Cash is the fuel of business. Successful businesses learn and master the skills to be financially responsible in order to ensure that they will have enough fuel to achieve their goals.
One consistent characteristic of a successful business is that it manages its money effectively. For sure, we can all get by without being too diligent about collecting payments, and maybe an occasional splurge on chasing a few late debts will make it all seem better. But businesses that embed proper credit control into their day-to-day management are more profitable and more resilient.
Every pound that your customer hangs onto for longer than their agreed terms is a pound that isnít working for you, a missed opportunity to expand, a chance to clinch the next deal that goes begging because you canít afford to buy stuff in, or even worse a letter from the bank manager with a big charge on it for going over your business overdraft.
How often have you been in the situation where you are fighting off your suppliers because you havenít been paid on time? All those embarrassing phone calls are wasting your time and damaging your business, and all because your customer didnít pay you in the time that they agreed. Not really fair is it?
Now dealing with awkard phone calls from suppliers may be hard work, but thereís an even bigger risk. Every time you just agree to give credit to a new customer without making any kind of check is putting your business at considerable risk.
One day, one of those apparently reliable and credible companies you trade with will suddenly go under, and maybe owing you a crippling amount of money. (See our article on how to spot a business in distress here). History tells us that the chances of you ever recovering more than a tiny percentage of the debt are almost zero. Doing a bit of credit checking before taking this risk, regularly updating that knowledge and staying on top of the payment terms the customer agreed to, are all part of Credit Control. Its not rocket science. Its just what successful businesses do as a matter of course.
So if you want to raise your chances of success, what do you do?
One solution is right in front of you: My Credit Controllers. We are experts in all aspects of credit control, its what we do and nobody is better at it than us. Our ability to make sure you get paid on time, every time, in a calm and professional manner is outstanding. But youíre worried that the Rottweilers are going to be shouting at your precious customerís right? Oh no, this isnít some reality TV programme, this is professional, courteous management of your customers, just helping them to keep you happy so that working with you continues to be a pleasure. So they keep coming back. They donít exploit you, nor you them, its just courteous, professional business behaviour.
Youíre not going to have to make a big commitment to us either. We can pick up just a single sticky debt for you if you like through our CreditXS online portal. Or we can sort out a messy debtor book, lick it into shape, put in some process for you and hand it back for you to run properly. Or you can make us part of your team on a long term basis, actively managing your customerís credit ratings so you donít take unnecessary risks and keeping all your money in your account, not theirs. Just give us a call, you never know just how successful you can be.
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