Case Study: Outsourced administration function
National supplier of integrated energy solutions
Nimble Group assists a bulk supplier of fuel to
the transport industry to recover and resolve
inactive or non-trading accounts with a face
value of R75m
THE CLIENT
National supplier of integrated
energy solutions
INDUSTRY
Energy
BUSINESS NEED
Recover and resolve inactive or
non-trading accounts to reduce
debtor’s book provision
NIMBLE GROUP SOLUTION
Complete account reconciliations,
resolve queries, negotiate
settlements with customers and
collect cash and secure
commitments for future payments.
BUSINESS IMPACT

R3.3m in cash received within
3 months

Secured commitments to
further payments of R2m over
a period of 18 months

R24m of possible fraudulent
transactions were referred for
investigation

Confirmed that companies
representing claims of
approximately R42.5m was in
liquidation

Identified improvements in
business and credit processes
FOR FURTHER INFORMATION,
PLEASE CONTACT
Trevor Jacobs, Joint CEO
+27 21 402 0751
trevor@nimblegroup.co.za
Jean Erasmus, Director
+27 11 253 7241
jean@nimblegroup.co.za
The Challenge
Initially the client’s debtor book was managed on a related third party’s information
system. Subsequently, the book was transferred to a newly developed ERP system and the
management thereof was outsourced to an unrelated third party. In turn, that third party
outsourced the credit control work to yet another third party. After approximately two
years the client cancelled these arrangements and resumed management and control of the
book itself. These various changes in credit management resulted in a debtors book of
R400m and a provision of R120m, of which R100m was inactive or non-trading i.e. “hard
core”.
Nimble Group Solution
Nimble Group spent important time obtaining background information about the accounts.
Having quickly understood the background of each account and the going concern, or
trading status of the customers, Nimble Group split the accounts into three specific
categories:
 Those with documentary and billing disputes;
 Customers that were unable to settle accounts in full; and
 Accounts in liquidation.
Nimble Group’s activities then included:
 Confirming the legal status of the counterparties and claims;
 Reviewing and assessing the completeness of the relevant security;
 Meeting with customers;
 Taking control of account reconciliations;
 Collating proof of delivery/collection documents; and
 Negotiating settlements and collecting cash.
Business Impact
Nimble Group Group strives to offer a complete solution to our clients that will create real
commercial value. The collection strategies implemented have yielded quantifiable and
qualitative results for the client:
 A total of R3.3m, in cash, was collecte within three months. This amount was
recovered from accounts that were previously written off. Nimble Group also secured
commitments to further payments of R2m over a period of 18 months.
 Possible fraudulent transactions/allocations to incorrect accounts of R24m were
referred for investigation.
 Of the total collections mandate of R60m, Nimble Group confirmed that companies
representing claims of approximately R42.5m was in various stages of liquidation where
claims were considered.
 Finally, Nimble Group identified areas for improvement in the Client’s business and
credit processes. These observations and suggested remedial recommendations should
result in reduced delinquencies in the future.
www.nimblegroup.co.za
Issue date: October 2012