The estimated underlying liquidation rate in 2018 was 1 company liquidation per 249 active companies, up from 1 in 264 in 2017. This is a sobering statistics for small businesses. The fact is that most enterprises fail as a direct result of bad debt and cash flow issues. And when added to the continuing uncertainty of the current economic climate pre-Brexit, it has become more important than ever for organisations to make credit control their top priority.
Cash is the lifeblood of any organisation, so it must be treated as such. So with that in mind here are some top tips from LATERAL to help you become more vigilant and thorough when it comes to credit control within your organisation:
Invoice Meticulously
An important way to stay in control of your credit control processes is to invoice as soon as you can. You should also double-check your invoices and correspondence for errors before sending it.
Invest in Next-Generation Credit Control Software
Today leading software providers, such as LATERAL, provide their uses with tools by which to automate the creation and delivery of credit control processes through letters, emails, and SMS around flexible business rules. Lateral’s software is cloud-based, providing automated credit processing tools for organisations of all sizes, thereby saving its users time and money.
Stay on Top of Real-Time Information
Information and data changes all the time, and you need to stay on top of it. LATERAL’S advanced credit control software has been engineered to improve credit control decisions by integrating data from credit reference agencies and other web services with an organisation’s accounting and ERP data.
Pre-empt Your Client’s Excuses For Late Payment
Many customers will make excuses for non-payment. But you should be prepared for this and not simply accept it. It’s important to be firm, but professional. You don’t not want to fall to the bottom of their creditors list; paying you should be their priority.
Clearly Define Your Terms and Conditions
It’s important for you to write your credit control policy into your terms and conditions to ensure that your customers are aware of your terms of trading before they engage in business with you. By clearly defining the terms of the business arrangement up front, it becomes much it easier to chase and reinforce payments.
Overall, when it comes to the credit control process, the important thing is to tighten up and streamline your credit control systems to give your organisation the best possible chance for growth. Found out how LATERAL can help you today, by requesting a demo.