What is Credit Control
What is Credit Control?
Essentially Credit Control is a procedure used by businesses to ensure that customers pay on time. Businesses should ensure this process is well managed to ensure invoices are continually paid on time and to minimise bad debt level. As the old saying goes, a bird in the hand is worth two in the bush. Having the funds in your account allows the business to continue to grow and avoid sipping into the overdraft and incur unnecessary costs, not to mention it will allow you to pay your own bills in time and help your credit terms with suppliers. In other words, managing your debtor book can help keep those juggled balls in the air.
having the right processes and the right person in place is essential when it comes to a good credit control system. Credit control is not all about collecting cash from late invoices, its also about building relationships with your customers and creating a rapport with them. There's nothing worse that having to ring a good client to say hey you still owe me money from the previous invoice. Its always good to have a different person dealing with the credit control to remove the emotion of the situation and ensure full collection without impacting to heavily on relationship.
Don’t give people an opportunity to pay you late, check that your invoice is up to scratch and meets all legal requirements. Customers will not let you know if there is a problem with your invoice – it will just sit on their disputed pile so it's really important to get it right first time. If you are sending an invoice out to a new customer then it is worth giving them a call a few days after you sent it just to check it has been received.
If you require support on credit control for your invoices, please contact Kingsland Receivables on 0333 4443 633 or visitwww.kingslandreceivables.co.uk and one of our experienced credit control team will be more than happy to assist.