Why more and more businesses are turning to outsourced credit control
If all businesses paid their bills on time, there would be no need for credit control. Unfortunately, that is not the case; in fact, quite the opposite. A lot of businesses stretch payment times as far as they can, and they do it on purpose. It is not fair, but it is a fact of life.
The result is that the vast majority of businesses must operate credit control. It is, however, costly and time-consuming, which is why many companies, particularly SMEs, have now outsourced credit control to specialised service providers.
Credit control does not involve merely chasing people for money. Yes, that is the main part of the job, but it is how that chasing is carried out that dictates how effective it will be.
Keeping your cool
It is all too easy for people doing the credit control function to get angry about overdue payments and become aggressive. Unfortunately, this can often backfire and result in creditors becoming bloody-minded and withholding payments in revenge.
People who chase others for money must be professional in their approach. There is a big difference between getting overly excited and shouting at those who are late payers and speaking to them in a firm but civil manner. It is this latter approach which usually pays dividends.
Many businesses have cash flow problems
Sometimes clients who owe money have credit control problems themselves. They are not being obstructive; they are often between a rock and a hard place waiting to receive overdue monies themselves. An appreciation of their difficulties will be appreciated, but of course, you mustn’t allow the wool to be pulled over your eyes.
Effective credit control begins before bills become overdue. A gentle reminder that payment will shortly be due is a good place to start. If further chases are necessary, they should be scheduled in advance. It is always a good idea to keep a written note of what is said on each occasion.
Outsourcing credit control makes sense
Outsourced credit control has become popular not only due to the fact that it frees up time for staff to be more productive in other areas, but because it is successful. It is carried out by trained, impartial professionals. However, being impartial doesn’t mean they are not motivated. Quite the opposite. Credit control agencies rely on their success rates to attract business. They are highly motivated and extremely professional.
If you would like to explore the idea of outsourced credit control, why not contact us here at First Capitol Collections today? You can call us on 03333 44499 or email us at firstname.lastname@example.org.