Controlling Credit
Controlling Credit Checklist 10. Introduce a collection procedure
If you do not have procedures and a timetable for collection introduce these. If you do have a timetable, check whether it is followed systematically. Be polite, but firm in your collection routines. Always record details of any telephone calls, including dates and the names of people spoken to. Attempt to get clear commitments to dates and amounts of the payments to be made.
Potential Pitfalls Managers should avoid:
letting credit control to dominate everything else allowing the volume of sales to influence your view of credit- worthiness making excuses for bad payers - leave that to them.
Remember also that credit control:
is time consuming may lead to difficult conversations with customers and clients who have become used to receiving uncontrolled credit may leave an enterprise operating below maximum capacity may result in fixed costs not being recovered, in extreme cases.
Future Practice Owner.
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