Credit Control, Done Properly
A structured, consistent approach to getting paid — from setting your credit policy through to chasing overdue invoices, without damaging customer relationships.
Your Credit Policy, In Black And White
A lot of companies fall into 30-day terms simply because that’s what everyone else does, without ever asking whether it suits their cash flow. Step one is writing down, in black and white, who gets credit, how much, and on what terms — that becomes your credit policy.
It doesn’t need to be a fifty-page document. A one or two-page policy that everyone in sales and finance has actually read is worth far more than something detailed that sits in a drawer.
The Details That Actually Get You Paid
Customer vetting — credit checks with agencies like Experian, Creditsafe or Equifax give a score and recommended limit in minutes, and trade references are worth the extra look for larger accounts.
Accurate invoicing — a huge number of late payments start as an invoicing error, not a difficult customer. Invoices should go out promptly, to the right contact, the same day goods or services are delivered.
Consistent communication — the trick to chasing unpaid invoices is consistency, not aggression, with every stage defined in advance.
Who Should Own It, And What Goes Wrong
In a small business it might just be the owner or a bookkeeper. As the business grows, it’s worth having someone — even part-time — whose job is specifically credit control, separate from sales, since the person chasing debt shouldn’t be the same person incentivised to close the deal.
Even when a policy exists on paper, it only works if someone is actually accountable for following it day to day. That’s often where things start to slip — a director signs off the initial terms, then months later nobody can say who’s responsible for chasing a specific account, or why a customer’s limit was raised without review. The pitfalls below tend to build on each other: a missed check here, an overridden hold there, and before long the aged debt report looks nothing like it should. Catching these early, before they become habits, is far easier than untangling them once they’re embedded in how the business operates.
Common pitfalls to avoid
- ✕ No policy, so decisions depend on who’s asked
- ✕ Credit limits set once and never reviewed
- ✕ Sales overriding credit holds to close a deal
- ✕ Chasing debt reactively, not on a set schedule
Chasing Payments, Measuring Results, And Your Options
How We Chase What’s Owed
A friendly reminder before the due date, a polite chase once it’s overdue, then a firmer call at 14 days and a formal notice at 30. From there it reaches a clear decision point — held, or escalated.
Measuring Whether It’s Working
Three numbers tracked together tell you fairly quickly: debtor days, how much debt is over 60–90 days old, and bad debt as a percentage of turnover.
Choosing Your Level Of Support
From full outsourcing of the entire process, to partial support on the harder chasing, to automated reminders backed by a real credit controller when needed.
How The Arrangement Typically Works
- We agree your credit policy and terms upfront, so debts are chased your way, in your tone and brand voice.
- You give us access to your invoicing and ledger data.
- We handle customer communications on your behalf, usually under your company name.
- You get regular reporting on debtor status, cash collected, and problem accounts.
- Fees are typically a fixed monthly fee, a percentage of debt collected, or a per-invoice charge.
Cutting Aged Debt by 73% for a Growing Manufacturer
A Northern-based industrial components manufacturer, supplying B2B customers across the UK and Europe with an annual turnover of £16 million, came to us with debtor days at 68 against agreed terms of 30, and more than £420,000 in aged debt. There was no consistent chasing process, sales staff avoided chasing their own accounts, and no credit checks were being run on new customers.
Over eight weeks we reviewed the debtor ledger, introduced tiered credit limits and checks, structured a fixed timetable of reminders and formal notices, took chasing off the sales team, and produced a simple weekly report for the finance director.
Within six months cash flow had stabilised. We stayed on with the company and continue to provide their full credit control function today.
68 → 30
Debtor Days
-73%
Aged Debt
8 Weeks
To Fully Operational
Credit Control Questions, Answered
At a minimum, regular aged debt reports and updates on individual accounts, but the level of detail varies by provider. It’s worth agreeing upfront how often you’ll get reports and what they’ll actually cover, so you’re not left guessing what’s happening with your ledger.
Often, yes, mainly because a dedicated team following a consistent process tends to chase debt more reliably than an in-house team juggling it alongside other work. That said, results depend on your customer base and how overdue your debt already is when you start, so it’s not guaranteed.
It works for both, but the shape of it differs. A small business might outsource just the chasing of overdue invoices, keeping everything else in-house, while a larger business might hand over the whole function. Providers are generally used to scaling their service to fit, so size alone isn’t a reason to rule it out.
Not usually. Most providers chase debt under your company’s name and branding, using your email addresses or a dedicated line that presents as part of your business. Customers typically have no idea a third party is involved unless things escalate to formal collections.
Yes, this is common. Many businesses start by outsourcing only the chasing of overdue invoices, while keeping credit checking, invoicing, and customer relationships in-house. It’s often used as a way to test the relationship before handing over more.
Ready To Take Control Of Your Credit?
Speak to one of our experienced credit control specialists today.