Late payments are one of the biggest threats to small and mid-sized businesses. Whether you’re experiencing a slow drip of overdue invoices or facing a larger cash flow crisis, credit control is where you fix the root cause.

That brings us to the big question:
Should you build an in-house credit control team or outsource it to a specialist?

Let’s break it down.

 

What is Credit Control (and Why It Matters)

Credit control is the process of managing customer credit and ensuring invoices are paid on time. It’s not just about chasing unpaid invoices, it’s about:

• Setting the right credit terms.
• Monitoring risk.
• Following up on the right tone at the right time.
• Protecting cash flow without damaging relationships.

Done well, it keeps your cash moving and your business growing. Done poorly, it quietly kills profitability.

 

The Case for In-House Credit Control

Hiring internally means more direct control. It can work well when:

• You have consistent volume of invoices and overdue payments.
• You want total visibility day-to-day.
• Your processes are already well-established.

Benefits:

• Immediate access to the credit controller.
• Full alignment with internal systems and culture.
• Potential to develop multi-skilled finance team members.

Limitations:

• Cost: A good credit controller in the UK can cost £30k to £45k+ annually, excluding benefits, training, and overhead.
• Capacity risk: One person off sick or on leave = no cover.
• Recruitment: Time-consuming, and the wrong hire can do more harm than good.
• Limited scalability: When your debtors grow, so must your team.

 

The Case for Outsourcing Credit Control

Outsourced credit control is when a third-party company (like us) manages your receivables on your behalf, usually under your brand voice and policies.

Benefits:

• Cost-effective: Pay for what you need, when you need it.
• Expertise on tap: Access to experienced credit professionals without recruitment or training.
• Scalable: Increase or decrease support as your business changes.
• Frees up internal time: Let your team focus on growth, not admin.

Limitations:

• Requires strong communication and onboarding.
• Less day-to-day physical presence (though reporting can be more transparent than in-house!)

 

Key Factors to Consider

Factor	In-House	Outsourced
Cost	High (salary + overhead)	Lower, flexible packages
Control	Full internal control	Shared
Flexibility	Limited	High (scale up/down)
Expertise	Depends on hire	Specialists with cross-sector knowledge
Coverage	One person risk	Team-based consistency
Implementation time	Longer	Fast onboarding possible

 

So… Which Is Right For You?

You might want to hire in-house if:

• You have the budget to support a full-time employee.
• You want someone embedded in your office daily.
• You manage a large volume of complex accounts

You might want to outsource if:

• You’re struggling with late payments and need quick results.
• You don’t want the cost or risk of hiring.
• You need experienced credit controllers without the long-term commitment.
• You want to protect relationships while still getting paid.

 

To Conclude

For many growing businesses, outsourced credit control offers the perfect middle ground – expertise without overhead, results without risk. Whether you’re looking to tighten up your payment terms, recover aged debt, or simply free up your team, outsourced can be a smart, strategic move.

 

Thinking about outsourcing?

We help businesses like yours get paid faster, protect client relationships, and keep your cash flowing, without the stress.

Let’s chat.