We partnered with an energy supplier to assess the maturity of their ~£150m debt book, identifying ~£30m of potential cash benefit through a series of tactical and strategic improvements.
Using our debt maturity assessment, we revealed the performance gaps and risks limiting recovery effectiveness, enabling the client to prioritise high-value improvements and build a sustainable strategy for future debt management.
Client Challenge
The supplier was experiencing rising aged debt and required additional credit management expertise to stabilise performance.
Debt activity was siloed across teams, with limited shared data, unrealistic targets, and limited support for operational decision-making.
A one-size-fits-all debt journey was undermining recovery effectiveness, requiring a stronger approach to segmentation and assessing customer risk.
Gaps in recovery processes and ineffective debt monitoring also led to missed intervention opportunities.
Our Approach
We assessed 157 capability questions across 10 areas, which are critical to managing customer debt and risk.
Our work included:
- Identifying focus areas through workshops, data analysis, and a review of policy and process documentation
- Conducting a deep dive into live and lost debt books to quantify financial implications of gaps in the customer journey
- Highlighting critical capability gaps and recommending targeted fixes, across 30 actionable initiatives
Outcome
Overall, the assessment identified an opportunity to deliver ~£30m cash within 18 months.
This was supported by a clear, data-led roadmap for the supplier to improve their approach to debt management, benchmarked against industry averages and best practice.
Contact Rachel Littlewood to explore how BFY can help you assess debt maturity, improve recovery performance, and deliver measurable cash benefits.
