Credit control is an essential part of your business, it helps you to effectively manage your cash flow, avoid late payments and prevent bad debts. Think of it as a system used by well-managed businesses to ensure that credit is only given to customers who can pay and pay on time.
With bad debt and cash flow issues being two of the main reasons small businesses fail, it’s vital that someone is keeping an eye on yours. And yet, good credit control requires specialist skills combined with the correct systems and processes.
It’s not simply a case of collecting funds from nonpaying or late paying clients. Credit control is based on building relationships with your customers and creating a rapport with them. For example, understanding your customer’s processes and approval systems when it comes to invoicing can prove extremely beneficial, helping to reduce invoice errors, the need to re-submit invoices, and lessening the wait-time between payments.
Who’s Making Sure You’re Getting Paid on Time?
Handling late payments has to be one of the more infuriating elements of running a business. After all, you’ve delivered your side of the bargain, and now you just need them to deliver theirs. Plus, you want to balance the books and move on with new projects.
With so many companies being vulnerable to late payment due to the imbalance between their receipts and outgoing payments, what’s stopping businesses from chasing their customers for the money they’re owed?
Well, many SMEs find it difficult to raise the late payments issue and be firm with their customers because doing so could jeopardise future relationships. In addition, they simply don’t have the right resources or processes to chase late payments.
How to Conquer Bad Debt Once and For All
Rather than having to convince late paying clients to settle their invoice, it’s far more productive to prevent them from occurring in the first place. Having the right tools in place can assist with this, and enable you to use automation instead of verbally chasing your customers.
To help conquer your bad debt once and for all, we recommend using Credit Hound. This advanced credit control software gives you the tools to work more proactively, improve cash flow and get paid faster.
Integrating with your ERP system, Credit Hound shows you where your money is and who you need to chase. With all the information you need on screen to help you chase payments, you can record notes and set To-Do tasks to chase late payments.
The software also helps to save time carrying out repetitive tasks by enabling you to set up rules and actions to automatically send chase letters, put accounts on stop and schedule phone calls.
Whilst dispute handling features help you keep track of disputed invoices and its comprehensive reporting system gives you a clear overview of your debtor situation.
Credit Hound Features:
- Dashboard view; see who owes money, how much, promised cash & disputed payments
- Pre-emptive reminders; help to encourage prompt payment
- Automated rules and actions; allows you to automate repetitive tasks
- Interactive aged debtor list; sort and filter in real-time, no more manual check-lists
- Chase screen; see information during calls and record notes
- To-Do List; keep on top of your chasing calls
- Reporting; range of reports available to assess your efforts and highlight debtor issues
- Consolidated chasing; chase and report at branch or head office level
- Dispute management; tracks and records disputes
- ERP integration; seamless integration, so no re-keying data or manual admin
- Quick return on investment; more available cash for your business
Get Paid Faster with Advanced Credit Control
If you need to get paid faster, M2M can help. We’re happy to discuss your credit control options and to help answer any questions you may have regarding advanced credit control software; Credit Hound. Contact us on 01245 49 48 47 to find out more.