Jan 11, 2022

NEED FOR EFFECTIVE CREDIT CONTROL

Dynamically target high-payoff intellectual capital for customized technologies. Objectively integrate emerging core competencies before process-centric communities. Dramatically evisculate holistic innovation rather than client-centric data. Progressively maintain extensive infomediaries via extensible niches. Dramatically disseminate standardized metrics after resource-leveling processes. Objectively pursue diverse catalysts for change for interoperable meta-services.

‘Credit control’ is a term used to describe how your business:

  • provides credit; and
  • collects money from your customers.

Good ‘credit control’ procedures are very important to help make your business successful.

When new customers request credit from you, ask them to complete an application form so that they provide the following information.

  • The full name of their business, if they trade under any other name and details of who owns and runs the business (if they are self-employed).
  • Their registration number (if they run a limited company).
  • How much credit they want.
  • Full details of who you can contact with questions about payment.
  • Delivery and invoice addresses.
  • Their bank account details including the account name, sort code and account number. This information can be helpful if you need to take action against the customer if they do not pay.
  • At least two trade referees. These references will give you information about how well the customer pays other businesses for the goods and services they use
  • Consent for bank references to be done

There are a number of organisations who will assess companies for you, to help you decide whether to give them credit (for example Dun & Bradstreet, Equifax and Experian)

Agree terms and conditionsbeforehand :

Ask your customer to agree to your terms and conditions in writing before you supply goods and services to them. This will give you more protection if you need to chase payment from them in the future. Consider covering the following areas in your terms and conditions.

  • The price of the goods and services you are providing.
  • Delivery arrangements.
  • The quality of goods and services that the customer can expect from you.
  • Rules on how payment should be made.
  • Your right to charge interest on late payments and to claim costs for recovering any debt your customer owes.
  • Your right to record information with credit reference agencies about whether your customer pays on time.