Ledger Monitoring

Insight and control over collections performance

Whether your client is in an intensive care situation or formal insolvency proceedings, the sales ledger is often the largest asset. So it’s vital that it is being recovered efficiently and that, as the appointed Insolvency Practitioner or incumbent funder, you have sufficient insight into and control over collections performance.

Hilton-Baird Collection Services can provide a multi-tiered ledger monitoring service to provide ongoing visibility, assurance regarding the ledger’s future collectability, and a governance framework where ‘Newco’ is appointed to collect the ledger.

Our three service level offerings can easily be escalated depending on events and range from a ‘lite’ daily extraction of all sales ledger information, through to a more thorough service that combines ongoing ledger analysis, verification and reporting with the collation of the all-important paperwork to support the ledger.

Whilst a beneficial service in itself for both the IP and funder – in terms of monitoring the flow of cash into the business, assisting with compliance and providing assurance – the different stages can be invaluable in the event external collections resource is subsequently required to get the maximum value out of the ledger, and can be preceded by our pre-insolvency ledger review service.

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Benefits of our ledger monitoring service

Gain real-time visibility and governance of collections performance and efficiency
Provides added security and assurance, particularly with regards to the backed-up data
Service levels can easily be escalated depending on events
Peace of mind that collections are being overseen by sales ledger experts
Natural extension of pre-insolvency ledger review service, which provides a ledger valuation based on a top level view of the people, systems and paperwork in the business
Extraction technology compatible with over 300 accounting systems and can be deployed in 24-48 hours
Detailed reporting, including current and historical management accounts, detailed aged debtor, aged creditors and key ratios
Able to monitor for credit note dilutions, back-dated invoicing, pre-invoicing and new debtors

A multi-tiered service

Low-risk monitoring

Our lowest tier sees our team deploy extraction technology to the company’s accounts package, take a daily feed of all sales ledger information (including invoices, credits and cash allocation) at a transaction level, as well as an up-to-date customer name and address list.

Where extraction is not deployable, our expert team will manually monitor and acquire daily day books or accounting back-ups.

This information is crucial in the event collections activity is required in the future, whilst providing ongoing visibility of collections progress and a base level of data that’s always available to replicate the transactional ledger.

Medium-risk monitoring

This service will see our team mirror the extracted data on our custom-built collections platform, analyse the collections performance of the company and, if necessary, provide a rolling Telephone Debt Verification service to highlight any payment issues on key accounts.

Demonstrating control and oversight of the company’s collections performance, we can add further value by providing ledger risk information via our credit status monitoring API, highlighting any doubtful, adverse or insolvent debtors.

Reporting can be provided weekly and/or monthly to provide further insight into the progress of collections, with actual cash collections matched against either expected collections based on due dates or promised payments from the verification exercise.

High-risk monitoring

Should there be concerns over the status of the ledger or a lack of sufficient MI, we are able to step up our involvement by supplementing the shadow ledger with the paperwork that’s required to prove the debt.

By collating this vital information, including copy invoices, purchase orders, PODs and contracts, the paperwork provides further assurance and will be important should collections activity be required.

Escalation to collections

In the event collections performance doesn’t improve, there is a breakdown in the relationship with ‘Newco’ or a loss of key staff that threatens the successful recovery of the ledger, our experienced collections team can step in to provide a disclosed credit control and debt collection service on a success-basis.

Aided by the understanding we’ll have from the prior ledger monitoring and/or pre-insolvency contingency review, we’ll be focused on maximising collections whilst reporting real-time, including on dilutions which feed into a rolling Estimated Outcome Statement.

Why choose Hilton-Baird

Our professional and skilled team have broad experience in intensive care and insolvency scenarios.

Authorised and regulated by the FCA and two-time winners of the Third Party Debt Collection Team of the Year trophy at the CICM British Credit Awards, we have over 20 years’ experience of supporting insolvency practitioners and asset based lenders with the recovery of often complex ledgers, helping them to maximise the returns for creditors and recover their position.

To find out more about how we can help, contact us on 023 8070 6981 or email cs@hiltonbaird.co.uk.