A lot of business owners believe if you want to do something right, do it yourself. However, it does not always come to be true, especially in business. No matter whether you are an SME, or a big enterprise, you can benefit from outsourcing in many different ways. In the ever-changing business landscape, delegating credit management is a strategic move that can transform your business journey. Here’s why:
- Focus on core objectives.
Managing outstanding receivables is a crucial part of any post-pay business, however it is understandable that not every company specializes in it. Credit management involves various procedures that need to be looked after. For example, sending reminders to clients that their invoice is due for payment or chasing down late payments. You will also have to make sure your staff is getting all the necessary training. All of it takes a lot of your time that you can redirect into growing your business further. Outsourcing credit management can help your team to focus on the most important business functions.
- Leveraging the experience and Scale of Professionals
Credit management requires specialized knowledge. The key objectives are to retain customers and secure payment. Techniques such as analysis of debtor behaviour, and optimal times, media and tone for communication, yield higher rates of collection while maintaining customers’ good-will. CMOS operates in scale which reduces unit cost and creates strength-in depth of personnel and expertise. This means that outsourcing costs less for better results than an in-house model. Outsourcing to professionals ensures that your company can focus on business development. Meanwhile, credit control experts navigate your credit situation.
- Limiting the Risk – The fear of “letting go”
Giving control of any part of your customers’ journey to someone else always creates a sense of risk regardless of the potential for commercial benefit. These risks can be assuaged through practices such as agreed communication protocols, cultural assimilation, parallel running in the initial stages, regular qualitative audits, and customer feedback. These techniques can ensure that the customer’s experience is at least as good and possibly better than would be the case with an in-house service. External credit management companies are equipped with the tools and insights to effectively minimize the risks. Specialized in this area professionals take proactive approach and help to safeguard your business from financial difficulties.
- Cost Efficiency.
Recruiting and maintaining an in-house team of credit control professionals comes with its own cost. You need to invest in recruiting, hiring, training professionals and providing them with all the necessary equipment. At the same time, expanding duties of an existing member of your staff will also come at its own cost. Your employee might be too overwhelmed with all the work and might miss some crucial deadlines. That way, your collection process will be ineffective and your customers are left to pay on their own terms. Outsourcing provides a cost-efficient alternative, allowing you to access high quality services at a lower all-in cost. Plus, with outsourcing you are paying for the service that you need. By collaborating with debt recovery specialists, you are significantly reducing your costs as the debt collection company ensures timely payment , and swift resolution of payment issues. This contributes to your business’ cashflow and overall financial stability, creating grater scope for growth.
- Maintain Healthy Customer Relationships.
We know how difficult it is to build a good long-lasting relationship with your clients. It is a complex process that is never-ending. However, it can take one thing for these connections to be broken once and for all. No matter how long you have been dealing with a client, money can always be a vulnerable and hard topic to talk about. It does not get easier when you do not get paid for the work you have done. If you choose to outsource your credit control function, the team there will be responsible for managing the process for you in the most respectful and efficient manner. For example, at CMOS, we offer ‘white label’ service which means we become an extension of your team. That way we can preserve your brand image and keep your clients happy.
Outsourcing credit management can be a game changer for your business. It can improve your overall performance and help you unlock your true business potential.
