Late payments can cause all sorts of problems with your cash flow and credit control can be a time-consuming and unrewarding task. It’s no surprise that SME’s resort to many different tactics to try and secure payment from a client, however, these tactics should never include aggression.
At Commercial Domestic Investigations, we strongly believe in being assertive and firm to recover any debt, if a client thinks that you are a push over then they will continue to avoid making a payment. The moment that you become aggressive though, not only do you risk losing the money that you are owed but you risk damaging client relationships, your reputation and ultimately losing clients.
It is important to remain calm and composed when speaking to a client; this can be very difficult especially when the conversation becomes heated. Credit controllers typically get shouted at a lot, so if you struggle to keep calm then put the client on hold and compose yourself. It is important to keep the end goal in mind, don’t get caught up in placing blame just try and resolve the payment. If you remain calm and professional, you are less likely to damage a relationship.
Keep policies straight forward
All relevant staff should be privy to your credit management procedure, so everyone is approaching debt recovery the same way. Each stage of the debt recovery process should be clearly defined and implemented with every customer. Your procedure should outline every stage of the buying process, from the initial order being placed to the final invoice. Sticking to this process eliminates the need to become angry as you will have the next step planned out.
Tailor made service
While following the procedure to the letter can help eliminate stress, it is not always the best way to approach every customer. For example, you may have a client that you speak with every day and are on great terms with. If they receive your default letter of demand in the post, they may wonder why you didn’t just call them. Given your relationship, if you had just called them directly you may have resolved payment there and then. Judge each situation individually, this may seem as though it would take more time, but in fact, by looking at the debtors as individuals, you can deal with the debt quicker and save time in the long run.
If credit control is becoming too challenging for your business then speak with Commercial Domestic Investigations, we can help you with part or all of your credit control requirements. Contact our team on 08444 159200, use our contact form or email firstname.lastname@example.org.