Case study: How 93Digital reduced debtor days by 85%

93Digital are a London-based WordPress agency that work with a wide range of clients.

Gemma Shayle who heads up the finance department has been working with 93Digital for just under a year.

“I have a really broad role at 93Digital,” says Gemma. “It can range from day to day bookkeeping through to management accounts and everything in between!”

Resolving the problem of outstanding debt

When Gemma joined the business, she instantly knew the credit control was something that needed managing.

“There was a lot of aged debt in the business, and no active chasing of debt. There was no real process around credit control and payments weren’t chased until they became a problem. By the time something was flagged as a problem it was already very old debt and it became a struggle to get the debt paid.”

The time and resource it took to chase problem payers was also a problem for the business.

“It was all very manual – we would have to go through the ledger and look for really old debt, then locate and download the invoices, then writing the email and remembering to chase. It also took time to ask other team members what the history was with this particular payer, as there were often circumstances that not everyone was aware of.”

93Digital invoices on both a recurring and a one-off basis, and having different revenue streams could sometimes be confusing. “For recurring payments, because they are the same each month, customers would get confused between months and it was hard to be clear on what had been paid and what hadn’t.” Gemma notes.

The aged debt for 93Digital was getting worse and worse – the older the debt got, the more difficult it was to chase, and the harder it was to keep track of everything. “Eventually, when debt gets really old, you find that when you contact the debtors that everything has changed over there – if there is a new team in charge they don’t know anything about the debt and then it becomes extremely difficult to get paid.” said Gemma.

Instantly reducing aged debt with Fluidly

When Gemma joined the business, she straight away set 93Digital up with Fluidly. “It was really quick to get going and because there are pre-made reminder emails, I could turn those on straight away. I thought it would be a quick win to try and get some of the overdue invoices paid just by turning on reminder emails.”

She was amazed by the results. “The system-generated emails instantly made a difference to how many people were paying, and they encourage people to pay really quickly. 95 times out of 100, an invoice is paid off the back of a Fluidly generated email without any need for intervention from us.”

Extra features that make a difference

“There’s also a set of other features that I find really useful day to day.” Gemma adds. “Being able to record promised payment date is useful, and customers respond well to it. Rather than having to remember in my head when an invoice is promised, I can record it in Fluidly and this is built into the cash collections profile, so I know what to expect when.”

It’s also useful for debtors you don’t want to contact. “If there was a reason why we shouldn’t get in touch with debtors in the past, again I had to remember this every single time they had an invoice overdue. With Fluidly you can track this automatically, so that everyone in your team has the same information.”

The Fluidly overview dashboard is now central to Gemma’s role. “Our CEO can login and see in real-time the progress we’re making, so he knows the situation without having to ask us for reports. It also helps on a high level to show the problem payers and the invoices that are falling overdue.”

The results

“When I started at 93Digital I had a target of reducing average debtor days from 90 to 60,” says Gemma. “We actually very quickly got debtor days down to 14.”

This is an 85% reduction in debtor days, and means that the majority of 93Digital clients now pay ahead of terms.

“I’ve gone from contacting every single customer who owes us money to contacting a very small portion of bad payers.” Gemma says. “Credit control doesn’t take up any of my time or energy anymore – I don’t have to think about it – it just happens. It means we can deal with many more invoices per month without having to worry about how the team can scale.”

If you’re interested in how Fluidly can help you to implement automated credit control, get in touch via live chat or give us a call on 0207 611 1001