Cashflow problems are a serious issue for recruitment businesses which have to grapple with the challenge of paying staff and contractors before receiving payment from clients.  This lag can be exacerbated by issues such as late payments.

Recruitment agencies that rely heavily on temporary staffing can face additional cashflow pressures, as they need to pay temporary workers weekly, bi-weekly or monthly, while clients may pay on 30, 60, or even 90-day terms.

Unfortunately, many great recruitment businesses fail, not because of a lack of business, but because of cashflow issues.  That’s why a good system of credit control should be put in place at an early stage.

Why should I use an outsourced credit control service?

Outsourcing your credit control is likely to be much cheaper than hiring an experienced in-house credit controller or credit control team. You can scale our service up or down as required, so it remains cost-effective as your business grows and changes. Plus, you can get a better service by outsourcing as you’ll be tapping into an experienced team with a proven track record and established processes that can be tailored to meet your needs.

Do you only deal with overdue invoices?

No. We prevent bad debt as far as possible. We provide holistic advice and support around managing risk. We help with client verification to ensure you’re working with customers who can pay; that your terms of business are correct and that all parties understand their obligations. We help you choose the right insurance if required, and manage the insurance policy on your behalf. Plus, we can save your time and energy by managing the legal process, should the need arise.

How do you prevent debt from occurring in the first place?

We employ a rigorous Dunning process to prevent bad debt. Part of this involves calling the customer when an invoice has gone out to ensure it is brought to their attention. We’ll then make courtesy calls before payment is due to make sure there are no queries. It’s a friendly but systematic approach.

How do you help us maintain good relations with our clients?

We have a friendly yet professional and systematic approach that can be tailored to your agency’s needs. If you have particular clients you want to be handled differently, we can adapt our approach accordingly. Because you’ve got a third party handling your credit control, you’ve got a good degree of separation between the work you do for your clients and the debt-chasing activity.

Is your service the same as that offered by factoring companies?

No. With a factoring company, an account manager will look after hundreds, sometimes thousands, of accounts. Our service is more proactive, delivered by a large team of experienced credit control specialists who each look after only a small number of accounts. This means they can give each client the attention they need throughout the month resulting in a better service.

Need help with credit control?

Find out more about our comprehensive credit control service or get in touch for an exploratory discussion.