5 simple steps to strengthen your credit control process
5 simple steps to strengthen your credit control process
For most businesses, steady cash flow is essential to staying healthy. Yet according to Xero, more than half of invoices issued by small businesses are paid late. The longer customers delay payments, the harder it becomes to manage your own bills, payroll, and plans for growth.
Strong credit control isn’t about chasing late payments. It’s about putting systems in place to help customers pay on time, every time. In this article, one of Chaser’s accounts receivable experts shares five simple steps to help you strengthen your process, improve cash flow, and reduce stress.
1. Make sure invoices are accurate and complete
One of the easiest ways to speed up payments is to make sure your invoices are right the first time. Even small errors, such as missing purchase order numbers or unclear descriptions, can cause unnecessary delays.
Before sending an invoice, always check that it includes:
A clear description of the goods or services provided
The total amount due, including taxes and discounts
The invoice date and payment due date
Your payment terms and accepted payment methods
Your business name, address, and contact details
It’s also worth confirming that it’s being sent to the right person or department. In larger companies, invoices often get lost if they’re not addressed correctly.
👉 Tip:
Create a consistent invoice template for your business. This ensures every invoice contains the right details and reduces the chance of mistakes. Tools such as Xero or QuickBooks can help automate this process.
2. Credit check new and existing customers
Late payments can sometimes be a sign that a customer is struggling financially. Running credit checks before agreeing payment terms helps you understand how reliable they are likely to be.
A credit report gives valuable insight into a company’s financial health and payment history. It can highlight customers who regularly pay late, helping you decide whether to offer credit, shorten payment terms, or ask for a deposit upfront.
👉 Tip:
Use reliable credit checking services such as Experian or Creditsafe. If you use accounts receivable software like Chaser, you can also access integrated credit insights to review customer risk directly.
Doing this before you start work can prevent bigger issues later.
3. Send payment reminders before invoices are due
Many businesses wait until an invoice is overdue before following up, but by then the damage is already done. Sending a gentle reminder before the due date can prevent late payments altogether.
You could say something like:
“Just checking in to confirm you received our invoice for [service]. Please let us know if there’s anything you need from us before payment is due.”
This friendly approach helps catch any issues early. It shows you’re organised, gives your customer a chance to flag questions, and keeps payments on schedule.
👉 Tip:
Set up a simple reminder schedule. Automation tools such as Chaser make this easy by sending personalised reminders automatically while keeping your messages professional and polite.
4. Make it easy for customers to pay
Even when customers want to pay on time, a complicated payment process can slow them down. The easier you make it to pay, the faster you’ll receive what you’re owed.
👉 Tip:
Include a direct “Pay now” button or payment link in every invoice and reminder email or message. Offer several payment methods, such as bank transfer and debit or credit card.
Payment portals like Stripe allow customers to pay instantly and securely. According to GoCardless research, 43% of small businesses have improved their cash flow by offering easier payment options.
Making payments convenient isn’t just good for cash flow, it also creates an easier, and better experience for your customers.
5. Don’t rely on email alone
Email reminders are one of the most effective ways to follow up on overdue invoices. However, if emails and phone calls aren’t getting a response, it can help to take things a step further.
A formal letter stands out and shows that you’re taking the overdue payment seriously. It can also serve as a record of your communication if further action is needed later.
👉 Tip:
Add a letter stage to your follow-up process. Keep the tone polite but firm. Include the amount owed, the invoice number, and a clear payment deadline. For example:
“We’d appreciate payment within seven days to avoid further action. Please contact us if there’s anything preventing payment so we can resolve it quickly.”
If you’re using an accounts receivable tool like Chaser, letters can be sent automatically alongside emails and SMS reminders, keeping your process consistent and professional.
Small changes, big results
Credit control is all about being proactive, not reactive. These simple steps will help you prevent late payments before they happen, improve cash flow, and reduce time spent chasing invoices.
Accurate invoicing avoids confusion. Credit checks protect your business from unnecessary risk. Early reminders and flexible payment options help customers pay faster. And when needed, a formal letter gives your process structure and authority.
Together, these changes create a stronger, more reliable credit control system, one that keeps your business running smoothly and your customer relationships positive.
If you’re not sure where to begin, the PJE team can support you in identifying gaps and exploring tools like Chaser that make credit control easier.
Posted - 11 November 2025