When an Insolvency Practitioner (IP) is appointed on an Administration or Liquidation, they may choose to leave the recovery of the sales ledger to existing staff that they retain, use their own internal staff or the Assett Based Lender (ABL) or Bank may have a preferred recovery company or may even collect the ledger themselves.
Inevitably there is often a residual (rump-end) ledger to collect. This can be for several reasons:
Leaving ledgers to the responsibility of remaining staff is not the most effective strategy, when you consider that they are facing redundancy, our experience in these situations is that staff are often more focused on finding their next role, despite continuing to be paid to assist the IP.
IPs sometimes assume that internal staff will have a greater knowledge of the debt but unless it is a highly specialised product or service, the knowledge often isn’t required or has little benefit. Many remaining collection staff will not have any experience in the recovery of debt due to a company in Admin/Liquidation, and historic relationships tend to disappear.
Breal CM has a demonstrated a clear historic track record of being extremely effective at residual (rump-end) ledger collections and involving us on day 1 (or even at pre-appointment) has proven to generate the best results, as our team are focused purely on recoveries.
BREAL Credit Management offers proactive commercial debt recovery solutions in the case that you are already experiencing problems with debtors, it’s always better however to take preventative measures to stop this from happening in the first place, and our credit control solutions are the ideal way to minimise your risk of being exposed to potential bad payers and help you to make late payments a thing of the past.
Speak to the team at BREAL Credit Management, to find out how can help put you on the path to cashflow certainty. Call 0330 0430282 or simply email us at info@BREALCM.com