Challenges in credit control

In an ideal world, credit control services should be a straightforward process of following up invoices issued to ensure payment is made and any disputes or problems raised by clients are resolved.

And in a timely manner to avoid unnecessary delays with payments.

However, there can be many challenges for credit controllers when operating a strict credit control system, and there are some key areas to consider in order to maintain and improve credit management efforts.   

Having an effective credit control system in place can help a business optimise their cash flow while avoiding debt accumulations, allowing them to function properly in today’s competitive business environment, and requires considerable skill. In order to execute a robust credit control function, it is essential to ensure your business has the required resource and tools to avoid any late payments or cash flow issues.

Ensuring a clear strategy is in place for from when an order is placed to when payment is received is key and can help to streamline your credit control processes and improve your chances of success. The basics for a strict system are to be consistent so that invoices are issued to clients in the same way every time. The payment terms remain fixed for each client unless otherwise stated, statements are sent out on set dates, and reminders and follows ups are completed regularly within defined time frames.  With clearly defined stages to follow throughout the credit period, you can adopt a co-ordinated and professional procedure for every invoice.

It should go without saying that ensuring experienced individuals lead your credit control is paramount, but many businesses are without the time or resource and therefore will look to outsource the function to a credit management and debt recovery solutions company, such as Controlaccount.

Our outsourced credit control team deliver an expert credit control service to improve cash flow and reduce the real cost of ensuring a consistent approach, leaving you with the time and the resources to focus on developing your business. We work with businesses of all sizes operating in B2B or B2C environments and have an industry-leading, comprehensive range of configurable services supporting our clients’ individual needs. Our expertise will reduce debtor days and improve cash flow in your business.

Speak to our team to find out how we could assist your business today.