Credit control support is a method used by small-medium sized businesses to assist in collection of overdue accounts. As a result, the action improves a business’s cash flow. Credit control is a very important factor in a business’s overall success and is often regarded as the lifeblood of any company.
Offering credit to a customer involves a number of risks, but there is one risk that is the most common: non-payment. This main risk occurs when the other customer involved refuses to pay its dues and the company is exposed to that amount having already supplied goods.
The success of credit control support lies in the efficiency of a procedure to chase the outstanding debts, and subsequently systemize a process so that the customers are clearly aware that late-payment will not be tolerated, effectively grooming the business’s customers over a period of time to pay regularly.
If a customer has failed to make a monthly payment on the due date, usually within 30 days, then a credit control support team member will send a letter to remind the customer the payment is due. Should the debt go beyond 45 days, a further reminder letter or telephone call is made. If a company continues to resist payment beyond 60 days the credit control support team would recommend the instruction of legal proceedings, providing no dispute or valid reason for non-payment has been raised up to this point.
Taurus Collections is a commercial debt collection business in the UK that specializes in credit control support. Taurus promises to collect your cash fast, effectively and save you the time, money and reduce dispute-time. Our company takes pride in helping businesses collect their money.
For a no-obligation chat about how credit control support could help your business improve cashflow, please don’t hesitate to contact us on 01332 565350 or email firstname.lastname@example.org
Our clients appreciate how we approach outsourced credit control services. There is no mystery. But there is a secret.
We have a simple method which is effective and produces results, and we have narrowed it down to three key areas you need to focus on. If you are thinking about outsourced credit control services, you will want to make sure your provider is putting some systems in place that can be measured on the following things:
- Calls – you have to make calls for people to pay you. Its just human nature. People pay people. Emails can easily be ignored. Get on the phone and speak to an employee at the company that owes you money.
- Copies of invoices – always have these to hand, including all the details of the job at hand, if you’re considering outsourced credit control services. Lack of invoice copies is the no.1 reason for late payment, according to a recent survey.
- Follow-Ups – don’t just think because a customer has said they will pay, they will. Always follow-up with a call, email or letter, many customers take 3 chasers before they consider your chasing action to be serious, so bear that in mind if you are looking at outsourced credit control services.
Outsourced Credit Control Services
Above are just a few pointers to keep in mind if your company has a requirement for outsourced credit control services. It can be a long drawn out affair chasing invoices, but you will save time and money by outsourcing operations of this nature.
Many of our clients tell us this is the worst part of being in business, and this is the no.1 reason they outsource their collections procedures!
If you need any help collecting debts, or want to chat about outsourced credit control services, speak to our team at Taurus on 01332 565 350 and we will be happy to discuss your requirements on a no-obligation basis or email email@example.com
So you are a business owner and collecting overdue accounts is a problem. Well, luckily, help is at hand. Most of our clients have very little experience of collecting overdue accounts, believe it or not, this was NOT the reason they started a business. It is often the last thing a business owner wants to do.
Collecting Overdue Accounts
However we can help you implement some really simple practices to cut down the time you spend on collecting overdue accounts, and allow you more time to grow the more enjoyable parts of your business like sales and new clients.
- Invoice quickly – always invoice on completion of a job. Many companies wait until month-end to raise an invoice, which only serves to lengthen the payment terms more than necessary.
- Chase politely (at first!) – schedule a call 1 week before the payment terms are up, so after 21 days to make sure they have received a copy. When collecting overdue accounts, not having a copy of an invoice is the no.1 reason for late payment!
- Chase firmly (when overdue!) – if an invoice remains unpaid for longer than 2-3 weeks, always follow through on any threats you make. Advise your customer that you will be adding charges and interest for any further delays.
So there you have 3 very simple tips to get you going when collecting overdue accounts.
Remember, that chasing is all about procedures and you should implement a credit policy for your business so everyone knows their duty, right from sales executives, to managers, to staff – collecting overdue accounts should be your comapany’s no.1 priority.
Remember, Cash is king.
If you need any help collecting debts speak to our team at Taurus on 01332 565 350 and we will be happy to discuss your requirements on a no-obligation basis or email firstname.lastname@example.org
How many times do you here it from your customers? 4 or 5 times per month, maybe more: “We can’t pay because a) we don’t have a copy b) we don’t have a PO number c) our system made an error d) the manager who signs the cheques is on holiday e) the rates are wrong….the list goes on.
We know how you feel. And it is frustrating for you as a business-owner. That is why the best way to combat these excuses in Debtor collections is to have all your ducks in a row, and that I mean procedures. Calling, emailing, letter-writing, all need to be aligned in your chase procedure by your credit control department to keep delays in payment right down to a minimum.
Here’s a few quick tips to boost your cashflow when considering debtor collections:
- Communicate – call your customers 14 days after sending an invoice. That way if your terms are 30 days, you have 2 weeks to iron out any queries or disputes, and then there is more chance of getting paid on time.
- Follow-Up – use formal communications when the invoice becomes overdue (i.e past 30 days) a written correspondence actually stating “OVERDUE” in the email title is very hard to ignore, and often gets a swift response.
- Legal – if a customer has reached 60 days without a valid reason for non-payment and/ or isn’t responding to your calls, emails or letters, DO NOT DELAY. There may be an issue with your customers finances and the next correspondence you receive in the process of debtor collections could be a Notice of Insolvency.
I hope that these quick tips are useful for your Debtor collections efforts and these are procedures you can put into place in your business today.
If you would like to chat through any problems with Debtor collections, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email email@example.com, or visit our website www.tauruscollections.com
Many of our customers often ask us what the best practice is for Collection of Accounts in 2016 to keep both the customer happy, but also get them to pay on time. Its often a chore of chasing, by email, letter and phone call that most businesses don’t like and feel that once an invoice is sent it should be adhered, and paid in a timely manner inside 30 days.
But that’s an ideal world in collection of accounts. The best way to motivate your customers to pay on time is to engage with them. Keep in touch at all times, make a relationship with them. If your credit control team is acting for you, then ensure they go and visit the customer’s accounts team, or take them with you on your next sales call or review meeting.
Your credit control team is a crucial part of your business, and you should listen to them carefully. Here is 3 simple tips to get your collection of accounts team motivated:
- Involve them – they are on the frontline, invite them to the next sales meetings, they can communicate with the sales person that has the relationship with your customer and perhaps let them resolve any payment issues directly with the buyer
- Ask them questions – they can see the payment patterns of your customers. They know if it would be risky to take on a new order, or whether to extend credit terms to them. They should be like your financial advisor within your business!
- Respect their role – they do a really important job for your business, and that is collecting cash. Without cash, you have no business. So be friendly to them, make them feel important, take them out on business trips. They will perform better, and your cashflow will improve!
So above are a few pointers for motivating to a better collection of accounts situation. And always remember that your credit control team is the eyes and ears of your business when it comes to looking after current customers.
If you would like to chat through any problems with Collection of accounts, or would like to improve your cashflow, please don’t hesitate to contact us on 0800 160 1681 or email firstname.lastname@example.org, or visit our website www.tauruscollections.com
Many companies consider collecting on a Debt as the last resort when they undertake new business with a customer. However its crucial that you have a system in place that will enable collecting on a Debt as a way to improve your cashflow and weed out the bad payers.
When looking at a strategy for collecting on a Debt, the main point to consider is escalation. The customer needs to be aware that every stage of non-payment, a likely charge will be incurred, and you need to emphasis this threat in each correspondence with them.
Here’s a brief list of escalation procedure to follow at each stage of the invoice cycle:
customer-service telephone call to customer to make sure they have a copy of the invoice, and that the invoice is on this months payment run (emphasis this is not a chaser, and that you are merely checking they have a copy to help them process correctly)
official chase call to advise invoice is overdue and it is company policy to add interest as long as late-payment continues
final reminder call to advise interest is accruing on the invoice and the matter will be passed to a 3rd party for collection, and all costs will be added on.
Basically, they need to provide you with a valid reason for non-payment, or they need to pay.
Always remember that collecting on a Debt should be a structured procedure and if your company follows this procedure, then you will get paid quicker.
Also when collecting on a debt, you MUST follow-through on any threats to escalate, for example, if you give your customer 7 days to pay or you pass it to a Solicitors or Debt Collection company, then you must do that or you lose credibility, and they will never take any future threats seriously again.
If you need any help collecting on a Debt, please don’t hesitate to contact our team at Taurus and we can see if we can help you out, call today on 01332 565 350 , visit us HERE or email email@example.com
Cash is king. We keep banging on about this, and our clients are all too familiar with the phrase, and that is why we have enjoyed successful collections for more and more businesses in the UK over the last 5 years.
Dig deeper though, and the real value of outsourcing credit control operations can be found.
We have come up with 3 reasons why outsourcing credit control operations should be considered as part of your cash collection priorities in your company:
Cost: it’s cheaper than employing someone. Outsourcing credit control operations is not expensive, depending on the number of accounts you have and invoices you produce, most solutions are cheaper than having a member of staff in charge.
Performance-based: we are motivated to achieve the best results for your company. We have key indicators which will determine how well outsourcing credit control operations are going, typically debtor days and an improvement of your cash-flow position are our no.1 priority.
Dedicated Credit Controller: providing a 1-to-1 service, your credit controller will liaise directly with a point of contact, phoning in your company name to chase debts and supply copy invoices, doing the job you hate!
So if you are thinking of ways in which to improve your cash-flow and reduce staff costs at the same time it might be worth considering outsourcing credit control operations, to help your business improve in the present and grow in the future.
Remember cash is king (yes I know we said that) but really, if your business does not get paid, how do you pay your suppliers? Our favourite motto is: Debt collection keeps you in business.
If you need help with debts or would like a chat about outsourcing credit control operations, please don’t hesitate to contact us on FREEPHONE 0800 160 1681 or email firstname.lastname@example.org
3 Accounts Collection Tips that Guarantee Success
Company owners and Directors face many challenges with Accounts Collection throughout their time in business, but without doubt the single most important challenge is a shortfall in cash. This is why cash should be the no.1 priority for all Owners and Managers involved in the running of a business.
We have put together a brief list which will help you maximise your Accounts Collection, and take the stress away from a very important, but often very undesirable, part of running a company.
These are crucial to getting paid on time. The no.1 reason an invoice is paid late is because of mis-information. Check your invoice needs a Purchase Order, include bank details, telephone, email, reference number…why not even phone your customer after 7 days to make sure all the information is correct!
Chase by Calling
Accounts Collection should be based around speaking to your customers. Treat the call as customer service, then enquire to make sure there are no problems with the invoice. Schedule a call every 7 days until they give you a payment date.
Chase by emailing
Often copy invoices are required in Accounts Collection, and you should initiate a standard follow-up email “with a copy invoice attached” after 14 days, and re-iterating your payment terms. Emphasise that there is a deadline for queries on the account (give them 14 days). This will focus your customer to contact you and also will eliminate the common excuse of not having a copy invoice.
It is important to remember in Accounts Collection that your company has extended credit to your customer and therefore it is a privilege and not a right. You need to take control of the situation and be strict with your payment terms. Often your customer will respect your professionalism in Accounts Collection, and pay sooner than most.