Auditel Consultant:
Simon Beechinor

Creditors and your money…

19 Aug 2010 | Filed under: Cost management

Every business needs to prepare for this new world order by getting a grip on costs and that includes weak credit control – If a business doesn’t have its’ creditors under control it is effectively providing a relaxed credit line to those businesses. Rest assured if you are running a business and you are weak at credit control – your customers will exploit that weakness.

My advice is to be very clear with late paying clients – tell them when you will call next, tell them you will escalate your concerns to your contact’s boss, tell them you will start formal debt recovery procedures … whatever you tell them you are going to do – DO IT! If you are weak and ill-disciplined in your credit control then your weakness will be exploited. Your customers will come to respect your efficiency, even if they might not like it.

Every day that you permit a bill to remain outstanding is an unofficial soft loan that you have just granted your customer. Are you in the lending business?