Continual business success and development is reliant upon steady cashflow and an effective credit control process that a company should follow and implement at each stage of the monthly credit control cycle.


By Sharon Stevens

Alan Grice Staircase Company Limited

Alan Grice Staircase Company has been trading for over 40 years and is a family business. Predominantly they supply customers throughout the North West who vary from new house builders to local tradesmen and DIY enthusiasts. They have built a reputation for delivering a quality product and service, making sure that they maintain completion targets by meeting deadlines for deliveries.

Before they contacted FJCM to help implement a full credit control policy they were struggling to collect some of their payments to terms. They had a higher than industry average DSO (Days Sales Overdue) figure.

Some of their “favourite” customers had been allowed to go well past terms before paying. They also had customers that they didn’t want to upset by sending a firm “overdue letter”. Aged debts were left on the ledger as they did not have a credit control/debt collection process to follow.

Time to Change

After an initial consultation, it was decided that a full credit control process would be implemented. This enabled the office manager and staff to follow a set agreed procedure and rely on. Their main goal was to increase cash flow and reduce the days that sales were overdue.

The new bespoke credit control process included:
  • A new customer enquiry process, which included credit checking new and existing customers. Various new customer forms for completion, a letter of engagement and template emails. Most importantly it included the new Payment Policy document.
  • A step by step credit control guide to the monthly cycle including a calendar with the key monthly dates highlighted. Plus template emails, reminder letters, a letter before action template and a guide to the DIY court process.
  • Guide on credit control processes, using the Pareto analysis, using reporting, KPI’s, excel ledger generation with data filters.
  • Responsibilities of key personnel and who makes the ultimate decision. For example who makes the decision on stopping services, taking to court and resolving invoice disputes. Having this in place meant that the entire team knew what they were supposed to be doing and following.

Since implementing the new Credit Control Policy, the office manager has been able to successfully increase cash flow and reduce the DSO. Crucially the team can now rely on a process which is proving to work effectively for the company.

See their testimonial here

For further details and information about how to improve your credit control processes, increase your cash flow and get paid on time call us today on 01494 422742 or contact us here.