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| A
resurfacing and damage repair company to the construction industry
approached us in December 2003 with a ledger that was a shambles.
Originally they had employed the services of a bank based factor
but then replaced them with an independent factor ten months
later.
The ledger was in a terrible mess because there had been a complete failure to reconcile it by the independent factor. The problems were mainly caused by the large construction companies who were making payments via their job costing system, without making reference to the supplier’s invoices within their remittances. The factor then compounded the problem by incorrectly allocating these remittances and in many cases had left these un-posted by simply placing them in the factors suspense account. Aston Rothbury’s
solution We agreed to take out the existing factor, despite the uncertainty of the book debt and to support them as we rebuilt the ledger together, correcting misallocations over the previous two years and identifying and recovering payments that were still on the previous factors suspense accounts. This has proven to be great success story and our client has now been with us for over 3 years. They have increased their turnover by almost 2½ times and know exactly who owes them and how much. They can testify to the fact that not all factoring companies are the same. |
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