Credit control is of utmost importance for the prosperity of any business, as it minimizes the delay in receiving payments and enhances cash flow. However, not all businesses possess the requisite time, resources, or expertise to effectively manage credit. In such cases, outsourcing credit management can be a more cost-effective and efficient solution.
At Corporate Debt Recovery, our discreet credit control service assumes the responsibility for this critical function. This allows you to focus on your business, confident that your credit management is in the hands of experts.
What does our credit control service involve?
Pre-due date verification calls or emails to confirm receipt of invoices, determine expected payment dates, and pick up on any disputes
A series of confidential credit control calls, emails, and letters for due balances
Monitoring of lapsed verified payment dates with follow-up phone calls
Escalation to nominated client contact for query and dispute resolution
Further communication where necessary to secure payment
Escalation to issue Letter Before Action
A dedicated credit controller
Benefits of outsourced credit control
Get paid faster and improve your cash flow
Regain the time to focus on core activity and growing your business
Often more cost-effective than employing dedicated credit control staff
Avoid the costs associated with recruiting, training, and retaining employees
Avoid the resource challenges presented by annual leave, sick leave, or parental leave
Peace of mind that your credit control is in the hands of the experts
Preserve customer relationships
Why Choose Corporate Debt Recovery?
We recognize that credit control is not merely a transactional process, but rather an art of fostering relationships while ensuring prompt invoice collection without compromising customer rapport.
Our team of experienced credit controllers, equipped with extensive cash collection expertise across diverse industries, employs a telephone-based approach to provide a comprehensive and professional credit control service at a cost-effective rate.
We have created a useful guide to make your invoicing process as efficient as possible and help you get paid on time.
Invoicing checklist
Is it addressed to the correct person?
Have you included a Purchase Order Number?
Have you provided a detailed description of the goods or services supplied?
Are your contact details clearly stated on the invoice?
Are your payment terms clear? Have you detailed all accepted payment methods?
Invoice Date & Payment Due Date
Total Invoice Amount Due
VAT Amount if applicable
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FAQs
By outsourcing your credit control functions, your team can concentrate on core operations and revenue generation, while our experienced team focuses on enhancing your cash flow and credit standing. This strategic solution preserves your customer relationships while providing the flexibility to manage fluctuations in business activity.
Part of their role involves liaising with the original creditor and coordinating with debt collection agencies to ensure a smooth debt recovery process. This collaboration is crucial for maintaining the integrity of the debt collection process, adhering to the regulations imposed by The Financial Conduct Authority, and ensuring that all parties are aligned in their efforts to recover outstanding debts.
A credit control agency is an organization that monitors and manages the credit activities of businesses and individuals. It is responsible for ensuring that credit is being used responsibly and that debts are being repaid on time. These agencies use various methods, such as credit checks, to assess the creditworthiness of individuals and businesses before providing loans or credit.
They also work with lenders and creditors to negotiate payment plans and manage debt collection processes. Credit control agencies play a crucial role in maintaining the stability of the financial system by promoting responsible borrowing and lending practices. They also help to protect both borrowers and lenders from potential financial risks. In addition to monitoring credit activities, these agencies also provide credit counseling services to help individuals and businesses manage their debts effectively and improve their credit scores.
Overall, a credit control agency serves as a bridge between borrowers and lenders, promoting responsible credit practices while also helping individuals and businesses achieve financial stability.
Outsourced credit control cost refers to the expense incurred by a company in hiring an external credit control agency to manage their accounts receivable and collect outstanding payments from customers. This approach is becoming increasingly popular among businesses as it allows them to focus on their core operations while leaving the collection process to experts.
The cost of outsourced credit control includes fees charged by the agency, which can vary depending on the size and complexity of the business, as well as any additional services such as credit checks and legal action. While it may seem like an extra expense, outsourcing credit control can actually save businesses money in the long run by reducing bad debt and improving cash flow.
It also frees up valuable time and resources that would have been spent on chasing payments, allowing businesses to focus on growth and profitability. Ultimately, the cost of outsourced credit control is a worthwhile investment for businesses looking to streamline their financial processes and improve their overall financial health.
Credit control management is a crucial aspect of financial management that involves monitoring and regulating the flow of credit in a company or organization. It is a process of ensuring that credit is given to customers who have the ability to repay it, and minimizing the risk of bad debt. Credit control management also involves setting credit limits for customers, collecting payments, and managing overdue accounts. This process helps businesses maintain a healthy cash flow and avoid financial difficulties caused by unpaid debts.
It includes strategies such as credit checks, invoicing, and debt collection techniques to ensure timely payment from customers and reduce the risk of losses. Effective credit control management requires constant monitoring and evaluation of credit policies and procedures to adapt to changing market conditions and customer behaviors. Overall, credit control management is an essential tool for businesses to maintain a stable financial position and ensure the smooth operation of their operations.
A credit controller is responsible for managing the credit and collections of a company. This involves monitoring and controlling the flow of credit to customers, ensuring that payments are received on time, and minimizing the amount of bad debt. The credit controller works closely with sales teams to establish credit limits for customers, as well as conducting credit checks and analyzing credit applications.
They also maintain accurate records of customer accounts, send out invoices, and follow up on any overdue payments. In addition to managing credit, a credit controller also works to resolve any disputes or issues related to payments and coordinates with debt collection agencies if necessary. Their ultimate goal is to ensure that the company’s cash flow is maintained and that customers fulfill their payment obligations in a timely manner. Therefore, a credit controller plays a crucial role in maintaining the financial stability and success of a company.
Credit control outsourcing is a form of business process outsourcing where a company hires an external agency or service provider to manage its credit control function. This function involves monitoring and managing a company’s accounts receivable and ensuring timely payment from customers. By outsourcing credit control, companies can benefit from the expertise and resources of the service provider, who may have specialized tools and strategies to improve cash flow and reduce bad debt.
The outsourced agency typically handles tasks such as sending out invoices, following up on late payments, and resolving any disputes or discrepancies with customers. This allows the company to focus on its core operations while ensuring that its cash flow remains healthy. Credit control outsourcing can also provide efficient and cost-effective solutions for companies that may not have the resources or expertise to manage their credit control function in-house.
Overall, credit control outsourcing can help businesses improve their financial management and maintain a positive cash flow, leading to better financial stability and growth opportunities.
