Thousands of new business start-ups and new businesses fail due to poor cashflow management.

The marketplace is much tougher for start-up companies to keep up with their prime business objectives, without having to chase payments and keep everything on track with financial planning and cashflow. The time spent chasing late payment is cited as the biggest obstacle facing business clients and not having the resources available to recover money owed is one of the most common reasons given for failures.

A large number of debts are owed to start-ups by people or companies whose identity is unknown. It is vital to know who your customers are and to perform effective credit checks on both companies and their directors.

In addition, financial situations can change rapidly so it is important that businesses regularly review credit limits and watch out for signs that their clients could be in financial difficulty. While many businesses are not in a position to have an in-house credit management facility is crucial that credit control processes are in place so problems are quickly identified and acted upon.

Top 10 tips for credit control

1. Always perform credit checks to ensure you know your customer
2. Get your customer to complete a credit application form
3. Wherever possible obtain a personal guarantee from company directors
4. Get a signed contract incorporating your terms and conditions
5. Give your customer a credit limit and review this regularly
6. Invoice on time and ensure details are accurate
7. Phone your customers before payments are due to ensure there are no queries
8. Send monthly statements
9. Use properly drafted collection letters
10. Consider outsourcing your non paying accounts to a reputable debt collection agency like Daniels Silverman

Daniels Silverman can advise and more importantly remove this overhead and stress from your business.

With our credit control as a white labelled service, the team can take back control of your cashflow issues and work with your debtors to recoup funds owed.

https://www.danielssilverman.co.uk/what-we-do/credit-control/