Credit Control Services - recommendations?

[Pensar IT Management]

Talking to other business owners it seems many are now using Credit Control Services rather than doing it all in house. Are you doing this?

1) Do you oursource your credit control to an agency that you would recommend?
2) Can you advise on how they structure their charges?
3) Any advice on does and don'ts of outsourcing this part of your business?


Would be interested in hearing from anyone using a service for some time that they would strongly recommend.

Thanks

 

[E Storey]

I would expect any good bookkeeper/accounts department to include credit control as part of their serivces.

This should include a reminder once the invoice is 30 days old, a chase up again at 60 days plus a phone call and/or e-mail.

Once things get to 90 days things get more complicated. Lots of business prefer to outsource as it means they don't have to confront the customer, however, a lot of customers find a collection agency letter or phone call "threatening/offensive", I've lost count of all the little old ladies I've had phoning in floods of tears because they have been chased for a debt which, granted, they had not paid! It treally all depends on your business sector and client base.

In my experience, these agencies are good at tracing people but not so good at resolving any problems. Even things like sending a copy invoice is referred back to you to resolve, so I generally recommend using collectors only as a last resort.

 

[cpcm credit management]

I would definately consider an outsoured service but it should be one that gets close to your business and understand and has access to your people/systems. The advantage is that you will employ someone who enjoys the work rather than it being muddled through by someone reluctant or more inclined towards bookkeeping. Good Bookkeepers and credit controllers are complete opposites in terms of personality and motivation

I had a articel published on this very subject in Accountancy magazine in March. would be happy to send across details

And can i recommend someone? of course. Will drop you an email