Credit control is a difficult and time consuming process, having to keep track of invoices, payments and clients that are over their payment terms. There are collection agencies, like Commercial Domestic Investigations, that can assist your debt recovery if it becomes contentious but there are some simple steps that you can take to become more effective with your in-house collections.
Once a customer has placed an order for your products or services then send them an invoice. The sooner you send it, the sooner it can be processed and paid by the client. Many companies leave it too long to send an invoice, leaving the customer with a much smaller time frame to pay the invoice within terms. Your invoice should include all of the correct details for the service or product provided, along with all of the necessary and correct payment information.
Chasing clients is typical when it comes to credit control, no matter how effective you are you will always need to remind some clients about an invoice, but the question is; how often do you chase clients?
You may think it best to chase clients once the invoice is overdue but that may be too late. A quick phone call a week after the invoice has been sent can ensure that the invoice has been received, but it can serve as a customer service call to ensure the client is happy and to answer any questions that you may have. Most importantly, it gives you the chance to remind clients of the payment due date and your accepted payment methods.
Time management plays a huge part in how effective your credit control is. Look at your process and assess if, and how, it can be streamlined. This may mean an upgrade to your debt collection software or amendments to your debt collection policy. If you have a lot of aged debt then instead of wasting your resources on trying to recover it, consider using the services of a collection agency to assist with more difficult debtors while you can focus on other tasks.
At Commercial Domestic Investigations, we have a range of services available to assist with your debt collection, from tracing and investigations to debt recovery, we are on hand to help with your collections. Our highly-motivated account managers will take the time to understand your business and offer a solution to your credit control issues. If you want to find out how we can help you, contact us on 08444 159200 or email firstname.lastname@example.org.