Introduction to WJM's Credit Control service

We strongly believe that putting a good credit control system in place is the most important thing you can do to improve the financial position of your business. Put simply, we define “credit control” as the process by which you recover money owed to you without having to raise court proceedings or incur lawyer’s costs.

In fact, if done well, you shouldn't need us at all! The problem is that most businesses don't do this well...

Some companies have very sophisticated cash flow systems, while some have nothing in place at all. The most successful companies tend to fall into the first category, whereas the companies which struggle with cash flow on a weekly and monthly basis tend to fall into the second category. We can provide advice and assistance to both categories, from providing basic credit control advice, all the way through to undertaking your credit control process for you.

An example might illustrate a common problem. You buy goods from a supplier, which you have to pay for within 30 days. You sell those goods to a customer. Your terms and conditions state that your customer has to pay you within 30 days. Your supplier has a good credit control process in place, and after 31 days starts chasing you for payment. You decide that, to avoid a court judgement against you (and so that your supplier continues to supply you with goods), you should pay out. Your own customer, however, does not pay for another 35 days, and in the meantime dodges your calls. During that period, you have paid out to your supplier but you don’t yet have the money in to cover that outlay. Your bank becomes concerned at your overdraft ... Well, you probably know what happens from here.

The point is this - your success depends on cash flowing into your business. Your financial security depends on you reducing the amount of time it takes for your customers to pay you. You need to have a system in place to ensure that problems with payment are identified early, and dealt with. If you do not have such a system in place, your business will be storing up problems for the not too distant future.

We can help. Follow the links on the right to find out how.