The positive news is, avoiding cash flow landmines may be a lot simpler than you think. Adopting these simple business credit control tips can help massively. just 5 minutes of your time. If these business credit control tips are implemented early on, it will minimise any future credit control issues.
Here are our 8 quick business credit control tips for effective success:
1. Monitor your sales ledger
Do not think this is a massive chore. Spending just 5 minutes every morning to review your sales ledger can be a solid way of monitoring customers are approaching payment deadlines. It will also flag any late payment of invoices. This information should be used to plan your time more effectively.
2. Call your clients and customers
Maintaining a personal relationship with customers throughout the credit period can be a huge help. A simple 5-minute conversation can build and sustain a positive relationship. It also maximises your chances of getting paid on time, every time.
3. Revise invoice templates
Are your Business invoices as clear as they could be? Essential information, such as credit terms, payment methods and payment due dates should be clearly displayed. Avoid shoving unnecessary information on the invoice as it just clutters it up and can lead to confusion.
4. Review existing customers credit rating
Credit checking new customers is a staple requirement but monitoring existing customers is essential also. Not doing so could pose a threat as a Businesses credit rating can change overnight. Monitoring customer credit scores is a pro-active measure that helps protect your business.
5. Use credit circles
A tried and tested method to check the financial credibility of your customers is to become a member of a industry credit circle. Different trade and industry circles harbour relevant advisory notes about potential customers and clients.
6. Prioritise the larger debts
If there are various older debts that are draining a lot of time, focus on the largest invoices first. This will help you to maximise your businesses cash flow in the short term.
7. Get help from a B2B debt collection agency
Chasing unpaid invoices and overdue accounts is a massive drain on resources. Collaborating with a professional debt collection agency will help save time and money. A specialist debt collection agency will ensure you get paid sooner in most cases. Note: it is important to remember not all debt collection agencies are the same. Work with only a professional long standing debt collection solution.
8. Take action
Send unpaid invoice reminder emails and a letter before action. Overdue invoices will not pay themselves so taking a firm stand against non paying customers is essential. Even the best business credit control tips cannot prevent the most hardened from not paying. Taking positive action will help you recoup what you are owed and boost cash flow.
Business Debt Recovery experts
Federal Management are a successful commercial debt collection agency, recovering millions every year.
For nearly 20 years, we have a proven track record in delivering excellent results for Businesses and reducing the cost of debt collection for unpaid invoices. Speak to our friendly team today for immediate advice on how we can help you and your Business.