Five Key Benefits of Credit Management Outsourcing
The decision of whether or not to outsource your credit management function can be tricky if you are unsure of what to expect in terms of return on investment. For the team at CMG UK our answer is always that the pros greatly outweigh any cons, so we have compiled a list of the five key benefits that credit management outsourcing can bring to your business.
What can Credit Management Outsourcing Bring to Your Business?
Reduced Overheads
The cost of employing a person is usually double their salary, with overhead such as: rent, heat, light IT support & hardware, HR support, employers NI, holiday pay, sick pay, holiday cover, insurance etc., to take into considerations. For the majority of the time this cost is much higher than the cost of outsourcing an external company that pays for their own overheads. This could also include specialist software or technology that you would otherwise have to purchase yourself.
Qualified staff, experts in their area
There will be significant costs in hiring and training an employee up to the level of expertise that they need to be; outsourcing enables you to hire an expert in a particular field. For example, the credit controllers that work within CMG UK are experts in the field of credit management as that is what they do day in and day out, as their experience has grown they have been able to adapt to different business sectors and subsequently can adapt to the credit management function of any business. CMG UK prides itself on having credit control staff that are qualified or working towards their CICM qualification.
Faster Project Starts
When a project begins it may take weeks, even months to become accustomed the new processes, procedures and software; outsourcing allows a project to begin almost immediately as they are well equipped with the knowledge and resources necessary.
Allows you to Focus on Other Areas
For managers especially, you may find yourself pulled in all different directions without having the time to focus on a certain aspect of the business that is being neglected. Our clients tell us outsourcing credit control has reduced management time significantly as we agree collection strategy and reporting mechanisms with you at the outset and hold regular reviews with you to improve those strategies.
Greater Efficiency & Reduced Risk
It is an obvious thing to say but when you hire an expert outsourced credit control team to carry out activities for your business you will dramatically improve the efficiency at which the work is carried out and reduce the risk to your business. Outsourcing your collections in particular drastically reduces your risk to bad debt by using experienced credit controllers to talk to your customers and build the positive relationships necessary for a positive outcome and continued trade with that customer.
Take a look at our guide to Credit Management Outsourcing for more details on the benefits it can bring to your business.
