If you are running a small business, traditional job roles tend not to apply, every team member carries out a multitude of work to keep running costs down, but as you become more successful and your business begins to grow it becomes necessary to have specialist staff or departments to be solely responsible for certain aspects of your business, from IT or HR to credit control.
Late payments can cause a lot of damage to your business if they are not dealt with in a timely manner and while there is no magic number in terms of sales or members of staff there are some things to consider when deciding when to introduce a dedicated credit control department.
Are you getting paid?
Assess your accounts and cash-flow, how quickly are you getting paid? Do you have a lot of customers in default or are a lot of clients disputing an invoice? As you can imagine, your business will not be able to survive for long if you have no money coming in. If you struggle with non-paying clients or customers that regularly abuse their payment terms, then an expert, dedicated credit control department may help to ease the pressure.
Are you wasting your time?
You may find that if you’re working on credit control that your clients are paying on time and you only have to deal with a minority of non-paying customers. This may seem like your practices are working, however if you are spending all of your time chasing customers then you are not spending your time evolving your business, networking and building relationships. Don’t compromise your business’s success for the sake of waiting to implement a credit control department.
Do you know what you’re doing?
Even if you are getting paid, there is a lot to consider when it comes to credit control before you even begin to think about best practice or legislation. If you are not familiar with this knowledge then you can jeopardise your business.
Are you putting in the groundwork?
If you are just calling clients can demanding payment then you are not running an effective credit control system. There are a lot of simple steps that you can implement well before an invoice becomes overdue. For example, call the customer once you have sent the invoice to ensure that the client received it and to resolve any issues that they may have, this reduces the chances of running into issues further down the line. For more steps that you can take, read our blog on the foundation of credit control.
At Commercial Domestic Investigations we understand that not everyone knows everything about business, and that’s OK. If you are struggling with late payments and cannot see a way out, then we offer a range of services to assist you, from tracing authority to credit reporting and invoice collection. If you want to find out how we can help you, contact our team on 08444 159200 or email email@example.com.