Why credit controllers need to be vigilant
As a credit controlled being on the ball is vital to keeping your companies cash flowing.
Late payment from your customers can put constant pressure on cash flow, knowing when payments are due in is vital.
You need to know each client and their payment habits – do they always pay on-time, early or a day late. Knowing the pattern will enable you to raise a flag should something happen that changes this.
Below are 3 key ways to ensure you are aware of any problems before they happen:
Knowledge is power
- Vigilant credit controllers get to know customers ahead of offering them credit.
- Researching a customer through credit reports, and companies house can help you to get an idea of a customer and their past payment habits.
- Forward planning can reduce the risks of late payment to your cash flow.
Observance is key
- Reviewing the information gathered at the start of the relationship on a quarterly basis can also help you to see if anything has changed and you can adjust your credit level if required.
- Just because a client has always paid you doesn’t mean they always will
Excuses, excuses
- Unfortunately, when it comes to late payment, even the most reliable of customers will lie.
- Whilst some late payment excuses may be genuine, many will simply be stalling tactics to avoid making payment.
- The more you know about your customer and their payment habits the easier it will be to spot sudden changes.
At credit management UK we have a number of services available in helping you to be more vigilant and improve your cash flow.
If you would like someone to help you mange the whole system get in touch and see how our outsourcing service can help you today.
