If you run a business, be it large or small, you’re probably all too familiar with the hassle of chasing overdue invoices.

Perhaps you’ve found yourself in a vicious cycle of still doing the work whilst letting payments slide, or maybe you’ve always just accepted the chase as part of your job so long as you can keep clients happy. But we promise — it doesn’t have to be that way…

With expert credit control support, you can finally free yourself from the awkwardness and uncertainty of contacting your customers about every missed invoice and ensure you get paid on time, every time.

But what is credit control exactly — and how can businesses benefit from outsourcing these services?

What is credit control?

There are several reasons why a business customer might not pay their invoices.

Some people are just a little unorganised, and a gentle reminder is all they need. In other cases, they might be struggling with a cash flow problem — or doing whatever they can to postpone paying what they owe.

Regardless, credit issues are bad for business. Unless you happen to have a big pot of cash lying around (unlikely in this economy), you’ll rely on being paid promptly to stay afloat. And yet, around three in five UK businesses are owed money from late payments.

So, what’s the solution? How can you regain control of your finances and ensure you get paid when you expect to without spending all your energy chasing payments — or damaging your customer relationships?

That’s where credit control comes in.

Credit control describes the process of following up on invoices due and late payments and making sure customers understand the terms of their financial arrangement with your business. It’s a real business tightrope that balances securing payments and keeping clients on board.

The credit control process is ongoing — from conducting thorough credit checks on potential customers who want to establish a credit-based relationship with your company to formalising payment agreements and sending (and chasing) invoices.

As a result, many companies have dedicated credit controllers to manage business debts and ensure customers don’t take too long to settle their bills.

That’s all well and good for some. But if you run a small to medium-sized business, you might not have the know-how to take on the extra responsibility of managing credit control — nor be able to afford to hire an in-house expert to do it for you.

In this case, outsourcing might be your best option. 

Why should SMEs outsource credit management?

If you struggle to find the resources to handle credit management internally, a company that offers outsourced credit control services could ease your cash flow problems.

By leaving your cash flow needs in the hands of a dedicated team of experts, you can rest assured that your invoices are going out punctually and that any late payments are followed up straight away — without you having to get involved.

Of course, outsourcing these services will incur a fee. But when you weigh up the overall cost advantages of ensuring you get paid on time, it’s really a no-brainer…

The benefits of outsourcing credit control

  • Improved cash flow — a specialist credit controller will use their expertise to ensure your money is collected to terms whilst working to recover aged debts.
  • Cost-effectiveness — you can save time and money by outsourcing credit management instead of training an existing employee or hiring a permanent in-house controller.
  • Guaranteed compliance — when you work with an external provider, you’ll have peace of mind that you’re adhering to the relevant policies and regulations
  • Better relationships — an experienced credit controller should support healthy business relations between your company and customers.

You might be wondering whether your operations are big enough to warrant enlisting the support of an external credit control specialist. In fact, start-ups and small to medium-sized enterprises (SMEs) can benefit from these services the most…

SMEs are often the most vulnerable to late payments, as they’re usually less able to find the money to cover temporary shortfalls on short notice. As a result, over 33% of SME employers see late payments as an obstacle to business success.

Plus, research suggests that a quarter of small businesses expect their turnover to shrink over the next year, increasing the likelihood that business owners will be forced to rely on their own bank accounts to pay staff and suppliers. So, as inflation continues to rise, it’s never been more important to make credit management a priority.

Don’t wait for a crisis to strike — take control of your finances today.

Failing to stay on top of your invoices can spell disaster for any small to medium-sized business. We’re a trusted credit control company that offers professional credit control services for a range of industry sectors — call 01494 422742 or email [email protected] to learn how we could help you!