Presentation On 7 Steps To Effective Credit Control
- 2. Credit Management 7 Tips for effective Credit Management
- 3. 1.Control who gets Credit by assessing risk The First stage to Successful Credit Control is Credit Assessment. You must know who your potential Customers are and ascertain their ability to pay you before you start trading with them. Always Credit check using a Comprehensive Financial report and set a sensible limit
- 4. 2.Have a Credit Policy and Stick to it A Credit Policy should always be in place from the very early stages of company growth. This should detail everything including when and how every step of the collection process will work including simple things such as invoice format and payment terms.
- 5. 3.Build Customer Rapport and develop ongoing relationships Customer relationships of vital importance. Talk to customers all the time, not just when money is owed. Visit your main customers regularly.
- 6. 4.Have the right staff and environment Monitor Staff performance and assess Customer service skills. Make sure you have the right number/level of staff to produce the results you require.
- 7. 5.Have an adequate Query Management system Set up a consistent, monitored procedure for dealing with queries within your business. Action queries quickly so they can never develop into a reason for non-payment.
- 8. 6.Communicate all issues quickly It is the responsibility of all staff to help the Credit Function by reporting any issues that may effect payment. Media both local and national can help with this also.
- 9. 7.Report and Review Performance Monthly reports should be produced showing the following details: Aged Debt Report. KPI reports including Debtor days and Bad/Doubtful debt targets. Cashflow forecasting for 3 months in advance. Top 20 Customer detailed report of debt and any queries. Outstanding Query report by division. These should all be reviewed and progress monitored closely.
- 10. Questions? Questions? Seminar, Videos and Website etc