Credit Control Tips to Kickstart 2025 on the Right Foot

As we welcome 2025, every business owner is looking for ways to improve cash flow, reduce stress, and set a strong financial foundation for the year ahead. One of the most effective ways to achieve this is by optimising your credit control processes.

Effective credit control ensures timely payments, minimizes overdue invoices, and creates a smoother path for business growth. Here are actionable tips and tricks to help you refine your approach and start the year on a positive note.

Set Clear Payment Terms

Ambiguity in payment terms can lead to delays and disputes. Ensure your clients know exactly when and how to pay.

Tip: Use straightforward language in contracts and invoices, specifying due dates, accepted payment methods, and any penalties for late payments.

Pro Tip: Share these terms during onboarding to set expectations early.Clear payment terms are the foundation of good credit control.

Automate Invoicing and Follow-Ups

Manual processes are prone to errors and inefficiencies, especially as your business grows. Automation can save time and keep payments on track.

Tip: Use accounting software to send automated invoices and reminders.

Pro Tip: Schedule reminders strategically—7 days before, on the due date, and 3 days after overdue—to keep clients accountable. Automation is a simple way to enhance your credit management systems.

Perform Credit Checks on New Clients

Extending credit without understanding a client’s financial stability is a major risk.

Tip: Conduct credit checks before agreeing to terms.



Pro Tip: For higher-risk clients, offer shorter payment terms or require upfront payments.

Assessing creditworthiness is a vital part of credit management consultation.

Monitor Receivables Regularly

Regularly reviewing your accounts receivable ensures overdue invoices are caught early, reducing their impact on cash flow.

Tip: Use an aging report to categorise overdue accounts by age (e.g., 30, 60, 90 days).

Pro Tip: Focus on resolving invoices nearing the 90-day mark, as recovery rates drop significantly beyond this point. Proactive monitoring is key to effective debt recovery.

Proactive Follow-Ups on Overdue Payments

Consistent follow-ups are essential for maintaining cash flow. However, many businesses hesitate, fearing it might harm client relationships.

Tip: Use polite but firm reminders to encourage prompt payment.

Pro Tip: Consider outsourcing overdue accounts to a professional debt recovery service.

Have a Clear Escalation Process

When initial follow-ups don’t work, having a clear plan for escalation saves time and ensures professional resolution.

Tip: Escalate overdue invoices over 90 days old to a trusted debt recovery specialist.

Pro Tip: Partner with experts who use ethical, relationship-preserving recovery methods.

Review and Update Policies Annually

The start of a new year is the perfect time to evaluate and improve your credit control processes.

Tip: Review payment terms, invoicing methods, and follow-up strategies.

Pro Tip: Use insights from the past year to refine your approach and avoid recurring issues. A professional credit management consultation can provide tailored advice for long-term improvements.

These tips can help you strengthen your credit control process, improve cash flow, and set the stage for a successful 2025. If you’re looking for tailored support or expert advice, McQueen Partnership is here to help.