Brachers advises Kent businesses to go ‘back to basics’ when it comes to effective credit control
Brachers has advised local companies to review the fundamentals of their credit control processes in order to protect the future sustainability and growth of their business.
The advice came following the results of a poll facilitated by Brachers, which revealed that the impact of the economic uncertainty on their clients’ ability to pay on time was the most pressing issue for businesses, with 38% of attendees rating this as their key concern. This was closely followed by worries about incurring costs in recovering debt, identified as the number one priority by 28% of respondents.
As a result, experts from Brachers’ Debt Recovery team presented at a breakfast seminar on Thursday 17 November, highlighting how going ‘back to basics’ and reviewing the initial stages of their credit control process can help businesses in Kent weather the current Brexit storm and, more broadly, avoid costly litigation.
Rob Thompson, Partner, summarised the main aspects of the current civil legal system that companies should consider when reviewing and developing their credit control processes whilst Paul Abdey, Legal Executive, delivered practical recommendations including review and implementation of robust terms and conditions, a thorough training programme for all staff and an up to date and in-depth client database.
“The concerns identified by our poll are not surprising but the good news is that there are some simple actions businesses can take to protect themselves and future-proof their business. Fundamentally, getting the procedures right from the start, through clear and comprehensive terms and conditions is the most valuable way of ensuring an effective credit control process. Not only does this protect the cash flow into your business, but it also clearly sets out the responsibilities of both your company and your customer, which lays the foundations for a healthy business relationship.”
Michael Oatham, Head of Litigation, added:
“It is important for businesses to remember that effective credit control doesn’t start in the credit control department; it is the result of well educated staff across the organisation, who understand the fundamental aspects of the process and can identify potential risks and opportunities early on – and can therefore implement an effective action plan in response.”
Brachers’ Debt Recovery team provides comprehensive credit control advice, including assistance with current or new procedures, a full debt collection service and bespoke training. The team is top ranked by Legal 500, the leading guide in the legal sector.