Developing a Recovery Plan for an Ecommerce Business in Financial Trouble

An RJF Accounting Case Study

Accounting Services Growth Services

We Helped This Client Manage Their Business Finances More Effectively and Ultimately Pay Back a £250K Debt.

Who was the client?

An online fashion retailer.

What was the challenge?

When this client first approached RJF, they were fighting off creditors demanding £250,000 in combined debt. The business was very close to falling into administration, and was struggling to pay staff wages.

Although the business was achieving an annual turnover of £2m, the team were losing control of running costs and had quickly accrued credit card debts amongst other liabilities. They also had little visibility of key areas such as supplier deals, bookkeeping, marketing ROI, or how well each debt was being covered.

How did we help?

As we mapped out a rescue plan, we were realistic with the client about the possibility of the business going into administration, but explained that we would do all we could to prevent it happening.

We began by supporting the client to speak openly to their creditors. If creditors know that repayments are on the way, even in increments, they’re much more willing to give a business breathing room to recover so that they can get back what they’re owed.

With clear communication established, we got to work overhauling the client’s accounting system. We also analysed sales and marketing spend to find efficiencies.

What was the result?

With our support, this client repaid their debts and today, the business is worth £4m – double the previous valuation.

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RJF Accountants
Based on 34 reviews
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Jay WilliamsJay Williams
12:55 24 Apr 23
Been with RJF for a short time and they have already helped with cashflow and overall financial management
Ken MeaneyKen Meaney
16:13 13 Oct 22
We moved our financial management and reporting to RJF Accountants 12 months ago, we needed more of an outsourced Finance Director to give us deeper knowledge and guidance both locally and internationally. Rob and his team at RJF are experts in their field and take the time to genuinely understand the businesses they support and the people within them.I highly recommend RJF Accountancy to businesses that need more than just a basic accountancy service, we have been entirely satisfied from day one and look forward to a continued relationship with Rob and his team.
Moylan MoylanMoylan Moylan
12:02 07 Oct 22
Thanks to Rob and the team at RJF in getting our first accounts done and filed on time. We are extremely busy and didn't have the time to have everything filed and ready. They pulled out all the stops. Great supportThanks also to Rob for his advice and support especially in relation to various taxation scenarios, EIS and SEISS, other options and opportunities and regulations. Much appreciated.
Judy LeungJudy Leung
14:10 15 Dec 21
I switched to RJF because I needed an accountant who could also offer advice and insight into startup finance and tax related queries, not just deal with the compliance side. I'm extremely pleased I made the move because Rob and his team have been fantastic, always responsive and helpful. It's clear Rob has a lot of experience and is passionate about startup finance and entrepreneurship. I've already referred another business owner to him and am happy to recommend RJF.
Danny RodgersonDanny Rodgerson
20:02 26 Nov 21
Rob and his team are professional, courteous and always friendly. Rob will make the time to reply to all my ramblings - whatever time of day! He's knows how to advise businesses on their accounting needs. I previously referred clients to Rob, but became one myself when I set up alone, and I can now see why they all raved about RJF.