Contents
- What causes business cashflow problems?
- What can happen if cashflow issues aren’t addressed?
- Why should businesses outsource credit control?
- Why choose itsettled?
- How has itsettled helped businesses improve cashflow?
- Is outsourcing credit control right for your business?
- Next steps
- FAQs
Outsourcing credit control helps businesses prevent cashflow problems by improving collections, reducing overdue invoices and lowering Days Sales Outstanding (DSO).
For many businesses, cashflow problems don’t begin with falling sales, they begin with unpaid invoices. A healthy order book means little if customers consistently pay late, disputes remain unresolved and your finance team spends more time reacting to problems than preventing them.
Government research shows UK businesses spend around 133 million hours every year chasing late payments. According to the Intrum European Payment Report, the average Days Sales Outstanding (DSO) for UK mid-market businesses is 61 days – more than double standard 30-day payment terms. Every extra day an invoice remains unpaid places additional pressure on working capital, supplier relationships and future growth.
Outsourcing credit control offers an effective way to regain control without increasing headcount or disrupting customer relationships.
What causes business cashflow problems?
Cashflow problems often develop gradually. Businesses may continue to win new customers and generate healthy revenues, yet still experience increasing financial pressure because cash isn’t arriving quickly enough.
Some of the most common causes include:
- Customers paying beyond agreed terms.
- High levels of aged debt.
- Growing invoice disputes.
- Inconsistent credit control procedures.
- Under-resourced finance teams.
- Poor visibility of debtor performance.
- Rising Days Sales Outstanding (DSO).
When these issues are left unresolved, finance teams become trapped in a cycle of reacting to overdue invoices rather than improving the overall collections process.
What can happen if cashflow issues aren’t addressed?
Cashflow problems affect every part of a business. What begins as a delay in customer payments can quickly impact operational performance, funding arrangements and business confidence.
| Cashflow challenge | Potential business impact |
| High aged debt | Less working capital available |
| Rising DSO | Increased borrowing requirements |
| Poor collections | Slower business growth |
| Invoice disputes | Delayed customer payments |
| Weak credit control | Higher administrative workload |
| Cashflow uncertainty | Reduced confidence from funders and suppliers |
Many businesses also become increasingly reliant on invoice finance or short-term borrowing simply to bridge the gap between invoicing customers and receiving payment.
Why should businesses outsource credit control?
Outsourcing credit control provides immediate access to specialist expertise.
Rather than recruiting additional employees or expecting already stretched finance teams to absorb more work, businesses can benefit from experienced professionals who focus solely on improving collections and strengthening credit management.
Key benefits include:
- Faster recovery of overdue invoices.
- Reduced debtor days and lower DSO.
- Improved working capital.
- Better visibility of the sales ledger.
- Faster resolution of customer queries.
- More consistent credit control procedures.
- Reduced pressure on internal finance teams.
- Improved confidence from lenders and invoice finance providers.
Perhaps most importantly, outsourced credit control allows finance leaders to focus on strategic planning instead of spending valuable time chasing overdue payments.
Why choose itsettled?
itsettled offers far more than traditional outsourced credit control.
Our three-month intervention is designed to deliver immediate cashflow improvements while creating sustainable change within your finance function.
Working as an extension of your team, we combine intensive collections activity with practical improvements that continue delivering value long after the project has finished.
Our support includes:
- Full sales ledger reviews.
- Intensive collections management.
- Resolution of invoice disputes.
- Development of credit policies and procedures.
- Recruitment support for credit control professionals.
- Funding readiness support for businesses using or considering invoice finance.
Our team has recovered more than £1bn since 2009. Every consultant has at least 20 years’ experience in credit management or invoice finance, allowing us to identify issues quickly and implement practical solutions that produce measurable results.
Unlike many providers, we don’t simply recover overdue invoices. We leave businesses with stronger systems, better reporting, improved processes and greater confidence in their future cashflow.
| Traditional debt collection | itsettled |
| Focuses on recovering debt | Improves the whole finance function |
| Short-term collections | Long-term process improvement |
| Limited operational support | Recruitment, policy, funding readiness |
| External agency | Extension of your finance team |
How has itsettled helped businesses improve cashflow?
One London-based recruitment business with an annual turnover of £45 million was referred to itsettled by its bank’s invoice finance division after growing concerns about its deteriorating cashflow position.
The business had an £8 million sales ledger with £5.5 million of invoice finance funding in use, but collections had fallen behind significantly. More than £2.2 million of debt was over 90 days old, and Days Sales Outstanding (DSO) had increased to 100 days, placing considerable pressure on both working capital and the funding relationship.
Following an initial review, we identified that the business lacked sufficient credit control resource and that its existing collections processes were underperforming. We also recommended changes to the finance team structure to support a long-term recovery.
Once engaged, our consultants worked alongside the client’s finance team to implement an intensive three-month recovery programme. We focused on reducing aged debt through targeted collections activity while simultaneously strengthening the business’s credit management framework.
Our support included:
- An intensive programme to recover high-value aged debt.
- A comprehensive review of the sales ledger and debtor management processes.
- The development of a formal Credit Policy and Collections Procedures to prevent similar issues from recurring.
- Advice on the finance team structure, including identifying key credit control roles, salary benchmarking and recruitment support.
- Ongoing collaboration with both the client and its invoice finance provider to demonstrate progress and rebuild confidence.
Rather than simply recovering overdue invoices, we helped the business establish the people, processes and governance needed to maintain stronger cashflow long after the project had finished.
Results achieved within 90 days
- Reduced Days Sales Outstanding (DSO) from 100 days to 62 days.
- Reduced debt over 90 days old from £2.2 million to £642,000.
- Significantly improved working capital and collections performance.
- Implemented a formal Credit Policy and Collections Procedures.
- Helped recruit the right in-house credit control resource to sustain future improvements.
- Successfully handed responsibility back to the strengthened internal finance team.
The outcome was a stronger finance function, healthier cashflow and renewed confidence from both the client and its invoice finance provider—a genuine win for the business, its funding partner and its long-term financial stability.
Is outsourcing credit control right for your business?
Outsourcing credit control is particularly valuable for businesses experiencing sustained pressure on working capital.
You may benefit from specialist support if:
- More than 10% of your sales ledger is over 100 days old.
- Your DSO is consistently above payment terms.
- Customer queries are delaying payment.
- Your finance team lacks capacity.
- You are relying heavily on invoice finance.
- You want to improve cashflow without recruiting additional staff.
The earlier these issues are addressed, the easier they are to resolve.
Next steps
Cashflow problems rarely disappear without action, but they don’t always require additional borrowing or expanding your finance team.
Outsourcing credit control provides immediate access to specialist expertise that can improve collections, reduce debtor days and strengthen your overall credit management processes.
At itsettled, we work collaboratively with finance leaders to unlock working capital, improve cashflow and leave businesses with stronger systems, better processes and greater confidence in the future. Our focused three-month intervention delivers immediate results while creating lasting improvements that continue long after the project has ended.
Read our guide to ‘what to look for in a credit management partner.
Frequently Asked Questions
What is outsourced credit control?
Outsourced credit control involves appointing specialist professionals to manage collections, reduce overdue invoices and improve credit management processes while working alongside your existing finance team.
Will outsourcing credit control affect customer relationships?
No. Professional outsourced credit control focuses on maintaining positive customer relationships through consistent communication, proactive query resolution and structured credit management rather than aggressive debt collection.
When should a business consider outsourcing credit control?
Businesses should consider outsourcing when debtor days are increasing, aged debt is becoming difficult to manage, finance teams are overstretched or cashflow is coming under sustained pressure.
How quickly can outsourced credit control improve cashflow?
Every business is different, but itsettled’s structured three-month intervention is designed to deliver measurable improvements in collections, working capital and credit control processes within 90 days.
Author
Glen Morgan is one of the UK’s leading receivables management specialists with more than 30 years’ experience in credit management and invoice finance. Through Credebt, he has helped recover over £1bn for UK businesses and has advised organisations on improving working capital, reducing debtor days and building stronger credit control functions.
Book a free consultation and discover how much working capital could be released from your sales ledger in the next 90 days.