​Related Case Studies

  • Debt Recovery for a Factoring Company
    The Client is a factoring company and we were pursuing recovery of the money due to them under the terms of a written indemnity, which had been provided to them by a Director of the Company, which had gone into liquidation.

    The Director refused to pay the money due, claiming that there were invoices he had submitted to his customers, and if the Client collected these invoices, there would be sufficient funds to repay this debt. He further claimed that the client was in breach of the factoring agreement by failing to recover these funds.

    We were able to demonstrate that under the terms of the factoring agreement, the client was under no legal obligation to recover these funds. They were obliged only to telephone a certain number of customers to verify they had received the goods for which they had been invoiced, and to send out monthly statements, both of which they had done. 

    Judgment was successfully obtained against the indemnifier. However, he continued to refuse to pay, he claimed to be unemployed and have no assets, he refused even to submit a realistic payment proposal. In view of this, our client was left with no alternative than to pursue bankruptcy. A Statutory Demand failed to prompt any response, other that another refusal to pay, so a bankruptcy petition was issued. 

    The bankruptcy hearing was some three months away when the Debtor was served with notice of the Hearing. He waited until 24 hours before the bankruptcy hearing to instruct his solicitor to contact us to make payment. We recovered our client’s total debt, together with all bankruptcy costs, on the afternoon before the bankruptcy hearing was due to take place. 
     
  • Recovery of bad debt from Administrator
    Acting for a globally known and respected company, John Spratt received urgent instructions to advise on the possibility of their being able to recover a bad debt from a well-known retailer in administration.  The problem was that John’s advice to the client had to be that the Administrator was not in a position to pay the debt of any creditor from the company’s assets except (a) pro-rata with all other unsecured creditors at the end of the debtor company’s insolvency process or (b) if the payment was necessary in all the circumstances in order to maintain the business of the company in administration under his management pending a possible sale.

    Working closely with his client’s management team, and having enlisted the help of a colleague in the insolvency profession, and also with the help of John’s Partner Hitendra Patel, John was able to negotiate and draft an agreement with the Administrator that he would pay the whole of his client’s substantial debt rather than face the consequence of their withdrawing their services from the company in administration. This work was done largely over one weekend, with frequent written communications and many telephone calls.

    John’s clients were delighted with a wholly successful outcome, which seemed at the beginning to have been against the odds.
     
  • Developing an integrated system for Debt Recovery management

    Under the management of Richard Gwynne and Martin Hughes, Spratt Endicott’s Debt Recovery team, has for several years acted for one of the UK’s biggest 4G network and digital communications company.

    The partnership with the communication giant has lead to a significant investment in the firm’s computer systems; with the development and implementation of an integrated system of debt monitoring and management.

    This online portal allows for the transition of data between Spratt Endicott and the client. The system has been designed to update every two hours and has enabled the client to securely share all the recent and relevant information about its customers with the Spratt Endicott Debt Recovery team, so that it might aid recoveries.

    The system also offers complete transparency where the client is able to view the current status of commercial recoveries in progress, as well as any billing and reporting processes.

    As a result of the success that was achieved, and the continued relationship with the client, Spratt Endicott has now entered into discussions that will not only see the expansion in the range of commercial debts that the firm can collect for the company, but also in the undertaking of volume collection of consumer debts.

  • Helping client in their rapid expansion

    A major Electrical client, based in the UK, has grown rapidly in recent years. Not only did this sudden expansion bring new challenges in regards to reporting and collection targets, but the company also required assistance drafting a new Credit Policy and the setting up of an internal Credit Department.

    Richard Gwynne, Director of Commercial Recoveries at Spratt Endicott, has over 25 years experience in Commercial debt recovery and frequently lectures about Credit Management. To assist the client, Richard drafted a new Credit Policy and used his Credit Management expertise to help them to establish a successful internal Credit Department.

    With the client’s new internal Credit Department and Credit Policy, together with in-house credit management training delivered by Spratt Endicott, in excess of 60% on small and old debts was recovered for the client. This fantastic achievement highlights the teams’ expertise and ability to adapt to the demands of a dynamic client.

  • Excellent recovery rates and bespoke reports are key to success

    Spratt Endicott recently started work with a leading supplier of specialist building material. The client is a multi-branch operation and has offices country wide. Within a relatively short amount of time, Richard’s Debt Recovery team had recovered nearly £500,000 of outstanding debt, against which, they also managed to recover 75% of the debt files that had been closed year-to-date.

    One of the key advantages Richard and his team were able to offer the client was the ability to give branch by branch reporting regarding value of debt passed, debt collected and more importantly, to tag reports with the reasons of why the debt was not paid, such as poor invoicing and delivery failures.

    This recovery rate was accomplished by introducing a far more aggressive pre-legal collection cycle. Letters and phone calls from a solicitor reminding the customers about their unpaid debt are usually seen as imperative and are almost always paid soon after, thus avoiding costs and court fees.

    From these bespoke reports, Spratt Endicott’s client could identify areas for improvement in their processes. This level of detailed reporting is an invaluable advantage that Spratt Endicott passes to all of their clients, allowing them to identify areas for improvement internally.

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