Credit Control Solutions

"Virtual" Outsourced Credit Control

Credit Control Solutions Launches new Service Today !

Worried about outsourcing your credit control? Then our “Virtual” Outsourced Credit Control Service is aimed specifically at you.

Our “Virtual” Credit Control Service has been designed to make significant improvements to your cash flow, but without the need to actually outsource.

The Service

You continue to manage your own credit control function as you do now. We simply set up an export routine for you enabling you to send us your aged debt and sales ledger data (or we can export your data through remote access) on a weekly, fortnightly or monthly basis (as you wish).

On receipt of your data, we simply send out letters on your behalf on our headed paper – it couldn’t be simpler. The letters are tailored to your requirements and are sent out in accordance with a timetable that has been agreed with you beforehand. As with all of our services, we appreciate that our customers like to be in control of precisely what is being done and when.

I know what you’re thinking – standard letters don’t work  - right?  WRONG - We have measured the response that we get to our standard letters and 70% of people will respond to a standard letter received from us. This means of course, that your credit controller will have to chase fewer customers for payment.

We find that a pro-active approach to credit control means that more customers will pay you on time. This is why we recommend that all of your invoices are verified at least 2 weeks before payment is due – we can do this for you by letter or by phone!

The Benefits

• You continue to deal with your own credit control as you do now
• Your cash flow will improve
• You will save valuable time
• You will reduce your exposure to bad debts
• You will remain in control

Any feedback regarding this service would be welcomed. For further information please visit our website

Jamie O "Making Your Cash Flow"

The Good, The Bad and the Truth.............

A few Facts on "No Collection, No Fee" Debt Collection

Did you know that whilst most debt collection companies appear to offer you something for nothing, in reality it simply isn't true. We all know that you get “nothing” for “nothing” in this life and if something seems too good to be true, then it probably is!

Typically, a “No Collection, No Fee” debt collection service actually means you will end up paying an exorbitant success fee to the debt recovery company if they recover your monies. This could end up being in excess of 40% of the value of monies recovered ! This is irrespective of the amount of work they have actually done. If for example, they made 1 telephone call to recover £1,000 for you, it will end up costing you £400 for the pleasure

In the debt collection industry “The good pay for the bad” In essence, this means that commission rates have to be very high in order to provide sufficient revenue to the debt collection company to cover all of the cases where they have not managed to recover any monies for their customer.

I believe that this way of charging does not represent good value to the customer. Why should you have to pay exorbitant commission to a debt collection company to cover all of the non-collectable cases on the debt collection companies’ books?

I am pleased to inform you that we are completely revolutionising the debt collection industry, by making a very simple change to the way in which we charge you to collect your debts. We simply make a nominal charge for the work that we do for you.

For more information on our debt collection services, please visit our website: Credit Control Solutions

Jamie O "Making Your Cash Flow"

Claim What you are Entitled to !

Late Payment Legislation

In November 1998, the UK Government introduced legislation to give businesses a statutory right to claim interest from other businesses for the late payment of commercial debt. The UK was one of the first countries in the EU to introduce late payment legislation to help promote a culture of prompt payment.

Amended late payment legislation came into force in the UK on 7 August 2002, which fulfilled the UK’s obligations under the EC Directive on late payment and brought additional benefits to businesses.

For commercial contracts dated before 7 August 2002

All small businesses, with 50 or fewer employees, can use the rights given to them by the Late Payment of Commercial Debts (Interest) Act 1998 to claim interest retrospectively.
For commercial contracts dated from 7 August 2002

From 7 August 2002, the Late Payment of Commercial Debts (Interest) Act 1998 was amended and supplemented to incorporate the features of European Directive 2000/35/EC on combating late payment in commercial transactions.

Under the revised legislation, all business owners and managers can claim reasonable debt recovery costs and can benefit from the simplification of the calculation of Statutory Interest. Additionally, small and medium sized enterprises can ask a representative body to challenge grossly unfair contract terms used by their customers that do not provide a substantial remedy for late payment of commercial debts.

The compensation entitlement varies in accordance with the size of the debt

The revisions to the legislation also include the simplification of the calculation of statutory interest. A reference rate is now used to determine the late payment interest rate, which is fixed for a six-month period.

For further information and help with calculating interest and debt recovery costs, please visit our website by clicking the following link Credit Control Solutions

Is your credit controlling you or are you controlling it?

There is only one thing worse than having no work - and that is having lots of work, but not being paid for it! To minimise the risk of this happening to you, you should take the following credit control precautions.

You should know the financial strength of the company you are doing business with or proposing to do business with. This is a good indication as to whether or not you are likely to be paid on time or even be paid at all! use of a good credit checking service will help you with this.

There must be proof that the customer to whom you supplied your goods or service actually placed an order with you. In an ideal world there will be a signed order, or a purchase order form the customer to you for purchase of the goods or service. In today’s “I want it now” society, getting a signed order is not always possible. An e-mail, Fax or letter from the customer to you or from you to the customer is just as good. The important thing is you must be able to demonstrate that an order has been placed.

You must always ensure that your customer is aware of your terms of business or sale before they do business with you. Including your terms of business on the back of your invoice is a good way of re-enforcing your terms, but, it cannot be your only method of hi-lighting your terms.

Always ensure that the details on your invoices are accurate, since inaccuracies will damage your credibility and will be used by the customer as an excuse for delaying payment. Please our website to see the rest of this article.

Credit Checking

When you consider that performing a credit check could cost as little as £2.50, is it really not worth bothering with? Good credit control is all about being in control. If you do not know the financial strength of the company that you are doing business with are you really in control?

It is good practice to make credit enquiries for:

• Any new customer
• An existing customers who’s payment pattern has deteriorated
• An existing customer where your credit exposure is very high (e.g., If as a result of non-payment you are left in financial difficulties)

In the credit vetting process, you cannot afford to rely solely on the apparent size of the organisation. It is normally the larger organisations that fail to pay or fail to pay you on time.

Once you have decided to extend a customer credit terms, then set them a credit limit and notify them of both the limit and the general terms of trade upon which you are prepared to do business with them. Also, ensure that these terms are stated in your contract and on your invoices.

Withhold further credit from any customer who has exceeded his credit limit or whose account is significantly overdue. Alternatively make an arrangement to supply him with, say, £500 of extra work for every £1000 that he pays off his account.

Credit checking is not a “one-off” exercise, it should be continuously monitored and re-evaluated, taking account of both the customer's payment history with your own business and by regularly updating the externally available information.

Jamie O "Making Your Cash Flow"

Is Cash Flow Causing you a Problem?

• Are you a small or medium sized business experiencing cash flow problems due to customers not paying you on time?
• Do you simply not have enough time or resources to undertake your credit control yourself?
• Are you looking to improve cash flow but at a reduced cost to your business?

If so, subscribe to this blog, as we will give you handy tips and advice completely free of charge ! For further information on our solutions, please visit Credit Control Solutions, or contact me by e-mail.