Credit Control – The Rules

Forward Lady Rashmi Dubé of Liquid Recovery tells us the do’s and don’ts of credit control.

Credit Control – The Rules

Do:

  • Establish payment terms before you start selling on credit
  • set and enforce credit limits
  • chase payments as soon as they become due

Don’t:

  • provide credit without knowing your customer
  • offer credit you can’t afford
  • be afraid to insist that customers meet their payment obligations you won’t lose your customer by asking them to pay
  • continue extending credit to customers with poor payment records

Always use the telephone and never the email. Why?

If you email your customer it falls into all the other emails and won’t get considered. Also tone does not come across on emails and if you are looking to continue your business relationship with your customer emailing does not help in chasing the money.

By picking up the telephone you are maintaining that good business relationship with your customer.

Make sure you ask the client whether they won’t pay or can’t pay!

Rashmi Dubé, Liquid Recovery 2012.  Read Rashmi’s blog here.

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