Running and making a business successful has many different aspects but one of the most important issues is maintaining an effective credit control procedure. Every business needs a healthy cash flow to ensure seamless operation, therefore one must ensure that overdue invoices do not hinder the business in this respect.
The process of effective credit control should start as early as at the ordering stage. It is imperative to know your client before accepting orders and to be sure of their credit reputation. Credit control only ends when payment is done, and therefore should take the form of a dynamic procedure from start to finish.
It is a known fact that the older an invoice gets, the harder it is for a business to recover what’s due. Time and resources used in trying to recover these debts cost money and therefore create a further burden on the business. To make things even worse, this waste of time and resources also shifts the focus from more important things you should be doing and from your primary business objectives.