Credit control is one of the most important parts of our service. It ensures that your clients don’t go over their credit limit, which would end up costing you money.  

We’ve talked a lot about credit control in the past, when you should invest, and what you should expect from your credit control services. But today we’re taking things up a notch and have asked one of our wonderful credit controllers to give us more insight into what they do.  

But first, the basics. 

 

What is Credit Control? 

When you run a temporary recruitment agency, you work with a number of clients, providing them with temporary workers for specific projects, to cover leave of absence, or to strengthen their ranks during a busy period.  

Each of these clients has a credit limit, a fixed limit to the funds that you provide so that workers can be paid on time. If a client is approaching their credit limit because of their growing requirements, the limit needs to be increased, or the client needs to be informed so that it doesn’t cost you more than it should.  

Credit control goes hand in hand with debt protection. If your clients have debt issues, they shouldn’t be affecting you. With debt protection in place, it never will, and you’ll be able to continue providing the necessary workers for the client(s) without having to worry about their financial troubles affecting your cash flow.  

 

The Importance of Credit Control 

Not every back-office provider offers credit control services, but we think this is a mistake. As one of our credit controllers says: 

‘It’s extremely important. With agencies having temps out weekly and invoices always going out, we have to keep a close eye on it. If anything is wrong, it doesn’t take long before their margin takes a hit. Agencies rely on that money to pay their own staff and outgoings, so credit control is a must.’  

Cash flow is vital for a temporary recruitment agency. You need to ensure that the money coming in from invoicing is enough to pay all the workers you provide, and you have enough funds to grow your business and pay your team.  

 

When to Invest in Credit Control 

‘Straight away. As soon as invoices are going out, you need someone keeping an eye on things. Doesn’t need to be a big flashy team, but someone’s got to be making sure payments are coming in when they should. Waiting till you’ve got debt problems is too late.’ 

If you’re investing in recruitment funding services, but not credit control, your entire business could be at risk through no fault of your own.  

Peace of mind is at the heart of what we do, but it’s especially true for our credit control service. Our human-focused approach sets us apart, and the efforts we go to when building a relationship with clients is why they stick around for so long.  

With a personal but professional relationship, it becomes much easier to let clients know when their customers are approaching their credit limit.  

‘I just pick up the phone or drop a quick email. I just let them know where the customer’s at. Gives them a chance to get ahead of it and speak to the client if they need to. I’m not here to make life harder for anyone. I’d rather sort it early than deal with a worse situation down the line.’ 

Without frequent correspondence and regular updates, a warning about a customer approaching their credit limit could be lost in spam folders or be a forgotten note on a receptionist’s desk. Time is of the essence when your customer has credit or debt issues.  

 

Helping Customers to Resolve their Debt Issues 

Our credit controllers are much more than just an early warning system. We’ll alert a client when their customer is approaching the credit limit, but will then help them to resolve the issue, operating as a midpoint between the temporary recruitment agency and the client they’re providing workers for.  

‘It’s not just about chasing payments; it’s about working with people to keep things running. That might mean splitting payments, checking off disputed timesheets, or just talking through what’s holding things up. The aim is to get the money in without damaging the agency-client relationship.’ 

We’re as invested in your success as you are. We love to see our clients thrive in the recruitment world, and we’re more than happy to provide a service that protects them and improves the relationships they have with customers.  

The secret to building a good relationship with our clients is:  

‘Be up front, stay in touch, and keep things clear. I’ll always let them know what’s going on, flag issues early, and help wherever I can. I know agencies are under pressure, especially with payroll being weekly, so I don’t mess them about. We’re all trying to keep things ticking over and keep everyone paid.’  

 

Credit Control that Works for You 

As a recruitment agency, you know the importance of finding the best people for the right jobs. We understand that too and take the time to find the ideal candidates for our credit controller jobs.  

We provide our clients with dedicated credit controllers. They’ll be one of their two points of contact, the other being their payroll account manager. This helps them get to know your business and clients, becoming like part of the family after only a short time.  

Credit control is vital for any growing temporary recruitment agency. We hope that today’s blog has helped you to understand the value it provides and why you shouldn’t wait to invest.  

A big thank you to the credit control team for answering a few questions and giving us an insight into what makes Back Office one of the best credit control providers.