The recovery of debt can be a very time consuming and labour-intensive task. And it has become even more challenging in recent times. Having an effective credit management system will be the means by which your company or organisation can successfully negotiate the challenges of COVID-19. So here we outline our top 5 credit management tips!
1. Automate Communication
The automation of credit management correspondence is the first way you can take hold of your credit management. Automatic generation of emails, client statements, letters and customised SMS is a sure fire way to make your communication professional, effective, purposeful and compliant. Fully automated credit management has arrived via credit control software, which can have a really positive impact on your cash flow and credit management strategy.
2. Invest in Robust Credit Control Software
Robust Credit Control software is one of the most important investments you can make as you endeavour to steer your financial ship in murky waters of a COVID-19 world. Credit control software and credit management software provides a real-time view of all your company’s outstanding payments. Secondly it’s a swift, easy way to prioritise the debts you’re owed and you can use it to chase late payments. Thirdly, you can automate all manner of labour intensive credit control processes, leading to smoother workflows and a more solid overall credit management strategy.
3. Set Goals and Track Progress
It makes sense to get goals for your credit management policy, and keep a firm handle on your progress and successes. In fact leading credit management software can automate reports on your behalf, and email them to any relevant parties. A good credit management reporting system is the foundation for any successful strategy execution.
4. Maintain Strong and Professional Relationships
Your professional reputation is incredibly important. And even though you’re chasing debtors for undue payments it’s important to have a respectful and positive working relationship with them. A great tip is to make a courtesy call in advance of an invoice due date. Your credit control processes need not be abrupt and demanding. And with credit control software, you’re able to monitor and enforce these credit control procedures without committing valuable employee resources.
5. Consider a Single View of Debt
A Single View of Debt (or Single View of Citizen) is a very powerful and innovative tool in your credit management tool kit. It’s an holistic approach to debt recovery whereby a 360-degree view of each business, client or debtor can be seen. Also known as propensity modelling, with a Single Customer View you can gather all the data about your debtors and merge it into a single, unified record of them. Presented clearly in the dashboard of advanced credit control software, a Single View of Debt means your company can empower individual debtors to pay off their arrears in a way that suits their specific circumstances. And it also helps the cash flow of your business.
Managing cash flow and credit management is absolutely vital in the time of COVID-19. This is why credit control professionals are looking to automation technology to maintain consistent, lucrative and professional relationships with their customers. Get in touch with Lateral today, and let us help you get paid on time.