Recruit the experts – Construction Recruitment Services Ltd
Whilst all businesses strive for fast growth and success, the reality is that this often brings its own challenges. Ongoing business development is reliant upon steady cash flow and adequate resources but effective credit management can place a huge drain on a business, often taking focus away from the core activity.
This was the case for Managing Director of Construction Recruitment Services Ltd, Matthew Hartie, who has over 20 years of experience within the recruitment industry and set up his first business in 2003 with Dragons’ Den’s James Caan.
In May 2014 he acquired his current business, Construction Recruitment Services, through an MBO and the business has since gone from strength to strength, with turnover doubling in the last 12 months from £3 million to £6 million. His plans for the future are equally ambitious, continuing this expansion via organic growth and a programme of acquisitions, with the goal of once again doubling turnover over the coming year.
Construction Recruitment Services conducted its credit control in-house for the first year following the MBO but, like many businesses, found that keeping on top of customers to sustain cash flow was a significant drain on internal resource. It was therefore decided that outsourcing may be a more appropriate route to free up time and tap into external expertise.
After shortlisting three credit control agencies, Hilton-Baird Collection Services was chosen based on our professional approach and thorough understanding of the credit management intricacies within Construction Recruitment Services’ industry. Whilst the business has credit insurance in place for many of its customers, getting paid within terms is a real challenge.
Our credit control experts took control of Construction Recruitment Services’ ledger and now manages the full credit control process from invoice to customer payment, which includes pre-due date verification calls and emails, to flush out any documentation requests such as copy invoices, and any queries or disputes which may prevent the invoices being paid to terms. Timely calls are then made to overdue debtors to chase payment and ultimately reduce DSO. This process is conducted on a confidential basis so the customers are not aware that it is being conducted by a third party.
In addition to the confidential credit control solution provided to Construction Recruitment Services, we conduct debt recovery calls to those customers who significantly exceed terms. These calls are undertaken under the Hilton-Baird brand, providing the additional weight of a third party debt collection agency to get results.
Outsourcing the credit control process has enabled Matthew to focus on growing his business with the peace of mind that the day-to-day credit management is in the hands of the experts and, therefore, customer payments are steadily coming in and cash flow is maintained.
Matthew Hartie comments: “It has been great to find a credit control agency that is proactive and able to work as an extension of our team. I am able to focus on growing the business in the knowledge that the cash collections are being taken care of.
“The additional benefit of utilising Hilton-Baird is their ability to flip into debt recovery where customers have not paid within terms. This means that, rather than having to play bad cop in this scenario, I can concentrate on maintaining and building customer relationships.”
If you are inspired by our client’s success here, you too may want to consider the benefits of outsourcing your credit control to an experienced agency. If you would like to find out more, our experienced team are available to talk on 0800 9774848, or emailed at firstname.lastname@example.org.