Wholesalers and distributors transact large amounts of goods at low margins. So, financing the purchase of stock and ensuring that there are no bad debts are crucial in maintaining profitability.
Often stock is acquired from overseas, which adds additional complications of paying for the goods in advance and clearing them through customs speedily and without incurring unexpected costs. We have assisted many companies in overcoming these challenges.
Bad debts can be insured against but the adage that “the devil is in the detail” is very much in evidence here. It was our experience of knowing what detail to look for, and negotiate around it, that enabled a shoe retailer to recover £420,000 of a £500,000 potential bad debt.