If you have spent any time exploring the world of credit control, you may have found yourself overwhelmed by a flood of advice from experts.
What began as a straightforward Five Cs framework has, in some circles, morphed into seven or even eight Cs.
However, rather than getting lost in the acronyms, it is worth cutting through the noise and focusing on what truly makes credit control effective: the people.
At its core, credit control is a tool for improving cashflow, helping you do business more efficiently and with greater confidence.
Trusting a client to pay later can feel like a leap, but there is a way to reduce the risk and increase your chances of success: build rapport.
Why rapport is key
You catch more flies with honey than vinegar, as the saying goes, and that principle applies just as much to business.
Building rapport with clients may seem like a basic step, but the benefits go far beyond friendliness.
A strong relationship makes it easier to introduce the idea of credit checks early in the process.
Clients are more likely to accept this as a standard, helpful step, rather than a sign of mistrust, if they feel valued and respected.
Of course, a credit check only gives part of the picture. When it comes to getting paid, the human element often makes all the difference.
Put yourself in your client’s shoes. When money is tight at the end of the month, who do you prioritise?
The approachable, helpful supplier who treats you with respect, or the one who is all demands and no dialogue?
By humanising your business and building strong relationships, you increase the chances that your invoice rises to the top of the pile.
Set terms that work for both sides
That rapport also plays a vital role when agreeing payment terms. Friendly, honest conversations help you understand your client’s position and strike the right balance between firmness and flexibility.
Keep the relationship going once the payment lands, acknowledge it promptly, thank your client, and reinforce that they are a valued part of your business. This approach builds trust and opens the door to ongoing, successful collaboration.
While credit control will always carry some risk, it is also one of the most effective tools for freeing up cashflow and fuelling future growth.
If you are ready to make credit control part of your strategy, get in touch with our team today.