Client Overview
Our client, a prominent UK-based software licensing company, provides tailored software solutions to businesses across various industries. Their offerings include comprehensive licensing packages, bespoke software development, and ongoing technical support, ensuring their clients remain competitive in today’s digital landscape.
Despite their stellar reputation and robust client base, the company faced an issue common to many B2B enterprises: unpaid invoices. Late or missed payments were creating cash flow disruptions, hindering their ability to reinvest in innovation and deliver exceptional service.
The Challenge
The software licensing company approached Federal Management after struggling to recover overdue invoices amounting to £750,000 from five different businesses. These unpaid accounts ranged from £1,500 to £50,000+ each, with payment delays stretching up to six months. The internal credit control team had exhausted their resources with repeated follow-ups, but the debtors remained unresponsive.
Adding complexity to the case, some debtors cited vague disputes over licensing agreements, while others offered no explanation at all. The client sought an expert professional debt collection agency with a proven track record in recovering business debts ethically and efficiently.
Our Approach
Federal Management implemented a bespoke debt recovery strategy tailored to the client’s needs:
- Initial Assessment and Strategy Development
- Our team conducted a detailed review of the client’s outstanding invoices and customer records.
- We ensured compliance with all legal and regulatory frameworks, safeguarding the client’s reputation throughout the recovery process.
- Engaging the Debtors
- Using our expert negotiation skills, we initiated contact with the debtors through a combination of formal notices, emails, and phone calls.
- By clearly articulating the terms of the original agreements and addressing any disputes, we aimed to resolve issues amicably and expediently.
- Escalation Where Necessary
- For unresponsive or persistently non-compliant debtors, we escalated the matter through our field collection officers to engage the debtors.
- The additional possibility of legal and/or insolvency action, which often prompted faster resolutions without needing to proceed to court.
Results Achieved
Within just 10 weeks of engagement, Federal Management successfully recovered 93% of the outstanding debt, amounting to £697,500. Here’s how it broke down:
- Multiple accounts were settled in full after the initial contact phase, highlighting the effectiveness of our professional and respectful approach.
- Various accounts resolved after addressing a minor dispute regarding service deliverables, thanks to our clear communication and mediation.
- A few accounts required escalation to pre-legal recovery, resulting in a full settlement within the given timeframe.
Our intervention not only recovered the unpaid invoices but also preserved the client’s relationships with their customers. In several cases, debtors expressed appreciation for our fair handling of the matter, enabling the client to continue doing business with them.
Client Testimonial
“Federal Management’s professionalism and efficiency exceeded our expectations. Their team handled our case with sensitivity and expertise, ensuring the recovery process was smooth and effective. Thanks to their efforts, we’ve been able to stabilise our cash flow and focus on growing our business. We highly recommend their services to any company facing similar challenges.”
Conclusion
This case study underscores Federal Management’s commitment to delivering exceptional debt recovery solutions for businesses across the UK. By combining ethical practices, expert negotiation, and a tailored approach, we empower companies to overcome financial challenges and thrive in competitive markets.
If your business is struggling with unpaid invoices, contact Federal Management today to learn how we can help you recover debts swiftly and efficiently.