Improve Your Credit Control Process With Some Easy Tips
Posted on 22nd March 2021
Almost every business runs out of cash at some point, especially start-ups and small businesses. Two common reasons which can lead to a cash flow problem are bad debt and slow-paying customers. If you don't want your business's growth to be under threat, you should implement a credit control process. BGS Accounting is one of the few companies you can trust for credit control in Leicester. They take away the hassles of the process so you have more time to grow your business. Their experts might even share a few tips to improve the overall credit control policies and procedures.
Want To Improve Your Credit Control Process? Few Tips You Can Follow
• Create A Clear Process
Since clear coordination is the base of a hassle-free credit control process, look for a company that will help you create a clear process. There is a higher chance for your business to fall into bad debt if they have to deal with late or delayed payment frequently. Sometimes, you can rectify it easily with a quick reminder. To prevent payment delays, companies can also consider establishing a realistic time-table and send reminder letters if many invoices become overdue.
• Do Some Research Before Offering Credit
If you don’t want to deal with unpaid invoices later, it is advisable that you do some research on your customers before offering credit. Though producing credit reports might be a bit costly, you should never overlook this credit management tactic. You can identify the clients who pose the greatest risk. Numerous online services are available to check credit risk using vital information about a business like their full trading name, addresses, registration number, and vital contact details.
• Create A Good Working Relationship
‘Debt collection’ is one of the few tasks which are often looked down on negatively. An experienced company offering credit control services can help you build a positive relationship with your clients. The objective is to ensure an effective credit control process. You can make courtesy calls to inform them about an invoice due date in advance or confirm the paperwork's receipt.Creating a positive working relationship helps a great deal in streaming the credit control process.
• Make Accurate Invoices
You will notice an improvement in the credit control procedure if you can make the invoices accurately and quickly. There are various ways you can improve the efficiency of the process. Once the orders are fulfilled, send invoices immediately. Instead of sending the invoices by post, email those. Address those to the right person instead of sending them to any random person in that organisation. Go through the invoices twice before sending them to ensure there is no mistake. Try to make more contact with your clients and it will become easier for you to build a good rapport with them.
• Encourage Them To Pay Early
The best way you can encourage your clients for early payments is by ensuring that the payment process is easy. Clearly state the banking details on the invoices. If you accept various forms of payment, let your clients know those as well. If possible, include some online payment options. If a few customers in your list are more prone to delay payments, offer them early settlement discounts. You can also encourage them to pay a part of the invoice now and pay the rest according to their convenience.
Get in touch with BGS Accounting and they will give you the tools and insights you need to take your business to the next level with professional credit control services.
Tagged as: Best Credit Control Leicester, Credit Control Company in Leicester, Credit Control Leicester, Credit Control Services
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