If you have spent any amount of time looking into the world of credit control, you may have become overwhelmed by all the advice that abounds from professionals.

What started out as a relatively simple Five Cs mantra has evolved in some places to become the Seven Cs or even the Eight Cs.

It is time to cut to the heart of the issue and focus on what makes credit control an effective business strategy.

Credit control allows you to increase your cashflow by allowing you to conduct business faster and more efficiently.

Placing that level of trust in a client may seem intimidating but there is a technique to help reduce risk while boosting reward: building rapport.

The importance of rapport

It is an old truism that you catch more flies with honey than vinegar and the same is true when it comes to handling your business.

Building good rapport with clients and customers may seem like an obvious step on the road to a successful business, but there are hidden benefits to this approach.

Building a strong rapport quickly will help to introduce the concept of credit checks required to effectively manage credit control.

No client wants to be accused of having skeletons in the closet, so framing the credit check as a mutually beneficial step in the process will likely increase compliance.

However, a credit check can only tell part of the story.

At the end of the month, when bills are piling up, how can you ensure that your bill is at the top of the pile?

Consider things from the other side. How do you prioritise your finances?

When it comes to paying bills, are you more likely to pay a helpful, friendly company first or the company that have presented you with nothing but challenges?

Humanising your business by building rapport with the client will ensure that your bill does not read as just another number on a spreadsheet.

Establishing reasonable terms

Your strong rapport will also help you when negotiating the terms that are needed to make credit control effective.

A clear understanding of the position of your client, established through friendly conversations with them, will keep the terms realistic and ensure that you find the balance between pressure and leniency that will result in a mutually beneficial arrangement.

Likewise, keep the good rapport going when the payment comes in.

Be prompt in thanking the client and make sure they continue to feel valued.

This will help deepen the relationship and pave the way for future successful transactions.

While credit control is never without risk, it can be an essential and effective way of freeing up cashflow to ensure that your business continues to grow.

Now is the perfect time to make credit control part of your strategy, so speak to our team for more information.