Credit control isn’t considered by many to be important. Most businesses will focus on producing the product or providing the service. Credit control is the life-blood of any business and must be given the importance it deserves.
If you give your customers/clients terms and conditions, then you must have controls in place to ensure that any monies owed are being paid under your terms. If not, you must take immediate action.
Too many businesses are reactive rather than proactive.
Your credit controller must have a good relationship with all your customers/clients. They need to know how solvent your customer/client is. Having that knowledge first before anyone else is “gold dust”.
If your terms are breached, here are some guidelines to follow:
- speak to your customer/client and give them a gentle nudge to ask for payment
- request that payment is made by a stated period, say 24/48 hours by BACS/CHAPS into your account
- if payment is not received within the stated period, the customer/client MUST be placed on STOP.
DO NOT ever feel embarrassed – it’s your money!!
If you need any advice on cash flow, please contact Richard Anderson at Beswicks Legal on 01782 205000 or email firstname.lastname@example.org