How a Construction Firm Recovered £185,000 in Aged Debt and Cut Debtor Days by 35%

Construction is one of the toughest industries for cash flow. Retentions, application cycles, variations, and multiple approval layers can all delay payment — even when the work has been completed.

This case study shows how a growing construction firm in Yorkshire cleared a backlog of aged invoices, improved cash flow predictability, and reduced debtor days — without damaging key customer relationships.

The Challenge

The business had a strong order book and was delivering projects consistently, but their sales ledger was becoming increasingly difficult to manage internally. Payment chasing was being handled alongside day-to-day operations, and follow-ups were often delayed simply due to time pressures.

Over time, this created a backlog of aged debt. Some invoices were sitting at 60–90+ days overdue, and the team lacked visibility on what was genuinely in dispute versus what was simply stuck in a customer's internal approval process.

By the time they reached out, the firm had around £185,000 tied up in overdue invoices. They wanted results, but they were also cautious: many of the debtors were repeat customers and key accounts.

Why They Chose KS Credit Control

They needed a partner who understood the construction payment landscape and could chase firmly without being confrontational. Traditional debt collection felt too risky for the relationships they had built.

Our white-label approach was the deciding factor. We would work as an extension of their team, using their brand and tone of voice, so communication felt familiar and professional to their customers.

Our Approach

We started by reviewing the aged debtor report and categorising each account by age, value, and likely payment blocker. In construction, delays are often caused by missing paperwork, approval chains, or disputes around variations, so our first goal was clarity.

We then ran a structured collect-out process:

• Week 1: Onboarding, agreement of tone, and setup for white-label communication. We confirmed escalation thresholds and how disputes/retentions should be handled.
• Weeks 2 to 4: Initial outreach to all overdue accounts. We requested clear payment dates, identified missing documentation, and logged disputes for the client's team to resolve.
• Weeks 5 to 8: Focused follow-up on higher-value and older debts. Where customers had genuine process delays, we worked through the approval chain to keep invoices moving.
• Weeks 9 to 10: Final escalation on the remaining aged balances. We provided clear recommendations to the directors on next steps for the small number of non-responsive accounts.

The Results

Within 10 weeks, the firm achieved a major shift in cash flow and visibility:

• £185,000 recovered from aged invoices
• Debtor days reduced by 35%, improving cash flow predictability
• Clear dispute tracking so the team knew exactly what was holding up payment (and what wasn't)
• Relationship protection through professional, respectful communication under the client's brand

What the Client Said

“We were drowning in overdue invoices and didn't have the time to chase properly. KS Credit Control stepped in and brought structure, consistency, and results. The best part was that our customers felt like they were dealing with us — not a third party.”

What Made the Difference

1. Construction-aware chasing. We understand retentions, applications, and approval chains, so we focus on removing blockers — not just sending reminders.
2. White-label delivery. Communication felt familiar to customers, which helped keep relationships intact.
3. Clear reporting. Weekly updates gave the directors visibility on cash recovered, forecasts, and what needed internal action.

The Ongoing Relationship

After the collect-out, the firm moved into a more proactive approach to prevent the backlog from returning. We supported them with improved chase cadence, dispute logging, and clearer internal handovers — helping them maintain healthier debtor days going forward.