We’re always happy to talk about the importance of credit control as well as the benefits, as it’s an important way for businesses of all sizes to protect their revenues and profits.
But if you’re still not switched on to the importance of credit control, here’s a summary of five of the most compelling reasons to put consistent credit control strategies in place.
1. Save Time
Sensible and systematic processes will, almost without exception, save time compared with an ad hoc approach to credit control.
Don’t leave it down to change, or find yourself forever playing catch-up – get your procedures in place upfront and you’ll always be on top of things to a much greater extent.
2. Save Money
Time is money, so cutting down on the amount of catching-up admin you have to do will have economic benefits too.
But more than that, the more payments arrive promptly, the more funds you’ll have sitting in your account – allowing you to invest in growth, avoid incurring late fees of your own, and generally prosper thanks to your healthier cash flow.
3. Save Face
brand is important, and professional procedures when it comes to invoicing can help to position your company as appearing well aware of your business arrangements.
This will actually encourage come customers to work with you, as many appreciate the more ordered approach of a professional organisation, and it should dissuade late-payers from trying to get out of paying their bill too.
4. Manage Risk
The more customers you have, the more your total exposure to credit risk begins to rise, particularly if you experience a high rate of late or non-payment.
By keeping on top of your credit control, you can manage and mitigate this risk – both by discouraging late payment and by setting credit limits that will allow you to absorb any unavoidable losses without the risk of total business failure.
5. Peace of Mind
What makes business leaders sleep easily at night? Knowing you are on top of your business processes? That your company’s cash flow is safeguarded as well as can possibly be hoped? That your public brand image is a professional one?
By adopting sensible and proactive credit control procedures, you cover your bases and minimise your risk – and if that doesn’t allow you to get a good night’s sleep, nothing will.