ABL’s position recovered after client enters administration
Hilton-Baird Collection Services has successfully recovered the position of an asset based lender after their client in the fresh foods sector slipped into administration.
The ledger of more than £4.5 million comprised a large number of low value transactions and a paper-based audit trail adding to the challenges.
But our team’s tenacity and expertise led to more than £4 million being recovered – more than 100% of the funds in use.
Numerous challenges
The client supplied fresh salads into supermarkets, wholesalers, restaurants and travel chains.
Although the £4.5 million ledger only consisted of 98 debtors, there were close to 7,000 transactions on the account with an average invoice value of £665, making it a challenging and time-consuming exercise to recover the debt.
The paper-based audit trail also presented its own challenges, as did the client’s supply into multi-debtor locations and the fact that EDI systems were in use with key debtors.
In addition to this, our team received a high volume of low value debit and credit note requests, with the majority of invoices supplied under debtors’ contract frameworks which included usual contractual clauses and liquidated damages. There were also complex rebate and marketing contribution structures in place.
Despite all of this, our team worked quickly and meticulously to recover the balances owed, using our extensive experience from similar instructions in the past to deliver an outstanding result.
In total, almost £4.2 million was successfully collected – 92% of the starting balance and crucially 118% of the funds in use – to fully recover the lender’s position.
We can provide a range of expert debt collection services to asset based lenders and their clients, from full sales ledger recovery to outsourced credit control. For more information about how we can help, call 023 8070 7392 or request a call back.
