Plugging the financial leaks for a large Commercial Plumbing Firm

Client Overview Our client, a leading commercial plumbing company in the UK, specialises in providing high-quality plumbing services to businesses across various industries. With a reputation for reliability and efficiency, the company serves clients ranging from retail outlets and office complexes to industrial facilities. However, like many businesses, they occasionally encounter the challenge of unpaid invoices, which can disrupt cash flow and hinder operations.

The Challenge The commercial plumbing firm approached Federal Management upon a recommendation. They had been struggling to recover over £450,000 in outstanding payments from a significant number of business clients. 

Despite their efforts to resolve the matter internally through payment reminders and robust credit control, over 35 invoices remained unpaid. These debts included amounts from both small businesses, local authorities and larger corporations. Some of which had been overdue for more than six months. The client was concerned about maintaining professional relationships and preserving brand image while ensuring timely recovery of funds.

Our Approach At Federal Management, we understand the delicate balance required when recovering debts while preserving client relationships. We devised a tailored recovery strategy to address the client’s unique needs, focusing on:

  1. Thorough Assessment: We conducted a detailed review of the unpaid invoices, categorising the debts based on age, value, and debtor profile. This allowed us to prioritise and approach each case with precision.
  2. Professional Communication: Our experienced debt collection specialists initiated contact with the debtors using a firm yet professional tone. We ensured all communications aligned with the Plumbing company’s values and upheld the client’s reputation.
  3. Tailored Solutions: Recognising that each debtor’s circumstances differed, we offered flexible repayment options where necessary, facilitating swift and amicable resolutions.
  4. Legal Expertise: For debts that required additional enforcement measures, our in-house legal team provided expert guidance, ensuring compliance with all relevant legislation while expediting the recovery process.

The Outcome Within 7 weeks, Federal Management successfully recovered 86% of the outstanding debt, amounting to over £370,000. The remaining balance involved two particularly complex cases, for which we provided ongoing support, eventually achieving resolution within two months. Our client reported not only improved cash flow but also a renewed sense of confidence in addressing future unpaid business invoices.

Client Testimonial “Federal Management was a game-changer for our business. Their professionalism and efficiency in recovering unpaid invoices allowed us to focus on what we do best—providing top-notch plumbing services. We were particularly impressed with their ability to recover debts whilst being mindful of our relationships with clients. We highly recommend their services to any business facing similar challenges.”

Conclusion This case study highlights Federal Management’s expertise in business debt collection, showcasing our ability to deliver a high level of results while safeguarding client relationships. If your business is struggling with unpaid invoices, contact Federal Management today to learn how we can help secure the financial stability your company deserves.