When financial difficulties became insurmountable for the subsidiary of a nutraceutical company, the parent company closed the subsidiary business. The subsidiary was burdened with uncollected accounts receivable, prompting the secured lender to recommend retaining MCA Financial Group to spearhead the recovery of the outstanding accounts receivable.
The parent nutraceutical company specializes in innovative nutritional supplements and serves customers throughout the US and Canada. Its subsidiary helped develop and bring new prospective nutraceutical products to market, offering a comprehensive range of services, from manufacturing and testing to packaging and regulatory compliance. Following its unprofitability, the parent company shuttered the subsidiary and enlisted MCA Financial Group to pursue the collection of outstanding accounts receivable.
MCA Financial Group adopted a comprehensive approach, closely collaborating with management to understand product lines, sales channels, and the nature of the outstanding invoices to assist in developing its collection strategy. Our team coordinated customer outreach to assess payment statuses and assert demands as needed. In cases where resolutions seemed elusive, we engaged seasoned collections attorneys. Leveraging our financial analysis expertise, we scrutinized customer files, A/R aging reports, and bank statements and provided our legal partners with the necessary documentation for effective legal action.
Confronted with significant challenges, including customer reluctance and misguided directives from former employees, we remained steadfast in our commitment to clarity and persistence. By emphasizing contractual obligations and the collateralized nature of accounts receivable, we effectively encouraged adherence to obligations.
With meticulous detail, relentless follow-up, and unwavering commitment, MCA Financial Group surpassed client expectations, achieving favorable recoveries and exceeding initial projections. Our success underscores strategic foresight, collaborative synergy, and unwavering resolve in navigating financial challenges.
For turn-around and restructuring and company advisory solutions tailored to your organization’s needs, contact MCA Financial Group today.