Credit Control Service for Avalon Fashions Ltd

“SGCM’s service has improved our cash flow without any negative effect on our customer relations. Most importantly the service allows me to focus on growing our business in the knowledge that the sales ledger is in safe hands.”
Safiah Ahmad, Managing Director

As the business expanded senior managers found that they were spending considerable time chasing up outstanding bills, distracting them from core business and having an adverse effect on client relationships. As cash flow suffered Avalon Fashions had the choice of recruiting a part-time credit controller or outsourcing to a specialist. Following discussions with SGCM, Avalon Fashions decided that outsourcing would give them a more reliable, flexible solution with the added benefit of access to specialist expertise.

Solution

The proposed service was for SGCM to effectively become Avalon Fashions’ credit control function, with service carried out under the Avalon Fashions brand. Whilst the ledger requires that the collection process needs 1 day per week effort, SGCM answer calls 5 days per week. Avalon therefore has a full-time credit control function for part-time cost. The SGCM Service focuses on regular phone contact with debtors and close liaison with Avalon to resolve queries and advise on credit terms. Ageing debtors are escalated to SGCM’s Debt Recovery service with legal process managed by SGCM’s solicitor if necessary.

Outcome

Avalon Fashions have seen a significant increase in company turnover since the start of service. During this time SGCM have reduced ageing debt by 50% whilst reducing admin for Avalon, and improving client relationships through regular contact and efficient query resolution. Outsourcing Credit Control to SGCM has allowed Avalon Fashions to focus on core business and continue growing in the knowledge that the ledger is being managed consistently by a team of experts.

About Avalon Fashions Ltd

Former model Melissa Odabash launched her first collection of designer swimwear back in 1999. Since then Melissa has been credited with re-introducing high fashion into the swimwear world. Avalon Fashions have two flagship stores in Notting Hill and Chelsea and distribute to over 250 luxury department stores worldwide.