Unblocking 112,000 PLN in payment bottlenecks in a construction company
We took over the soft debt collection process and changed contract terms. 83% of debtors settled payments within the first 19 days of introducing the mobilization plan.
The Bud-Max company from Rzeszów struggled with a lack of cash for current materials. The reason was 47 invoices that contractors had not paid for months. We implemented a tough mobilization plan to recover funds without going to court.
The challenge
The main problem was a payment bottleneck totaling 112,000 PLN. The oldest invoice was overdue for 142 days. The company owner wasted time on empty phone promises instead of watching the construction site in Boguchwała. 23,000 PLN was missing to purchase steel, which threatened a shutdown of the 8-person construction crew. Previous attempts to recover money ended in excuses about the 'difficult market situation'.
Our approach
Growth Headquarters sent 3 specialists to the client's office. We conducted scanning of the competitor's terrain to check if debtors actually had problems or were just stalling. Numbers don't lie – 67% of them settled other obligations on time. Resources on the table: we prepared a Report in 11 days and took over communication with debtors, using soft debt collection methods based on facts rather than requests.
The solution
We introduced a rigorous contact schedule with debtors. Every overdue contractor received a specific demand with calculated interest every 3 days. Simultaneously, we changed the contract templates for Bud-Max. We added clauses for contractual penalties for delay and shortened payment terms to 7 days for new orders. It was straight talk, no fluff – the debtors understood that the games were over.
Results
Within 19 days of sending the first letters, the company recovered 83% of the outstanding funds. This allowed for immediate purchase of materials and maintaining liquidity without taking a revolving loan.
Timeline
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June 2024Analysis of 47 overdue invoices and verification of debtors' financial situation.
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July 2024Sending the mobilization plan to contractors and daily monitoring of payments.
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August 2024Implementation of new contract templates and training secretariat in procedures.
"I thought this money was unrecoverable. Growth Headquarters showed me the Report in 11 days and simply started acting. Without unnecessary talk, they recovered 112 thousand."