Hi there. I'm meeting a potential new client tomorrow who wants his credit control taking care of.. I was just curious as to how other people charge for credit control services, ie fixed monthly rate, rate per hour, percentage of cash collected? Thank you.
I suppose it really depends on what they mean credit control. I do offer it but nobody ever asked for it. as I am not a debt collector I would charge for letters sent or phone calls made but not for percentage.I would be interested about other peoples thoughts ...
I Don't offer this service but have been in credit control for 4 years so was thinking of adding it to the list.
If a company was to outsource the chasing of debts the company would buy the debts off them at a reduced rate.
I personally would at least start by charging a fixed monthly amount to deal with a set number of bad debts. If you resolve them quickly you could then negotiate a percentage. What is the value of the invoices you would be chasing? and how old are they?
Just saw this and sorry I couldnt answer previously. We are not a bookkeeping/accounting service but a specialist credit control & debt recovery firm.
In my experience, costings on credit control need to be very much geared to the client's specific needs. Sounds a bit salesy I know, but it is not an exact science. Some clients idea of credit control is a total outsource of every invoice where else some clients mean a selection of fees that go over a specific age.
We try and ensure all new clients are on a No Collect/No Charge basis to make them feel more comfortable. In time, they often lead to a fixed monthly fee, so they can budget accordingly.
Depending on volume, a % could range from 3% - 10% and should normally have a ceiling on any one collected invoice
We would never charge for a letter as we see that as part of the process. I really can only talk about us but these transparent services seem to work for both sides.
I would always suggest that you check testimonials and ensure the agency you choose understand the difference between credit control and debt collection and have the flexibility to gear the service.
I would not be doing my job if I didnt point out that we are www.gbpimney.co.uk and can be reached on 01234 218618
-- Edited by The Credit Control expert on Monday 21st of June 2010 10:15:25 PM
