How do I manage credit control?

Irrespective of whether revenues have declined or are expected to decline in the future, credit control will play a big part in effective working capital management and cash generation. Here, we outline some of the key steps for setting up and managing an effective credit control process:

1. Agree payment terms and procedures up front
   Credit policies and terms and conditions must be made clear and should be pre-agreed with your customers
    
2. Check that customers have received your invoice
   It might sound simple, but speak to your customers after a week or so of issuing the invoice(s) to ensure it was received and is being processed. Tracking of emails may help.
    
3. Remind customers when the due date is approaching
   Similarly, a gentle reminder to your customer ahead of the payment date may help, but ensure your message is polite rather than pushy.


4. Chase late payments regularly
   If the payment due date has passed, ensure customers are contacted regularly; be polite and persistent. Escalate the firmness of your message as the debt becomes older
    
5. Automation

Consider to what extent your credit control procedure can be automated to reduce costs. 
If your internal credit control procedures have been exhausted and you are wondering what to do next, our Escalate Debt Recovery service may help.