Presentation On 7 Steps To Effective Credit Control

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Presentation On 7 Steps To Effective Credit Control

  1. 2. Credit Management 7 Tips for effective Credit Management
  2. 3. 1.Control who gets Credit by assessing risk <ul><li>  </li></ul><ul><li>The First stage to Successful Credit Control is Credit Assessment. </li></ul><ul><li>You must know who your potential Customers are and ascertain their ability to pay you before you start trading with them. </li></ul><ul><li>Always Credit check using a Comprehensive Financial report and set a sensible limit </li></ul>
  3. 4. 2.Have a Credit Policy and Stick to it <ul><li>A Credit Policy should always be in place from the very early stages of company growth. </li></ul><ul><li>This should detail everything including when and how every step of the collection process will work including simple things such as invoice format and payment terms. </li></ul>
  4. 5. 3.Build Customer Rapport and develop ongoing relationships <ul><li>Customer relationships of vital importance. </li></ul><ul><li>Talk to customers all the time, not just when </li></ul><ul><li>money is owed. </li></ul><ul><li>Visit your main customers regularly. </li></ul>
  5. 6. 4.Have the right staff and environment <ul><li>Monitor Staff performance and assess Customer service skills. </li></ul><ul><li>Make sure you have the right number/level of staff to produce the results you require. </li></ul>
  6. 7. 5.Have an adequate Query Management system <ul><li>Set up a consistent, monitored procedure for dealing with queries within your business. </li></ul><ul><li>Action queries quickly so they can never develop into a reason for non-payment. </li></ul>
  7. 8. 6.Communicate all issues quickly <ul><li>It is the responsibility of all staff to help the Credit Function by reporting any issues that may effect payment. </li></ul><ul><li>Media both local and national can help with this also. </li></ul>
  8. 9. 7.Report and Review Performance <ul><li>Monthly reports should be produced showing the following details: </li></ul><ul><li>Aged Debt Report. </li></ul><ul><li>KPI reports including Debtor days and Bad/Doubtful debt targets. </li></ul><ul><li>Cashflow forecasting for 3 months in advance. </li></ul><ul><li>Top 20 Customer detailed report of debt and any queries. </li></ul><ul><li>Outstanding Query report by division. </li></ul><ul><li>These should all be reviewed and progress monitored closely. </li></ul>
  9. 10. Questions? <ul><li>Questions? </li></ul><ul><li>Seminar, Videos and Website etc </li></ul>

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