{"id":1036,"date":"2014-12-19T00:00:00","date_gmt":"2014-12-19T00:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/the-5-golden-rules-of-credit-control\/"},"modified":"2026-01-29T11:03:55","modified_gmt":"2026-01-29T11:03:55","slug":"the-5-golden-rules-of-credit-control","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/the-5-golden-rules-of-credit-control\/","title":{"rendered":"The 5 golden rules of credit control"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tThe 5 golden rules of credit control\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2014-12-19T00:00:00+00:00\">19 December, 2014<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"The 5 golden rules of credit control\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/the-5-golden-rules-of-credit-control\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/anil-stocker\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"28\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/ANIL-STOCKER-211x300.jpeg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Anil Stocker<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Don&#8217;t let credit control make you lose control. A systematic and well-planned credit control strategy is essential for any growing business and will certainly help keep the wolf from the door.<\/p>\n\n\n\n<p>Increasingly long payment terms and seemingly infinite competition has left many companies at the mercy of their large end customers.<\/p>\n\n\n\n<p>A devastating number of businesses are forced to close each year because their customers owe them money &#8211; don&#8217;t let yours contribute to this statistic. Read on for our top five rules for good credit control.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-set-an-upper-credit-limit-for-each-of-your-customers\">1. Set an upper credit limit for each of your customers<\/h2>\n\n\n\n<p>This should be bespoke. Do your research; get references from other companies who have traded with them, do your own credit checks &#8211; these can be obtained easily and affordably online.<\/p>\n\n\n\n<p>Then, once it&#8217;s set &#8211; don&#8217;t budge!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-decide-a-minimum-order-size-for-credit-accounts\">2. Decide a minimum order size for credit accounts<\/h2>\n\n\n\n<p>Make sure you&#8217;re in control &#8211; your sales contract should remind customers who benefit from a credit payment option that the goods belong to you until payment is received even after they&#8217;ve been delivered.<\/p>\n\n\n\n<p>Don&#8217;t be embarrassed to create rules and stick to them. Obtaining references, checks and setting order thresholds all helps to convey professionalism and show that you mean business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-use-good-customer-service-to-your-advantage\">3. Use good customer service to your advantage<\/h2>\n\n\n\n<p>This is a double win where you&#8217;re concerned. Calling customers to check to see if deliveries have arrived and confirm their satisfaction is useful and courteous. You get feedback and it also gives you a chance to check that you have the right contact details for the payment communication.<\/p>\n\n\n\n<p>Happy customers and happy you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-understand-the-payment-practices-of-your-customers\">4. Understand the payment practices of your customers<\/h2>\n\n\n\n<p>Don&#8217;t get bitten by the increasingly standard 30-90 day payment terms. Ask questions and do your research, before you trade. Armed with all the facts you can plan or seek out alternative cash flow solutions.<\/p>\n\n\n\n<p>Does your customer pay everything on a certain day each month? On an ad hoc basis? Every three months?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-have-a-process\">5. Have a process<\/h2>\n\n\n\n<p>And follow it! Within your business establish a clear procedure for dealing with invoices and collecting payments.<\/p>\n\n\n\n<p>Invoice promptly &#8211; this is vital if you want to demand efficiency in return. Set aside time each week specifically to chase payments and create a strategy that gradually escalates the pressure on those that don&#8217;t pay.<\/p>\n\n\n\n<p>Be polite. Be persistent. Don&#8217;t apologise.<\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Don&#8217;t let credit control make you lose control. A systematic and well-planned credit control strategy is essential for any growing business and will certainly help keep the wolf from the door. Increasingly long payment terms and seemingly infinite competition has left many companies at the mercy of their large end customers. A devastating number of [&hellip;]<\/p>\n","protected":false},"author":152,"featured_media":1881,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[24],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[77],"coauthors":[413],"class_list":["post-1036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-cash-flow","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Anil Stocker","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2017\/08\/faucets-2458.jpg","imagine_tags":{"77":"Accounting software"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/1036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/152"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=1036"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/1036\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/1881"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=1036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=1036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=1036"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=1036"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=1036"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=1036"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=1036"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=1036"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=1036"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=1036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}