Time restraints often put a strain on how effective your credit control is, which is why it can get left by the wayside. Sometimes simply not understanding the importance of it until it is too late is another reason to outsource credit control. Out-sourcing certain areas of your business has become increasingly popular, with many companies now turning to out-sourcing this key area too. Outsourced credit control, when done correctly, will free up time, improve your cash flow and is it a cost-effective solution.

Here are 7 key reasons to outsource credit control:

1. Improved cash flow and reduction in the days your sales are overdue for payment

This is perhaps the best reason for you to seriously consider outsourcing your credit control. Without a healthy cash flow and without knowing when payments are due, your company can’t grow or run effectively. Credit controllers aim to ensure your money is collected within your payment terms.

2. Your needs are kept in mind

Companies have different visions, missions, and objectives. However, they all have similar needs to sustain the day to day requirements of running their business.

A good credit management company will base credit control processes around their customers company’s values, objectives, and vision. They should always represent the company they are working for in a professional and friendly manner.

3. Your credit control processes become procedure

Professional credit management companies have bespoke, formalised monthly procedures to follow, which proactively reminds your customers to pay on time.

4. Small Claims Procedure

Despite your best attempts you are going to have some customers who will not pay you on time. Sometimes the only option is a legal one. A good credit management company will work through and advise you through the Legal or Small Claims process, and they will make it stress free.

This means there is no need to instruct a solicitor which can be costly and you won’t need to spend time doing-it-yourself.

5. Expertise & Experience

When dealing with your company’s money and cash flow, you want to make sure that you have the best people looking after it. A great track record and experience in the industry is a must. Reviews and a professional customer focused attitude are also key. A company that specialises in out-sourced credit control will be very experienced in this area, focusing solely on this task to deliver the best results for your business.

6. Less stress

A company with the know-how and experience to take the strain of collecting your money will reduce your stress levels and your to do list! You are free to look after customers, oversee the business, obtain sales and think.

The credit control company will advise you on new customers, what risk they might bring to your business and what payment terms you should allow the customer to have. This will take away any stress or worry about that customer potentially not paying you on time.

7. No need to employ

There is a cost saving benefit when you outsource credit control too….

How?

Employing an in-house credit controller can cost in the region of 22,000+ a year. You also have sick days and annual leave to contend with. Will they be good enough? How difficult will it be to find and hire someone else if it doesn’t work out?

Using a valuable member of staff to chase payments is also costly due to time constraints. This is because adding an extra job role to their daily duties may result in tasks not being completed on time. By not formalising your collection process, you are leaving customers to pay when they want to.

Therefore, having a credit management company dedicated to this role is a great benefit to your business.

If you think outsourcing your credit control is a good idea for your business and you would like to receive more information on how it works, contact us and we will be more than happy to help you.

>> Outsourced Credit Control & how it works