- March 22, 2022
- Posted by: Taurus Collections
- Category: Blog
Collecting your debts on time is one of the most crucial yet challenging tasks for every business. Unless your business involves an upfront payment of goods and services, collecting debts should always be done proactively. This enables you to ensure adequate credit control, helping your business stay afloat during critical times. Moreover, it is advisable to avoid bank overdrafts as they gradually cost you more money. Therefore, credit control is often a time-consuming and attention-grabbing drain that can hamper your business’s growth if not addressed cautiously and correctly.
Listed below are some of the most effective tips to help you carry out credit control successfully.
Make timely invoices and to the right people
You should always send your invoices on time. While it sounds like a no-brainer, most business owners don’t realize its importance. You can consider emailing or taking the assistance of a professional debt collecting agency for better outcomes. Moreover, you should also ensure that your invoices reach the right people for authorization and payment.
Clearly state your terms and conditions on invoices
Always state your terms and conditions clearly on the bill as this is a contract with your customers. Besides, most payers often take longer than the due date in paying their dues. Hence, you should avoid offering discounts for early payment options as this exposes you to the risk of delayed payments.
Carry out credit checks on customers
Remember to carry out credit checks on new customers and regular checks on all your existing debtors. This allows you to know if any of your customers are struggling financially. This allows you to manage your funds accordingly.
Ask for advance payments
If you strive for a large project, consider agreeing on advance payments. This will help you ensure a smooth flow of payments to your suppliers. However, complex project contracts almost always involve phased payments.
Chase for payments
You should always maintain a calendar by noting down the due dates of your debtors along with their contact information. For instance, most businesses send out reminders on the 30th, 60th, and 90th days due and take actions accordingly for non-payment. Hence, while chasing for payments, your credit controller should consider visiting your customers regularly so that any disputes on the bills are picked up at the earliest.
Meet your customers
Meeting your customers face-to-face is one of the most effective methods to carry out effective credit control. This will help you understand business and establish a reliable relationship that can guarantee you early payments. However, it is advisable to take the assistance of a dedicated collector to ensure smooth and hassle-free payments.
Taurus Collections (UK) Ltd is your one-stop destination if you need a reliable debt collection agency for the hassle-free collection of dues for your business. We strive to follow a simple, straight-talking approach to assist our clients regarding debt recovery services. We aim to offer optimum customer satisfaction and effectively deal with your debtors. Our services include pre-legal visits, outsourced credit control, no win no fee debt recovery, UK & international credit checking, and business finance. Use our Late Payment Calculator to determine and confirm your credit amounts.
Call us at 0800 069 8777 or 01332 565 350 (Derby) or send your queries at email@example.com for more information. Stay tuned on Facebook, Instagram, and Twitter.