benefits of outsourced credit control
This article helps to explain what is outsourced credit control, and what are the main benefits of outsourcing your late payments and outstanding invoices process.
what is outsourced credit control?
Outsourced credit control is the process of obtaining invoice chasing services from a supplier rather than from in-house recruitment. Outsourced credit control is simply a way for business owners to share their late payments and outstanding invoices process with a third party. An outsourced credit control team can be used either to help support in-house departments or replace the need for in-house staff entirely.
With so many demands on time and money for business owners, a difficult part is often collecting payments and chasing overdue invoices. If not done correctly, this can have a negative affect on business cash flow. Credit control is important to all businesses, however late payments can often stay on your ‘to do’ list month after month.
deciding whether you need outsourced credit control?
For many small to medium businesses credit control is not typically the main skill set within their business and among existing staff. Outsourced credit control provides access to expertise, skills and support which is flexible to fit most budgets. An outsourced credit control team can be working for you almost immediately, taking the headache away from you by managing your invoices and payments.
Having access to a proactive credit control team is important for all businesses but can be expensive to do in-house. The benefits of outsourcing is often affordable and cost effective.
benefits of outsourced credit control
The recent national adoption of the “work from home” model has meant that many more companies are looking at outsourcing as a viable option. Businesses are now weighing up whether they should outsource their credit control process, but what are the benefits of outsourcing?
1. flexibility
Outsourced credit control is flexible to suit your needs and budget. It can be a simple commitment that enables you to try the service and see what works best for you and your business.
2. scalability
Outsourcing some or all of your late payments process means that you can act quickly should you need to. Working with an external credit control team provides the ability to scale up efforts almost immediately and respond to overdue invoices as soon as they occur.
3. team to help
To manage an effective late payments process, you ideally want a friendly, professional and proactive credit control function. Outsourcing your payments and overdue invoices to a team gives you access to skills and experience to help deliver results.
4. planning & advice
Running a business is time consuming and it can be difficult to know what activities you should be doing, when you should be doing them and (probably) most importantly - how. When a business chooses to outsource credit control, one of these worries can be removed. The credit control function works alongside you. From the point you raise the invoice, they work with you to plan, provide advice and manage your late payments process.
5. proactive support
With many demands on a business owner, overdue invoices are regularly ‘parked’ when it gets busy. By outsourcing your credit control activity you will tap into ongoing proactive support to chase invoices and ensure they are paid on time wherever possible.
6. focus on core activities
By working with a credit control team you can have the confidence and peace of mind that they are looking after your late payments process which means you have more time to focus on core elements of your business and do what you enjoy doing best.
7. fresh perspective
One benefit of outsourced credit control is that it gives access to a different pair of eyes and can offer a fresh perspective. Credit control support can help drive business cash flow forward. Outsourcing is a valuable service for many business owners, helping refine your late payments and overdue invoice efforts.
8. increased efficiency
For businesses with in-house teams, sometimes managing too-heavy workloads can lead to employees seeking new job opportunities. Outsourcing can solve this issue by decreasing current workloads and enabling staff to focus on other elements of their jobs they find more engaging.
9. achieving results and return on investment
Business owners often reach a point where they find it difficult to juggle all the pressures of running a business with a to-do list that grows day by day. These demands can become frustrating. An outsourced credit control team can offer a proactive ‘pair of hands’ designed to take some of the burden away, giving you peace of mind this part of your business is looked after.
10. cost-effective – reduce expenses
Outsourced credit control is often more cost-effective compared to employing a staff member – especially if you do not need full-time resource. The costs associated with employing someone include employee benefits, holiday and training. However when you work with an outsourced credit control team the costs can be much lower, as they usually work on a simple regular fixed monthly retainer.
more about outsourced credit control
An outsourced credit control team can help businesses of all sizes improve their late payments and overdue invoice process. that credit control can support your business and work with you to achieve positive results. For more information please contact our team.