- 15 Feb
Saving The Annual Salary Of A Credit Controller
According to figures published by Payscale, the average salary of a UK credit controller is now almost £21K per annum, with additional bonuses and commission averaging a further £6.5K, excluding employers national insurance, and any pension contributions you have to make (currently a minimum of 2% of earnings).
Cost Of A Credit Controller
At the top end of the pay scale, the basic salaries can run to £28K, a huge outlay for any organisation. In total, a single credit controller is likely to cost over £30K each year, using just the average salary levels of £21K.
In addition to the package costs, there will also be the office overhead and the cost of the phone calls and paper based communications with debtors. All together this could be a significant cost, even more if your company is large enough to warrant a team of credit controllers.
Saving The Cost Of Your Credit Control Team
There are some options that could significantly reduce that cost. A credit control service allows you to outsource that function, and likely save a chunk of that cost in the process. Credit control specialists retain teams of credit controllers such that you can often use part of their resource at a fraction of the cost that you would incur to retain and house your own credit control staff.
Factoring As An Alternative
The second option is a factoring service. In addition to the credit control service, you will also receive free payments against your sales invoices, which can improve the cash flow of your company. Furthermore, bad debt protection can also be provided if required. The quality of the credit control service varies between providers, so it is important that you select your factoring company carefully. The cost of factoring is likely to be less than the cost of employing your own credit controllers. For more information about the cost, please see our examples of factoring costs.