The Importance of Credit Control in the Hire Sector : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

The Importance of Credit Control in the Hire Sector

October 4, 2011

The Importance of Credit Control in the Hire Sector

Liverpool, UK (RPRN) 10/04/11 — Credit Control is a crucial process within any business, but within the hire sector, where levels of investment are higher than most industries, it becomes even more important. Cash is often tied up in fixed assets, and the management of cash inflow is vital for the liquidity of the business.  
 
The problem that arises for a lot of hire sector businesses that are struggling with their credit control is their inability to dedicate the required amount of time to their credit management. As this only takes a couple of hours a day, it may seem like a waste of money to employ someone solely for this task but it can prove worthwhile, one solution some companies find, is to outsource their credit control.

The factors that lead to poor credit can be varied, although a high number of debtor days are often the issue in the independent hire industry. It is essential to reduce this to as lower number as possible. Other tips for staying on top of your debtor days include:

•    Keeping a record of every transaction between yourselves and your debtors.
•    Chasing larger debts first, followed by older debts, and then chasing the ones you assume there  may be problems with.
•    Calling the customer just before the payment is due to ensure it is going to be on time - if it isn't, then you can start planning.
 
If debtors do not pay on time then this creates poor cash flow. Paying creditors can be a very stringent process in an industry where businesses are so often cash constrained, and late payment has the potential to send a business into bankruptcy.
 
If you manage to reduce debtor days and have more cash within the business, then paying your debts will become a smoother transaction which can save you paying interest on any late payments. Not only this, but it will also improve the business processes, which can increase efficiency for everyone. Client and supplier relationships will be stronger, with regular communication and if all parties receive payment on time, then everybody is happier. Dedicating time, an employee or even outsourcing your credit control is something every business should consider.
 
About Us

Sollertia was established in 2004 to allow SME’s to benefit from cost effective adaptable outsourcing of their accounting and finance requirements, at a fraction of the cost to hiring dedicated in-house staff. Massive investment in contemporary IT, bespoke software, online web ware and superb accountancy professionals has allowed Sollertia’s clients to benefit from having a completely outsourced accounting / finance department service - which cuts their accountancy costs by up to 50%.
 
Our services include:

 

Cashflow Management           Financial Director Consultancy

Outsourced Credit Control     Outsourced Payroll

Management Accounting        Business Benchmarking

Outsourced Bookkeeping       Tax Compliance Services

 

 

Sollertia are registered Member in Practice (MiP) with the Chartered Institute of Management Accountants (CIMA)

Media Contact Name: Chrissie Porter
Media E-mail:
Media Phone: 01332 253840
Media Web Address: http://www.grapevine-group.co.uk
Company Contact Name: Andrew Mault
Company E-mail:
Company Phone: 0845 0946 202
Company Web Address: http://www.outsourcedaccountancy.co.uk
Click here to see all news from this author/company

Filed Under: United Kingdom

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

GeneSegues Therapeutics Awarded Contract For Development of Nanocapsule-based Vaccine for Biodefense Pathogen

MINNEAPOLIS, MN 12/18/14 · Company Collaborating With U.S. Army Researchers on Topically...

Enjoy a Virtual Tour of Canada's Favourite Spa

GRAFTON, ON 12/16/14 · A brand new tour of Ste. Anne's Spa...

Bahama Beach Club Hosts Christmas and 12th New Year’s Eve Party

Treasure cay 12/13/14 · If you're looking for the perfect place to...

Opportunistic Brand Savvy Investors set to snap up Stackcap Patent

London, UK 12/11/14 · Business savvy investors welcomed an exciting opportunity this...

Newborn Foundation Applauds Reauthorization of Newborn Screening Saves Lives Act

WASHINGTON, D.C. 12/11/14 · The U.S. House of Representatives has passed H.R....

SecurifyApp makes it safe to be Home Alone during this holiday season

New York, New Yrok 12/10/14 · More Americans fall victim to accident, theft and...

Routehappy Raises $3.3M in Funding to Expand Airline & Distributor Products

NEW YORK 12/10/14 ·  -- Routehappy, the product differentiation platform for air travel,...

Spa Lovers Select Ste. Anne's as Canada's Top Destination... Again!

GRAFTON, ON 12/04/14 · Spafinder Wellness once again has awarded Ste. Anne's...

Who Couldn`t Use a Hug? Announcing the HugTrain 6th Annual Hug Tour Dec 2014

Montreal, Quebec, Canada 12/03/14 · Cross Continental Canadian-U.S. Train Journey to Raise Spirits...

Zikto announces stretch goals for successful Kickstarter campaign

Los Angeles/Seoul, Korea 12/01/14 · Campaign reaches global audience! Riding high on the accomplishment...

Coffee With Dr. Stewart

Austin, TX 11/25/14 · A brother and sister bring an exciting new...

Arki Kickstarter reaches $100K target in 13 days

Los Angeles/Seoul, Korea 11/24/14 · One step closer to a walking revolution The kickstarter...

Zikto taking award-winning Arki to Startup Nations Summit

Seoul, Korea 11/22/14 · Zikto taking award-winning Arki to Startup Nations Summit The...

The End of Transparency? Don't be a fraud target

Carrollton, TX 11/18/14 · - Over the years, progressive and productive societies...