The amount of debt written off by business every year in the UK is eye watering but the risk of having your own business suffer can be reduced by a simple thing that is often over looked in small businesses – effective credit control.
Of course no business can avoid problem customers. Even the most robust credit control departments will find it hard to recover money from those determined to shirk their responsibilities but having an effective credit control department will ensure that your businesses wins more battles than it loses when it comes to recovering debts.
Effective credit control is described by many an experienced business owner as not only important to running a business but its lifeblood. Unfortunately, some business owners are so focused on their production they lose sight of credit management meaning that late paying customers end up taking them less seriously and late payments become a habit.
This in turn impacts on cashflow when money begins to dry up leaving the business vulnerable to insolvency. Having good credit control means keeping on top of missed payments and addressing problems before they get out of hand. Often good communication is the key because it means issues are being dealt with before they reach the point of no return.