Guides, Research & More

Automated Credit Control - The Ultimate Guide

Automated Credit Control - the ultimate guide is here to answer all your Automated Credit Control questions, from why it's beneficial to how to implement it.

What is Automated Credit Control?

You can’t have automated credit control without credit control. 

Credit control is the process of giving credit to customers, and then managing your customer accounts to ensure payment is received. 

When you automate your credit control, you are automating the steps you would take to manage your customer accounts. This sounds scary, but in fact it’s very simple - you are automating communication sent to customers. 

Why is Automated Credit Control Important?

Automated credit control can make or break your business - seriously. Improving your credit control process can bring in more cash in both the short and long-term, which can only be a good thing for the health of your business. 

Research suggests that 50,000 businesses close every year due to late payment. By making automated credit control a part of your business, you can avoid this fate. You will get paid quicker and have a healthier cashflow.

What Are the Benefits of Using Automated Credit Control Within Your Business?

There are many benefits to using automated credit control for your business. Firstly, it can improve your cashflow position, as you’ll be getting paid quicker and have more cash in your business bank account. 

Secondly, it will help  you to keep track of which customers pay on time and which ones continually pay late. Having this kind of overview can ease the decision making process and give you more background on your customers, allowing you to have a better relationship with them. 

How Automated Credit Control Can Prevent Late Payments. 

As previously mentioned, late payments pose a serious risk to businesses across the UK. They can decimate a businesses cashflow and stunt growth. With automated credit control, you don’t have to worry about reminding your customers to pay. Even if you already diarise your invoice reminders, by using an automated solution you’ll save time and energy which you can focus on other parts of your business. 

An automated credit control system such as itsettled will automatically send out gentle invoice reminders before the invoice is due, reminding customers of the need to pay. Each itsettled communication is perfectly suited to each step of the process - with all of the appropriate communication and following the correct legislature. 

How Automated Credit Control Can Boost Cashflow. 

We’ve touched upon it earlier in this guide, but one of the best ways to boost your businesses cashflow is to introduce an automated credit control system into your business. When you leave payments overdue, the money you’ve forecasted to be in your bank account will instead be in someone else's - leaving you out of pocket. Also, by being paid earlier, you’ll have your owed cash for longer. With more cash in your business due to your automated credit control system, you can plough that money into your business and further your growth. 

What’s the Best Automated Credit Control Software to Use?

Currently the only fully automated credit control software available to UK businesses is itsettled. Founded by Credit Control industry veteran Glen Morgan FCICM, the software utilises Glen’s 28 years of experience to communicate expertly to your customers at the best possible time. 

Another bonus of using itsettled’s automated credit control software is that if you don’t get paid once all automated steps have been completed, itsettled’s in house credit control experts will step in to recover the invoice for free. As an itsettled customer you also gain access to credit reports which can be incredibly insightful. 

How Should You Implement Automated Credit Control Within Your Business?

It’s important to make sure that you have the correct person looking after the automated credit control system within your business. Although it’s automated, you still might want someone within your business to check in on the process regularly. 

This doesn’t have to be the CEO or business owner as itsettled’s automated credit control software is very easy to use. All that the employee needs to do is upload invoices via your businesses accountancy software, and you’ll be good to go. 

Who Can Use Automated Credit Control in Your Company?

The short answer is ‘anyone’. itsettled is simple to use and set up, meaning that anyone - no matter their financial experience - can use the software on the businesses behalf. You may choose to designate the task to your Financial Director, who can use the automated credit control to save themselves time and energy. 

Similarly, if your organisation employs a credit controller, they can use the software to save time too. Some of our customers have multiple users on itsettled, allowing multiple employees to keep track of invoices. 

How Can Accountants Use Automated Credit Control?

Accountants can use itsettled’s automated credit control software for their own clients, providing an extra value-add service. If you don’t already offer credit control, then using itsettled is a good place to start. You can read more about building a credit control department using itsettled here. Alternatively, if you already offer credit control as a service, then using itsettled’s software will allow you to save time by chasing invoices automatically. 

Interested in seeing how itsettled can help you? Sign up for a free 7-day full access trial today. 

Ready to get started?

email us now so we can start helping you

Start chasing payments now

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.