Introduction
Founded in 2010, Omega Asbestos Consulting Ltd are specialists within the healthcare/NHS, education, and Manufacturing sectors. Their continued success is a reflection of their dedication to providing the best solutions and services for their clients.
The Challenge
Omega Asbestos Consulting Ltd work in an industry that’s notoriously slow for paying bills. As a result, the company had turned to Invoice Finance to ease the cash flow demands created by the industry-standard 60 to 90-day payment terms. While this allowed them to continue to trade, it cost the business a great deal of money in charges. Omega also found there was a disconnect between the level of cash in the bank and the debtors ledger.
Faced with a significant outstanding debt balance every month, the team were faced with the prospect of spending hours chasing overdue payments, and, as it was both stressful and time-consuming, it was ultimately put off or overlooked.
Our Expert Says
A True Picture
“One of the problems Omega found with Invoice Finance was the misconception that cash was always available because they were drawing money down against invoices that were not due for payment. This created a situation where they had nothing pushing them to chase down their debt, as a result, they continued to incur unnecessary costs.”
Phil Ellerby
CEO
The Solution
During the difficult lockdown period, Northern Accountants were proactive in the support they offered their clients. As well as guiding clients through the evolving financial landscape, they also used their digital accounting expertise to suggest solutions that could save businesses time and money, with the ultimate aim of keeping cash flowing.
In view of the credit control issues that Omega were struggling with, Northern Accountants recommended an automated credit control system called Chaser. This easy-to-use, app-based system was customised to Omega’s needs, integrated seamlessly with their Xero accounting software, and came with full support from Northern Accountants’ Chaser-accredited team.
Making the Difference
Chaser allowed Omega to:
- Set minimum chase values
- Tailor the tone and frequency of their emails
- Escalate emails from senior members of their team, depending on the criteria set
- Allow their clients to make payments directly from the emails received from Chaser
- Send thank you emails to acknowledge payments
The Benefits
Chaser effectively gave Omega the power and capability of a finance department, for a fraction of the cost. Once implemented, it delivered a range of transformative benefits to the business from day one, including:
Reduced overdue debt balance
Within just four weeks, the automated credit control function reduced their overdue balance by over £100k.
Quicker Payments
Automated invoice payment reminders meant they got paid faster and improved their cash flow by reducing bank charges.
Time Saving
Chasing is now minimal and only needed for any large overdues over 60 days, so the team has saved hours of time.
Less stress
The strain has been lifted because with fewer overdues, they no longer have to worry about cash flow stagnating
Easier Financial Management
The strain has been lifted because, with fewer overdues, they no longer have to worry about cash flow stagnating.
The Client’s Thoughts
The Results Were Staggering
“Northern Accountants were hugely supportive with the solutions that they offered us. After a three-month trial of Chaser the results we saw were staggering. The strain it has removed from us during a horrendous time has been invaluable. It’s a system that works well for us and it’s one less headache to contend with. It’s a small monthly cost for the help and time-saving it gives us.”
Steve Hubery
Commercial Director, Omega Asbestos Consulting Ltd
Conclusion
The implementation of Chaser transformed Omega Asbestos Consulting Ltd’s approach to credit control, leading to significant reductions in overdue debt and improving overall cash flow.
By automating and optimizing the credit control process, Omega has been able to focus on growth and efficiency, ultimately positioning the company for long-term success. The integration of Chaser, coupled with Northern Accountants’ continued support, underscores Omega’s commitment to innovation and operational excellence in a challenging industry.
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