Outsourced Credit Control and Finance Back Office for a Recruitment Agency: Hamilton Mayday Ltd
‘After 10 months of service the overall outstanding debt on the Hamilton Mayday ledger has been reduced by 38% and outstanding debt over 90 days has been reduced by a massive 70%.’
Based in London, with several satellite offices and a turnover of £15m, Hamilton Mayday are a successful recruitment agency working in a bustling business sector providing bespoke solutions primarily in catering, industrial and nursing, with contractors and perms to both the public and private sectors. In a very competitive market, it is vital that the agency has an efficient back office to ensure profitability. The business has a finance facility with a leading factoring provider but have found it necessary to manage their own credit control.
Unfortunately, the business began to experience difficulties in their own credit control department, with high levels of absence starting to effect performance and hence cash-flow. Whilst considering how to ‘plug the gap’ in credit control, Hamilton Mayday came across other inefficiencies within the finance team and decided to review the entire function.
Improving cash flow by 38%
After a recommendation from their accountant, Hamilton Mayday were introduced to Sterling who implemented a temporary credit control service to cover absence and get the ledger back in shape. The service worked remotely on the agency’s accounts system, contacting clients entirely under the Hamilton Mayday brand so that the outsource was invisible to customers. Eventually Hamilton Mayday’s credit controller left the business, and since Sterling’s service had proven itself to perform better, more efficiently and reliably than in house resource, the outsource became permanent.
Improved cash flow was achieved quickly. The most important change was a vast increase in the number of phone calls being made to debtors; the previous team had relied far too heavily on emails, with reminders being ignored by customers and queries not being resolved.
Sterling boosted Hamilton Mayday’s communication with their clients, chasing payments and providing customers with an ‘after sales’ point of contact that could deal with queries effectively by liaising with local Hamilton Mayday departments. And because Ster