Supercharge your credit management performance

The value of a good set of terms and associated client documentation can be appreciated every time you have to:
    - decide whether to offer goods or services on credit to new clients or
    - chase debtors for payment.

The first step towards improving the credit management aspect of your business is to weave your new terms and conditions into your client documentation such as your credit application, estimate forms and quotation forms. 

Simply by having in place a credit application form clearly linked to your terms and conditions will help you avoid costly mistakes. It will help you verify the correct legal identity of a new client. As a credit management company, we see many debtor companies active in the market whose identities are not at all clear. 

The information on the credit application will also help you to run a better credit check on your new client. This, in turn, will lead you to avoiding a large loss or working for someone for free. If there's the lure of a large and valuable piece of business to be had, perhaps the information on your credit application will lead you to suggest taking a personal guarantee from one or more of the directors. And if they don't support the transaction in this way then why should you?

Secondly, you'll also need to send copies of your new terms to existing clients. We'll show you how.

Thirdly, EC Credit Control will also guide you as to what to say to your customers when debts are 7 days, 14 days and 21 days overdue respectively. The initial call will be structured to both preserve the relationship with your client but also to convey that you have signed up with a credit management company i.e. gentle but assertive pressure on your debtor.

If the debt gets older than 7 days, then your conversations and correspondence needs to step up a gear. However, what you can say in these situations is limited by what's in your terms and conditions. EC Credit Control will help fully leverage your new terms by outlining what you should say and do so that your overdue client pays the money owed.

Here lies the most important aspect of EC Credit Control's recommended credit management solutions and what is going to make the biggest difference to your business. 

How?

Our clients' outstanding accounts usually drop dramatically after introducing the above approach and their cashflow also tends to improve very quickly. This is because our clients not only use our system for their delinquent accounts but they also implemented it across the board.

Essentially, by using our approach, our clients create a whole new credit management policy for their business including educating all their existing customers to start paying them at 7, 14 and 30 days i.e. when they should have been paying all along.

Your business can benefit too, starting with a carefully-worded and well-implemented set of business terms and conditions from EC Credit Control. Use them to dramatically improve the performance of your accounts department and slash your average debtor days.