Credit control is a very time consuming task. Decades ago, businesses would have an entire department dedicated to credit control – often known as the Accounts Department. But business runs more efficiently when the credit control is outsourced to another company entirely.
This action allows cash flow to run more smoothly, reduces the wage bill and saves time so that you and your business can spend more focus on the job or service in hand. The savings you can make when outsourcing credit control often outweigh the actual service fees you would initially hand out to a third party credit controller.
Managing the books – which is what the accounts departments once did – is a situation that needs constant monitoring, reviewing and chasing up. There will inevitably be clients who are late paying invoices and customers that disputes the service provided and the costs they have to pay to you. It is a full-time, full-on task and requires time, effort and some tough graft.
If you outsource the controlling of the books to a credit management company, a business no longer needs to concern itself with the day to day running of the credit and debit balance sheets.
London is the world’s capital for financial services and banking, so finding a reputable business to handle your credit control should not be difficult. There is not usually a set fee for the outsourcing of credit control, it will depend on the needs of your business. It is much like when you get your entire home redecorated and every customer would receive a different quote based on the room size, requirements and demands. Credit control outsourcing works like this too. It is tailored and suited just for the needs of your business.
The service provided by outsourced credit control London companies is vast and may include, but is not limited to:
- Detecting whether or not there is a credit control or underwriting problem
- Year and Quarter End audit services
- Investigations as why some accounts are not being paid on time – is it the market sector you sell to?
- Debt recovery and statements
Credit control is a nightmare for small and medium enterprises. It is these types of businesses that can often benefit the most from credit control outsourcing. You can still check and review your financial data live online as many credit control outsourcing companies use hi-tech online software.