Credit Control BoosterMarch 2013

Our MissionTo Support New Zealand Businesses to

Develop, Manage and Grow.

We specialise in… Working as an Extension of our

Clients Team!!!

We started as an Outsourced Credit Control Company

Now offer a full range of back office services:•Debtor Management•Book-Keeping•Payroll Services•Business Support•Strategic Services•Training

Credit Control vs Debt Collection

Credit Control

….The Fence at Top of the Cliff

Debt Collection

….The Ambulance at the Bottom

Before Giving Credit

• Account Application 

• Credit Checks  

• Type of Credit  

• Credit Limits 

• Written Confirmation

Making the Sale

• Check Credit Status of Customer

• Produce Invoice 

• Register a PPSR – if criteria met

• Send Invoice

End of Month Process

• Reconcile Bank Account

• Produce Aged Receivables 

• Follow Strategies for Overdue Invoices 

• Produce and Send Statements

The Art of Credit Control

Good Credit Control is a daily process.

• Reconcile your bank statement daily.• Clear your post office box daily.• Communicate with key team members

regularly.• Action credits immediately.• Make sure your Aged Receivables is

up to date.

The Ideal Credit Controller

• Is a ‘people’ person.

• Is NOT involved in sales or day to day client management.

• Has a working knowledge of accounts.

• Is familiar with the art of negotiation.

• Can ‘stay the course’.

The Process of Credit Control

1. Create an up-to-date Aged Receivables.2. Check if there are any issues relating to any

overdue invoices.3. Make an Initial phone call to the debtor.4. Do your research and follow up on any issues

that arise.5. Arrange a firm payment date or re-contact

date.6. Record all conversations & correspondence.7. Follow your Credit Control policy if

payment is not received.

Holding the Conversation…

You get more with Honey than Vinegar

• Build a Relationship with the Accounts Person.

• Keep it light and friendly.

• Allow them to save face.

• Get an exact date and amount, also method of payment.

Non-Confrontational Openers…

1. “Just looking at our aged receivables – It looks like we haven’t received last month’s 20th, Just wondering when you released that?”

2. “We are just looking at our cash flow over the next few weeks and were wondering when you are releasing this months 20th?”

Non-Confrontational Openers…

3. “I have recently taken over the credit control role and our aged receivables is showing an overdue amount for you. I was just wondering if there is somethingI need to know?”

4. “… Not sure you realise, but our terms are 7 days?”

Arranging Payment Dates…

1. Ask for a specific date that the payment is going to be released.

• Avoid accepting statements like…– Next few weeks.– In the near future.– When our money comes in.

Arranging Payment Dates…

2. Ask how the payment is going to be released.

• By Bank Transfer– Follow up call next day.

• By Cheque– Allow 3 days before follow up phone call

Arranging Payment Dates…

3. Tell the Debtor you are going to call back, if you don’t see anything by the given date.

• “Sounds good, if I don’t see it by XXX I will give you a call back on XXX”

• The squeaky wheel gets the oil…

Always Keep Notes!!!!!!!!!!!!!

Keep a record of:

• Date and time of call.

• Who made the call.

• Who you spoke to.

• Detailed notes of the conversation.

• Expected date of payment.

Note:

Record everything; even small things can become important later.

Lastly – Be Consistent…Do what you say, and say what you mean.

If payment is not forth coming…• Become clearer in your conversation.• Send a letter outlining your expectations.• Be clear that Debt Collection is an option

you are prepared to take.• Send pre Debt Collection Letter. • Send the debtor to a Debt

Collector.

Offers for today…

A One Hour Accounting Systems Review

OR

A Free Credit Control Rehab Set-up

Next Step…Full Day Course

Make Sure They Pay – Implementing a positive debtor management system.

Date: 18th April 2013

Time: 9.00 start

Where: TBA

Lunchbox Learning special - $295 + GST