Credit Control in your Growing Company
As document distribution becomes a more prominent task in a company, the way in which credit control is handled becomes important also. In short, management of credit control can determine whether a company survives or fails – especially if that company is young. The use of electronic invoicing in document distribution has begun to replace traditional methods of post or fax, and has become an indispensable part of a company’s credit control.
Electronic Invoicing in Credit Control
Electronic invoicing can be significantly useful to a company when managing credit control. An electronic invoicing system will automatically send invoices and dunning letters to a customer when dispatch is due. This automation means that they are sent promptly, so payment can be made as soon as possible, which is essential for credit control.
An electronic invoicing system is able to track outgoing documents in ways that post and fax cannot. With electronic invoicing, document distribution is carried out by sending a notification of a customer’s invoice in an e-mail. This notification will contain a link, taking the customer to their invoice, via a secure password screen. The electronic invoicing system will then be told when the customer has accessed their invoice. This is highly useful to a company because good credit control relies on the way in which late payments are chased and obtained. For various reasons, post and fax offer no guarantee that the customer has received their invoice, as interception is more possible. By sending the invoice to a private e-mail inbox, and then authenticating the customer before they can receive it, electronic invoicing offers this guarantee.
A Credit Control System
Credit control systems should work in harmony with a company’s document distribution systems when sending large amounts of post. A vetting system should be in place to prevent customers with poor credit history being offered credit at all; and electronic document distribution should be used where possible in the sending of invoices and statements.
Credit control can still be highly successful when post and fax are used. An electronic invoicing system uses a database which shows when invoices and statements need to be sent; with post and fax, this is used also, but once the item is sent, this must be manually acknowledged to the database. Here, credit control is less efficient because human error can come into play. However, outsourcing these aspects of business to another company can ensure efficiency. Netsend are an example of such a company; they specialise in document distribution and have built up many years of experience in the field of credit control using electronic invoicing, post or fax.