A credit controller’s job is to make sure customers pay their invoices on time, assess how much credit a customer should be given, chase overdue payments, and deal with any payment issues along the way. It’s a role that takes a good mix of people skills, financial knowledge, and the ability to stay calm under pressure.
Many business owners and recruiters focus think of the role as chasing overdue payments, which is NOT a credit controller but more a collector. It is so important to get this right especially in smaller businesses where they may not have the funds for a credit manager to cover off the things that their collector is not doing.
A number of businesses are finding that their credit control teams aren’t as sharp as they used to be, indicated by:
Invoices taking longer to be paid – increasing Days Sales Outstanding (DSO).
More bad debts – meaning money that must be written off as uncollectable.
Poor communication – staff struggling with difficult conversations or not following up effectively. They may also lack the skill to draft a well worded, compliant email or letter, a casualty of automation perhaps?
Over-reliance on tech – automation is helpful, but it can’t replace good judgement and personal.
So, what is behind the decline?
There is not one single reason – it is more a mix of issues coming together:
Lack of Proper Training
With tighter budgets, some companies have cut back on training, leaving staff to learn on the job without much support. As a result, important skills like negotiation and risk analysis aren’t being developed properly. Many smaller businesses do not event think training is necessary.
High Turnover
Credit control roles often see high staff turnover, which means experience is constantly walking out the door. New hires do not always get the time or support they need to properly learn the ropes. This could be down to the fact that real credit control has only recently been recognized as a profession and is a vital role in any business – no longer is it a temporary stop gap used as a stepping stone to another position. This message is taking time to filter through to the coalface sadly.
Focus Has Shifted Elsewhere
With finance teams putting more time into things like forecasting and analytics, core functions like credit control sometimes get sidelined – and seen as more admin than strategic.
Experienced Staff Retiring
Many experienced credit controllers are leaving the workforce, and there’s a noticeable gap in younger professionals stepping into the field with the same depth of knowledge and confidence.
Why It Matters
If credit control is not up to scratch, it can have an effect across the whole business:
- Cash flow suffers, which can stall growth or put pressure on day-to-day operations.
- Customer relationships can take a hit, especially if chasing is done poorly or too aggressively.
- Legal and compliance risks can increase if credit is offered to the wrong customers or terms aren’t followed properly.
- Competitiveness drops, especially if rivals are managing their credit and cash better.
What Can Be Done?
The good news is that the decline can be reversed – but businesses need to act now.
Bring back real training, there are a number of people, including myself and Thornbury Collection Services Limited who offer training for stand alone people that cover credit control in smaller businesses, business owners and sales staff should also take advantage , the wider the understanding and better the knowledge the better the whole credit control and management will be.
Give Credit Control the Respect It Deserves
This isn’t just a back-office admin job. Credit controllers play a key role in keeping the business running smoothly. Recognising that can help attract and keep better talent. It does not stop there though the awareness, training and recognition has to be shared with the smaller business, the stand-alone roles, one man band businesses – this was never just a corporate and big business role but for too many years the focus has been in that area.
Use Tech the Right Way
Automation and credit control software are great tools – but they should support human decision-making, not replace it. Make sure staff still understand the ‘why’ behind the numbers.
Encourage Mentoring
Pair up newer staff with more experienced colleagues so they can learn on the job and avoid repeating the same mistakes. This can be done remotely quite easily and also links directly with experience retiring or in really bad cases being made redundant.
Hire With the Right Skills in Mind
When recruiting, look for more than just admin experience. Communication, resilience, and the ability to spot risks are just as important – if not more so.
Final Thoughts
Credit control might not be the flashiest part of a business, but it is vital. If skills keep slipping, the impact will be serious – from cash flow issues to strained customer relationships. But with the right approach, training, and mindset, businesses can build strong credit control staff that not only chase debt but help drive growth and protect the bottom line.
