100 Top Tips in Credit Control

or

“How to get your credit control under control and keep it there”

 

By

Brendan O’Reilly


Table of Contents

 

TABLE OF CONTENTS……………………………………………………………………………………………………………….. 2
“A SALE IS NOT A SALE UNTIL THE MONEY IS IN YOUR BANK ACCOUNT”………………………………….. 3
WHO IS BRENDAN O’REILLY? ……………………………………………………………………………………………………..4
INTRODUCTION…………………………………………………………………………………………………………………………. 5
SETTING A CREDIT CONTROL POLICY……………………………………………………………………………………….. 7
OPENING NEW ACCOUNTS……………………………………………………………………………………………………….. 16
INVOICING PROCEDURES…………………………………………………………………………………………………………. 24
DEALING WITH QUERIES………………………………………………………………………………………………………….. 30
GET THE MONEY IN …………………………………………………………………………………………………………………. 37
WHO IS RESPONSIBLE FOR CREDIT CONTROL? ……………………………………………………………………… 46
COST OF CREDIT…………………………………………………………………………………………………………………….. 53
THE CREDIT APPLICATION FORM ……………………………………………………………………………………………. 60
LEGAL ASPECTS OF CREDIT CONTROLLER……………………………………………………………………………… 62
COLLECTION AGENCIES …………………………………………………………………………………………………………. 70
AND IN CONCLUSION……………………………………………………………………………………………………………….. 77
APPENDIX A ……………………………………………………………………………………………………………………………. 79

 

“A sale is not a sale until the money is in your bank account”

If you are not being paid on time for the goods and/or services that you provide, then this book is for you.

It sets out 100 different top tips covering every aspect of effective credit control and, if you follow these ideas, I’ve no doubt that you will see an improvement in your overall credit control performance.

We are all inclined to forget it but, when a customer has outstanding and overdue invoices, it’s your money and you should always remember this.

So, carry on and start learning “The 100 Top Tips in Credit Control” and see the improvement.

Copyright: Brendan O’Reilly, Credit Control Confidential

 

Who is Brendan O’Reilly?

Brendan O’Reilly has been working in the field of credit control for more than 30 years and, in that time, has built up a wealth of experience.

Credit Control Confidential was set up by Brendan so that he could pass on the benefit of his experience to sole traders and small businesses that are very good at what they do but can’t quite get a handle on the credit control aspect of their business.

So, we hope that you get a lot of good information from this book and we’d love to have any feedback – good or bad – about it so please feel free to contact Credit Control Confidential as follows

 

Credit Control Confidential

Address: MDA Business Centre, Irishtown, Mountmellick, Co. Laois

Phone: +353 86 3589842

E-mail: brendan@creditcontrolconfidential.com

http://www.creditcontrolconfidential.com

 

 

Introduction

Credit control – it sounds simple doesn’t it? You send out an invoice, your customer pays you, the money goes into your bank account and all is well with the world.

If only it were so easy!  Unfortunately in the real world, it’s not quite as straightforward as that. Every time you supply goods or provide a service on a credit basis, you are taking a risk and hoping that your customers will all pay you in full and on time. It just doesn’t happen that way. Customers are late paying or they pay only part of what’s due and, generally, your cash flow is negatively affected.

In the following pages you will find a comprehensive list of things to do and things not to do as part of an Effective Credit Control procedure. I’ve broken down the credit control function into 10 distinctive parts and within these 10 parts there are 10 individual Master Tips.

Instead of focussing on how hard you are finding it to get paid on time, follow these “100 Top Tips in Credit Control” and start to take control of your debtors and your cash flow.

I’d be lying if I was to tell you that there is an easy way around this (short of doing business on a cash-on-delivery basis). However, an effective credit control procedure will go a long way to minimising bad and doubtful debts in your business and will provide you with much needed funds to run your business profitably and pay your own bills on time.

We all know that, as long as we are extending credit facilities to our customers, we are taking the risk that some of them won’t pay us. However, if you have an effective credit control procedure in place, you are reducing that risk and giving your business a better chance of keeping ahead of the posse and maintaining a positive cash flow.

There are two things you should always remember:

  • It’s YOUR money
  • A sale is not a sale until the money is in your bank account

Follow these “100 Top Tips in Credit Control” and you will see a very real improvement and pay particular attention to the master tips that appear throughout the book.

 

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