52 accounts were successfully recovered without legal intervention.
✅ Full recovery of debts ranging from £2,500 to £88,000.
✅ Most Recoveries made within 12 weeks, restoring the toy manufacturer’s cash flow.
The remaining 4 accounts were escalated for legal proceedings, with the toy manufacturer receiving comprehensive support and guidance throughout the process.
Client Testimonial
“We were incredibly impressed by Federal Management’s professionalism and efficiency. Their tailored approach allowed us to recover nearly all our overdue accounts while maintaining valuable client relationships. The financial boost and peace of mind they delivered were invaluable to our business. We highly recommend Federal Management to any business struggling with overdue debts.”
Conclusion
Federal Management’s success in recovering over £700,000 for the toy manufacturer reflects their unmatched expertise in business debt collection. If your business faces challenges with unpaid invoices or overdue accounts, trust Federal Management to deliver reliable, professional, and results-driven business debt collection services.
With a proven track record of recovering millions of pounds annually for businesses across the UK, Federal Management is the trusted partner for securing your financial interests while preserving client relationships.
Secure Your Business Finances with Federal Management
Don’t let overdue debts impact your business – contact Federal Management today for a free consultation and see how our expert team can assist you.
