A New Year is a perfect time for new procedures so company credit control tips are helpful. Keeping your Business cash flow tight is a no brainer for any Company Director.
Maintaining and improving the profitability of a Business is critical. This is both in term sof long term growth and current sustainability. The world of Business is changing and 2020 will mark a new era in credit control. Brexit is firmly on the horizon so credit control efficiency is a must.
From Business Credit Checks to Debt Recovery; These are simple practices that should be implemented in any Business that conducts daily transactions.
We have taken top company credit control tips from the experts on board. These will hopefully help Small Business and Large Business owners review their own policies for 2020.
Here are the top 5 Expert tips for effective company credit control in the UK.
- Monitor all customers Business Credit rating. Your Business Customer may have had an excellent credit rating at one time. This can quickly change so you need to be constantly on it so to speak. A decent Business package can do this for you. A small investment that can help protect your business. It will flag any drop in Business Credit ratings and alert you to any potential problem.
- Streamlined Company invoicing. An efficient invoicing process will maximise your Business cash flow. A system where all invoices are sent out correctly and with the correct amount owing. Payment of invoices is often delayed by human error. There are many accounting software packages out there now that help with this.
- Clear payment terms. At outset, make your payment terms very clear to new customers. It will avoid any discrepancies or confusion when it comes to paying invoices.
- Payment options. Cash payments are no longer considered the norm. Most payments are made digitally these days. Offer your customers various ways to pay that match their procedures. It will ensure your Business gets paid quickly.
- Keep in contact with customers. Managing customer relationships is a great way of maximising your credit control. Customer service calls can be used to act as a payment reminder.
- Use a Debt Recovery Agency. There will always be a minority customers that do not pay invoices when requested. Do not be scared to use a third party Debt Recovery Agency. Debt Recovery is an acceptable form of getting payment for Businesses these days. You should only consider using a legitimate company that is accredited and has Professional qualifications. ‘Big Dave’ is not an option. Your Business reputation is at stake as well as the collection of the invoice itself.