Generally being a credit controller is a fairly difficult and pressurised work. Credit control in a recession from what I am hearing is much more difficult.
Speaking to a friend recently who works in a multi-national tells a story for small businesses and how the duties of credit control have changed over the last few months.
It appears that some credit managers have decided that many small businesses are doomed and hence they will have no flexibility in their credit. My friend is now shutting down accounts of their smaller clients as soon as they reach the 30 day mark – so not one day over.
In the past, to a certain extent, I would have been a fan of this. Most companies had the money to pay, but would push the credit period to the absolute limit – there would be the usual letters and several phone calls and the eventually they would pay up just as the account was heading onto to hold.
These companies cause are a high cost on any business – but those days have stopped. 30 days and automatic hold and interest added after 7 days – something I would have been a fan of in the past – but today I am not so sure.
However I do lead with my heart and not my wallet sometimes. This may over time makes all companies more responsible in paying their invoices on time – something that is way over due – like most of their invoices.
