Credit Control Services
Finding the time in a busy work schedule to chase clients for payment can be difficult. In a small-medium sized business there is usually enough invoices to keep a part time credit controller busy, but the cost of employing a member of staff to do this is usually too high for an SME to manage.
Credit control is an absolutely vital part of keeping your company’s cash flow in good condition, waiting to chase customers for payment until the invoice is weeks or even months overdue can lead to a lack of working capital impacting the business’s day to day functions.
Often the duties of a credit controller will be assigned to someone within the business who isn’t comfortable, or experienced in asking for money from sometimes difficult customers which can exacerbate the problem, but there is often the concern that outsourcing this aspect of the business could lead to a breakdown in the customer relationship.
We work in such a way that the relationship with your customer is maintained. Using a dedicated telephone number, your letterhead and stationary, when we contact the customer we do so as representatives of your company. The customer will see us as a department within your company which will help to maintain that all important customer relationship.
The cost associated with outsourcing your business’s credit control is far less than employing a specialist member of staff within the business to carry out the same work. We are set up to begin work as soon as we receive your ledger which will mean that your business will begin to benefit from improved cash flow very quickly.
FAQs on Credit Control
Q: How do the charges work?
A: Our charges are a fixed monthly fee starting at £225 + VAT per month and are calculated based on the size of your ledger.
Q: Will you send Final Demands & Interest Letters?
A: Yes, but only after seeking your permission first. We will take you through the procedures we follow when you become a client so you know what contact we will have with your customers and when, it is only if the customer continues to refuse to pay that we will get in touch regarding any interest or final demand letters.
Q:Can you charge interest on late payments?
A: Thanks to the EU Late Payments Directive, it is possible to charge interest on debts. In broad terms, the Directive allows the creditor to add a penalty interest of 8% above the Bank of England base rate to overdue payments.
Q: What happens if the customer refuses to pay?
A: In the event that the customer refuses to pay following our credit control process, we have a team of experienced debt recovery professionals who are able to pursue the debt on your behalf. Often, when a client is informed that the matter is going to be passed to a debt recovery agency and that they may incur additional fees they are prompted to make the payment in full or set up a payment plan.
Q: Is it a ‘one size fits all’ service?
A: No! Terms of trading vary from client to client, so we offer a bespoke service to your business ensuring that you receive the support and value for money your business deserves.
Our team of highly experienced credit controllers can help you to get your time and money back from chasing unpaid invoices. You can be assured that your credit control is in the hands of professionals, allowing you to get back to what you do best.