Credit control

The unglamorous discipline of making sure the money you have earned actually arrives.

What it means

Credit control is everything you do to get paid: checking a customer can pay before you start, agreeing terms in writing, invoicing accurately and promptly, chasing politely and early, and escalating in a defined order rather than in a temper.

Why it matters

An unpaid invoice at a 20% net margin needs five more sales to replace it. Credit control is usually the highest-return activity in a small business and the first one to be dropped when everyone is busy.

What it looks like in practice

A workable routine: credit-check new trade customers, put terms in writing before starting, invoice same-day, send a statement at day 7, a call at day 14, a formal reminder at day 30 quoting your right to statutory interest, and a decision at day 45 about whether to stop supplying.

Consistency matters more than firmness. Customers pay the suppliers who always chase, because those are the invoices that create work if ignored.

What to watch out for

Being afraid to chase a big customer. Losing them is a risk; funding them indefinitely is a certainty.

Letting a dispute sit. "There's a query on the invoice" is often true, and it stops the clock until you resolve it. Resolve it the same week.

Where to get proper advice

Credit reference agencies offer per-check pricing for small businesses. Your trade body may have a template letter-before-action, and the Money Claim Online service handles undisputed debts without a solicitor.