Practical Credit Control Tips
Getting paid on time often comes down to small things done consistently.
These practical credit control tips cover the everyday issues businesses face, from preventing late payment and chasing overdue invoices to managing payment promises and knowing when a different approach is needed.
Quick answers first. As we add more detailed guides, you’ll be able to explore each topic further.
Prevent problems before they start
Make it easy to pay
Put your bank details and payment options somewhere obvious on your invoice and payment reminders. Don’t make a customer search for the information they need to pay you.
Get the invoice right first time
Check the company details, contact, PO number and any customer-specific invoicing requirements before you send it. Small errors can cause surprisingly long delays.
Agree payment terms before the work starts
Make sure both sides know when payment will be due before the invoice arrives. Clear terms are much easier to enforce than assumptions.
Check who you’re giving credit to
A new customer is also a new credit risk. Basic checks and sensible credit limits can help prevent a successful sale becoming a collection problem later.
Before and just after the due date
Don’t wait until the invoice is overdue
A short pre-due reminder can uncover missing invoices, PO problems and queries while there is still time to resolve them.
Chase promptly once it becomes overdue
The longer an invoice sits untouched, the easier it becomes for it to slip down the customer’s priority list. Decide when your first chase will happen and stick to it.
Ask for a payment date, not a promise
“I’ll get that paid” sounds positive, but it gives you very little to work with. Ask when the payment will actually be made and record the date.
Pick up the phone
Emails don’t always tell you what is happening behind the scenes. A human conversation can build rapport, uncover problems and give you a much better understanding of why payment has been delayed.
Understanding why you haven’t been paid
Can’t pay or won’t pay?
Someone who genuinely cannot pay may still engage, explain what has changed and be willing to discuss a realistic solution.
Someone who repeatedly avoids contact, breaks promises or changes the reason for non-payment may need a firmer approach.
Understanding the difference helps you decide what happens next.
Read more: Can’t Pay vs Won’t Pay: How to Tell the Difference and What to Do Next
Deal with disputes quickly
Find out exactly what is disputed, who needs to resolve it and when. If only part of an invoice is disputed, ask whether the undisputed amount can be paid.
A broken promise changes the conversation
If an agreed payment date passes without payment, don’t simply restart the same conversation. A missed promise tells you something about the account and should influence your next action.
Give payment plans some structure
Agree the amount, payment dates and what will happen if an instalment is missed. An informal “pay what you can” arrangement can quickly become difficult to manage.
Older invoices building up?
If normal chasing has stopped producing results, it may be time to look at the ledger differently.
Chasing effectively without damaging relationships
Be clear without becoming aggressive
Professional credit control does not need to be confrontational. Be clear about what is overdue, what you need from the customer and what the next step will be.
Don’t rely on email alone
If several emails have achieved nothing, another identical email probably won’t change the outcome. Change the method of contact and have a conversation.
Keep proper notes
Record who you spoke to, what was agreed, payment dates, disputes and promises. Good records become increasingly important if an account later needs to be escalated.
Don’t threaten action you won’t take
If you tell a customer something will happen on a particular date, follow through. Empty deadlines quickly lose their effect.
Managing your ledger
Prioritise instead of chasing alphabetically
If you cannot chase everything at once, consider the age and value of the invoice, previous promises, customer behaviour and risk.
Watch the age of the debt, not just the total
Your overall debtor balance can remain fairly stable while individual invoices quietly move into older and harder-to-collect age brackets.
Make sure payments are allocated
Before chasing an invoice, check whether the money has already arrived. Poor cash allocation wastes time and can damage a customer relationship.
Have a process and follow it
Credit control works better when actions happen because an invoice has reached a particular stage, rather than when somebody finally gets time to look at the ledger.
Credit control taking more time than it should?
If keeping on top of the ledger is becoming another job in itself, see what outsourced support could look like.
Keep learning
We’ll continue adding practical credit control advice and more detailed guides covering the issues businesses deal with every day.
No jargon. No complicated theory. Just useful information to help you stay in control of what you’re owed.