The right steps to control cashflow

Businesses can be reluctant to chase up outstanding debts promptly, either because they fear confrontation or don't have time to handle the necessary calls.

And what approach do you take? Too harsh and you might alienate otherwise valuable customers. A proper credit control procedure placed in experienced hands is essential for getting what you are owed safely into the bank—and essential for cashflow to pay your own creditors, too.

Chasing debts successfully

People skills are vital and, for Cheryl, personal contact and relationship-building come first in any successful credit policy. If more formal action is required, a phased credit control process is set in place with telephone calls, letters, and if necessary—though only rarely—a formal legal process.

If payments are outstanding I will contact customers. But nothing heavy-handed—some methods I have seen are disgraceful. If anyone wants
to be aggressive from the outset, I advise them to calm down and do it properly."Cheryl Finch

contact details

• Cheryl Finch is based by the sea in Southport, Merseyside. She holds a Master's Degree in Business Administration and can undertake and advise on a wide range of office, organisational and accounting tasks for small- to medium-sized businesses and sole traders.
• Leave a message
• Call 07889 403558

Member of the Sage Accountants Club