Credit Control Tips to Kickstart 2025 on the Right Foot

As the new year begins, many business owners are reflecting on the challenges of the past year and planning for a more successful and financially stable 2025. One area that often gets overlooked—but is critical to business success—is credit control. Effective credit control not only improves cash flow but also strengthens client relationships and reduces the stress of chasing overdue payments.

Here are some practical tips and tricks to help you optimise your credit control processes and start 2025 in a positive way:

1. Set Clear Payment Terms

Ambiguity in payment terms is one of the leading causes of late payments. When clients don’t fully understand when and how they’re supposed to pay, delays become more likely.

• Tip: Use simple, direct language in your contracts and invoices. Include details like payment due dates, acceptable payment methods, and penalties for late payments (if applicable).
• Trick: Send payment terms as part of your client onboarding process. This sets expectations from the start and ensures there’s no confusion.

2. Automate Your Invoicing and Reminders

Keeping track of who owes what—and when—can be overwhelming, especially as your client base grows. Automation is a game-changer for staying organised and consistent.

• Tip: Use accounting software to generate and send invoices automatically. Set up reminders for clients ahead of due dates.
• Trick: Schedule reminders at strategic intervals—such as 7 days before, on the due date, and 3 days after—to keep payments top-of-mind for clients without being intrusive.

3. Perform Credit Checks on New Clients

Extending credit to clients without assessing their ability to pay is a significant risk.

• Tip: Conduct credit checks on new clients before agreeing to payment terms. This helps you identify potential risks early.
• Trick: For higher-risk clients, request upfront payments or shorter payment windows to minimize exposure.

4. Monitor Your Receivables Regularly

Keeping a close eye on your accounts receivable is crucial for spotting problems early.

• Tip: Schedule regular reviews of your receivables to identify overdue accounts quickly.
• Trick: Use a simple aging report to categorise overdue invoices by age (e.g., 30 days, 60 days, 90 days) and prioritize follow-ups accordingly.

5. Be Proactive with Follow-Ups

Many businesses hesitate to follow up on overdue payments, worrying about straining relationships. However, prompt follow-ups are key to maintaining cash flow.

• Tip: Use polite but firm language when contacting clients about overdue invoices. Consistency in tone and timing is essential.
• Trick: Consider outsourcing follow-ups for overdue accounts to a professional credit control or debt recovery service. This ensures efficiency while preserving client relationships.

6. Have a Clear Escalation Process

When initial follow-ups don’t work, having a clear escalation process can save time and energy.

• Tip: Decide when and how to escalate overdue invoices to debt recovery professionals.
• Trick: Typically, invoices over 90 days overdue should be escalated to experts for the best chances of recovery.

7. Review and Adjust Your Policies Annually

The start of a new year is the perfect time to evaluate what’s working and what isn’t in your credit control process.

• Tip: Review your payment terms, invoicing methods, and follow-up strategies to identify areas for improvement.
• Trick: Gather feedback from your team and clients to refine your approach for 2025.

By implementing these tips and tricks, you’ll not only improve your cash flow but also create a more efficient and stress-free credit control system. Starting 2025 with a solid plan will position your business for growth and success in the year ahead.

If you need expert advice or tailored credit control solutions, McQueen Partnership is here to help. Contact us at

07359 343966, email [email protected], or visit www.mcqueenpartnership.com to learn more.