Outsourced Credit Control
Outsourced Credit Control & Receivables Management
Credit control can be time-consuming and expensive for your business. Outsourcing your credit control to Access Credit Management can free up cash flow and time for your business and, contrary to popular beliefs, it can save you a lot more than it costs!The debtor or receivables book is generally one of the larger assets of most companies. Effective management of the book is a continual challenge for business and requires ongoing monitoring:
Access Credit Management continues to help companies manage and protect this valuable asset to ensure the performance of the revenue cycle to keep the DSO within accepted parameters.Access Credit Management prevent potential bad debt through:
Given the current challenging business conditions and continuing pressure on costs, many businesses find it hard to justify the costs of a dedicated credit control specialist.
At Access Credit Management we provide an outsourced credit control service which can be on a disclosed or undisclosed basis. It is not a requirement that the whole of your debtor ledger is passed to us for collection, you decide which accounts are no longer cost-effective for you to continue chasing. On inspection of the debtors, it may become apparent that outsourcing may not be required and that our debt collection service is more suitable.
Outsourced credit control focuses on a company’s balance sheet because the invoice-to-cash cycle is where the most dramatic gains in efficiency, productivity and cash flow can be made.The benefits of outsourcing credit control are:
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Export Factoring / Discounting Facilities
Credit underwriting is becoming more stringent as underwriters look for debtor books that show few signs of ‘distress’. What does this mean for my business?Simply put, if you are within 3 months of the year end it is time to review your debtor book and put in place a strategy to ‘clean up’ accounts that exceed credit terms and are typically 90+ days and overdue.
Why is a pre-year end audit important?
Accounts on 90+ days will impact on the bad debt provision your accountant will be required to make at the year-end. The financial backers of your business will want to see a tightly controlled debtor book which ultimately gives them confidence against which to extend financing facilities.Collection or non-collection of these accounts may identify potential weaknesses in the business which you were unaware of, for example:
Case Study - Outsourcing the pre year end audit collection
As a result of the exercise, the Managing Director changed the way the company sales team were rewarded and addressed the service levels provided to customers.Contact us to discuss an interim solution on a pre or post year end audit basis to satisfy the requirements of your business.
Call us today on +44(0)207 305 5059
Invoice Discounting and Debt Recovery
If the business makes use of an invoice discounting or factoring service it is important to be aware of who is responsible for the collection of debts that occur when your customer(s) fail to pay.
If the business uses a recourse facility agreement then in the event of non-payment the finance company will not take the risk of the debt collection on.
A recourse facility is a lower-cost form of factoring because the business continues to take the risk of bad debt rather than the factoring company. This type of factoring is also easier to obtain as the underwriting tends to have less stringent rules about the business systems and payment history of customers.
Once the invoice is returned (recourse) the responsibility for collection rests with the business.Contact us and use our recourse collection service.