How Outsourced Credit Control Works - A Plain English Guide for SMEs
If you have been thinking about outsourcing your credit control but are not quite sure what it actually involves, this is for you.
Credit control is about making sure the process from invoice to payment is properly managed. That means invoices going out correctly and on time, customer queries being dealt with, payments being followed up consistently and keeping track of what has and hasn't been paid.
For many small business owners, all of that gets fitted in around everything else. This guide explains what changes when you hand the process to an outsourced credit control service like INcharge.
No jargon. Just a straightforward walkthrough of what outsourced credit control actually looks like, from the first conversation to the day to day management of your accounts.
What outsourced credit control is (and isn't)
When you outsource your credit control, you hand the day to day management of getting paid to a professional credit controller.
Depending on what your business needs, that can include raising invoices, dealing with customer queries, following up before and after invoices become overdue, tracking payment promises, recording payments and keeping you updated on anything that needs your attention.
At INcharge, we work as an extension of your business. We communicate with your customers on your behalf and make sure there is a consistent process in place rather than invoices simply being followed up whenever somebody has time.
What outsourced credit control is not is debt collection.
Debt collection usually comes into play once normal credit control has been exhausted and a debt requires more formal recovery action. Good credit control happens before that point. The aim is to prevent overdue invoices from becoming serious debts in the first place.
If formal recovery does become necessary, INcharge can refer the matter to an appropriate debt recovery specialist or commercial solicitor.
The first conversation
Before anything starts, we have a Cashflow Clarity Call.
This is a straightforward conversation about your current situation: how many invoices you raise each month, your payment terms, how credit control is currently being handled, whether you have existing overdue debt or unresolved customer queries, and where the process is taking up your time.
It is also your opportunity to ask anything you want to know about how outsourced credit control works.
By the end of the conversation, we'll have a much clearer idea of what support your business needs and whether INcharge is the right fit.
What happens when you get started
Once you decide to go ahead, we get everything set up so that INcharge can work as part of your business rather than feeling like an outside company chasing your customers.
We'll agree exactly what we're responsible for, how we'll communicate with your customers and what information or access we need from you.
If there is already a significant amount of aged debt or unresolved queries when we start, we may need to stabilise the position first. That gives us a clear picture of what is outstanding, what's holding up payment and what needs action before we move into the normal ongoing routine.
What outsourced credit control looks like week to week
Once everything is in place, INcharge manages the agreed parts of the process consistently.
Depending on the support your business needs, that can mean:
raising invoices where required
keeping track of what is due and when
sending professional payment reminders and follow-ups
speaking to customers where appropriate
dealing with or helping resolve invoice queries
recording and monitoring payment promises
keeping payments accurately recorded
adjusting the approach depending on the customer and situation
flagging anything that needs your input or a decision
The important part isn't simply that invoices get chased.
It's that somebody owns the process.
Instead of credit control being something that gets picked up when somebody has time, there is consistent follow-up and visibility over what is happening.
What your customers experience
One of the biggest concerns business owners have about outsourcing credit control is how their customers will react.
INcharge works as an extension of your business. Communication is professional, respectful and appropriate to the situation. We're not interested in aggressive chasing or damaging a valuable customer relationship just to get an invoice paid.
In many cases, your customers simply experience a business that is organised, consistent and clear about payment.
And if a customer has a genuine reason why an invoice hasn't been paid, we want to find that out too. An unresolved query won't disappear because another reminder has been sent. Identifying what's actually holding up payment is an important part of good credit control.
What you experience
The first thing we want to give you is visibility.
Instead of having a rough idea of what's outstanding, you know what is owed, what's being dealt with, who has promised payment and where something needs further action.
The second is consistency.
Customers are followed up because that is part of the process, not because you've suddenly found half an hour between everything else.
And then there's time.
Credit control takes longer than it looks, particularly once you include checking accounts, answering queries, following up broken promises and deciding what to do next.
Handing that process over means you can spend that time running your business instead.
How much does outsourced credit control cost?
INcharge publishes its ongoing credit control pricing openly.
Bronze: £550 per month
For businesses raising up to 50 invoices a month that need consistent, professional credit control and better visibility over what's outstanding.
Silver: £1,000 per month
For businesses raising up to 100 invoices a month that need more frequent management of overdue invoices, customer queries and payment promises.
Gold: from £1,500 per month
For businesses with higher invoice volumes or more complex requirements that need a tailored, hands on credit control service.
There is a one-off onboarding fee of £350.
The right package depends on your invoice volume and the level of support your business needs, including whether you need help with invoicing and payment reconciliation.
How do you know if outsourcing credit control is right for your business?
Outsourced credit control tends to work well when your business is raising invoices regularly but managing everything that happens afterwards is becoming another job in itself.
You might be spending too much time following up payments, seeing the same overdue invoices month after month, dealing with customer queries that don't seem to get resolved or simply finding that credit control slips down the list when the business gets busy.
You don't necessarily need a huge overdue balance before outsourcing makes sense.
In fact, one of the biggest benefits of consistent credit control is preventing that situation from developing in the first place.
What to do next
If you're considering outsourced credit control and want to understand what it could look like for your business, take a look at our ongoing credit control services and pricing.
If you'd rather talk it through, you can also book a Cashflow Clarity Call to discuss what's happening in your business and what level of support might be appropriate.
Not ready to outsource? The Credit Control Foundations Kit gives you practical tools, templates and guidance to help you manage credit control consistently yourself.