Transforming Debt Recovery for Wholesale Distributor
 

Executive Summary

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In this case study, we detail our work with a wholesaler specializing in the distribution of fresh produce, vegetables, and dried goods, who faced challenges with unpaid debts and bills. Our consulting services helped them navigate the complexities of debt collection while adhering to legal and ethical guidelines, leading to the successful recovery of over $1 million in settlements and improved relationships with their customers.

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Challenges

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Our client, a wholesaler with over $1 million in revenue, distributes goods to a range of commercial clients. Despite their success, they experienced difficulties with unpaid debts and bills, which significantly affected their cash flow and financial stability. With only three employees and no formal accounting team, they operated primarily with cash and checks, making the management of outstanding debts a daunting task. The company needed assistance in recovering these amounts while ensuring compliance with legal requirements and maintaining ethical standards.

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How We Helped

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The QBIX Analytics team began by conducting a thorough assessment of our client's current debt collection processes and identifying areas for improvement. Our team then developed a comprehensive debt recovery strategy, including drafting professional legal letters for collections, locating debtors through skip-tracing techniques, and creating customized payment plans. We also provided guidance on legal compliance and ethical considerations throughout the process. 

 

Additionally, we worked with the client to create control processes and implement reasonable limits, effectively preventing large delinquencies from accumulating. Our collaborative efforts ensured that the client could manage their outstanding debts with increased confidence, despite their limited internal resources.

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Impact on Client's Business

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As a result of our consulting services, the client saw significant improvements in their debt recovery efforts. Sending legal letters for collections played a crucial role in encouraging debtors to pay their debts voluntarily, providing a formal record of communication for potential court use, and maintaining a positive relationship between the wholesaler and their commercial clients. This approach ultimately helped our client maintain financial stability and avoid bankruptcy.

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​We successfully collected over $1 million in settlements for the client over the last two years, which had a significant positive impact on their business operations. The client also reported improved relationships with their customers and increased confidence in managing future debt collection efforts. Our tailored solutions not only resolved the immediate financial challenges but also strengthened the foundation for continued growth and success.