How could better credit control help your business?
HOW MUCH are you’re owed – right now? Could better credit control be helping your business? If payments aren’t always prompt, watch this quick video and download our 11-point checklist…
‘Get paid on time, every time’ is almost like a mantra for me.
I’m pretty sure I pronounce this (and maybe also mutter it from between gritted teeth) several times each week!
Easy said, easy done? Well no, not necessarily. And I fully appreciate that. But this aspect of your finance function is critical to ensuring business success. You need to keep cash flowing, not arriving in a stop-start fashion.
You can’t forecast and plan effectively if you don’t know what cash is due in, and when – let alone whether or not it’s likely to appear on time, or at all.
So how do you handle this aspect of your business? How does your company’s credit control compare against best practice for getting paid on time, every time?
I’ve created a short 3-minute video about this. It explains what you need to do to adopt best practice – and the hugely significant benefits that will bring to your business.
The background to this is a little research we did, which generated some interesting results:
- 83% of business owners reported that they have at least 1 month’s turnover that’s late.
- 76% of business owners thought their credit control process couldn’t improve results for them.
Proven results and business benefits
In fact, when we worked with 5 different clients, we were able to achieve very impressive results:
Alex @ PR company: YRH was able to collect >£104k in 10 weeks (business owner couldn’t believe he’d ever get paid some very difficult debt and had been prepared to write off >£60k). We worked 1 day a week for the first 2 months, with some input from a YRH Financial Controller on difficult debt, then 2.5 hours a week on average.
Paul @ Tech business: We collected >£90k in 6 weeks (bank balance went from -£25k to +£500k in 12 months). YRH supported 1 day a week, which included other bookkeeping activities.
Ellie @ Training company: Ellie was owed £100,000s and was in tears about the pressure of not being paid when we met. Our team got it all collected in a few months – working 1.5 days a week, which also included doing the day-to-day bookkeeping.
Simon @ Recruitment business: We were initially hired for a 1-month credit control project, working 2 days a week to get everything up to date before the sale of the business – the YRH Finance Manager was so good, they asked her to stay on an extra 3 months. Following the business sale, they asked us back 6 months later.
Darren @ Health & Safety consultancy: YRH collected £900k of £1m “difficult to collect” debt, working 3 days a week over 3 months. The work cost £11k and delivered 8,000% RIO.
Could your credit control be tighter?
Do you know how much you’re owed – right now? Could better credit control be helping your business? Don’t forget to watch my quick video.
I’d also like to invite you to download and complete our survey. Send us your results and we’ll give you a FREE 30-minute call to tell you how you score against our best practice measures and to review insights and recommendations with you.
You can also download our 11-point Credit Control Checklist to help you understand what best practice looks like.
For more of my thoughts around having the right mindset for how to get paid on time, every time – and some practical pointers for getting everyone onboard with this idea – read our related blog.