How Can Your Business Benefit From Credit Management Services?

Do you ever find it difficult to get paid on time? Have you ever put off taking action about a debt because you were unsure how to handle it? Have you ever ended up writing off a bad debt? If the answer is yes to any of these questions, then taking action now before these incidences snowball, could help to protect your cash flow and your business. And one of the things that will bring you the most benefits is hiring a credit management service for your business.

Struggles With Payments

Have you ever found it difficult getting paid on time? Don’t worry – it’s not just you. Businesses of all shapes and sizes struggle with late payments, and are unsure of how to deal with them when they do come along. In fact, many businesses end up putting off tackling late payments because they don’t know how to handle it, or want to risk jeopardising a client relationship. To the point where some will write it off as a bad debt rather than deal with the problem.

But the good news is that dealing with the problem doesn’t have to mean doing it yourself. And once you have used a debt collection agency to help collect your outstanding payments, you can then work on ensuring they don’t happen again. This is called credit management, and allows your business to properly assess the companies you give credit to, and how much of a risk they pose to your business in terms of non-payment.

What Could A Credit Management Service Do For You?

When it comes to money, it’s important to get it right. The last thing you want to do is issue credit to a business that has no way – or intention – of paying you for your products or services. Similarly, you don’t want to be extending credit to businesses who have a shaky financial history, who may not always be able to pay you back, even if they want to. A few of the advantages of using an agency to help run your credit management include:

Identify High-Risk Clients Early: When a client is first coming on board, a series of simple credit checks and reports can be very illuminating. With the right information, you can tell ahead of time which clients are going to pose the most risk to your business, and which will be easy to manage. This doesn’t always mean you shouldn’t take on these high-risk customers, but it does give you the knowledge and flexibility to put controls in place to protect your business.

Maintain Control: Getting paid should never come at the cost of a customer, but it can sometimes feel like those are the choices you have. Outsourcing credit management services means you can focus on controlling the client relationship, while knowing your financial security is being handled by a professional and friendly company.

Prompt Payment: Tried in with credit control is tracking of payments. Our team can work with your accounts department to ensure payments are all made on time or early, rather than allowed to run late. This will improve your cash flow and allow you to make better business decisions.

Early Identification Of Disputed Accounts: A lot of late payments end up going on much longer than they need to because they are the subject of a dispute. Credit management allows you to spot these disputed accounts quickly, and take affirmative action to resolve the problems with the client. This means the payment will be released quicker, and your customer relationships will benefit too.

Reduced Debtor Days: With proper oversight of your accounts, we can act quickly to reduce the number of days it takes clients to pay you, once again improving your cash flow and your customer relationships.

Regular Reporting: We can also run regular reports on your payment status, your customer credit and your cash flow, flagging up any problems while they are still small, or before they even happen, allowing you to proactively manage your business.

At Debtcol, we work closely with businesses of all sizes to monitor the financial health of their clients and manage their credit services. We can do this on a one-off or an ongoing basis, and can be flexible to suit your requirements. If you’d like to be able to predict client financial problems before they become problems, we’d love to help. Just get in touch with us today for more information.