Credit control is the way in which your company manages its money, in particular the ‘credit’ it has lent to you when you pay for a service after you have received it. Such payments are collected by companies with the sending of an invoice which requests payment for a service. In order that a company can achieve good credit control they must employ effective document distribution methods.
Document Distribution in Credit Control
Document distribution can be carried out using post, fax or e-mail; the latter two of these being classed as electronic document distribution. Electronic document distribution is an advantageous way to send an invoice to a customer because the delivery speed is instant. This enables a company to maximise profits and achieve good credit control as it enables a customer to pay an invoice more quickly. Sending invoices by post can take up to two days for the invoice to arrive with the customer, and leaves the invoice at a greater risk of being lost or stolen along the way.
Electronic Invoicing and Credit Control
Electronic invoicing by fax can be seen as less effective than electronic invoicing by e-mail. This is because a fax can only be received from the location of the fax machine. If a customer is on holiday then they will not receive their invoice until they return home. The subsequent later invoice payment is to the detriment of the invoicing company’s credit control.
On the other hand, electronic invoicing by e-mail lets a customer receive their invoice via the internet, which is presently available almost anywhere. The invoice which a customer receives by e-mail electronic invoicing can contain a URL link which takes the customer directly to a secure payment page on the company website. Not only does this mean a customer can pay their invoice more quickly, but it also means they can do this at any time of day and using an internet connection anywhere in the world. This form of electronic invoicing benefits the company because credit control is improved, and also you, the customer, as you can be more organise in your financial management.
Outsourced Electronic Invoicing and Credit Control
For a company, outsourcing their electronic invoicing to a company like Netsend can aid credit control further. Netsend are experts in the field of electronic invoicing, and so can offer professional, affordable and hassle free electronic invoicing.