Topics: Credit Control Process, F&A Process Outsourcing, Outsourcing

Choosing the Best Outsourced Credit Control Services in the UK: 8 Essential Considerations

Posted on October 10, 2023
Written By QX Global Group


You must have come across this phrase often – outsourced credit control services. The reason why you must have come across this phrase is that many companies in the UK have now begun outsourcing their credit control function to a third-party finance and accounting services provider. With the number one priority for all UK businesses across different regions being cutting costs, it is no surprise that they see strong financial sense in cutting costs through outsourcing.

What are the two reasons why credit control is essential?

Your business must ensure a robust credit control process if it wants to do well because:

    • Optimal credit management ensures credit is only given to those customers whose business has a stable financial background, which means they will not renege on their commitment to pay your business for products and services they bought. Also, they will make payments on time.
    • A smooth credit management process ensures a steady cash flow and optimal cash flow management for your business, underpinned by on-time reporting.

What is the primary function of credit control?

The function of credit control is to ensure that credit is extended to buyers with a good credit record and not to risky buyers whose financial health lays it out very clearly that they might not be able to pay their dues in time. It can be defined as a business strategy that involves extending lines of credit to the right customers to buy now and pay later. A reliable credit control process is an outcome of attention to detail, the use of relevant tools, and process efficiency.

What is credit control outsourcing?

Outsourcing your credit control function refers to moving all or some credit management activities to an outsourcing accounting partner, either onshore or offshore. The core objective behind outsourcing your credit control function is to combat some of the critical challenges faced by businesses with regards to accounting department, namely:

  • Shortage of talent
  • High rates of attrition
  • Increasing hiring costs

Together, these three challenges result in difficulty in scaling the accounting department quickly and in line with the growing needs of a business. Scratch the scalability surface a little, and you will find that companies are also harnessing outsourced credit control services to improve process efficiency, future-proof their overall accounting function, improve customer experience, drive process standardisation, and initiate tech-led accounting transformation.

But for that to happen, you must partner with the right outsourced credit control services in the UK. Here’s how you can choose the best outsourcing provider:

  1. Identify your Specific Credit Control Needs

Some businesses might want to outsource just the credit check part of credit control; others might want to focus on cash collections. In contrast, some companies might want to outsource the length and breadth of their credit control department. So, before you start identifying the reputed outsourcing providers, it is imperative to analyse and understand your requirement clearly. This will help you choose an outsourced credit control provider with the expertise and experience you seek.

  1. Search Through the Right Channels and Forums

Once you have identified the credit control processes you wish to outsource, search for the right partner through diverse channels. As a business, you must have received numerous outreach emails and messages through social media channels. Sieve through them to zero in on a few you want to do business with.

You will also be attending conferences and various other in-person events wherein you will meet peers who must be leveraging outsourced credit control services in the UK. Ask for references, and also talk to experts who can deliver the guidance you need.

Last but not the least, conduct a thorough online search to identify and compare top vendors. In addition to Google search, check out service directories.

  1. Look for Expertise and Experience

You will experience a problem of plenty when searching for the right company. One of the ways you can choose the right company is to discuss the expertise and experience they bring to the table. Every industry might have different credit control requirements and call for associated checks and balances; you must work with a provider who understands your industry.

  1. Ability to Ensure Scale and Efficiency

Your business will grow, and so will its finance and accounting needs. The focus, therefore, should be on a provider who can deliver the scalability benefit and add team members as and when needed. Another element is the ability to make the process even more efficient, and this can only happen if the provider can drive improvement in the credit control process by leveraging automation and making tech interventions through technologies such as AI and ML.

  1. Data Security is Paramount

You must conform to GDPR and other industry-specific regulations as a UK business. The provider should be GDPR compliant, and the security protocols must be aligned with your industry-specific data security requirements. A reputed outsourcing provider will ensure your data is sacrosanct and doesn’t fall into the wrong hands.

  1. Technology and Systems

A key consideration is the seamless integration of their systems with your existing accounting or CRM software. Such integration can ensure streamlined operations and reduced manual intervention. Moreover, it’s essential to receive regular reports from the provider, as this offers a transparent view into their performance and sheds light on the outstanding debtor situation.

  1. Communication is the Key

Effective communication is the backbone of successful credit control. It’s essential for businesses to be kept in the loop with regular updates on the status of outstanding debts and any emergent issues. Furthermore, the manner in which a provider communicates with clients speaks volumes about their professionalism.

While it’s vital for them to be assertive in their approach, maintaining the delicate balance of being firm yet fair is crucial. This ensures not just effective debt recovery but also the preservation of amicable relationships with clients, which is instrumental for sustained business growth.

  1. Responsiveness is a Bonus

Top-notch customer service can make all the difference when choosing a credit control provider. Responsiveness plays a significant role; businesses should never be left waiting when they have queries or need assistance. Immediate and clear responses are indicative of a provider’s commitment to their clients.

Additionally, having a dedicated account manager can be a game-changer. A singular point of contact streamlines communication, ensuring that any issues or concerns are addressed promptly and efficiently, thereby fostering a more effective and collaborative working relationship.

RELATED CASE STUDY: Streamlining Credit Control and Accounts Receivable for Leading Recruitment Business

Making the Most of Outsourced Credit Control

QX Global Group is a reputed credit control outsourcing services provider with focused expertise in all aspects of credit control, including pre-invoice checks, invoicing, post-invoice verification, chasing via telephone, email, fax, follow-up for invoices and payments promised, dunning letters and statements, and much more. With a demonstrable history of helping clients reduce DSO with a high-performance team of outsourced accountants, QX is not just a finance and accounting outsourcing expert but also a strategic partner enabling business growth. Contact us to learn more about our credit control services.

Originally published Oct 10, 2023 04:10:47, updated Oct 10 2023

Topics: Credit Control Process, F&A Process Outsourcing, Outsourcing

Don't forget to share this post!

Related Topics

Mastering AP Automation: A Guide to Strategic Upskilling

Mastering AP Automation: A Guide to Stra...

24 May 2024

Introduction The accounts payable (AP) automation market is set to surpass $US 7.5 billion by 2030. ...

Read More
How Does Financial Services Outsourcing Drive Digital Transformation

Maximising Digital Finance Transformatio...

23 May 2024

Introduction Digital transformation in finance is picking up pace. Finance’s evolution from being ...

Read More
The 8 Stages of the Essential Order-to-Cash Process Explained

The 8 Stages of the Essential Order-to-C...

23 May 2024

Introduction Gaining new customers is a significant achievement that demands coordinated efforts acr...

Read More
How an Outsourced R2R Process Can Boost a CFO’s KPIs

How an Outsourced R2R Process Can Boost ...

22 May 2024

Introduction Record-to-report or R2R Services have moved beyond being just a checklist item within t...

Read More