Amril Debt Recovery & Credit Management Specialists

Getting paid

Credit Management, in a nutshell, is the umbrella term used for all financial services related to the flow of cash in to a business, which is then used to maintain or grow that business. Although this may seem simplistic, it is all that lies behind this ‘term’ that is the interesting part.

Businesses always want and expect payments on time, but unfortunately, it is never this simple when businesses authorise credit for services or goods provided.

So what can be done to minimise the risk......?

It is imperative to have a tight structure and clear procedures in place, to ensure that cash is collected. This applies even before the initial sales transaction and should be closely monitored throughout the whole process; from Marketing, Strategy, Sales and Finance, to Customer Service regardless of the size of the business.

These systems will then effectively grow and evolve as you increase the scale of your operations. A common mistake is to concentrate on the former of these three areas. Businesses can become vulnerable when payment collection and the relationship management of clients are not afforded equal importance and time. It is imperative to monitor your customer’s payment performance. This will highlight crucial patterns, including ‘late paying’ culprits.

So what are your options?

Sustaining Cash flow is vital, and it may call for the additional support of a good Debt Collection firm, and a hardier approach to collecting the money that is owed to your business.

To support your Credit Control function further, consider Outsourced Credit Control - whereby a business you have partnered with allocates a Credit Controller to chase those invoices that are outstanding on a month-by-month basis.

It is vital to establish a partnership with a reputable Debt Collection Agency, which meets all of your criteria and has a good reputation for Customer Service; they will be working as ambassadors for your company. The agency that supports your cash flow must understand your business and collect cash through a softer approach than would be used for debt recovery. A further advantage of outsourcing is expert advice and guidance to ensure that your Credit Management processes are working at their optimum level. Whether this is a fully outsourced service, or enhancement to your existing in-house function, this will result in improved cash flow and working capital; reduce any lending and see a reduction in both debtor days and potential bad debt.

Collecting overdue accounts is the lifeblood of any Debt Collection Agency. But, it’s no longer enough for an agency to simply collect the money that is due to you. It is also important to balance the speed of the debt collection with a duty-of-care that protects your reputation, educates your customer to respect your credit terms, and makes your customer aware that protracted default will harm their credit rating.

Unfortunately, our industry has received some bad press. Please do not let this deter you from using a Debt Collection Agency (DCA) – this only applies to a disreputable minority and has lead to misconceptions. A reputable, experienced and regulated Agency will offer you invaluable, cost-effective support and pragmatic advice about your processes and Terms and Conditions. Also, remember that in certain circumstances, the commission can be paid by the debtor, or a No Win No Fee proposal can be granted.

In 92% of cases, a skilled discussion or letter from an accredited Debt Recovery specialist will do the trick – and you will receive the monies owed to you.

Outsourcing your Credit Control is a time-saving and extremely cost-effective strategy. You are provided with experienced Credit Management and/or Debt Recovery without financial and time consuming burdens; training, salaries, pensions to name but a few.

What is most important is to ensure that you’re Credit Management processes are working at their optimum level, be it with Consumer, Global or Commercial services, and you are getting the results you have strived for and deserve. 

right DCA can assist with Commercial and Consumer collections, both national and international, what is most important is that you are getting the right results for your business, improving your cash flow and ultimately the growth of your business.

This is just a brief overview of the options open to SME’s in order to minimise risk and improve or enhance your Credit Management.