Navigating Financial Hurdles: 

Redwood Collections' Tailored Debt Recovery for Magenta International

Magenta International, established in 1989, is a leading independent recruitment company specialising in the Building Services and Construction industries. Over the years, they have expanded their recruitment sectors to include Food Manufacturing in 1997 and Life Sciences in 2019. Their focus is on providing tailored services to clients and candidates, free from the constraints of a rigid 'Head Office' culture. Originally concentrated on London and the South of England, Magenta International has grown to become a nationwide and global supplier across our specialist industries.

The challenge
While Magenta International is a successful recruitment company, they faced difficulties in managing outstanding debts from clients, particularly when some law firms became unresponsive to payment requests. Given the critical importance of maintaining strong client relationships and ensuring cash flow, Magenta needed a debt collection partner who could navigate the sensitive nature of these situations. The challenge was to recover outstanding payments while preserving the professionalism and trust integral to their industry.

Our approach
Magenta International sought our assistance when a law firm client failed to pay several invoices and stopped responding to communications. We began by conducting a thorough review of all pertinent documentation, including contracts, correspondence, and payment terms, to identify any potential issues. Armed with this information, we reached out to the client to understand their reasons for withholding payment and facilitated mediation and negotiation between both parties. Our goal was to find a mutually agreeable solution and recover the outstanding payments while maintaining a positive client relationship.

Outcome
Through our collaborative efforts, we successfully resolved the payment issue within a few days. The law firm client agreed to settle all outstanding invoices in full, including additional charges and interest for the delay. This outcome restored Magenta International's cash flow and reinforced its reputation for professionalism and effective problem-solving, allowing the company to continue focusing on its core recruitment services without the burden of unresolved debts.