Optimum Finance has delivered a specially tailored credit control and debtor protection service to Adan Limited since 2018.
Optimum has improved the timing and quality of Adan’s trade debtors by reducing debtor days and offering debtor protection, through Optimum’s expert outsourced credit control team.
Incorporated in 1968, Adan Limited is the only UK manufacturer of low-speed hydraulic motors. Director Steve Plaskitt joined the company in 2001 and the business was bought from the previous owners in 2003.
Finding a solution that works
Adan Limited had worked with a number of lenders before with unsatisfactory results. The company did not require a borrowing facility but was looking for debtor protection and support with credit control. Optimum Finance was the only invoice finance firm which could meet the company’s specific requirements.
Despite UK standard 30-day invoice payment terms, Optimum Finance is regularly approached by new clients with an average of 90+ debtor days. This gap in payments puts huge pressure on SMEs who need to meet their monthly commitments to rent, salaries and regular overheads using other cash sources.
Optimum Finance provides Adan Limited with an outsourced credit control function, a bespoke stand-alone service with no obligation to borrow. Optimum Finance is responsible for chasing overdue payments from Adan’s customers in order to reduce debtor days and maintain a healthy cash flow.
Rising to the challenge
Optimum Finance’s dedicated credit controllers have relieved Adan of the time-consuming administration, allowing management to focus on running the business. Optimum has also helped Adan maintain positive relationships with his clients. The Optimum Finance team assumes the responsibility for chasing late payments, removing a potential source of tension for the Adan.
Steve Plaskitt, director of Adan Limited, comments on the relationship with Optimum Finance:
“Optimum Finance is the only company that could provide the service that we required at Adan Limited and, not only that, it’s a seamless and brilliant service too.
“We didn’t need a borrowing facility but having debtor protection to insure us against bad debtors and maintaining a healthy cash flow is imperative to the business. Optimum Finance’s credit control team chases all our payments, which saves me having to do it and potentially jeopardising my client relationships, allowing me to focus on running the company.
“The team is great to work with, and the Optimum Finance IT platform works well and is very easy to use.”
Optimum Finance CEO Richard Pepler on Adan’s Limited outsourced credit management service:
“SMEs are more vulnerable to economic fluctuations in general and, with the current uncertain economic and political climate in the UK, outsourcing back office functions is an effective way to allow businesses to focus on their core revenue generating activity.
“As a result of our successful relationship with Adan Limited and the benefits of outsourcing credit control, Optimum is excited to launch our service-only credit management offering to support other SME clients. The Optimum team acts as an extension of the client’s team, enabling the client to focus on commercial growth.
“We fully expect the numbers engaging this outsourced credit control function to increase rapidly. Our expert team relieves companies of tiresome hours of administrative work and allows them to focus on growth.”Tags: Adan Ltd, case study, Credit control, Debtor Protection, Optimum Finance Categories: Case Studies