- March 11, 2022
- Posted by: Taurus Collections
- Category: Blog
Regardless of business size, a robust credit control procedure is significant for every business. Effective credit control will enable you to obtain faster and smooth payments. It can include strategies curated by companies to accelerate their sales of products and services by offering a credit extension to potential customers or clients. Apart from promoting timely payments, credit control also assists in avoiding expensive debt collection proceedings or writing off bad debts.
In general, credit control enables your customers to purchase your company’s goods and services by offering them enticing payment offers, resulting in increased sales and profits for your company.
What are the essential steps of the credit control process?
Credit control processes ensure that your company’s payment terms and policies are respected. It involves specifying a clear set of actions to both your customers and credit control team about the issues associated with invoices and their past due measures. These steps include:
Ensure you have the correct customer information
First and foremost, it is recommended to make sure you have the correct and legal name of your customers along with the company’s entity, address, and the name of the person to whom you should send an invoice. However, even a fundamental blunder in such details can lead to invoices going into the ashtray, payments going late, making your entire credit control process go off-track.
Routine due diligence and credit checks
Another critical step is verifying the finances, reputation, business, payment history, and other significant details of new clients. Here, you can also consider using online services to ascertain a company’s credit check.
Establish credit limits
It is advisable to make your credit limits part of your credit control process to handle your risk exposure. Ascertain your maximum outstanding amount for each customer, determine whether they offer you regular and timely payments, or if your sales are standard throughout the year.
Hold regular credit control reviews
Lastly, you should consider holding regular credit control reviews to determine the pending and overdue invoices. You should also ascertain which customers should be followed-up regularly and other matters such as why an invoice hasn’t been paid or if the customer has overlooked it. Or if there is a dispute over the invoices that should be resolved.
Look no further than Taurus Collections (UK) Ltd if you need debt collection services for your business. We pride ourselves in following a simple, straight-talking approach to assist our clients on issues associated with debt recovery services. We strive to offer optimum customer satisfaction and a one-stop service for dealing with your debtors. We have extensive services, including pre-legal visits, outsourced credit control, no win no fee debt recovery, UK & international credit checking, and business finance. You can also use our Late Payment Calculator to ascertain and verify your credit amounts.
Contact us at 0800 069 8777 or 01332 565 350 (Derby) or write to us at firstname.lastname@example.org for more information. Feel free to stay tuned on Facebook, Instagram, and Twitter.