Implementing or Refining a Credit Control System

This blog is to assist or advise you as to what we believe is the most effective credit control procedure and there in to ensure you do all you can to get paid within your credit terms and what you may need to do with delinquent debtors.

Evaluating the credit worthiness of a potential customer

Carrying out an up to date credit report on all current and potential customers to ascertain whether they are credit worthy prior to extending credit terms is the best way to assess that your customer will pay.

• Credit Reference Agency
• Companies House Documents
• Trade References
• Bank References
• Site Visit

 Providing and agreeing to credit terms

When credit terms are extended there must be clear terms of trade agreed with each customer. This is to ensure that credit customers understand their obligations and to provide evidence for legal and court proceedings if necessary. 

Setting up internal systems

A healthy credit control department operates with internal systems such as invoices, statements and reminders to encourage payment on time. This shows a professional business manner and also indicates a no nonsense policy for potential late payers.

Also having a system in place so that should a debt become overdue, all credit controllers understand what is the next course of action also when analysing outstanding debts and identifying those that require further action.

Other alternatives

If and when all your efforts have failed to recover the monies outstanding you may need to employ a third party debt recovery agency to assist in recovering the outstanding debt value + costs and interests.