Christmas is coming! Is your business ready? Is the cash flowing in?
Getting your credit control ready for the holiday season.
Getting your credit control processes ready for the holiday season is a wise business move, which enables you to rest easy as a business and fully relax as an owner. Reviewing your processes early can help ensure a steady cash flow and reduce the risk of delayed payments during the busy holiday period.
Here are some steps to consider preparing your credit control for Christmas:
Review Your Credit Policy
Start by reviewing your existing credit policy. Ensure that it’s clear and up to date. Consider if any adjustments are needed to accommodate the holiday season.
Communication
Reach out to your customers and inform them of your payment terms and expectations during the holiday season. Make sure they are aware of any changes in your operating hours or billing processes.
Holiday Schedule
Clearly communicate your business’s holiday schedule, including any days when your office will be closed. Plan for staffing and resources to handle credit control during the holiday period.
Invoice Early
Send out invoices well in advance of the holidays to give your customers ample time to process and make payments. This can help ensure you receive payments before any holiday disruptions.
Follow-Up
Be proactive in following up on overdue invoices. Consider sending reminders and notices early to avoid extended payment delays.
Alternative Payment Methods
Offer multiple payment options, including online payment methods, to make it easier for customers to settle their invoices.
Credit Checks
If you have new customers, or if you’re extending additional credit during the holiday season, perform credit checks to assess their ability to pay.
Cash Flow Forecast
Prepare a cash flow forecast to anticipate your financial needs during the holiday season and ensure you have sufficient working capital to cover expenses.
Customer Support
Ensure that you have customer support available to assist customers with any payment-related queries or issues.
Collection Agencies
Consider your options for collection agencies in case you have customers who do not pay. Be prepared to take appropriate action if necessary.
Documentation
Keep clear records of all credit control activities, communications, and payment histories for reference.
Training
If you have staff handling credit control, provide training or refresher courses on best practices and holiday-specific procedures.
By taking these steps, you can better prepare your credit control for the holiday season, helping to ensure a smoother and more financially secure year-end. Remember that the key is effective communication with your customers and proactive management of your credit control processes.
Contact Us
Outsourcing your credit control is a sure-fire way to prevent your business’ finances from suffering today, tomorrow, and beyond. Call us at 01492 22742 or email [email protected] to find out how we can help you.