What is Credit Control?
Credit control is the management by a company of credit which they have given out in the form of goods, services or money in return for upcoming payments. The company sending your phone bill exercises credit control on a regular basis, as you receive your phone service before you are billed monthly.
Exercising effective credit control is extremely important for your phone company, as it controls their ability to generate funds and remain in business. Credit control can be aided considerably for your phone company if they adopt an electronic invoicing policy.
How does Electronic Invoicing help Credit Control?
Electronic invoicing involves sending you your monthly phone statement by e-mail, instead of fax or post. Electronic invoicing holds many advantages over fax and post for managing credit control and document distribution. Such advantages of electronic invoicing include prompt invoice arrival once sent, and a fast, secure way to pay online.
Greater credit control is achieved if customers (like yourself) pay bills promptly once they are sent to you. Electronic invoicing uses e-mail to ensure your invoice arrives with you as soon as it is sent by your phone company. This instant messaging means that technically the invoice could be paid within an hour of its dispatch.
You are able to receive your invoice wherever you have internet access, and using EIPP, will be able to pay it. This convenience means customers who use electronic invoicing are less likely to miss payment deadlines, and your company is offered greater credit control because less time will be spent chasing up these late payments.
How is Non-Electronic Invoicing carried out in a Credit Control system?
Non-electronic invoicing in a credit control system would be carried out by sending postal invoices in envelopes to customer addresses; or if the customer owns a fax machine then their invoice can be faxed to them. The latter method of fax means that an invoice arrives instantly, as with electronic invoicing; however, it is less common for a customer to own a fax machine than to use the postal service or have internet access.
The postal method of invoicing is less popular in credit control because of the time delay between document distribution and the customer receiving their invoice. This lesser method of document distribution can reduce the efficiency of a credit control system, and is strongly overshadowed by its competitor, electronic invoicing. A company such as Netsendshould be used to seek advice on customers wanting paper invoices and ways to make the postal document distribution system more efficient.