FACTS: The best way to ensure that debts are paid on time is to develop and consistently apply a policy of credit control. This will ensure that you customers clearly understand your terms, and make sure they are enforced.

"When Commercial Credit
Control began working with
us, our debts over 60 days
were in excess of £300 000,
by carefully implementing
procedures this was quickly
reduced to £1500."

Case Study 4 - High Access Equipment Company


An access equipment company with a turnover of approximately £6 Million dealing mainly with local contracts had a new investor joining the Board and injecting a large amount of cash into the business. The idea was to grow the business through buy outs and mergers.

Initially, the required mergers and take-overs had taken place. Most of the accounting information was paper based: printed PDF’s, POD’s and other documents filed in no specific order. Without clear documentation the contact details and service agreements were unclear.

In some cases the companies had ceased trading or the accounts had unresolved disputes.

If a due diligence report had been completed the dead companies and queries may have been highlighted previous to any cash injection or M&A activity.

Customers had not been informed regarding the take over and subsequently confused when direct debits were returned or they were chased for payments which had been made but into the wrong bank account.


Without a report there would be a waste of manpower researching non trading companies. Extra time consumed shifting through irrecoverable debt and chasing up queried accounts.

Existing ledgers would suffer as there would be less time to focus on them, cash flow would be adversely affected and debtor day’s increase as recent queries were not resolved and the daily credit control function not fulfilled.

The standard of service to existing customers would decline and customer loyalty may be lost reducing the customer base and turnover.

This would weaken the company’s position in the market and it would make it vulnerable to a takeover.

Actions Taken

The cash flow had to be maintained and the existing ledger kept up to date.

New customers had to be informed of the new company. Details regarding bank accounts and contact details required distributing.

The new ledgers required filtering – non-trading accounts were written off and live accounts were integrated into the company's existing ledger.

Old debt and query accounts required processing and researching with a set resolution date or a provision to be made for a write off.

By the end of the following two years the company’s turnover had increased to £12 Million.