There are two main ways to handle credit control in your business: in-house or outsourced. Both have their own pros and cons, and it can be difficult to decide which is the best option for your company. In this blog post, we will outline what in-house and outsourced credit control are, and discuss the pros and cons of each option so you can make an informed decision.
What is in-house credit control?
In-house credit control is when a business handles its own credit control internally. This means that the business will have its own dedicated team of credit controllers who are responsible for chasing outstanding payments and maintaining relationships with customers.
What is outsourced credit control?
Outsourced is when a business outsources its credit control function to an external company. This means that the business will not have its own dedicated team of credit controllers, but will instead use the professional services of an external company to chase outstanding payments and maintain relationships with customers.
What is the difference between outsourced and in-house credit control?
The main difference between in-house and outsourced is who is responsible for the credit control function in the business. With in-house credit control, the business will have its own dedicated team of credit controllers. With outsourced credit control, the business will use the services of a professional external company to handle its credit control function.
What are the pros and cons of outsourced or in-house credit control?
There are both pros and cons to in-house and outsourced credit control.
In-House Credit pros:
– Have more control over the credit control function in your business.
– Can tailor the credit control process to fit your specific business needs.
– You can build strong relationships with your customers by having a dedicated team of credit controllers who are responsible for maintaining those relationships.
In-House Credit cons:
– May not have the same level of expertise as an outsourced company.
– You may need to invest in training for your team of credit controllers.
– May need to dedicate more time to managing the credit control function in your business.
Outsourced Credit pros:
– Can save money by not having to hire and train your own team of credit controllers.
– You can free up time for other tasks in your business by outsourcing the credit control function.
– Can access a team of experienced professionals who can handle your credit control needs in an efficient and effective manner.
Outsourced Credit cons:
– May not have as much control over the credit control function in your business.
– You may need to pay more for the services of an outsourced company.
– May need to provide access to your customer data to the outsourced company.
So, which is best for your business?
It depends on your individual circumstances. If cost is a major concern, then outsourced may be the better option. However, many of our clients often outsource their credit control once they’ve exhausted their internal abilities, as we can escalate cases further with our skills and expertise.
Ultimately, the decision comes down to what is most important for your business. However, if you’re wasting too many resources to internally control your credit, consider the benefits of outsourced credit control once it becomes clear payment is not going to be made.