Skip to main content

Thank you for completing our Credit Management Processes questionnaire. We’re processing your responses and will be in touch shortly to discuss further. In the meantime, we have shared some helpful information and tips regarding credit management processes below.

Debt Prevention: Expectations are Everything

New client? Like any relationship, it makes good business sense to have a frank and clear discussion up-front to clarify your mutual expectations (Service Level Agreements/SLA’s).

When it comes time to discuss credit and payment terms, it pays to spell-out the rules. For example: Credit is available, but on the understanding that invoices are paid on time. If you’re willing to allow some flexibility, define the circumstances when an extension of time to pay would be offered so that everyone’s clear from the get go.

Debt Management: Easy, Timely and Accurate Invoicing

Your invoice has a better chance of not being put into the “too hard basket” if it’s easy to understand, well laid out, and most importantly, accurate.

We’ve all received invoices that don’t make sense: it’s irritating. So take the time to ensure your invoice is correctly rendered and properly itemised.

Offer a variety of payment options to make life easier for your clients.

And finally, once the work has been done, get the invoice out ASAP to get the payment in quick.

Debt Recovery: Late Payment? Swift Follow-up!

Water-tight accounts receivable procedures will help your business plug any late payment leaks.

As soon as an account is close to becoming overdue, be ready to go with a friendly follow-up call.

The longer an overdue account is left to sit idle, the higher your chances of non-payment become.

A quick phone call to your customer the day after payment falls due is essential. Any arrangement that is made between your company and your customer (including an extension of time to pay or a payment plan) should be immediately documented on your systems and put in writing to your customer on the same day.

FREE DOWNLOAD

Reduce the Risk of Bad Debt Whitepaper

Download Now