We reduced a wholesaler's debt by 43% in 7 months
A construction wholesaler had 1.2 million PLN in debt and blocked deliveries. We introduced a new receivables collection system and negotiated settlements with 14 suppliers.
The Bud-Mix Pomorze wholesaler was drowning in unpaid invoices. They had 1.18 million PLN in debt and empty shelves because suppliers blocked their trade credit. We entered in March 2024 to stop the bailiff and pull the company out of the financial swamp.
The challenge
For 14 months, the company was late with payments for cement and steel. Total debt grew to 1,184,300 PLN. Due to the lack of goods, turnover fell by 28.4% annually, and the owner didn't even have 42,300 PLN for wages for 9 employees. Every morning he answered over a dozen calls from debt collection, and there were 3 pre-litigation notices on the desk. Zero fluff, just facts: in 2 months, the wholesaler would have to declare bankruptcy.
Our approach
We started with an audit of 1,432 accounting documents from recent years. We calculate with cold logic, so we checked every invoice and penalty note. Our team, led by Marcin Kwiatkowski and Anna Wiśniewska, caught 192,000 PLN in undue interest, which was successfully challenged. Then we sat down for talks with 14 main creditors. We have a plan for Tuesday – that's the rule we gave the owner so that every week he saw concrete progress in the papers.
The solution
Instead of asking for mercy, we presented suppliers with a hard repayment plan based on real cash flows. We negotiated breaking the debt into 34 low installments, which allowed the unblocking of building material deliveries. Simultaneously, we implemented a new system for recovering money from the wholesaler's debtors, who owed the company over 412,000 PLN. We also changed the way goods are ordered so that cash doesn't freeze on pallets that sit in the warehouse for months.
Results
In 7 months, the company regained financial liquidity and paid off almost half of the principal debt without taking out new loans. Bud-Mix Pomorze is once again a reliable partner for suppliers from across the region.
Timeline
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March 2024Review of 1,432 invoices and stopping the first bailiff execution.
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April 2024Sending 82 notices to the wholesaler's debtors and recovering the first 87,000 PLN.
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June 2024Finalizing negotiations with 14 key suppliers and unblocking deliveries.
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October 2024Stabilization of turnover and final debt reduction of 511,600 PLN.
"I thought that after 12 years of running a wholesaler I would have to close everything. Capital and Logic showed me that debt is not a life sentence if you have hard data instead of fear in your eyes. I regained my peace of mind."