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Scrooge was a financial controller…

 Or so it will feel for many credit managers at this time of year. Cash is suddenly unavailable and the spirit of christmas is decidedly lacking.

So how do credit controllers cope and what tactics do they use to ensure collections?

Heres a few hints and frankly bleeding obvious (but sometimes neglected) ways and means…

1. Make sure you chase that account early. Tomorrow is the 13th. Yes, suprising isnt it? and how many working days are left?

2. And how many of those will be “working days”. In my ad agency days I witnessed one “team” disappear every lunchtime for 5 consectutive days for all afternoon “lunches”. And even when they were there, well….

3. It is also year end and the cash balance has to be fat for January the first. Do you have the same requirement? Consider this. You can both have booked cash as at 31st December. How? You collect a cheque off them on that day and bank it. See? 3 days to clear but you can book the uncleared cash.  There is a method for BACS payments too but you will have to email me for that.

4. And do “collect”. Ok boring old BACS and Chaps have taken the place of cheques for many businesses but a bottle of wine or box of chococlates in return for picking up that cheque can work wonders for future relationships. Provided that the client isnt a recovering alcoholic or a diabetic…

5. Contact clients first thing.  They may be rushing around to get everything clear for their tacky xmas party that afternoon. It does seem to concentrate the mind..

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Categories: Uncategorized
  1. Tom
    December 13, 2010 at 11:21 am

    Yes, this is the time of year when the small independents get beaten up by the large multinationals (actually, when doesn’t that happen ?).

    As ever, Clive, you are spot-on – the trick is to chase early and persistently. I prefer the two-pronged attack; I chase finance and get the suits to chase the client.

    Have a good one, my friend !

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