Choosing a credit control plan

First of all, by Credit Control Plan, we simply mean the process that we will follow when monitoring and requesting payment for your invoice.  


We realise that every business is different, as are the clients that it serves.  Therefore there isn't a 'one size fits all' plan that will be suitable for everyone.  We have several credit control plans that you can choose from listed below.  Some are more 'firm' than others but all are completely fair and reasonable in terms of requesting payment for the invoice that you have submitted and all will be handled in a professional manner with client satisfaction and retention being paramount.


Please insert the plan number into the relevant box on the template invoice.




Plan 1


Brief description

Described as our most relaxed or forgiving plan, this really does give every opportunity for your client to pay on time with extended grace periods, possible repayment plan options and delayed debt collection procedures.  Grace periods are typically an additional 50% on top of your payment terms e.g if you have a 30 day payment term then with good reason, we will allow 45 days before charging late payment fees 


In a nutshell:

- 50% grace period

- repayment plan options


Possible plus points:

Excellent for retaining and even strengthening customer relations.


Possible negative points:

Can result in long delays in getting paid

Your cash flow will be affected

Increased chance of only getting part payment

Increased chance of not getting any payment due to business insolvency/ bankruptcy





Plan 2


Brief description

This is our standard and most popular plan, best described as firm but very fair.  We can liaise with your client and accept slightly late payment where 'reasonable' reasons are given; a grace period of approximately 25% on top of your stated payment terms is typically allowed before charging late payment fees (e.g. if your payment terms are 30 days then we will allow another 7 days grace period before charging late payment fees).  


Possible plus points:

Excellent for retaining and even strengthening customer relations

Great for cash flow

Improves the image and professionalism of your business

Vastly reduces the chance of non-payment


Possible negative points:

Very small increased chance of not getting paid through insolvency/ bankruptcy due to grace period given.




Plan 3


This plan sticks to the agreed credit period with no flexibility, grace periods or repayment options offered. Late payment legislation will be enforced immediately once the payment becomes overdue.  This is suitable where you may have doubts over the financial stability of your client, if it is one off transaction, if it is for a large amount that needs to be paid quickly or if your business relies on low profit margins and so requires quick settlements of invoices.


Possible plus points:

Will get your invoices paid quicker and improve cash flow

Will vastly reduce the chance of non-payment or losing your money completely through insolvency/ bankruptcy


Possible negative points:

May harm your relationship with your client - though it shouldn't do because all you're asking is to be paid on time for the work that you've done!





Please note that the invoice monitoring process within each plan is pretty much standard.  For example for an invoice with 30 days payment terms with credit control Plan 2, the process would be:


1. submission of invoice 


2. within 7 days of submission, a follow up email to ascertain that the invoice has been received and the details checked and that there are no foreseen problems with meeting the payment deadline.


3. 7 days before the payment due date another email is sent as a gentle reminder that the payment due date is approaching.


4.  2 days prior to the payment date another reminder will be sent.


5.  if no payment has been made by the due date we will attempt to contact the debtor to ascertain the reason and offer a grace period of 7 days.  


6.  2 days prior to the end of the 7 day grace period we will send a final reminder email with regards to the payment date and that The Late Payment Legislation, as detailed on the invoice, will automatically be applied if payment is not received on this revised payment date.


7.   Once The Late Payment Legislation is applied, we now class this as an 'unpaid debt' rather than just an overdue invoice and we will email the debtor with regards to this, outlining the fact that they have a further 7 days to make payment after which the matter shall be dealt with by our solicitors.


8.  If payment is still not forthcoming, we get our solicitors to send a Late Payment Demand.   Don't worry , usually in the vast majority of cases this gets your debtor to cough up, and it's all included in your 99p invoice management fee.  There is again another 7 days period in which to pay.


9.  By this point, you need to go to our debt collection page for further information!


You can now see why you shouldn't be afraid to ask for your money.  The debtor has plenty of reminders and nudges and opportunity to pay, has been given a grace period and 'threats' of Late Payment fees and solicitor intervention.  If payment is still not forthcoming then there is serious concern about your debtor's financial situation and you shouldn't hang around to resolve it by taking legal action.  



Obviously this approach is not set in stone.  For example if there are no replies to any of our emails we will make telephone enquiries.  Or if we are given a payment run date (or similar) we will give a reminder 7 days prior to this etc etc.  And once payment has been recieved the process will be closed.




For non-commercial debts where the Late Payment Legisaltion does not apply, the process will be slightly different.  For more information please see the 'Late Payment of Commercial Debts Regulations 2013' tab.

Contact us to request more information





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