A BASIC CREDIT CONTROL MANUAL – INCREASING YOUR CREDIT CONTROL SUCCESS

INTRODUCTION

The manual will provide tips and ideas, as well as some ‘best practice’ advice on many aspects of credit control and credit control management. This summary gives you an indication of what will be covered in each section. Over the coming months, items will be posted on our news page for all of the headings listed in this summary.

Before discussing any aspect of credit control it is worth asking yourself “should you be giving credit at all?” There is no law which says that you must. If you do not give credit, you will not have the cost of creating and posting statements, running a credit control department or running a sales ledger. Please consider the point seriously.

However, for the majority of businesses, it is obvious that credit has to be given. If that includes your company then we hope that this guide will help you to improve your control over it.

1. CREDIT

1.1 THE COST OF CREDIT – Even if you operate to strictly 30 day payment terms, and all of your customers pay on time, giving credit costs money.

1.2 DEVELOPING A CREDIT POLICY – A credit policy ensures that everyone in your company is operating to the same standard and lets your customer’s know what is expected.

2. CREDIT CONTROL

2.1 APPROACH – What mind set should your credit controllers have and how should they approach your various customers?

2.2 TELEPHONES – How do you make best use of this most effective debt collections tool?

2.3 EXCUSES – How can you combat the dodges and excuses that your customers will use to avoid or delay making a payment?

2.4 MEASUREMENT – How can you measure the effectiveness of your debt control process?

2.5 MOTIVATION – What motivates a good credit controller?

3. CREDIT ADMIN

3.1 ACCOUNTS – The more information and checks you make when opening an account, the less chance of payment problems in the future.

3.2 ORDER FORMS, INVOICES & STATEMENTS – Why are order forms so important? What constitutes a ‘good’ invoice and what are the associated best practices?

3.3 LETTERS – Standard letters are a critical aspect of your money chasing process and this section will include proven examples and how to use them effectively.

4. CREDIT MANAGEMENT

4.1 DANGER SIGNS – What danger signs can I look out for that will indicate that a customer is in difficulty?

4.2 OUTSOURCING – What options are there for outsourcing my credit control?

4.3 LEGAL ASPECTS – What legal action can I take if my normal recovery process doesn’t work?

4.4 BAD DEBT – What do I do when all else fails?

This entry was posted in Basic Guide to Credit Control. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>