If you want to improve cash flow and make sure that invoices are paid on time, then an outsourced credit control specialist can help you do just that.
Outsourcing credit control means you can get expertly tailored financial support without worrying about overhead costs and training. You’ll benefit from a solid credit control system that ensures timely payments, improved cash flow and profitability and better customer relationships.
At Butt Miller, we have years of experience helping businesses untangle their finances and proactively reach their goals. With our outsourced finance department service, we offer you your own credit controller who will follow up with clients and ensure you get paid on time.
In this blog, our experts explore the importance of effective credit control and how it can improve your business. Keep reading to learn why you should work with an outsourced credit control service provider, or if you’re ready to get started, contact us today to get on top of your credit management.
Why is credit control important to a business?
Credit control plays a crucial role in helping businesses avoid financial risk. By vetting customers before giving them credit and making sure that invoices are paid on time, credit controllers keep your business financially healthy and prevent the chances of the debt going bad – i.e., you not being paid at all!
What are the benefits of outsourced credit control services?
Outsourcing your credit control activities to dedicated credit control staff will ensure debts are chased in a regular, systematic manner. They will also be able to improve your system so that it works as efficiently as possible. Not only will this greatly increase your chances of being paid on time, but it will also reduce the levels of bad debt.
1) Scalability and flexibility
Outsourced credit controllers can be much more cost-effective for your business as you won’t need to worry about the costs of hiring and training a full-time employee. By outsourcing your credit control processes to a professional firm of accountants, like the team at Butt Miller, you can choose how much support you need and when. The best part is they can scale with your business as it grows.
At Butt Miller, we automate many aspects of our credit control function, so scalability is really not an issue for us. By working with you and improving your systems, we will reduce the number of credit issues and create a process that works as efficiently as possible.
2) Improved cash flow
Credit controllers are trained to build good customer relationships and ensure that all financial matters are quickly settled. By professionally and precisely chasing customers for payments, credit controllers will ensure you get paid on time, improving cash flow and making running your business a whole lot easier.
3) Risk mitigation
Prevent bad debts before they happen. Outsourced credit control specialists carefully monitor customers’ creditworthiness before they are accepted for credit. This precaution, along with building good customer relationships, significantly reduces the chances of bad debts.
While not all risks can be avoided if a customer does have financial issues, chasing them regularly and professionally will ensure that you are one of the first to be paid.
4) Improving brand image
When you implement good financial practices that ensure you get paid on time and only provide credit to those with good reputations, your business will appear more professional in the eyes of your customers and stakeholders. It means you’ll be taken more seriously when resolving credit disputes in the future.
5) Compliance and regulation
Outsourced credit controllers are specialists in their area, so stay updated on all legal changes. When you outsource credit control, you gain peace of mind that all processes are handled in the right way.
What happens if a customer defaults?
If customers are avoiding paying you for no valid reason (i.e., the work you have undertaken meets their requirements, and you have followed their systems for invoicing), then the non-payment issue can be escalated to a legal claim. This would be the last resort, and most credit controllers would only do this when all other avenues have been exhausted and with your consent, of course.
We can honestly say that with good credit control methods in place, it very rarely gets to this stage!
How can Butt Miller help with business credit control?
At Butt Miller, we strive to help businesses improve their finances at a pace that suits them. Whether you’re looking for some professional advice or a full suite of financial services, we have the resources to meet your demands and scale with your business as it grows.
We offer a fully outsourced part-time finance director service, which gives you the option to completely outsource your finance department to us, including credit control, or we can undertake just this aspect of work for you. Our experienced credit control team are there to oversee your company finances and ensure efficient credit control management.
We will build the automated credit control chasing system, ensuring you are comfortable with the tone and frequency of the chasing. Then, each week, we will run this chasing system, report back on any issues, and agree with you on the next steps. We have helped numerous clients with this system and are committed to helping many more like you.
Get in touch today for an outsourced credit control service that ensures healthy cash flow.
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