Setting up a good credit control system

Granting credit in order to win sales is a fact of life for many businesses, as is the likelihood that more than 50% of your credit customers will fail to pay on time.

The importance of credit control

Sadly, no matter how good your product or service is and no matter how adept you are at winning new customers and increasing sales, unless you can convert those sales into cash reasonably quickly, you won’t remain in business for long.

The good news is that you don’t need to be a passive victim of this so-called “late payment culture”. If your business struggles with poor-paying customers, then by setting up a simple credit control system and injecting a little more discipline into the process of granting credit and recovering cash, your customers will start paying you more promptly and you will reduce the number of debts that you are forced to write off.

This paper is designed to help you to set up an entire credit control system from scratch. If you already have a system, you may still want to work through the whole module for ideas on how to improve it.


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