A Quarterly Publication for Today's Credit/Finance Executive

The Art of Getting Paid: When Your Troubled Accounts Use Turnaround Specialists

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• Success Stories from Three Turnaround Specialists

• The Benefits To Your Past Due Accounts Of Getting A FREE Evaluation By A Turnaround Specialist—How The Process Works

Successful Turnaround Stories from the Desk of: Elementary Business Inc.

Jewelry Wholesaler Suffers Catastrophic Event, Recovers and Pays Outstanding Balances

A jewelry wholesaler imported lead costume jewelry from the Orient. After lead jewelry was outlawed due to its lethal possibility if swallowed, the company suffered catastrophic financial distress.  

All orders from mass retailers were returned. The manufacturer was not liable since the jewelry wholesaler had placed the orders for the lead jewelry.  

With retailers returning all lead jewelry, the wholesaler could not collect on its outstanding invoices—upon which lenders had made advances from an Asset Based Loan.

Elementary Business was called in to work with the lender and provide financial projections. Those projections revealed exactly how the lender’s over advances would be repaid from new orders. 

The jewelry wholesaler received new, unleaded jewelry from the manufacturer, shipped to existing customers, and submitted invoices to the lender, who was repaid within five months. The once-troubled company continued to operate successfully.

Insolvent Manufacturer Regains Profitability & Pays Off Vendors

An insolvent manufacturer and wholesaler of Pest Control Products had orders from a loyal following of customers but insufficient money to purchase raw materials to make their products.

As the turnaround specialist involved, we arranged an injection of capital to purchase raw materials. Elementary Business Inc. installed a Chief Restructuring Officer while also reorganizing the finances, operations and procurement of raw materials. With creative methodologies, prices for raw materials were reduced by 50%. A bloated staff of thirty was reduce to fifteen.

As a result profits were achieved, eventually increasing 20% year-over-year.

Poor Cash Flow Leads to Problems With Vendors. Turnaround Specialist Solves the Quandary

A high-end printer was having cash flow issues resulting in vendors putting holds on new purchases of printing supplies and paper. Elementary Business Inc. called each critical vendor to present a tailored thirteen-week plan for new payments and purchases. The plan paid for new purchases while also including an additional amount to be applied to older, past due invoices.

If additional purchases above the projected amount were needed, they would be paid for before delivery.

All critical vendors agreed to the plan and the printer complied with all commitments, resulting in:

1. Past due balances being paid off.

2. Vendors continuing to sell to the printer.

3. The printer regaining its credibility with vendors.

Reorganizing Poor Management Structure

Results in a Profitable Firm

Three salespeople joined forces to purchase a specialty paper company. The products were singular in their extreme adhesiveness.

To purchase the company, a bank loan was taken as well as the owners investing their capital.

Never having operated a company as owners the three floundered, not understanding their roles in the company.  

Elementary Business Inc. reorganized the company, sending two of the salespeople back to work in the field while one operated the company. This reduced the burden on the company's cash flow.

The salespeople were also able to send work to the company from their outside connections. The company became profitable once reorganized.

Elementary Business Inc. is a specialized consulting firm for distressed businesses and entities in transition. We work closely with owners to structure improvements in both operations and finances, focusing on returning a company to profitability and growth. Initial consultations are free!

Call (847) 858-1175

Successful Turnaround Stories from the Desk of: Cambridge Financial Services LLC

From Pandemic Shut-Down to Vendors Being Paid-in-Full

A designer and manufacturer of formal dresses was hit hard when the pandemic shut down their customer base of hundreds of boutique stores.

Business almost ground to a halt.

Customers stopped purchasing, and stopped paying outstanding invoices. In turn, the company’s cash flow could not allow payment to vendors, and still keep the doors open. There was a real risk of a liquidation of the business and unsecured creditors taking big losses. 

While the company’s bank was supportive, it recommended the company hire a turnaround management firm to develop and implement strategies and tactics to keep the business viable. Cambridge Financial Services was retained for the assignment. 

We immediately renegotiated terms with the bank to provide ongoing working capital, while implementing decisions to “right size” the business.

Ongoing communication with vendors in many countries was a key to keeping supply lines open.

In addition, emphasis was placed on collection of receivables to keep the cash flow coming in. 

A new Enterprise Resource Planning (ERP) system was implemented to replace aging software and take advantage of efficiencies of scale.

Interaction between departments was improved, as well as the customer experience through a new portal. 

The company is now a more efficient operation as it returns to even higher revenue levels than before the pandemic.

More importantly, every vendor has been paid-in-full for past invoices and are experiencing increased business from the client. 

Since 1985, Cambridge Financial Services LLC has been providing turnaround consulting services, financial restructuring and placement services and strategic financial advisory assistance. Initial consultations are free! Call (847) 858-1175

Successful Turnaround Stories from the Desk of: SeatonHill Partners

Weathering an Industry's Recession

• Invited by an investment banker to assist with selling an oil field service company, SeatonHill joined the client’s team as the interim CFO. This occurred about the time of a precipitous decline in oil prices.
• SeatonHill immediately recognized how the client could improve its operations and weather the industry’s recession.
• We went to work with the leadership team to turn the business around.
• Meanwhile the sale of the firm was deferred until the new business processes could be installed.
• Within a year the client was on a growth trend of both sales and earnings.

New Financing Helps Small Firm Grow More Than 500%

When a young electrical subcontractor needed working capital to grow his business and banks would not respond, SeatonHill prepared a financing package, contacted our network of commercial lenders, and secured the funds he needed.

We remained as the fractional CFO. The firm grew from annual revenues of $10 million to over $200 million in eight years. Today we still act as fractional CFO, having assisted in numerous financings and acquisitions.

SeatonHill Partners is a rapidly-growing national strategic CFO services firm solving common to complex financial problems that create risk to survival and growth for thousands of small and medium-sized businesses. Call (847) 858-1175

Why Using Turnaround Specialists for Troubled Accounts Benefits You

"Teaching an old dog new tricks isn’t always easy. I know because, as author of this new publication, I’m an old dog (with 41 years experience publishing news for Credit and Finance Executives)," says Turnaround Times Publisher Stephen Bastien.

"But when it comes to getting paid from my troubled accounts, if there’s a better way, I say—-why not try it.

If your customer chooses to work with a turnaround specialist, it could turn your customer's business around and get you paid in the process."

"The winners in business, and life, are those who look at every situation with a sense of ‘knowing’ that change is a natural part of growth.” - Stephen R. Bastien

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Here’s How the Process Works:

1—Go to our website: click here. Download our free past due notices that offers your customer an alternative to facing the wrath of a collection agency (while also saving you agency commissions).

"The measure of intelligence is the ability to change.” - Albert Einstein

2—Once your customer chooses a turnaround specialist to work with, and the free evaluation by the turnaround company is completed, that specialist will write up a current credit report which will be available to you for a minimal fee.

“People will try to tell you that all the great opportunities have been snapped up. In reality, the world changes every second, blowing new opportunities in all directions, including yours.” 

- Ken Hakuta

3—The turnaround specialist will then work to not just turn your customer’s company around, but get you paid in the process.

“It is not the strongest or the most intelligent who will survive but those who can best manage change.” - Charles Darwin

4—Once the company is successfully turned around and you’re paid, you’ll be able to sell to them with a better assurance they will be paying--according to your terms.

“You can't build an adaptable organization without adaptable people…”

- Gary Hamel

Get more information about Turnaround Specialists

Turnaround Times is brought to you by Turnaroundreferrals.com.

Our mission is helping Credit and Finance Professionals see new possibilities with Turnaround Specialists: to assist your troubled clients and then recover funds. We hope you will find this alternative, to paying commissions to collection agencies, worthwhile.

Contact us to choose your Turnaround Specialist. Have questions? Just ask!