Inside Sterling’s strategy for credit control and risk management

Photo courtesy of Sterling

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Managing finances is challenging for businesses, especially when clients delay payments. Late payments disrupt cash flow, create financial uncertainty, and increase the risk of bad debt. Without proper credit control, businesses may struggle to recover funds while maintaining customer relationships.

Sterling, a company specializing in outsourced financial services, helps businesses stay financially strong by preventing bad debts and improving cash flow, whilst building stronger working relationships with their clients’ customers. With operations in the UK, EU and India, Sterling handles millions of pounds in transactions every year.

Harry Virdee, CEO of Sterling since August 2024, explains the company’s approach. “Strong credit control is not just about chasing overdue invoices, it is about structuring financial processes that prevent issues before they arise.” The company uses technology, financial data, and strict legal standards to help businesses avoid risks before they become serious problems.

Spotting payment risks early

One of Sterling’s most important strategies is identifying risky payments before they become significant issues. Instead of waiting for an invoice to be late for payment, the company uses data to predict which customers might struggle to pay on time. It looks at factors like past payment history, economic trends, and industry data to determine who is most at risk of falling behind.

Once customers are sorted into different risk levels, businesses can adjust how they interact with them. Customers with a history of late payments receive closer scrutiny, along with frequent reminders. Customers with cash flow problems will face increased pressure earlier in the chase cycle and installment payment options to clear down the debt value as quickly as possible. More reliable customers follow normal billing schedules. This system helps companies significantly reduce the risk of bad debt while building good relationships with their clients.

How technology helps collect payments faster

Credit control has traditionally been a manual process, relying on calls and emails that can often go ignored. Sterling speeds up the process with machine learning. Their system automatically follows up on unpaid invoices and adapts its strategy based on how customers respond. This reduces the time and effort businesses need to spend on chasing overdue payments.

Sterling’s system also supports multiple languages, which is useful for businesses working across different countries. Customers are more likely to pay when they can communicate in their preferred language. Combining automation and multilingual support has helped businesses working with Sterling increase their cash flow by 30% and cut unpaid debts by 40%.

A tailored approach in any language 

Sterling’s tailored credit control approach not only improves cash flow but also protects and enhances Sterling’s clients’ brand reputation. By aligning communication strategies with each client’s values and tone, Sterling ensures a professional, customer-friendly experience that fosters trust and loyalty. 

With access to multilingual agents, Sterling engages customers in their preferred language, creating a more personalized and effective approach. Through a proactive yet customer-focused strategy, Sterling recovers payments efficiently while preserving strong relationships. Sterling’s blend of persistence, adaptability, and responsibility helps businesses maintain a positive image, strengthening long-term partnerships while keeping customer satisfaction at the forefront.

Helping businesses stay financially strong

Sterling encourages companies to see credit control as part of their financial planning. It advises businesses to create clear payment policies, work with various customers to spread risk and adjust payment terms based on financial trends.

Sterling’s recent expansion in Poland and India is a response to growing demand for outsourced credit management. With uncertain economic conditions, many businesses are looking for reliable financial processes that keep them secure. “Financial risk management is no longer a back-office function, it is becoming a key driver of business strategy,” Virdee says.

As financial conditions shift worldwide, businesses need even stronger risk management strategies. Inflation, stricter lending rules, and changing government policies will all affect how companies handle their finances. Sterling is focused on improving its data-driven risk analysis, automation, and legal compliance to help clients handle these challenges.

Sterling is adapting to the complexities of financial risk by refining its methods and expanding into new markets. Its structured system proves that businesses do not have to wait for problems to happen, they can take control of their finances early, reducing losses and building stronger financial foundations.