23 Apr 21

When an Insolvency Practitioner (IP) is appointed on an Administration or Liquidation, they may choose to leave the recovery of the sales ledger to existing staff that they retain, use their own internal staff or the Assett Based Lender (ABL) or Bank may have a preferred recovery company or may even collect the ledger themselves.

Inevitably there is often a residual (rump-end) ledger to collect. This can be for several reasons:

  • Bank or ABL has recovered their position and has reassigned the remaining debt back to the IP
  • Invoices are of low value
  • Large volume of debtors
  • Debts are disputed

Leaving ledgers to the responsibility of remaining staff is not the most effective strategy, when you consider that they are facing redundancy, our experience in these situations is that staff are often more focused on finding their next role, despite continuing to be paid to assist the IP.

IPs sometimes assume that internal staff will have a greater knowledge of the debt but unless it is a highly specialised product or service, the knowledge often isn’t required or has little benefit. Many remaining collection staff will not have any experience in the recovery of debt due to a company in Admin/Liquidation, and historic relationships tend to disappear.

Breal CM has a demonstrated a clear historic track record of being extremely effective at residual (rump-end) ledger collections and involving us on day 1 (or even at pre-appointment) has proven to generate the best results, as our team are focused purely on recoveries.

  • Initial recoveries performed by Insolvency Practitioner and utilised existing staff
  • Residual debt considered delinquent and uncollectable
  • £744,576 instruction
  • £589,458 recovered (79% recovery)

  • Recoveries left with existing staff from the business
  • Many debtors not trading due to lockdown and on furlough due to Covid
  • Recoveries by existing staff were slow
  • Referred to Breal Credit Management - bank shortfall recovered within 7 days
  • Recoveries ongoing

  • Initial recoveries performed by Insolvency Practitioner and utilised existing staff
  • Large volume of debtors with low value invoices
  • Client sensitive to adverse PR as debtors were schools
  • Proactive approach via telephone maintaining the client’s sensitivity surrounding recovery methods
  • £247,045 instruction
  • £228,465 recovered (92.5% recovery)




  • Fast, effective and Proactive telephone and letter campaign to maximise recoveries
  • Query resolution
  • Review of residual sales ledger to maximise recoveries
  • Regular reporting
  • Final report by an external independent party giving peace of mind that all recovery efforts have been exhausted so that creditors have their maximum dividend and cases can be closed.
  • No win no fee including a letter before action from a solicitor

  • Free up resource
  • Dedicated experienced collection team able to hand single debts to large volume of debts irrespective of invoice values
  • Maximise recoveries for creditors
  • Knowledge of multiple sectors


BREAL Credit Management offers proactive commercial debt recovery solutions in the case that you are already experiencing problems with debtors, it’s always better however to take preventative measures to stop this from happening in the first place, and our credit control solutions are the ideal way to minimise your risk of being exposed to potential bad payers and help you to make late payments a thing of the past.

Speak to the team at BREAL Credit Management, to find out how can help put you on the path to cashflow certainty. Call 0330 0430282 or simply email us at info@BREALCM.com

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