Why you should spend more time thinking about credit control
It is essential to think about credit control if you want to grow your business or enterprise, but the practice can often be overlooked as it takes a good deal of effort and time. Indeed, late and non-payments from customers can be a huge problem for businesses, particularly if a customer base is growing quickly. This is because keeping track of invoices and who has and has not paid what they owe can be time consuming and incredibly laborious. Losing track of this information, however, can be disastrous for a business. It can end up losing money and looking very unprofessional. In order to avoid this, and make sure the expenses associated with running a business are fully covered, there are a few steps you should be taking.
Check whether customers are creditworthy
Gaining testimonials from existing suppliers can demonstrate well that a customer is efficient with payments, and will not end up costing you and your business precious time and money. You might also ask the customer for a reference from their bank, to ensure they are sensible spenders. Credit reference agencies are also a great way to go, particularly as they save businesses time.
Make sure terms and conditions are precise and accurate
Clearly stating when payment is due is an absolutely essential step in making sure your business receives the money it’s owed. Built in to this should be expectations regarding what will happen should payment be missed or delayed, as penalties can be a strong incentive for customers to make their payments on time. On the flip side, perks and rewards for early payments can be a great way to ensure debts are paid on time and to gain a level of trust from the customer.
Outsource when it all gets too much
Ultimately, the time spent undertaking credit control procedures could be spent doing productive things to further a business. It is, however, as we’ve explored, a hugely important part of any successful business. Outsourcing can be the perfect solution to this and, with the right provider, should not cost huge amounts.
For more information regarding what credit control solutions could do for you, visit First Capitol today! https://www.firstcapitol.co.uk/