Benefits of Outsourced Credit Control Services
Credit control is an essential practice for all businesses big or small and is key to keeping a healthy cash flow. However, it can take a large amount of time, resources and expertise to effectively carry out. That’s why many businesses opt for using outsourced credit control services that can fulfil their credit control duties.
Outsourcing credit control can have a wide range of benefits so before deciding on how to approach your businesses credit control it’s important to understand them.
What is Outsourced Credit Control
Outsourced credit control is simply when a business acquires a professional credit control agency to handle the credit control process. For businesses that have a large number of payees, payments can often be missed or lost. This can have a negative impact on expected cash flow and affect profitability. Outsourced credit control services will chase and recover payments that are owed to a business for a fee.
What are the benefits of Outsourced Credit Control Services
Quickly improve cash flow
Unexpected missed payments can damage cash flow and affect the day to day activities of your business. For many businesses, it’s essential to recover missed payments quickly to get cash flow back on track. Outsourced credit control services can often be the most efficient way of quickly improving cash flow. Professional credit controllers can ensure that a debt is recovered in a timely manner, whilst you can focus on more important business activities.
Save money on additional staff overheads
By fully outsourcing your credit control you can save money on the additional overhead you’d need to run an in-house credit control department. If you are operating a small, medium or new business running in house credit control can result in a larger outgoing than the payments that are being recovered.
Have more time to focus on growing your business
Outsourced credit control services allow businesses to spend less time focusing on recovering lost payments so instead, you can focus on running your business. Not only can outsourced credit control help you save money through recovering lost payments but it can save you time which can be spent on adding value to your business.
Recover a higher percentage of your lost payments
Through partnering with an experienced credit control service you’ll be able to recover a higher percentage of your lost payments. Instead of writing emails and letters chasing payments yourself, credit controllers have a staged process as part of their debt recovery solution which can be escalated if the payee fails to make a payment. As well as this credit controllers can help create a payment plan with the debtor, which helps them to fully repay the debt.
Access to experts who can help with legal action
One of the biggest, benefits your business can gain from using outsourced credit control services is access to experience. By choosing an experienced credit controller you can ensure that you are working with someone who can handle all stages of the credit control process including legal action. Often credit controllers can recover debts without legal action but for debtors who aren’t willing to pay it’s essential to be partnered with an agency that is experienced with legal proceedings.
Protect your own relationship with client
Chasing payments can be a difficult task especially when you feel it could damage your relationship with a client. By outsourcing your credit control process, the credit control agency will be the only representative asking for the payment. This can help client relations and allow business with the client to return to normal once the payment is recovered.
Know-it automates the credit control process! Run credit checks and monitor changes to credit reports, automatically chase payments and recover overdue invoices in one, easy to use platform. Take a look at our complete credit control solution by starting your 30-day free trial.
Lynne is the Founder and CEO of Know-it!
She is a passionate, driven and forward-thinking entrepreneur determined to help resolve the late payment crisis gripping SMEs.
Having worked within the credit management industry for over 27 years and ran UK leading commercial debt recovery specialists Darcey Quigley & Co for over 16 years, Know-it was devleoped to make credit control more accessilble for SMEs to help them effectively mitigate credit risk, reduce debtor days and boost cashflow!
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