Top tips from Business Garage – credit control

credit control

Share This Post

Business Garage continues our weekly #toptips for #bookkeeping series. Week three – credit control.

Credit control is often the least favourite area of many business owners, but is also one of the most important and if done right, can be highly effective.

  1. Get your invoices out at the earliest opportunity. Invoice in advance if you can.
  2. Keep a regular eye on your sales ledger for debts due or overdue. Establish a weekly routine.
  3. Build a positive relationship with customers. Be clear that you have correct invoicing details from the outset and once the invoice has been sent, follow up with a courtesy call to check that it has been received.
  4. Email a reminder ahead of the due date and ask for confirmation that the invoice is being paid by the due date.
  5. If the payment due date has passed, call your customers – it is harder to ignore a telephone call, compared to a polite email. Be polite but firm.
  6. If you are pressed for time, focus on the larger debts first.
  7. Revisit your processes if you find you are constantly doing credit control:
    • Does your invoice template need simplifying?
    • Are your terms and conditions clear?
    • Are you producing invoices quickly enough?
    • Payment methods – BACS is the quickest way to receive cash, have you included your correct bank details on the invoices?
    • International payments – have you included IBAN and BIC on your invoice? Ensure that if you are billing in currency, you are able to accept currency payments into your account.
  8. Be prepared to take action:
    • Send out an overdue notice 7 days after the due date
    • Send out a final notice 14 days after the due date
    • Send out a legal notice 21 days after the due date
    • Each letter should give 7 days to respond
  9. Be prepared to follow through and file a claim.

We work with clients across Oxfordshire, Berkshire, Thames Valley and London. For help with credit control, contact Business Garage on [email protected] or 01235 433099.

More To Explore

join our team
Latest News

We’re hiring!

Finance Assistant (hybrid working) full-time or part-time, Grove Business Park to start ASAP Business Garage is an exciting, dynamic, growing company offering a wide range

bookkeeping for a start-up

Top tips: bookkeeping for SMEs

Setting up and running your own business is extremely exciting but if you neglect your bookkeeping, you run the risk of your business failing. Business

Book a free, no-obligation consultation

Arrange a chat with one of our team

Outsource to Business Garage

Interested in more information or want to chat with one of our team? Fill in the form below and we'll be in touch!

All over the UK, businesses like yours are planning for better times. After a year of disruption and interruption, their focus is on rebuilding as quickly as possible. We can help.

Our five-point REVIVAL plan is designed to help businesses recover lost ground, maximise their profits, and secure their future.

Through our REVIVAL programmes we focus on the following five key areas:

  • Financial management
  • Operations
  • People
  • Digital transformation
  • Marketing

The first step is a complimentary one-hour strategy session that enables us to understand your business and your challenges better.

Following this we will present our action plan.

Fill in the form now tand book your complimentary REVIVAL strategy session.

Outsource to Business Garage

Interested in more information or want to chat with one of our team? Fill in the form below and we'll be in touch!