Why UK businesses outsource their credit control
An effective and efficient credit control strategy is a vital tool for any business which trades on credit terms.
When performed well, it reduces the wait for payment and improves cash flow.
However, not all businesses have the time, resource or expertise to dedicate to successful credit management.
That’s why many UK businesses choose to outsource their credit control function to the experts.
Here are three of the top reasons for doing just that:
Late payment can have a significant impact on cash flow.
Not only does it impact your budgets and forecasts, but the time and resource it takes to chase those payments can make focusing on day-to-day activity extremely challenging.
Outsourcing allows you to benefit from the expertise, focus and experience of a credit control company.
This can significantly improve results, reduce the number of debtor days and help you to maintain a healthy cash flow.
Many businesses do not have the capacity or requirement to employ a full-time credit controller.
Often, in these instances, an existing member of staff will take on the task of credit control even if it’s not necessarily in their area of expertise.
Whilst this ensures that the job is being done, it probably won’t produce optimal results.
In contrast, an outsourced credit control company performs credit management daily.
This allows them to deliver knowledge and experience to rival in-house capabilities.
Outsourcing your credit control function can bring big financial advantages.
Paying staff and the overheads that go beyond their basic salaries can be a challenge, especially when they’re not being fully utilised.
There are also the costs associated with recruiting, training and retaining employees to contend with. Plus, don’t forget about holidays, sickness and maternity/paternity cover.
Outsourcing allows you to agree on a suitable fee for the service which you can then adjust to demand in a way that’s not possible with full-time employees.