How law firms can support their bottom-line and drive growth through strategic outsourcing

“A white-label debt collection service is when one company delivers debt collection or credit-management services on behalf of a client or partner using their name and brand. This gives the clients customers the appearance of the debt collection and credit management services being carried out in-house rather than having been outsourced to an external agency.”

Here’s an image to explain:

How can a white-label debt collection service support my bottom-line?

As per the above diagram, white-label debt collection and credit management services provide law firms with two opportunities to improve their profit margins:

1. Reduction of lock-up

Most partners have been at a board meeting where there have been uncomfortable discussions regarding the firm’s current lock-up levels. Indeed, with lock-up often ranging between 10-20% of total billed revenues it is unsurprising this can lead to some heated debate.  As a business providing legal services, some level of lock-up – tied-up in revenues yet to billed – will always be unavoidable. However, if a large percentage of the lock-up bucket is formed from overdue invoices, questions must be raised regarding the effectiveness of the business’ credit and collections policies and procedures.

For many businesses credit management and recovering debts can be time-consuming, expensive and inefficient – which is why businesses of all sizes often look to outsource these processes to an external agency.  Through leveraging a specialist agency’s wealth of expertise and resources you can improve the efficiency and effectiveness of your collections, reduce costs and free up your client services and finance teams to focus on the areas where they can really add value.

If this is done utilising a white-labelled resource, which provides a high-quality bespoke credit management service in the tone and pace which fits your business and brand as your brand, this can not only prove seamless to your clients but often deliver them a far stronger customer experience. Access to a flexible, scalable resource can ensure issues and disputes are swiftly identified and resolved, removing any barriers to pay and reinforcing your business as efficient and effective in all areas that your customers touch.

2. Growth in revenues from debt recovery

It is usual for law firms who have delivered their commercial clients a great service to go on to secure work on other parts of the business – this optimization of revenues from each customer can be critical to business growth. However, whilst debt recovery work can prove lucrative, this piece of the corporate legal pie can often prove more difficult to secure with many business either handling much of this in house, utilising specialist firms, or in relationships with credit and collections agencies who have their own preferred legal partners.

A white-labelled partnership allows you to offer your clients a full debt recovery service under your branding from pre-legal through to the back-end litigation without the financial risk of having to invest in building an in-house team.

Positioning yourself as a one-stop shop for all your customers debt recovery needs can deliver the business:

  • A new revenue stream from the commission on fees received from business your clients place during pre-legal phase
  • Additional debt recovery litigation revenues
  • Client acquisition and retention opportunities

With a white-labelled partnership, this can be achieved on a no-risk basis with no need to invest in human and logistical resources and is easily scalable up and down to service those peaks, or indeed troughs with no lost expenses. 

If you would like more information regarding white-labelled debt collection services and what they could deliver for your business, please drop us an email to

Text written by Richard Brown

CRO of Global Debt Recovery & Customer Contact provider 4D Contact, Richard has over 20 years of experience helping global businesses, across multiple verticals, optimise the efficiency of their credit and collections processes to meet business objectives.

Interested in receiving more news and views from 4D Contact?

Subscribe to our weekly newsletter

[TOFU offer] eBook – A C-Suite executive’s guide to Delivering successful order-to-cash transformation
Download our eBook

A C-Suite executive’s guide to Delivering successful order-to-cash transformation

A review of the considerations and tactics critical to achieving successful transformation within your order-to-cash function


You may be interested in these other recent articles

The impact of energy on cash collection

13 November 2023

In the current economic environment, it is crucial to understand the impact of energy on cash collection to ensure your business meets its cash collection…

Read more

How to improve your working capital position before year end

8 November 2023

As businesses approach their year-end on December 31, finance teams across the globe will be reviewing actuals versus forecasts and wondering whether there is anything…

Read more

How Credit-Control can Improve Customer Relationships

31 August 2023

Outlined in this article are 3 ways customer-centric credit-control that can improve your customer experience, securing customer loyalty and your cash flow.

Read more

Understanding European Debt Collection Limitation Periods

16 June 2023

An overview of the debt collection limitation periods in Europe and how these can impact your ability to collect what is due.

Read more

2023 Guide To Collecting a Debt in Europe

15 May 2023

With uncertainty underpinning the economy, what cash collection strategies can credit management and accounts receivables teams implement as we enter 2023 to ensure the business…

Read more
[TOFU offer] eBook – A C-Suite executive’s guide to Delivering successful order-to-cash transformation

Download our eBook

A C-Suite executive’s guide to Delivering successful order-to-cash transformation

A review of the considerations and tactics critical to achieving successful transformation within your order-to-cash function


Book a consultation

Discover the benefits your business could achieve with a bespoke, outsourced contact solution.

Our brief consultations are designed to outline the impact your organisation could achieve, whatever your starting point and unique requirements.

    Register to receive updates

    Enter your email to receive regular news and updates.

      Our contact details

      4D Contact: London

      Barratt Smith Brown & 4D Contact
      Bentinck House
      3-8 Bolsover Street
      W1W 6AB

      4D Contact: Malaga

      Four D Contact S.L.
      Camino de las Cañadas 1D
      Centro de Negocios Martín Buendía
      Planta 1ª, Oficina 17
      29651 Mijas Costa
      Málaga, Spain

      4D Contact: Dublin

      The Black Church
      St Mary’s Place
      D07 P4AX

      Global Sales Enquiries:

      © 2023 4D Contact. All rights reserved  |  Privacy  |  Complaints policy
      Registered in Ireland, number 626576  |   Website credit