The Importance of Credit Control for Business Health

Discussion in 'Accounts & Finance' started by itassolutions, Jun 28, 2019.

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What would you do if you had a difficult client who refused to pay?

  1. Nothing. Cut my losses and move on.

    0 vote(s)
    0.0%
  2. Phone or email them on a regular basis

    0 vote(s)
    0.0%
  3. Put them on a stop, so no more work can be done until they pay

    42.9%
  4. Escalate to debt collectors

    57.1%
  1. itassolutions

    itassolutions UKBF Newcomer Full Member

    1 0
    At the risk of stating the obvious – reliable Credit Control processes are an integral part of the successful running of any business. With bad debt and cash flow issues named as two of the main reasons small businesses fail, we simply can’t afford to take our eye off the ball and become complacent about Credit Control...
     
    Posted: Jun 28, 2019 By: itassolutions Member since: Jun 28, 2019
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    16,608 1,847
    Ok for those of us not following the advertising, what do you suggest?
     
    Posted: Jun 28, 2019 By: Mr D Member since: Feb 12, 2017
    #2
  3. Mark T Jones

    Mark T Jones UKBF Big Shot Full Member

    3,457 1,036
    A little hint, if you want engagement be generous and informative with your knowledge - don'[t just try to punt your business.
     
    Posted: Jun 28, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #3
  4. Bob Morgan

    Bob Morgan UKBF Regular Free Member

    209 47
    Surely, much would depend upon the Client, together with the Size and the Circumstances of the Debt?
     
    Posted: Jun 28, 2019 By: Bob Morgan Member since: Apr 15, 2018
    #4
  5. fisicx

    fisicx It's Major Clanger! Staff Member

    30,913 9,057
    It depends on the business. I always get the money up front so no cash worries for me.
     
    Posted: Jun 28, 2019 By: fisicx Member since: Sep 12, 2006
    #5
  6. billmccallum1957

    billmccallum1957 UKBF Ace Full Member

    1,978 421
    we adopted a simple system, customer pays cash, we give them products...don't have an issue with credit control.
     
    Posted: Jun 28, 2019 By: billmccallum1957 Member since: Feb 11, 2016
    #6
  7. DavidWH

    DavidWH UKBF Enthusiast Free Member

    1,449 266
    +1 on not giving credit.

    We significantly reduced the number of credit accounts. Didn't loose any customers by doing so.

    What's not to like, more time working on things that pay the Bill's than chasing money.
     
    Posted: Jun 28, 2019 By: DavidWH Member since: Feb 15, 2011
    #7
  8. MBE2017

    MBE2017 UKBF Ace Free Member

    1,060 278
    All the above suggestions, apart from the first, should be used IMO.
     
    Posted: Jun 28, 2019 By: MBE2017 Member since: Feb 16, 2017
    #8
  9. Mike Hayes

    Mike Hayes UKBF Enthusiast Free Member

    1,049 271
    "Nothing. Cut my losses and move on." and "Put them on a stop, so no more work can be done until they pay" seem like the same thing to me. As above, all of these options and others would be used depending on the specifics.
     
    Posted: Jun 29, 2019 By: Mike Hayes Member since: Jan 7, 2016
    #9