A finance leader’s guide to choosing the right credit management partner and receivables management support
We understand that late payments, high DSO and aged debt don’t just restrict cashflow, they can undermine funder confidence and drain your finance team of valuable time. When more than 10% of your ledger sits at over 90 days, or invoice finance providers begin raising concerns, working with the right credit management partner can help restore stability rapidly.
In this guide, we outline what to look for in a credit management partner, the questions to ask, why it is increasingly a strategic choice and some real world examples of working with a partner.
Three month credit control and collections intervention – how it works.
Contents:
- Why work with a credit management partner?
- What to look for in a credit management partner
- The questions to ask
- Real world examples
- FAQs
Why work with a credit management partner?
- Generate cash without adding headcount
Experienced specialists will help to unlock working capital quickly, usually within a matter of months without delays and the heavy cost of recruitment. They will have tried and trusted processes in place to tackle and recover aged debt.
- Niche expertise
Credit management, credit policy development, debtor management, invoice finance support and collections management are a niche set of expertise. Most in-house teams don’t have this experience, or capacity along with their other responsibilities.
- Assists with funding readiness
Invoice finance providers require clean ledgers, clear policies, consistent processes and documented collection activity. We’ve worked with hundreds of businesses to get them ready for approval.
Read our guide to invoice finance readiness.
- Protects customer relationships
A credit management partner will take care to protect your customer relationships. In our case, we white label and act as an extension of your business, so customers would not realise they are dealing with an external supplier. The right partner will chase debt in a way that won’t impact customer relationships or confidence.
- Visible results, fast
Depending on the partner, you should expect to see rapid results. For example, we work to a 90 day framework, and don’t bill clients until the end of month two – by which time they will have already recovered debt and see that the process is working.
- Leaves your team stronger
In our own business, we aim to help companies strengthen their in-house team so that they won’t need to use a credit management partner in future. So, an intense three month project can set your business up for the future.
“A credit management partner should strengthen your business — not just chase invoices. If they’re not reducing aged debt, improving your processes and leaving your team stronger within 90 days, they’re not adding real value.” — Glen Morgan, CEO, itsettled
What to look for in a credit management partner
When it comes to shortlisting a partner, there are several things you should look at:
- Their expertise in credit management and invoice finance
A strong partner will understand both sides: the internal processes required from the business and the funder’s perspective. Look out for:
- How experienced its team is – how many years of experience do they have, what are their backgrounds?
- A proven track record – do they have case studies and testimonials to back up their expertise?
- If they have experience of working with invoice finance providers.
Check:
- How many mid-market cases have they delivered?
- What are their average DSO and aged debt reductions?
- What experience do they have working with invoice finance providers?
“A credit management partner should strengthen your business — not just chase invoices. If they’re not reducing aged debt, improving your processes and leaving your team stronger within 90 days, they’re not adding real value.” — Glen Morgan, Founder, itsettled
2. A structured framework
Avoid any open-ended chasing. We work to a strict three month project timeline so that businesses know when they will see results. For example, we work to the following:
- Month one: cash generation and rapid overdue debt recovery
- Month two: query resolution and policy strengthening
- Month three: embedding processes and handing back control
Check:
- Do they have a structured timeframe for working with you?
- What results can you expect each month?
“Aged debt is usually a symptom, not the cause. Fix the process and the ledger repairs itself. That’s why a partner who only ‘chases’ debt will never deliver long-term improvement” — Glen Morgan
3. Sensitivity to customer relationships
It’s simple, collections must protect your reputation. A credible partner act confidentially as part of your team using respectful and professional communications. It should also align itself with your business brand’s tone and approach. A good credit management partner will always avoid aggressive tactics that could impact your customer relationships.
Check:
- How do they protect relationships?
- Do they contact customers in your name?
- Insight and ability to address root causes
High debtor days are often symptoms and not the problem. A good partner should resolve missing documentation, ineffective credit control policies, poor onboarding or terms, query backlogs, ERP or reconciliation issues and underperforming staff.
Check:
- Will they review your order-to-cash process?
- Can they support recruitment or capability gaps?
4. Strong debtor management & collections capability
How do you assess their capability when it comes to debtor management and collections? Look for:
- Intensive collections support
- Auditor-ready reporting
- Clear escalation paths
- Dispute and query resolution
- Credit control and collections assistance that strengthens internal teams
Check:
- How often do they report DSO and collection progress?
- How do they manage customer disputes?
5. Experience delivering auditor cash improvements
What improvements can you expect to see? In our experience, we tell clients to expect DSO reduced by 20 – 40 days within three months and improved audit and funder confidence.
Check:
- Can they share auditor-recognised improvements?
- What KPIs do they focus on?
6. Ability to support funding readiness
If you’re looking for invoice finance or have been refused in the past, a good partner can turn this around. They can help with:
- Ledger accuracy and reconciliation
- Credit policy and documentation
- Query logs and audit trails
- Confidence for invoice finance providers
Check:
- Can they help you to become invoice-finance ready?
- Will / can they liaise with your funder?
“When a ledger drifts, it doesn’t just slow cashflow — it erodes confidence across the business. Restoring control fast is essential, and that’s where experienced credit managers make the biggest difference” — Glen Morgan, itsettled
The key questions to ask before choosing a partner
Operational
- Can you reduce aged debt within 30 days?
- What’s your average DSO reduction?
- What reports will we receive?
Strategic
- How will you strengthen our credit policy?
- Can you help with funding readiness?
Cultural
- How do you protect customer relationships?
Commercial
- How do your fees work?
- Will we see results before month two billing?
Real world examples
Case study: recruitment group (£45m turnover)
Problem: £8m ledger, £2.2m in the 90+ day plus column plus poor staff performance
Actions:
- Immediate aged-debt resolution
- Drafted and implemented new credit policy and collections procedures
- Supported recruitment of new staff
Outcome
- Collections handed back to a fully functioning team
- DSO reduced from 100 to 62 days
- 90 day debt reduced to £642k
What to look for in a credit management partner
When it comes to shortlisting a partner, there are several things you should look at:
- Their expertise in credit management and invoice finance
A strong partner will understand both sides: the internal processes required from the business and the funder’s perspective. Look out for:
- How experienced its team is – how many years of experience do they have, what are their backgrounds?
- A proven track record – do they have case studies and testimonials to back up their expertise?
- If they have experience of working with invoice finance providers.
Check:
- How many mid-market cases have they delivered?
- What are their average DSO and aged debt reductions?
- What experience do they have working with invoice finance providers?
Case study: plumbing supplies business (£18m turnover)
Problem: £1.2m in the 90+ day column and two failed funder surveys
Actions:
- We took over the management of 350 debtor accounts
- Implemented credit policies and procedures
- Recruited and trained internal staff
Outcome (90 days later)
- Invoice finance facility secured
- DSO reduced from 100 to 64 days
- 90 day debt cut from £1.2m to £10k
FAQs
Why do businesses outsource credit management?
Most finance teams lack the time or specialist expertise to reduce aged debt quickly. Outsourcing brings experienced credit managers who can unlock working capital, strengthen processes and restore funder confidence.
Will outsourcing damage customer relationships?
A professional partner protects, rather than harms, relationships. Communication is respectful, confidential and aligned to your brand tone.
How fast can a good credit management partner deliver results?
Most businesses see cash improvements within the first 30 days, with significant DSO reduction and cleaner ledgers within 90 days.
Can outsourced credit management help with invoice finance readiness?
Yes. The right partner will improve documentation, policies, reconciliations and debtor position — all key factors in invoice finance approval.
What reports should we expect?
Weekly or bi-weekly updates including aged debt breakdown, DSO movement, dispute logs, cash collected and actions taken.
The right partner should do far more than “chase invoices”. They should unlock working capital fast, strengthen your processes, improve funder confidence and leave behind a more resilient credit control function.
Get in touch for a free consultation to see if we can support your business.