24/10/2023
www.cashflowfulfilment.com
If your business or as an advisor your client’s business requires an effective solution for managing the collection of debtor accounts then Outsourcing of the Credit Control process would be an alternative worth considering.
Outsourcing of the core Credit Control function is a more cost effective alternative especially for indigenous businesses with a turnover less than Five Million Euro !, this is due to a combination of factors including the increase in the cost of direct labour employees, general staff turnover and the unavailability of experienced Credit Control personnel, the downtime and loss of productivity experienced with direct labour Credit Control in some cases is also the hidden cause of unnecessary business cash flow disruption and a breakdown in good customer relations as a consequence of unresolved disputes etc. due to inadequate or unsuitable credit control resources.
To put the real financial cost of direct labour Credit Control for each Full Time Employee into perspective it is actually in excess of
€ 50,000 for a Credit Controller on an annual salary of € 35,000, we can provide the costs breakdown that should be taken into consideration when measuring this resource overhead cost, if required.
By contrast outsourcing the credit control function has a much lower percentage of turnover cost for a business with a turnover under Five Million Euro, therefore outsourcing the function is certain to benefit the profit margins and bottom-line financial results of most indigenous businesses.
Our service cost data illustrates that credit control outsourcing costs for businesses with an annual turnover up to Five Million Euro with an average invoice value of between € 1,000 to € 2,500 are very competitive compared to direct labour costs and the costs are running between 1.02% to 1.50% of annual debtor’s ledger turnover, how does this compare with your current % of turnover cost for your direct labour credit control resource costs ?
N.B. a variation in percentage of turnover cost will occur if your actual ledger has different average invoice values, we can calculate this on a no obligation basis if required.
For anyone interested, we would welcome the opportunity to have a brief discussion on a no obligation basis concerning how our outsourced credit control service could be of benefit to your business and how outsourced Credit Control resources would be a more profitable alternative to manage the collection and administration of the debtor accounts.
We look forward to any enquiry you may have regarding the above.
Pascal
Cell Phone: + 353 (0) 87 069 0640
E-mail: [email protected]
Website: https://www.cashflowfulfilment.com
Credit Management options with a customer service focus to effectively manage todays business chalenges
