How we saved a transport company from collapse in 4 months
In August 2023, the owner of a transport company from Lower Silesia approached us. He had 23 road sets, 124 overdue invoices, and an empty treasury for fuel. It wasn't a matter of bad management, but a lack of protection against dishonest contractors.
Analysis of a bottleneck worth 418,300 zlotys
The situation was critical because 124 invoices meant over 400 thousand zlotys frozen in papers. The average payment delay was 47 days past the document date. Korporacyjna Racja Stanu started by segregating debtors. It turned out that 19 of them were regular customers who simply learned that our principal doesn't demand his due. Security first required hard cuts and changing the rules of the game here, because numbers don't lie: at a 4% margin, one unpaid freight eats the profit from twenty-five subsequent ones.
In the transport industry, liquidity is fuel. Literally. There were no funds for fuel cards for 7 drivers, which threatened to stop the fleet in the middle of the season. Our team of analysts spent 11 days verifying every transport order and CMR documents. We found 3 repeating errors in invoicing that debtors used as a pretext to withhold transfers. These were details, like a missing reference number on an attachment, but on an annual scale, they cost the company a fortune.
Numbers don't lie: at a 4% margin, one unpaid freight eats the profit from twenty-five subsequent ones.
Recovering cash in 19 days
We didn't play around with sending soft reminders. Marek Jastrzębski prepared final demands for payment for the 7 largest debtors, who accounted for 64% of the debt. We applied legal pressure combined with a settlement proposal for those who actually had temporary problems. Within the first 19 days, 156,300 zlotys reached the company's account. This allowed for immediate payment of overdue ZUS contributions and unlocking fuel cards, which saved contracts with large retail chains.
The next step was to implement a payment monitoring procedure. We protect your capital through prevention, not just fire fighting. We introduced a rule that every invoice over 5,000 zlotys is confirmed by phone on the day it reaches the contractor. It seems simple, but 83% of delays resulted from the fact that documents 'got lost' in the recipients' accounting departments. Now every mistake is caught within 24 hours, not after two months.
New company security structure
After clearing the worst bottlenecks, we had to secure the company for the future against hostile market moves. Korporacyjna Racja Stanu changed contracts with subcontractors and clients. We shortened payment terms to 14 days for new orders, offering a 1.5% discount in return. This made customers who cared about savings start paying on time. The number of overdue invoices dropped from 124 to just 8 in the next two months of cooperation.
The company owner, Mr. Andrzej, regained control over the business in November 2023. The entire operation lasted exactly 4 months. During this time, we not only recovered 89% of the overdue amounts but also built a financial cushion of 142,000 zlotys. This is the security that now allows him to choose only profitable orders, instead of taking everything just to have money for a lease installment. Security first is for us real cash on the client's account, not empty promises.
We recovered 89% of overdue amounts and built a financial cushion of 142,000 zlotys.
Conclusions for other carriers
This case shows that most liquidity problems stem from a lack of procedures. If you allow a contractor to pay 30 days late without consequences, you become their free bank. We end this practice. Korporacyjna Racja Stanu watches over your money when the market starts going crazy, because we know that in transport one mistake can mean the end of a family company built over 9 years. Every document, every stamp, and every conversation with a debtor must be part of a larger asset protection strategy.
Honestly speaking, not every company can be saved. If debts exceed the value of assets by 200%, it might be too late. But in this case, the quick reaction in August allowed for avoiding bankruptcy that was hanging by a thread. Today, the company employs 4 new drivers and is replacing the 3 oldest tractors with new models. This is the stability we fight for every day for our business partners. We don't look for excuses; we look for the money that legally belongs to the owner.
