Step by Step Credit Control

Simplifying the Credit Control Process For You!

If you’re struggling to keep on top of customer payments, it is time to take a look at simplifying your credit control process. Effective credit control doesn’t have to be complex or time-consuming.

By following a simple, step-by-step credit control process, you can ensure that your team handles payments consistently, professionally, and in a way that gets results.

Here’s your easy credit control checklist to help you reduce late payments and get paid faster.

 

1. Send Invoices Immediately

Send your invoice right after delivering the goods or completing the service, while the transaction is still fresh in your customer’s mind.

Be sure your invoice includes:

  • Your business name and address
  • Invoice number and date
  • Payment due date
  • Bank detail and accepted payment methods
  • Your payment terms are clearly displayed

Prompt invoicing significantly increases your chances of early payment.

 

2. Follow Up With a Courtesy Check-In

If you offer 30-day payment terms, don’t wait until the due date to follow up. At around day 14, call your customer to confirm:

  • They have received the invoice
  • They have no payment queries
  • When payment will be made

This eliminates common excuses like “We never received the invoice” and shows your business is professional and proactive.

 

3. Chase Overdue Payments Promptly

Once the invoice is overdue:

  • Make a courtesy call reminding the customer that payment is now due
  • Ask whether there’s a reason for the delay or when payment will be made
  • Follow up with a written email confirmation

Sometimes it’s a simple error or forgotten date, but timely reminders show you’re paying attention.

 

4. Issue a Formal Payment Warning

If the invoice still remains unpaid 7 days later, send a formal letter or email. Include:

  • A clear payment deadline (“within 7 days“)
  • A statement that late payment fees may be added under the Late Payment of Commercial Debts (Interest) Act (if they are a B2B customer)
  • Notification that services may be paused until payment is received

This signals to your customer that you are serious, but still gives them a chance to resolve things amicably.

 

5. Escalate to a Debt Collection Agency

If the customer still hasn’t paid despite your efforts, it’s time to escalate.

Passing the case to a professional debt collection agency often prompts swift payment; simply receiving a letter or call from a third party can be enough to get results.

At this stage, it is important to act fast to protect your cash flow.

 

6. ADDITIONAL STEP – Consider Outsourcing Your Credit Control

Are you spending too much time chasing payments?

Have too many customers and not enough hours in the day?

Outsourcing your credit control to a specialist team can be:

  • More cost-effective that in-house staff
  • Less confrontational for customer relationships
  • A major time-saver for your business

At FJCM, we offer a friendly, professional outsourced credit control service that helps businesses get paid on time, without the stress.

 

Credit Control That Works

Here’s your simplified 5-step credit control process to get started:

  1. Invoice Immediately
  2. Follow Up Mid-Term
  3. Chase Promptly After Due Date
  4. Issue Formal Payment Warning
  5. Escalate to a Collection Agency if Needed

Consistency is key. When followed correctly, this process reduces overdue invoices, protects cash flow, and improves client accountability.

Credit Control Solutions

 

 

 

Updated 5th August 2025