An ability to manage cash flow is crucial to business success, and the control and management of debtors is often a painful task, as a result of manual and repetitive processes. Recent external economic factors resulting from the impacts of a long term global recession, only adds to headaches of a credit control team. An introduction of effective tools to improve the collections process, is arguably more important today, than at any time in recent history.
Credit controllers are traditionally regarded as an essential element in business to chase late payments, and respond to customer queries. However, why just be reactive in this field when you can be proactive? Proactive businesses are generally regarded as market leaders, and those who are reactive are more likely to be ‘me too’, or market followers. The traditional style of credit control is a purely reactive process. You wait for non payment, and chase. Just because that is the way it has been done, does not mean that is the way it should work in the future. There is a better way.
Software is available now which can manage credit checking, credit insurance and risk analysis, through to promised payments. There is software which can even produce and automate chase letters and copy invoices. By proactively contacting the customer at various points in their lifecycle, rather than simply awaiting non payment, this software can automate a more proactive customer conversation. Throughout all phases, every event or process is tracked through credit controller’s workflow with in-built escalation procedures, and excellent supporting management reporting. This allows the credit controller to be freed from the everyday, and time to concentrate on really exceptional cases.
A major benefit of this pro-active approach is that the relationship between credit control team and the customer becomes positive. Most credit controllers traditionally ring up only to complain that the account is overdue for payment. By actively managing the account, it becomes possible to see any difficulties in advance, and work them out with the customer before they turn into a problem.
Safe credit control has taken these concepts of customer relationship management (CRM), and applied them to the credit control function, providing a softer, service orientated team of customer service representatives. If your current processes could be improved using our software and outsourcing services, why not get in touch?
Eddie Stanley, Commercial Director for Financials and Credit Control