Credit Control Case Studies

Invaluable credit control support for environmental services business Background: Recycling Lives Environmental Services Limited (RLES) is a B Corp certified business which provides support services in respect of the collection of recyclable waste for a range of small and large clients across the UK. The business was a subsidiary of a larger group and faced a critical situation when its parent company entered insolvency. While RLES was not directly impacted by the insolvency and has continued to trade as normal, the business suddenly had a requirement to manage its own credit control across numerous debtors to maintain cash flow and meet invoice discounting covenants. The challenge: With the loss of the group's back-office support, RLES needed to quickly establish an effective credit control strategy and processes for a large number of debtors. Establishing this function was crucial to the company's cash flow management and ongoing success. The solution: RLES's Chief Financial Officer, Nick Gittings, contacted Hilton-Baird Collection Services, following a recommendation from his bank. Nick was already aware of Hilton-Baird as he had utilised the company’s services in a previous role. After an initial meeting, Hilton-Baird’s team quickly devised a tailored solution to support the business: Hilton-Baird’s team managed the credit control for approximately 500 lower-value accounts (balances of up to £100K), allowing RLES to focus their resource on key accounts. A confidential credit control solution was implemented, directly integrating with RLES's accounting system and mirroring the sales ledger on a daily basis. A robust collections cycle was introduced, with an agreed escalation point for outsourcing cases to Hilton-Baird as debt collection agents, if needed. Hilton-Baird swiftly onboarded the accounts, conducting briefing meetings to ensure a smooth transition. Results: Cash collection targets set by the bank were exceeded from the outset, creating much needed liquidity for the business and establishing trust between the invoice discounting provider and the new management team. Hilton-Baird flexibly adjusted resources over time to meet RLES's changing needs during the development of their in-house team. Weekly and monthly escalation meetings proved invaluable for focusing on slow-paying accounts and deciding on further actions. Hilton-Baird’s team supported the development of a comprehensive credit policy for RLES, establishing a foundation for future credit management. With Hilton-Baird supporting the wider credit control process, Nick and his team were able to focus on larger accounts and stabilising other business functions. Nick Gittings, CFO of Recycling Lives Environmental Services, said "Hilton-Baird worked promptly and effectively to get a solution established for us. Their ability to flex resources, over a 6-month period, as we recruited and trained our own in-house team was extremely useful. The regular meetings were invaluable to focus our activity on slow paying accounts and, where necessary, escalate to debt collection or legal collections. Based on their knowledge of the business and systems, Hilton-Baird’s team also supported the development of a credit policy for RLES which has been implemented and is the bedrock of how we extend credit to our customers and what is expected from all stakeholders within RLES to minimise late payment and bad debts. Hilton-Baird has been a critical partner in our turnaround, ensuring working capital and liquidity were optimised and allowing myself and the board to focus on wider business transformation strategies. I would recommend them to any business looking to improve cashflow and free up time for other priorities, especially in turnaround and transformation situations." Alex Hilton-Baird, Managing Director of Hilton-Baird Collection Services comments “We've really enjoyed working with RLES. Open communication and the quick turnaround of information and supporting paperwork were key to the success of this collaboration. We're pleased to have supported RLES through this critical period and wish them continued success as they bring their credit control fully in-house, armed with a robust credit policy to ensure timely payment."

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