This informal CPD article on tips to improve your credit control process was provided by that credit control, a professional credit control service that can help UK businesses improve their cash flow.
How to improve your credit control process
Many businesses may have poor cash flow due to customer late payments and overdue invoices. A poor credit control process is often the main factor and causes a constant stress on business cash flow. However, steps can be taken to improve the credit control process that can ultimately help improve the profitability of the overall business.
Tip 1 – improve your credit control process with customer reminders
Customer reminders are a great way to make simple and quick improvements to your credit control process. Many organisations forget the use of gentle reminders when keeping in touch with customers whilst waiting for their invoices to be paid. All too often a business will send an invoice and not follow up with their customer until the invoice is overdue. A gentle reminder either by telephone or email, will help to improve your credit control process and maintain good customer relationships.
Tip 2 – make your credit control process SMART
When creating a new credit control process or making improvements to an existing process, a great place to start is by using the SMART business principles. By this we mean, does your credit control process follow the rules of Specific, Measurable, Achievable, Realistic and Timely. It is important to create a credit control process that adheres to these valuable business metrics, this will ensure it can be run consistently and professionally day after day and deliver an improvement to your business cash flow.
Tip 3- Know your customers
Knowing your customers is a great way to improve your credit control process. Build a strong customer relationship and keep regular contact to minimise the chances of invoice delays.
Tip 4 – Build a credit control process that is polite and consistent
Some business owners do not have the experience to chase customer late payments. Often a business owner can be either too polite, or on the other side of the scales, can take customer late payments as a personal rudeness and get abrupt with their customer. Credit control is a balance between professional politeness and assertion. It is important to appreciate all customer circumstances are different and finding the right balance is essential when making attempts to improve your credit control process.
Tip 5 – Send invoices on time
Improve your credit control process by sending invoices accurately and on time. Business owners can often be distracted with other business activities, causing delays to the invoice process. Improve your credit control process by making sure you send your invoices when due to the correct contact.
Tip 6 – Make it easy to pay you
Make it easy for customers to pay your invoices by having different payment options, such as bank transfer, online payment portal, or over the phone. Ensure your banking details are easy to see on your invoice and offer a quick and easy process to take payment to reduce delays and frustrations.
How to improve your credit control process
We hope this article on how to improve your credit control process was helpful. For more information from that credit control, please visit their CPD Member Directory page. Alternatively please visit the CPD Industry Hubs for more CPD articles, courses and events relevant to your Continuing Professional Development requirements.
