Are you ready for the changing ‘pace’ of Credit Control ?
We think it was Bob Dylan whom famously sang… ‘The times, they are a changing’.
The pandemic has changed a lot of the credit control processes, procedures and checks.
The fact is that the actual actions and functions are being delayed, both now and possibly for the future.
Whereas the practice of employees working a combination of office based and home based hours can be ideal for an employee or the business, it can have a detrimental effect on a Supplier…
Especially when it comes to TIME.
We’ve seen occasions where a debtor’s purchase ledger contact is working from home and a telephone call cannot be transferred.
This inability to discuss and resolve a matter in that moment can be detrimental to a Supplier on two fronts :
- 1, The Supplier now becomes reliant on the debtor’s want or need to return any call or respond to an email.
Will being forced to wait for a response have an adverse effect on the Supplier ? … Probably Yes.
- 2, By being forced to await a response, all of the momentum now passes to the debtor.
If the debtor has no monies to clear the account, will they want to contact the Supplier ? … Probably No.
Another TIME challenge we’ve seen are delays in getting matters processed and paid through a debtor’s own internal procurement system.
Again two examples are such.
- 1, A purchase ledger clerk has to email a Buyer because they’re working from home.
If the Buyer has another task which earns the business money, rather than costing money, are they likely to park this request… Probably Yes.
- 2, Eventually the invoice is passed to the FD, however the FD is working from home and can only be emailed.
Will the FD resolve a message that’s going to cost the company money as soon as they address it… Probably No.
The moral is, are you prepared to experience delays in your credit control functions ?
These delays are not through inadequacies in your processes, rather a result of the working conditions that have become prevalent these days but there are ways you can attempt to avoid further delays. You can :
- Act quicker.
Don’t wait until an invoice is well beyond terms before acting, take action as soon as it’s fallen due.
- Chase more.
Simply sending an email and relying on the customer’s goodwill will not resolve matters as they once did. Continue to press for payment.
- Close better.
Don’t be content with a promise it’s with the Directors for payment. Continue to speak with your contacts until the money is in your bank.
Don’t worry if your already experiencing these delays and are being forced to spend more and more time on your essential credit control functions and less and less time on your business. Help is at hand, simply drop us a line or give us a call and we’ll help you resolve things.