Knowledge Centre - Case Study

NWF Fuels Improves Cash Flow with Direct Debit expert

Rejected Payments Cause Problems

NWF Fuels supplies oil products throughout England and Wales and has an annual turnover in excess of £200 million. The company is one of Texaco's largest distributors in the UK. In the past, NWF Fuels experienced problems with its Direct Debit collections. Employees had to send paper mandates manually to the bank, which often took two weeks to become active. In addition, mandates were often lost in the post and NWF Fuels experienced high numbers of rejected payments. The company found that the associated administration was time consuming and that it was losing credibility with its customers when payments failed.

NWF Fuels Calls in the Experts

NWF Fuels needed a system that could manage three different types of Direct Debit collections and it wanted to switch from paper mandates to the Automated Direct Debit Instruction Service (AUDDIS). NWF Fuels approached The Royal Bank of Scotland to help it find a solution to these challenges. The bank told NWF Fuels that Direct Debit Limited could help. Direct Debit Limited provides software that manages Direct Debit collections and processes. The compelling benefits offered by the software and the company's specialist knowledge and expertise persuaded NWF Fuels to work with Direct Debit Limited, rather than other suppliers or its in-house software provider.

Enhances Customer Relationships

NWF Fuels purchased Direct Debit Limited's market-leading Direct Debit expert (DDe™) software. Since implementing DDe™, the number of customers paying by Direct Debit has increased by 25% to 8,500. Moreover, in February 2009, Direct Debit was the most popular payment method for NWF Fuels' customers. DDe™ allowed NWF Fuels to switch to AUDDIS, and it can now send mandates electronically, which has reduced costs and administration. As a result, NWF Fuels customers get a better service. Tony McCormick, Credit Control Manager at NWF Fuels, says: “One of the best features of DDe™ has to be the security and account validation. Once you've entered a customer's details, you know they're correct and validated. We know the job is getting done properly, which increases customer confidence and our confidence as well." NWF Fuels has reduced the number of its rejected Direct Debits by 95% since the installation of DDe™.

Improves Efficiency and Cash Flow

McCormick reports that DDe™ has increased efficiency at NWF Fuels and helped payment processes run smoother. NWF Fuels has reduced collection times, which has improved cash flow at the company. McCormick says: "Some of our Direct Debit payments come from domestic customers on a budget plan and some come from customers paying for tank loads of fuel worth £30,000 to £40,000. In both cases, DDe™ gets our money in quicker, which is very important."

Provides Excellent Support

The dedicated support team at Direct Debit Limited has also impressed McCormick. He says: “The support team is incredibly efficient. The support consultants have a great knowledge of the product and the Direct Debit scheme. You can’t fault them; they are very reliable.”