Top tips for getting a grip on credit control
Any business which relies on credit should have robust credit control procedures. But with Creditsafe reporting that unpaid UK business debt hit nearly £739million in the first quarter of the year alone, it seems that there’s never been a better time to get a grip on your sales ledger.
We’ve put together some top tips for keeping your credit control department on top of customer accounts.
1. Assume late payments will happen
We don’t like it any more than you, but it’s an unfortunate fact that people who pay their company bills on time are a rare thing. Working to the assumption that everyone will pay late will encourage you to get rigorous strategies in place to deal with these people.
2. Post out invoices as soon as possible
It sounds silly, but get those invoices sent out as quickly as possible if you want to get paid as soon as possible. We’ve come across businesses who leave months or weeks before even preparing the invoice.
3. Keep credit checking
Your customer may have passed your credit check a few years ago, but are they going to pass a credit check in 2018? Keep checking and monitoring those you extend credit to.
4. Stick to the rules
It’s too easy to become friendly with customers, but remember that you’re not their mate. If your terms state payment in 30 days, don’t be persuaded to extend them “just this once”. Assert your authority and ask for payment on time, politely and firmly.
5. Send reminders
Credit control works best when it’s proactive. Call that customer whose invoice is about to hit your payment deadline and give them the nudge they need. This will show that you are on the ball so they won’t be tempted to push their luck.
6. Ask for help
No invoice ever needs to be written off when you have companies like First Capitol ready to assist. Involving a professional debt recovery like First Capitol will ensure that every invoice will be paid to keep your cashflow where it should be.
For many companies, monitoring their customers’ credit control is an overlooked area, but with the help of First Capitol, you don’t need to be one of the companies that fall victim to late or non-payers. We understand that chasing late payments can be a time consuming and frequently fruitless job. Allow us to step in and help resolve unpaid invoices on your behalf, and keep your company income coming.