As a growing company, good credit control is one of the most fundamental factors to which you should give consideration. The act of providing a service and invoicing for it afterwards is the same as providing credit cards to your customers. The way in which you invoice your customers and receive payment for the credit you have given is defined as your credit control system.
Many companies consider the credit control system they use so important that they instantly outsource this task to a company like Netsend. A company such as Netsend will offer credit control advice often centring on the use of an electronic invoicing system.
Setting up your Credit Control System
You credit control system should allow you to know at any one time, the invoices that you have sent out, which of those have been paid, and which are due payment. Credit control systems should also have a system of highlighting overdue invoices (especially larger ones) so that further action can be taken.
Electronic Invoicing and Credit Control
The most appropriate way of setting up your credit control system is using electronic invoicing. A credit control system based around electronic invoicing allows prompt sending of invoices; which is highly important as it paves the way for prompt payment.
Electronic invoicing also triumphs over other methods of credit control (invoice sending by fax or post) because of the easy way customers can pay their invoices using EIPP. An invoice sent in the post or using a fax machine must be paid via telephone or online banking. Document distribution by electronic invoicing allows the customers to follow a link on the invoice to a secure page through which they will be able to pay their invoice.
Further Credit Control Considerations
A key consideration when setting up a credit control system is who should you offer credit to? Offering credit is the way in which you make money, so your credit control system should not be too exclusive. However, your credit control system can also be the way in which you lose money, so caution should be taken. Most modern credit control systems will give customers a credit check before entering into business with them.
Finally, document distribution featuring in a credit control system should be as environmentally friendly as possible. Electronic invoicing comes up trumps here as it uses less paper than postal or fax methods. Being and environmentally friendly company can help you win customers.