A well-established environmental engineering firm, in business for 30 years with an annual revenue of $15-20M, was preparing for a year-end ownership transition. As part of this process, their accounting firm recommended cleaning up the company’s past due accounts.
They came to us with a significant challenge: $800,000 in past due invoices over 60 days, spread across more than 600 customers. The company lacked the internal processes and dedicated staff to make the necessary collection calls without disrupting daily operations.
Referred by their fractional CFO, The Collection Dept. was brought in to address the issue. Our proposed solution was designed to be both effective and affordable:
We began by focusing on a manageable list of 50 accounts at a time. As one account was paid, a new one was added, ensuring continuous progress.
To maintain a professional and non-intrusive approach, we were granted access to the company’s QuickBooks account and an internal email address. This allowed us to appear as part of their in-house team, easily access invoice copies, and handle communication without burdening their office staff.
We provided monthly reports detailing our workload, progress, funds collected, client feedback, and strategic recommendations to improve their overall process.
The Collection Dept. recovered $100,000 in the first month, with an additional $150,000 committed for payment the following month.
After a successful three-month trial, the engagement was extended. We ultimately collected $650,000 of the original $800,000 in past due invoices, achieving an impressive 81.25% collection rate.
The Collection Dept. continues to work with this client, handling all invoices greater than 60 days past due, helping them maintain a healthy cash flow and a clean balance sheet.