The Challenge
A property investment company had a number of residential developments within its portfolio, which over time, had accumulated considerable aged debt from unpaid ground rent and service charges. The company became a new client of ours earlier this year.
Innovus Senior Credit Control Manager Jo Walker says: “When we acquired the client, it was clear that they were struggling to recover the debt. The previous recovery process had not been managed well and so we needed to not only recover the debt, but also instil confidence in our client that we could make further improvements and add real value.”
The Solution
We immediately took the following actions:
- Fully reviewing the existing aged debt and associated issues
- Closely working with the client and sharing our existing credit control processes
- Creating reports for issuing to the client on a monthly and quarterly basis
- Building a bespoke process where the client has access to a panel of solicitors they could use if needed at the end of the credit control processes.
Jo adds: “It was important to ensure that our client was kept fully up to date. The reports enabled them to clearly see the positive movement in debt, and what was happening to it. And the client’s feedback to us was that this was a service offering that they had never had before.”
The Result
Within just three months, we had halved the aged debt and the number of debtors (leaseholders).
Jo says: “Our credit control teams have extensive credit control experience, so our clients have full assurance that they are in safe hands when they partner with us. We recognise that every business is unique, and so we use our knowledge and expertise to offer tailored solutions to effectively meet our client’s needs and deliver real results.”
Client Testimonial
“The team have been fantastic at providing up to date reports and improving the debt position at various developments. They provide clients with detailed reports and keep everyone up to date. This is key as it helps us track and analyse cash inflows and outflows and identify current and future cash flow risks so we can make quick site decisions. They are extremely knowledgeable on all our developments and will provide necessary documents with very short notice. They are responsive, supportive, and approachable with questions and concerns. Thank you, team!”
Property Management Company Regional Manager, Hannah Byrne
