Slides from the Lunchbox Learning workshop: Credit Control Booster

1. Lunchbox Learning
Workshop
Credit Control Booster
30th October 2012

2. Nicky @ DMGNZ
Made first ever Credit Control call in February
2000!!!
A QBE – Qualified by Experience
• I Love Training!!!
• Problem Solver
• Work with Accountants
• Take a Holistic Approach

3. DMGNZ
Our Mission
To Support New Zealand Businesses to
Develop, Manage and Grow.
We specialise in…
Working as an Extension of our Clients Team!!!

4. DMGNZ
We started as an Outsourced Credit Control
Company
Now offer a full range of back office services:
• Debtor Management
• Book-keeping
• Payroll Services
• Business Support
• Strategic Services
• Training

5. Credit Control vs Debt Collection
Credit Control
….The Fence at Top of the Cliff
Debt Collection
….The Ambulance at the Bottom

6. Before Giving Credit
• Account Application
• Credit Checks
• Type of Credit
• Credit Limits
• Written Confirmation

7. Making the Sale
• Check Credit Status of Customer
• Produce Invoice
• Register PPSR – if required
• Send Invoice

8. End of Month Process
• Reconcile Bank Account
• Produce Aged Receivables
• Follow Strategies for Overdue Invoices
• Produce and Send Statements

9. The Art of Credit Control
Good Credit Control is a daily process.
• Reconcile your bank statement daily.
• Clear your post office box daily.
• Communicate with key team members
regularly.
• Action credits immediately.
• Make sure your Aged Receivables is
up to date.

10. The Ideal Credit Controller
• Is a people person.
• Is NOT involved in sales or day to day
client management.
• Has a working knowledge of accounts.
• Is familiar with the art of negotiation.
• Can ‘stay the course’.

11. The Process of Credit Control
1. Create an up-to-date Aged Receivables.
2. Check if there are any issues relating to any
overdue invoices.
3. Make an Initial phone call to the debtor.
4. Do your research and follow up on any issues
that arise.
5. Arrange a firm payment date or re-contact
date.
6. Record all conversations & correspondence.
7. Follow your Credit Control policy if
payment is not received.

12. Holding the Conversation…
You get more with Honey than Vinegar
• Build a Relationship with the Accounts
Person.
• Keep it light and friendly.
• Allow them to save face.
• Get an exact date and amount, also
method of payment.

13. Non-Confrontational Openers…
1. “Just looking at our aged receivables – It
looks like we haven’t received last
month’s 20th, Just wondering when you
released that?”
2. “We are just looking at our cash flow
over the next few weeks and were
wondering when you are releasing this
months 20th?”

14. Non-Confrontational Openers…
3. “I have just recently taken over the credit
control role and our aged receivables is
showing an overdue amount for you. I
was just wondering if there is something
I need to know?”
4. “… Not sure you realise, but our terms
are 7 days?”

15. Arranging Payment Dates…
1. Ask for a specific date that the payment
is going to be released.
• Avoid statements like…
– Next few weeks.
– In the near future.
– When our money comes in.

16. Arranging Payment Dates…
2. Ask how the payment is going to be
released.
• By Bank Transfer
– Follow up call following day.
• By Cheque
– Allow 3 days before follow up phone call

17. Arranging Payment Dates…
3. Tell the Debtor you are going to call
back, if you don’t see anything by the
given date.
• “Sounds good, if I don’t see it by XXX I will
give you a call back on XXX”
• The squeaky wheel gets the oil…

18. Always Keep Notes!!!!!!!!!!!!!
Keep a record of:
• Date and time of call.
• Who made the call.
• Detailed notes of the conversation.
• Expected date of payment.
Note:
Record everything; even small things
can become important later.

19. Lastly – Be Consistent…
Do what you say, and say what you mean.
If payment is not forth coming…
• Become clearer in your conversation.
• Send a letter outlining your expectations.
• Be clear that Debt Collection is an option
you are prepared to take.
• Send pre Debt Collection Letter.
• Send the debtor to a Debt
Collector.

20. Next Step
Full Day Course
Make Sure They Pay – Implementing a
positive debtor management system.
Date: 19th November 2012
Time: 10.30 start
Where: Here

21. Other Courses…
Know your ABC’s - The building blocks of
an integrated accounting system.
A 12 session Training Program:
- 6 x Half-day Practical Workshop Sessions
- 6 x One-to-one Onsite Coaching Sessions
Workshop 1 8th November 2012
Workshop 2 22nd November 2012
Workshop 3 6th December 2012
Workshop 4 TBA - 2013
Workshop 5 TBA - 2013
Workshop 6 TBA - 2013