'Credit control' is the system used by a business to make certain that it gives credit only to customers who are able to pay, and that customers pay on time. Credit control is part of the Financial Controls that are employed by businesses to ensure that once sales are made they are realised as cash or liquid resources. Crisis Credit control is usually an afterthought when an invoice has gone unpaid or a customer’s account exceeds a set credit limit. Follow your bad debt procedure: Gather your evidence, invoice, proof of delivery, contract terms. Send a Statement to your customer with a letter asking for the money (Letter 1) If you get no response in the time frame set out in the letter, send Letter 2, send by post and email attachment. Call the customer to check they received the letter. If they still do not pay you, then send Letter 3 detailing the Interest and costs they will incur if the debt is not settled. Two days later file the claim on the Government … [Read more...]