Dental Industry Specialists
In the competitive and vital field of dental supply and services, maintaining consistent cash flow is essential. One of the UK’s leading dental suppliers recently faced a significant challenge: over £512,000 in outstanding debts accumulated across 37 accounts over a 36-month period.
These debts spanned a wide array of services, from dental equipment and consumables to maintenance contracts and surgery design fees. The financial strain risked impacting operational continuity and future growth.
Federal Management, a professional and accredited UK debt collection agency, was entrusted with the task of recovering these outstanding debts. With a proven track record in commercial debt recovery and a bespoke approach tailored to specific industry needs, Federal Management successfully recovered 91% of the monies owed.
This case study highlights their approach, challenges faced, strategies implemented, and the successful outcomes achieved.
Understanding the Client’s Debt Recovery Needs
About the Dental Supplier
The client is a renowned dental supplier serving a wide spectrum of dental professionals, from independent dentists to large dental groups and hospitals. Their services include:
- Supply of dental equipment and consumables
- Provision of maintenance and support services for dental machinery
- Bespoke dental surgery design and fit-out solutions
Despite robust service delivery, the client encountered difficulties in recovering payment from multiple clients over a three-year period. Many accounts had become dormant, with communication attempts ignored or payment plans defaulted upon.
Nature of the Debts Owed
The unpaid debts were spread across 37 individual accounts and included:
- Unpaid invoices for dental equipment and general Dental supplies
- Outstanding technical maintenance and support fees
- Overdue design and installation costs for dental surgeries
The total amount owed exceeded £512,000, with some individual account debts running well into five figures.
Challenges of Dental Industry Debt Recovery
Recovering debt in the dental supply industry presents unique challenges:
1. Diverse Client Base
The client portfolio included private dentists, dental practices, dental groups, specialist clinics, and NHS-affiliated hospitals. Each type of debtor required a different approach based on structure, cash flow, and contractual obligations.
2. Complex Invoicing Structures
The client’s billing system reflected varying service tiers, bundled support, and staged payments for larger projects. This complexity often led to disputes or confusion regarding payments owed.
3. Sensitive Professional Relationships
Maintaining the client’s brand reputation and professional relationships was paramount. Perceived Heavy-handed collection tactics are never an option in these scenarios.
A diplomatic, professional approach was critical to ensure continued relationships with paying clients and industry stakeholders.
Federal Management’s Tailored Approach
Initial Consultation and Case Assessment
Federal Management began with a thorough audit of the 37 delinquent accounts. This included:
- Verifying documentation and contractual obligations
- Analysing debtor behaviour and payment history
- Identifying high-priority accounts based on value and collectability
Strategic Debt Recovery Planning
Once the review was complete, Federal Management crafted a phased recovery strategy:
- Soft Approach: Initial engagement focused on amicable resolution. This included professionally worded letters, followed by personal contact from highly trained debt recovery officers.
- Negotiation and Resolution: For cooperative debtors, payment plans were negotiated where appropriate, ensuring full recovery without compromising business viability.
- Escalation When Necessary: For more complex or resistant cases, escalation protocols included pre-legal collections and, if unavoidable, legal proceedings through their legal network.
Accredited Professionalism
Federal Management operates in full compliance with the Credit Services Association (CSA) Code of Practice and is FCA regulated, offering peace of mind and credibility. Every interaction was carefully documented and handled with utmost professionalism.
Results: A Remarkable Debt Recovery Success
91% Recovery Rate
Of the £512,000 total outstanding, Federal Management recovered 91%, equating to over £466,000. This high recovery rate significantly exceeded industry norms and restored much-needed liquidity for the client.
Speed and Efficiency
The majority of recoveries were completed within 120 days, a testament to Federal Management’s efficiency and proven processes.
Relationship Preservation
Most importantly, the client reported zero negative feedback from their customers, with several even re-establishing business relationships following resolution.
Why Federal Management is the Preferred Choice for Dental Debt Recovery
Industry-Specific Expertise
Federal Management understands the nuances of dental supply businesses and adapts their strategies accordingly. Our experience ensures the right balance of persistence, professionalism, and empathy.
FCA Regulated and Accredited
Our status as an FCA regulated agency with CSA accreditation ensures best practices in compliance, customer care, and ethical recovery standards.
Cost Effective Solutions
Our commercial debt recovery services are delivered on a performance-based model. There are no hidden fees, and clients only pay for successful recoveries.
Trusted by Professionals Nationwide
Federal Management works with a wide range of sectors, including legal, healthcare, education, and commercial industries, making us a trusted name for professional debt recovery.
Conclusion
For dental suppliers and service providers in the UK, maintaining a healthy balance sheet is critical for long-term sustainability. Federal Management’s intervention not only restored significant revenue for the client but also protected their brand and client relationships in a challenging environment.
This case study is a testament to Federal Management’s ability to deliver expert, accredited, and ethical debt collection services tailored to the unique demands of the dental industry.
If your business is facing challenges with unpaid invoices, contact Federal Management today to find out about our dental debt collection service.
Restore your revenue. Protect your reputation. Partner with professionals.
