What is Credit Control?

What is Credit Control?

Credit Control is the process of managing and chasing customer payments to ensure your invoices are paid on time. It involves setting credit limits, monitoring customer payments, and taking action to recover outstanding debts. Effective credit control is crucial for maintaining a healthy cash flow, reducing financial risk, and supporting overall business stability.

Why Credit Control Matters?

Understanding why credit control matters is key to keeping your business healthy and financially secure. Here are the key benefits of Credit Control:

1. Better control of your cash flow

A strong credit control process keeps money coming into your business consistently. With predictable cash flow, you can cover day to day expenses, pay suppliers on time, and plan confidently for future investment.

2. Fewer bad debts

Checking a customer’s creditworthiness before offering credit helps you understand their ability to pay. This reduces the risk of late payments or non payment, helping you avoid bad debt and safeguard your profitability.

3. Stronger customer relationships

Clear payment terms and a consistent process mean both you and your customers know what to expect. Professional and timely communication helps prevent misunderstandings and supports long term, positive relationships.

What is Outsourced Credit Control?

Outsourced credit control involves appointing a third-party provider to contact your customers, manage payment reminders, and collect outstanding invoices on your behalf. It gives your business a dedicated team who can chase payments professionally, help reduce overdue debt, and keep your cash flow predictable. It also saves your business time and money, as you won’t need to hire your own in-house credit controller, which could be more costly.

How to Outsource my Credit Control?

At Time Finance we offer an optional credit control service as part of our Invoice Finance solution. Invoice Finance gives your business access to up to 90 percent of the value of your unpaid invoices within 24 hours of raising them, providing fast working capital while our team helps manage and chase customer payments on your behalf.

Contact our team if you want to learn more about our invoice finance solution.