What Does a Credit Controller Do?

Credit controllers have an important role in the life and success of a business. All businesses suffer with getting money in quickly and maintaining good relations and getting regular payments from their customers.

Small businesses are often those most in need of a credit controller and yet they often feel that they have little time or money to fulfil that role. In reality, businesses will not grow without effective credit control as they will not be able to generate a sufficient cashflow to fund that expansion.

So what does a credit controller do?

In short, a credit controller manages debts, reduces a company’s debt burden and deals with late payments. There are a number of other things that credit controllers will do to save time & money including:

  • Keeping in regular contact with debtors to ensure that they will pay on time or arrange a schedule for payment
  • Keeping records of contact made with debtors to help businesses identify risky debtors and to provide an audit trail for any legal action that might be necessary down the line
  • Credit checking new customers to ensure that customers are not given payment terms that they can’t meet and to identify any customers that a business might not want to have or might want to give restrictive payment terms to
  • Resolve problems of missing paperwork for clients
  • Instruct debt collection firms or solicitors if payments are significantly overdue
  • Dealing with liquidators
  • Work with and reconcile debts and the aged debt register
  • Report to management enabling management to take swift decisions on problem customers before those customers end up owing too much

All businesses need a credit controller or someone to fulfil a credit control function. Whether they undertake these tasks in-house or whether they outsource their credit control services to a company like ours, the value of a credit controller is far in excess of the costs of bad debts.

For companies looking to outsource their credit control servcies and to have professional credit controllers work on their behalf, there are immense benefits. For a start, the company doesn’t have to worry about collecting debts; staff costs aren’t incurred in collecting outstanding monies and fewer costs are incurred that relate to bank and overdraft charges. Outsourced credit controllers can often save companies a great deal of time, effort and, most importantly money, they can prevent businesses from working themselves to death just to collect debts and they can help businesses to focus on what they do best, their core services.

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