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.