Managing Credit Control for your Company

on Thursday, 31 August 2017. Posted in Credit Reports - Blog

Top tips on managing credit control for a business

The key to the success of any business is, obviously, making money, and a major part in determining a company’s prosperity and longevity is managing credit control.
 


To stop the extension of credit adversely affecting a business, various controls should be set in place:

Records

Records need to be kept up-to date. It is impossible to ascertain which customers are not paying, if invoices, receipts, etc. are not processed in a timely manner.

Timescales

A time limit should be set for the payment of invoices, and this should be strictly adhered to. This timeframe should be made clear to the customer at the time of sale.

Contact

When this deadline for payment has been exceeded contact should be made with the customer, initially by telephone or email. In many cases payment has simply been forgotten, and a gentle reminder results in the account being settled immediately.

Action

If a phone call or email is not successful, the next step is to stop supplying the customer, making it clear why this course of action has been taken. Alternatively, especially with a large or valued customer, fulfil one more order with the proviso that payment must be made immediately on receipt. Alternatively, a payment plan could be set up with the customer. This should be short term as possible, to minimise the time it takes to clear the debt.

Conclusion

In conclusion, managing credit control requires regular contact with late paying customers, and an efficient system to know exactly what you are owed, and when you expect payment.

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