What is a Credit Controller?

A credit controller is a person or external company whose role is to manage the employer’s creditors. Simply put, credit controllers chase customers for payment, perform credit checks on prospective customers in order to see whether there will be any risk involved in dealing with them and, on occasion, prepare paperwork for court hearings.

Many UK companies offer credit terms to their customers (some offer 30 days, some 60, some 90 etc). This can be beneficial to both the company and the customer as paying on credit helps the customer’s cashflow and enables them to buy more. The longer the company goes without getting paid, however, the worse this relationship becomes as the company itself can suffer from cashflow problems, it can spend unnecessary monies on debt collection and it can run the risk that the customer can go into liquidation before the company can get its money. Set against this background, a credit controller:

  • Keeps in regular contact with debtors to ensure that they will pay on time or arrange a schedule for payment
  • Keeps 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 checks new customers to ensure that they are not payment terms that they can meet
  • Identifies customers that a business might not want to have or might want to give restrictive payment terms to
  • Resolves problems of missing paperwork for clients so that they can pay promptly
  • Instructs debt collection firms or solicitors if payments are significantly overdue
  • Deals with liquidators
  • Works with and reconciles debts and the aged debt register
  • Creates or improves a credit control process for the company that enables the company to identify why customers get into debt, what can be done to reduce problems and how it can be done systematically to save the company time & money
  • Reports to management enabling management to take swift decisions on problem customers before those customers go into liquidation

Many companies have an in-house credit controller that works exclusively for the company. The Cash Protection Agency offers an outsources credit control service to companies that has proved extremely popular for small and medium-sized businesses. Rather than incurring the costs of a member of staff and associated training costs, companies send their aged debtors list to the Cash Protection Agency whose expert staff contact the people and businesses that owe the customer money in a way that ensures that outstanding debts are minimised and the relationship for the customer is maintained for the future.

Many small businesses struggle to get money in. Many businesspeople worry that conversations about money will affect customer relations and they feel that they are not the right people to recruit and train a credit controller as it is something that they find difficult. In these instances, an outsourced credit controller, in the manner that the Cash Protection Agency offers, gives the company peace of mind, saves them money and improves their cashflow.

If you would like to know more about what a credit controller does or if you would like to make use of outsourced credit control, please give us a call on 0800 433 4113.

If you have any comments or further questions, please leave them below and we’ll be happy to answer them for you.

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One thought on “What is a Credit Controller?”

  1. Are you interested in taking on a credit controller in your own company or are you interested in becoming a credit controller? Let us know and give us any questions you have and we’ll answer them on our blog.

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