In the case of outsourcing, the credit management is outsourced to a specialised partner. The consistent and systematic credit approach results in fewer debit entries. The objective is to lower the DSO, so that more operating capital is available to the company. An improved risk profile results in lower financing costs at the bank and potentially a lower credit insurance premium.
Secondment can help to absorb temporary capacity issues. A credit collector helps to collect outstanding debts. Credit managers can also be insourced to provide guidance to the credit management department in a wider perspective. Finally, credit controllers can develop high level policy with regard to credit management processes.
Through the implementation of specialist software, processes can be more structured. This enables optimisation of the processing time. It also improves the identification of potential problems. Finally, the automation will simplify the compilation of files in problematic cases.