Archive for May, 2012

CREDIT CONTROL – it need not be rocket science!

May 10, 2012

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Cash is King…. Especially in 2012… But so is your Client!

With sales harder to come by, the last thing you need once you have delivered your goods or services, is for your clients to hold onto your money longer than they should. You impose credit terms and they exceed them… Is this a familiar story?

How much cash to you actually have tied up in your credit sales? When you pull off a Debtors report, do you have large amounts still outstanding beyond 30 days? Do any of your debtors still have invoices outstanding for 60 or 90 days plus? Of course there may be good reasons for this. There may be queries against these invoices, or the client has not received or processed your invoice; but anything else and you are in danger of losing your money and remember the longer you leave it, the harder it will be to collect.

This may sound like a lesson in basis common sense, but if there is an issue building up in your debts beyond 30 days, you need to jump on it now. Obviously you can resource in house; maybe by asking your accounting or admin staff to send a statement or a letter or even phone the offending debtors… but once this task is done, will the action be followed up and how successful will your collection efforts be?

Using a third party collection agent is an obvious solution. They will set out an agreed collection strategy in advance and will follow the process through to the end. If there is a query noted, they can help you resolve it and if the client does not pay they can be contacted again until the debt reaches the point where further action may be required to collect that debt. As long as they do so within the terms agreed with you and they do not upset your client then everyone is happy… Of course that is frequently not the case. The collection agent may not do a very good job, they may upset your client and you will have forked out a vast sum for collection when the effect has been limited and your client base has been disturbed by bad collection techniques.

Actually good credit control does is not rocket science. At its best it can be effective and affordable and if you outsource, your companies relationship and integrity with your clients will remain intact. Whether it’s a one off campaign or part of a seasoned rational credit policy, outsourcing credit control can be a very effective solution… and usually much more so than conventional in house collection.

We have a very good track record in reducing a customers debt, whilst maintaining a positive relationship with your debtors. Our collection techniques are straight forward, firm and courteous, whether they be in writing, by phone or by other media and refreshingly our prices are amongst the most competitive in the collection industry.

We specialise in collecting B2B debt and have experience across the whole spectrum of industry. We have no formal barriers for who and what we chase either. We can chase one debt for a Million pounds or two thousand  debts for a hundred pounds. And we are successful too: in a typical three letter collection campaign on average we will collect: 60% after letter one, 25% after letter two and 10% after letter three. Then if further action is required we can pursue the matter through the courts to judgement, enforcement and beyond…

And we don’t stop there either. We have the experience and know how to help you establish better collection techniques, if you want to keep it all in-house. We can help you develop a credit policy, help you to establish credit limits and to credit score your new customers. We can help you to establish behavioural credit scores for your existing clients, set up query databases and even help you with the recruitment of good quality collection staff.

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