To become effective in your role, it is important to know what you should be doing. At Commercial Domestic Investigations we regular share our advice on how to be effective when chasing and collecting payments, however if you can master the common mistake that credit controllers can make, then you will be well on your way to becoming successful with credit control.
Stay on top of invoicing
If a customer makes a payment then it is important for you to know the details. Ensure any copies of unpaid invoices are too hand, or if you use accounting software then bring up the clients details and account overview. This will mean you are prepared for any questions that they may have and you have all of the up-to-date information.
Get your terms and conditions signed
Most businesses have terms and conditions that should be signed by a new client before any work commences (if you don’t then you need to get them). Sometimes, if a client is charming or there is a level of blind trust then you may find yourself saying “Don’t worry about signing them”. It may seem like a technicality but your terms and conditions can form a legal document if you need to commence legal proceedings. It gives you a document to fall back on if they avoid payments or other conditions.
Don’t leave yourself open to missed payments. By only accepting one method of payment, you are giving your client and excuse, “our online banking isn’t working” or “Our internet is down”, try to offer a multitude of payment options, BACS or PayPal or even card payments. If it is a regular invoice then you may want to ask the client to set up a standing order or direct debit.
Get payment in full
While you may want to offer a discount on a late payment, this should be carefully considered. If you regularly reduce the amount of overdue invoices then some clients may begin to expect it. Stick to your guns and request the full payment, there are many other steps you can take to secure a payment, not just reducing the amount due.
Don’t forget that you are entitled to add interest to any late payments, the threat of this added interest is sometimes enough to get the invoice paid.
Credit control is a difficult job and it can sometimes wear you down, this can lead to a drop in productivity, meaning unpaid invoices build up. If this is the case then it may be time to call in the professionals. At Commercial Domestic Investigations, we have a passion and commitment to our clients and to credit control, we will work tirelessly to recover your debt. If you want to find out how we can help you, contact us on 08444 159200 or email email@example.com.