A good Credit Controller needs, first and foremost, to be persistent. If the debtor knows that they will get a call from you next week or next month, they will put you to the top of their pile. I am amazed by the number of small businesses who do not chase their debts, with resultant cash flow problems.
Of course, balancing getting your bills paid on time and not upsetting your clients is a delicate balance. So, be polite at all times. Get your facts right – don’t ever chase money that has been paid.
Have an escalation procedure. Don’t go in hard on the first call. Start by sending a copy invoice and suggest that the lack of payment may be an oversight. Follow up with a telephone call. These are harder to ignore. Confirm in writing so you have a case if you do end up in the County Court or similar. Decide at which point that you have waited long enough, but if you threaten penalties or legal action, make sure you are prepared to carry out those threats within the timescale you have made.
If the customer raises a query, make sure that you resolve it. Unresolved queries just perpetuate bad feeling between you and your customer.
With some companies, a lack of payment may be a bureaucratic issue. When raising invoices make sure that you check whether an order number is required and that you are addressing the invoice to the correct department. This will avoid unnecessary delays.
Keep a record of all communications and their dates. This will stand you in good stead if you do end up having to follow a legal route.
Finally, if you do feel you need the services of an experienced Credit Controller or advice on issuing a County Court summons, please contact me.
Payroll, Bookkeeping, Credit Control Consulting for Small Businesses 