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Sage advice

Sage have produced a check list for managing credit control within SMEs

http://www.sage.co.uk/business-advice/cash-flow/improve-cash-flow-by-chasing-late-payments.html

Pretty good advice overall and I believe the points regarding credit checking and selecting the right staff are crucial. I would have added that finding good credit controllers is very difficult and outsourcing to a genuine specialist experienced agency (not call centre ) is a very viable option

But there are a couple of points I would disagree with and perhaps betray theory over experience

Charging interest on a routine basis is very tricky. The amounts involved are often nominal and are certainly not worth the obvious aggravation to the client. A client who could quite easily slip away

And the use of debt collectors. Why no mention of the small claim courts as an alternative? Cheaper and definitely more effective. A debt collector will send a few letters and then, use the small claims court at a higher cost.

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