Is your credit control process legally sound?

Credit control isn’t just about chasing payments — it’s about protecting your business from risk. This quick checklist will help you assess whether your credit control process is legally robust and where legal advice could strengthen your approach.

1. Contracts and terms

• Do your contracts clearly state payment terms, interest on late payments, and consequences of non-payment?
• Are your terms tailored to your business and regularly reviewed?
• Do you have signed agreements in place before work begins and are your terms incorporated into the agreements?

2. Due diligence

• Do you carry out credit checks or risk assessments before offering credit?
• Are you aware of your customers’ trading history or financial stability?
• Do you set appropriate credit limits based on risk?

3. Invoicing and communication

• Are invoices issued promptly and accurately?
• Do you have a clear process for following up on overdue payments?
• Are all communications with customers documented?

4. Escalation procedures

• Do you have a defined process for escalating overdue debts?
• Are you confident in issuing letters before action or statutory demands?
• Do you know when to involve legal support — and who to contact?

5. Legal support

• Do you have access to legal advice when drafting or reviewing contracts?
• Have you ever used legal intervention to recover a debt?
• Do you understand your options for enforcement if a customer refuses to pay?

How did you score?

If you answered “no” or “not sure” to any of the above, your credit control process may benefit from legal input.

Join us on 13 November for our upcoming webinar, Effective Credit Control: Legal Strategies to Safeguard Your Business in 2025, to learn how to strengthen your systems, reduce risk, and protect your cash flow. 

This content is correct at time of publication