6 ways technology has made credit control easier
Credit management is one of the most critical functions in any business. But anyone tasked with the job knows it’s not always that easy. Keeping on top of customers throughout the credit period can be time-consuming and take up a great deal of resource.
That said, in recent years advances in technology have transformed the process making it more efficient and easier to manage.
Here are just 6 of the ways technology has made credit control easier:
1. Advanced payment methods
Online credit and debit card payments as well as BACS transfers have given customers more options when it comes to making payments, often making the process faster, easier and more convenient than traditional methods such as cheque payments.
Also, if you’re having trouble getting a customer to pay up you can take a card payment over the phone, making it harder for the customer to stall and removing the need for excuses such as the cheque is in the post.
2. Online banking
Advances in online banking allow businesses to log in at any time and check whether payments have been made. And with apps available to download on your phone you can even check when you’re on the go.
Emailing invoices saves money on paper, envelopes and postage – but most importantly it saves you time by increasing the speed of delivery. Also, sending an invoice via email makes it much harder for customers to claim that the invoice has been lost in the post.
4. Automated invoicing
There are now a number of programs that will automatically dispatch invoices for you as well as send reminder emails when needed. You can also diarise reminders of when to make courtesy calls to confirm receipt and remind customers of upcoming payment deadlines.
5. Online credit scoring
With the increase in relevant information and credit ratings available online, the speed and cost of credit scoring have been vastly improved. This means that businesses have faster and cheaper access to vital information about their customers which can help them make informed decisions about who they do business with, significantly reducing the chances of late payment.
6. Increased transparency
Once upon a time some businesses were put off outsourcing their credit control function through fear of losing control. But now, access to online portals with up-to-date information on the status of credit control allows businesses to monitor exactly how their outsourced agency is doing so they are kept in the loop at all times.
These are just a few of the changes that have benefitted businesses in recent years. And with technology advancing at great speed we expect many more exciting developments to come in the future.
Staying up-to-date with all the latest developments, not only in credit control but in all aspects of business, will help improve your processes and keep your company at the forefront of your industry.