Recovery of financial liquidity of a transport company in 114 days
A Gdynia-based company had 314 overdue invoices and no fuel in the tanks. We rebuilt the cost structure and recovered 1.4 million PLN of frozen capital.
Trans-Bałtyk Logistyka from Gdynia was on the brink of collapse due to massive payment bottlenecks. In less than four months we pulled the company out of debt, recovering 1.42 million PLN of capital stuck in unpaid invoices. We focused on hard data and real costs of every kilometer of the route.
The challenge
In October 2023, the situation was critical. On the owner's desk lay 314 overdue invoices, of which the oldest were more than 210 days delayed. Lack of cash meant that fuel cards were regularly blocked, and drivers were stuck on routes in Europe without the possibility of refueling. The company lost an average of 14.2 groszy on every kilometer driven. No one knew which route earned, and which generated pure loss. Salaries for 19 people were paid from the owner's private savings, which were just running out.
Our approach
The Baltic Bridge Consulting team entered the company on Monday at 8:00 AM. For the first 11 days, we checked every document from the last year. Marek Wiśniewski personally sat at the phone to negotiate repayments from 4 largest debtors. We introduced a simple rule: no more driving at any cost. Every order had to pass a profitability test before sending a car on the road. If the margin after considering service and fuel was lower than 11.3%, we resigned from the trip. We also changed the paper flow – an invoice to the client had to leave within 24 hours after unloading.
The solution
We implemented a clear cost control sheet that forwarders update daily. Everyone now sees in black and white the financial result of their fleet. We launched a rapid order confirmation procedure, which shortened the waiting time for the transfer by 22 days. Additionally, we negotiated a new fuel supply contract with a discount of 14 groszy per liter for upfront payments, which was possible thanks to the recovered cash. Instead of complicated programs, we focused on clear procedures and daily cash control at 8:15 AM.
Results
The company regained full ability to regulate liabilities without taking further loans. Today Trans-Bałtyk Logistyka earns on every trip and has no invoice overdue for more than 7 days.
Timeline
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12 October 2023Start of the audit and analysis of 314 overdue invoices
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29 October 2023Recovery of first 214,000 PLN from debtors
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15 November 2023Implementation of new freight pricing system
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12 December 2023Signing new fuel contract with discount
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03 February 2024Total repayment of operational debt
"The situation was so bad that I wanted to sell the tractors. Baltic Bridge Consulting showed me that my money was simply with my clients, and I hadn't asked for it. We regained control over every kilometer and finally I sleep peacefully."