Improving Collections and Cash Flow
YRH implemented credit control processes that improved monthly collections from 32% to 56%, supporting this PR agency’s growth journey. This is how we assisted their expansion.
The Starting Position
This boutique PR agency had built a strong client base but faced cash flow challenges. They engaged YRH to improve their credit management processes.
The situation:
- £190k bad debt on £600k turnover
- 32% monthly collection rate
- Variable payment terms
- Cash constraining growth
- Owner time on collections
Client website: Available on request
Our Process Implementation
YRH’s analysis identified:
Credit control excellence to transform cash position
Our work included:
- Credit process design
- Payment term standardisation
- Collection procedures
- Advance billing introduction
- Cash flow forecasting
Our Support Journey
Phase 1: Foundation (Months 1-3)
Building processes:
- Credit control procedures
- Payment terms clarified
- Collection rhythms established
- Historical debt addressed
- Improvements beginning
Phase 2: Enhancement (Months 4-6)
Optimising approach:
- Pricing review support
- Terms standardised
- Advance billing introduced
- Forecasting implemented
- Cash position improving
Phase 3: Ongoing Support
Sustained assistance:
- Regular monitoring
- Process refinement
- Continued guidance
- Growth support
- Long-term partnership
The Numbers During Our Support
| Metric | Start | During Our Support |
| Revenue | £600k | £1.8m |
| Monthly Collections | 32% | 56% |
| Bad Debt | £190k | Reduced |
| Advance Billing | 0% | 75% achieved |
| Payment Terms | Variable | Standardised |
Our Contribution
1. Credit Management
Systematic approach:
- Collection procedures
- Clear expectations
- Regular follow-up
- Relationship focus
2. Process Support
Improvements made:
- Pricing guidance
- Term standardisation
- Billing advancement
- Cash flow support
3. Long-term Partnership
Ongoing assistance:
- Regular reviews
- Process refinement
- Growth support
- Continuous improvement
What the Agency Says
“YRH didn’t just improve our collections – they transformed how we run our business. Moving from 32% to 56% monthly collection gave us the cash flow to grow sustainably.”
Agency Founder
What YRH Provided
- Credit control processes
- Payment term standardisation
- Cash flow management
- Pricing review support
- Long-term partnership
Key Takeaways
- Systematic processes help – Structure improves collections
- Clear terms matter – Standardisation reduces confusion
- Advance billing achievable – 75% shows possibility
- Cash flow enables growth – Better collections support expansion
- Partnerships evolve – Long-term support valuable
