A robust and rigid credit control policy in place is essential to successful recoveries. Start by setting it out in bullet point formation a single sheet of paper.
Failings in this area are generally more commonplace in smaller companies where the focus on the owner is on the day to day running of the business. Having a credit risk strategy and chasing monies is all too often replaced by a “we chase money only when we need it in” or “when I have time to chase” attitude. Sometimes a business is reluctant to chase a customer, concerned it may jeopardise their good relationship.
At the other end of the Spectrum is AccountAssyst with its online automated credit control system and process; helping to instil good payment habits in customers and thereby significantly reducing the amount of time needed to chase.
It’s worth remembering that credit is not a right of your customer- it is very much a privilege that you have offered them. To abuse it beyond terms puts them in the wrong, not you. If a customer wishes to avoid being unhappy at the tone of a chase letter or phone call received for an overdue account they should pay on time.
Special offers for NBV Biz Ex Members
NBV Biz Ex Members can access 8 free credit reports and a standard set of terms and conditions – just register with AccountAssyst to access the reports. Log in and visit the Member Benefits Access page for full details of the service.
Are you having trouble finding the time for credit control or chasing outstanding payments? NBV Biz Ex Members can access Direct Route’s debt recovery services free of charge (saving £200+VAT) meaning that commercial debts of up to £3000.00 can be recovered at no cost to you.
You may also wish to access the ‘Letters Before Action’ service which provides your debtor with an opportunity to pay the amount owed to you without incurring late payment fees.
Log in and visit the Member Benefits Access page for full details of the service.
Ken Brown represents both Direct Route Collections Ltd and AccountAssyst, an online credit management service. Direct Route provides a solution for recovering debts whilst AccountAssyst provides a prevention. More details about both services can be accessed by logging into the Members’ website.