Hospitality: Monitoring Corporate Event Clients

A regional catering company specialised in large corporate events with contracts ranging from £10,000 to £80,000 per event. Most bookings were on post-event payment terms, leaving them vulnerable if clients defaulted afterwards.

Using AlertFlag

• Added 60+ regular corporate clients into AlertFlag monitoring.
• Received an alert that a major client had a deteriorating credit profile and late accounts.
• Risk scoring indicated a heightened probability of insolvency within the next 12 months.

Outcome

For the next large event, the caterer required full prepayment. Within a few months the client entered formal insolvency proceedings, but the catering business had already been paid in full. They avoided a £38,000 write-off that previously would have hit their books.