Economists estimate that UK SMEs are owed £2.3bn in outstanding payments. It’s a statistic that many business owners can relate to. Without the establishment of the right credit control processes, it’s very easy for late payments to have a large impact on business operations. And it’s certainly vital that your business gets paid on time. So what are the five most common credit control mistakes? And how can you avoid them?
1. You Don’t Chase Outstanding Invoices Efficiently
The average time large businesses wait for payment is between 53-55 days. And 20% of small and medium-sized businesses wait for more than 60 days to receive payment. This can have a huge impact on cashflow. So your business has to find effective and efficient ways to chase invoices. The credit control software engineered by LATERAL is designed to help business and organisations save on labour costs and boost their cash flow. Clients are given access to a raft of useful credit control tools, which help them effectively automate chasing invoices from their customers. LATERAL’S software also provides advanced insights, using artificial intelligence and machine learning.
2. You Fail to Check the Credit Ratings of New Customers
Of course customers are the lifeblood of your business, but those customers who fail to pay invoices, or are late with their payments, can have a negative impact on your cash flow. To reduce the risk of taking on customers who won’t pay, it may be prudent to carry out a full credit check – determining the behavioural past of any potential customer. If they have a strong credit rating they’re more likely to pay their invoices on time and be of benefit to your business.
3. You Have No Clear Strategy And You Don’t Focus on Labour Efficiency
Credit control problems can be avoided if you commit to preparation. By failing to adequately prepare you increase the likelihood of encountering credit control problems. Credit Contol Software can help you plan, strategise and improve efficiencies. If you recognize the value of good credit control and wish to maximize the labour efficiency of your team, then LATERAL’S automated credit control software could vastly improve your processes. Lateral offers next generation, Cloud-Based Credit Control Software providing automated Credit Processing Tools for organisations of all sizes. Serving all size companies, the software can automate your workflows, thereby freeing up staff and saving your business money.
4. You’re Not Consistent
Automating your credit control process is a sure fire way to improve consistency, efficiency and achieve success. The leading available software can automate correspondence on your behalf and send and letters, emails, SMS and Chat messages. Automated workflows not only save your labour costs, they’re proven to lead to higher levels of engagement from debtors and increased resolution rates, which will have a positive impact on you business.