Credit Control Procedures

Credit control procedures are processes that businesses use to manage the credit they extend to customers. This includes assessing the creditworthiness of potential customers, setting credit limits, and monitoring outstanding debts. When customers fail to pay on time, companies may follow up with reminders or implement more formal collection actions. The goal is to ensure healthy cash flow while minimizing bad debts, maintaining good customer relationships, and facilitating smooth business operations. Effective credit control helps businesses remain financially stable and reduces the risk of potential losses from unpaid invoices.