Debt Recovery for Mechanical Engineers

After she visited one of our members, Our Field Service Manager realised what a difference we make to members when they make full use of our services.

Our Field Service Manager has been helping this member for over 12 years now, since 2005. They use CPA’s online credit management services as an integral part of running their business.

They told her on this most recent visit that they wouldn’t dream now of opening an account without first taking a CPA Status report.  They now never gave credit above the limits suggested. By monitoring they also get a ‘heads up’ on any changes and feel that they know circumstances as they happen.

When the CPA Monitoring service flagged-up that a director had resigned from a relatively new customer, they called him to try and get an understanding of the changes within that company, and after talking to him  were much more cautious about extending credit to the customer. This proved to be a good move as the company shortly after sank into insolvency!

They are not concerned that our polite letters prompting payment directly to our Member (not to CPA) will “upset their customers’ as in their experience they continue to trade happily and they get paid quicker too.

Our credit application form is so much part of their process that they thought it was their own. When our Service Manager reminded them that they had just added their logo to the CPA template  document they said that they had forgotten as they had been using it for so long!

Such visits are such a joy for our Service Manager when she sees how our services are making such a difference for such a lovely customer.

The bulk of their turnover comes from providing machinery costing six figure sums and payment for this capital equipment is in advance, usually by way of a finance company or bank. You might wonder then why they need CPA. They use us help manage their service and maintenance accounts. However they usually spend three to six months trying to collect the debt internally. The overdue accounts  are usually passed to CPA when they are 4 to 7 months overdue!  Even at this relatively late age of account, over the last 5 years we have achieved an 89.29% resolve rate on their behalf, helped by the fact that they now only ever deal with credit worthy customers.

While we would normally recommend passing overdue accounts to us quicker than that, our members can chose to fit our service into their Credit Management policy however they chose. We happy to help where ever we can.

James Salmon, Operations Director 23 June 2017


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