Challenge
A large international law firm was facing long-standing challenges in its working capital cycle. Debtor days had reached an average of 282, and the firm was carrying more than £8.2 million in outstanding debt. This created ongoing pressure on cash flow and incurred significant borrowing costs. Leadership recognised the need for a clearer, more efficient approach to billing and collections to support financial health and strategic growth.
Objectives
The project aimed to significantly reduce debtor days and outstanding debt, improve the speed of invoicing, and reduce reliance on external borrowing. the focus was to create a more consistent, transparent approach to working capital management across teams and regions.
Approach
Pace began by taking a holistic, end-to-end view of the firm’s billing and collections process. This revealed inefficiencies, bottlenecks, and siloed ways of working that were limiting performance. Working closely with internal teams, we helped design and implement a new process framework supported by measurable KPIs, enabling greater accountability, visibility, and cohesion across the full working capital cycle.
Implementation
Together with key stakeholders, Pace facilitated the redesign of workflows and responsibilities across billing and collections functions. New KPIs were introduced to track progress and drive accountability, while process improvements helped align teams around shared financial targets. The implementation also addressed cultural and behavioural change, helping embed a more proactive and commercial mindset across the function.
Results
- Debtor days reduced from 282 to 97 in just over a year
- Outstanding debt fell from £8.2 million to £875,000
- Invoicing accelerated by 30 days, leading to faster income recognition
- £92,000 saved annually in borrowing costs through improved cash flow
