The 21 Do’s of Credit Control (How to Get Paid and Protect Your Cashflow)

Good credit control isn’t about chasing harder.

It’s about getting the fundamentals right from the very beginning.

Most late payments — and most bad debts — don’t happen by chance. They are the result of small gaps in process, communication and decision-making.

In our previous guide, we covered the common mistakes businesses make when granting credit.

We also looked at an example in practice:

This guide focuses on the opposite:

The practical steps you can take to reduce risk, improve payment behaviour and protect your cashflow.

Before You Grant Credit

1. Do confirm the correct legal identity of your customer

Always establish exactly who you are trading with. Don’t accept trading names, do get the proper address. Ensure the legal entity matches the company you are credit checking and invoicing.

2. Do carry out a proper credit check

Use reliable credit information to assess risk before granting credit such as those on CPA’s Creditcare reports. Set limits based on evidence, not assumptions.

3. Do clearly define your credit terms

Make payment terms explicit from the outset. Ambiguity leads to delay. And communicate them clearly. It sets expectations.

4. Do maintain control over credit decisions

Balance sales ambition with financial discipline. Credit limits should be set by risk, not opportunity. Don’t allow the Sales department to bully you into granting credit to somebody who doesn’t warrant it, just because they want the sale.

5. Do review long-standing customers regularly

Even reliable customers can change. Regular reviews help you stay ahead of emerging risk.

6. Do monitor your customers’ financial position

Ongoing credit monitoring (such as CPA’s monitoring service) helps you identify changes early and act before issues escalate.

7. Do act on early warning signs

Late payments, changes in behaviour or market feedback should prompt review and action.

8. Do verify new customers in the real world

Check addresses, trading activity and legitimacy. Confidence should be based on verification. A phone number or email address is not enough. Ask yourself if you would give them cash based on what you know? If not, why give them your goods and services?

9. Do be cautious with large orders from new customers

Scale exposure carefully. Large initial orders carry higher risk. Fraudulent orders are on the rise.

10. Do consider guarantees for higher-risk accounts

Where appropriate, director guarantees or additional security can reduce exposure.

When Trading Begins

11. Do confirm customer satisfaction early

Ensure the customer is happy with the goods or services. Address issues before they become reasons for delayed payment.

The Invoicing Stage

12. Do invoice promptly

The sooner an invoice is raised, the sooner the payment clock starts. And it sends the message that promptness is expected in payment too.

13. Do ensure your paperwork is accurate and complete

Clear documentation reduces the opportunity for disputes and delays. Get order forms, delivery notes and other documents in place in case of dispute.

14. Do confirm the invoice has been received

Don’t assume delivery. A quick confirmation removes a common excuse that the invoice never arrived.

Managing Overdue Invoices

15. Do resolve disputes quickly

When a dispute is raised, deal with it. Unresolved queries delay payment. Address them promptly and professionally.

16. Do follow up consistently and promptly

Regular, structured follow-up maintains urgency and reinforces expectations. CPA’s overdue account recovery service provides that consistent process.

17. Do maintain discipline in credit control

Consistency is key. Avoid letting accounts drift without action. This seems to happen especially where there are problems.

18. Do challenge excuses professionally

Be firm but respectful. Clarity and persistence improve outcomes.

19. Do set clear expectations around payment

Customers should understand that payment terms are taken seriously. Communicate this at every stage.

When Escalation Is Necessary

20. Do escalate at the right time

If payment is not forthcoming, escalate promptly. Delay reduces recovery chances. CPA provides the opportunity for its members to escalate collection.

21. Do apply your right to interest and compensation

Late payment legislation exists to protect businesses. Use it where appropriate to reinforce payment behaviour.

The key takeaway

Strong credit control is not about reacting to problems — it’s about preventing them.

Small improvements in process, consistency and communication can significantly reduce late payments and bad debts.

The tighter your credit management, the more predictable your cashflow becomes.

How CPA can help

Managing credit control effectively takes time, discipline and consistency.

CPA supports businesses by:

• Providing reliable credit information
• Monitoring customer risk
• Helping recover overdue invoices while maintaining relationships

Helping you get paid — without damaging the relationships your business depends on.

Just call 020 8846 0000 (business hours) or email PaidQuick@cpa.co.uk today.

The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.