How do I ensure good credit management?

A list of useful tips

How do I ensure good credit management?

It is very important that your company’s financial administration is in order. This can prevent customers from not paying their bill or not paying on time. In fact, credit management is nothing more than ensuring that customers pay your invoices quickly and completely.

Disorganized credit management creates problems in the organization and can in the worst case lead to bankruptcy. To prevent this, there are a number of points you can pay attention to. For example, be alert to the agreed payment term. Check the payments on your account every week. This prevents you from overlooking an overdue payment term. It is also important that you ring the bell with the customer on time. It is best to make a fixed procedure for this, which you follow every time.

Fixed procedure

Nothing works better than a fixed schedule that you can follow every time. At EuroCollect.eu we work on the basis of this procedure. We assume a payment term of 14 days.

  • Payment reminder via email: 15 days after sending the invoice;
  • Payment reminder by telephone: 21 days after sending the invoice;
  • Reminder: 30 days after sending the invoice;
  • Last payment reminder by telephone: 60 days after sending the invoice.

Handy credit management tips

Many problems in the debtor administration can be prevented by acting faster and controlling the customer better. Below are a number of useful tips that you can use:

Keep your debtors administration up-to-date:

  • Avoid overdue administration. This ensures that invoices are overlooked and that there is no clarity in the payment system;
  • Check the liquidity of your customers: Do you have a new customer? First check the financial figures;
  • Clearly agree on the payment term with the customer: This prevents ambiguity and gives your customer less room for excuses;
    Ensure fast invoicing: Have you completed your work? Send the invoice immediately, so that the customer still knows what he is paying for and what the agreements were;
    Send the payment reminder immediately after the payment term has expired;
  • Phone the customer and send a reminder if a payment is not made;
  • Call in a collection agency for any claim.

Automate your debtor management

There are various software packages on the market that make it possible to automate your credit management. In short, this means that invoices are automatically followed up as soon as the invoice has been sent. This saves a lot of time and prevents human error.

For example, at EuroCollect.eu you can choose from a number of packages. We also have additional modules that allow us to fully tailor your credit management. We give you the choice to outsource your administration entirely or to keep it under your own management.

Debtor management: do it yourself or outsource it?

There are a number of factors that determine whether it is wise to outsource or do the credit management yourself. It depends, among other things, on the number of customers that you invoice. In most cases, small companies can easily do credit management themselves, if the right knowledge is available internally. Medium and large companies actually benefit more from outsourcing it.

Do you have any questions after reading this blog or would you like to discuss the possibilities of credit management with us? Then contact us. We are happy to help your company towards better liquidity.

debiteurenbeheer
Scroll to Top