Credit Control

Credit Control Services

What is Credit Control?

Credit control refers to the practices and strategies implemented by businesses and financial institutions to manage and monitor the credit extended to their customers or clients. It involves maintaining a balance between providing credit to customers and ensuring timely payment of outstanding invoices or debts.

The primary goal of credit control is to minimise the risk of bad debt and late payments while also maintaining positive relationships with customers. Effective credit control involves various processes, such as assessing the creditworthiness of potential clients before extending credit, setting credit limits, establishing payment terms, monitoring customer accounts for overdue payments, and taking appropriate actions to recover outstanding debts when necessary.

Credit control activities may include sending reminders or statements to customers with outstanding invoices, negotiating repayment plans, imposing late payment fees.

Credit control can either be undertaken by creditors internally within their business or to an outsourced credit control specialist debt recovery organisation.

If the credit credit control strategy fails then debts should be outsourced to a third party debt recovery specialist for recovery and legal action where appropriate.

Ultimately, credit control helps businesses maintain healthy cash flow, reduce the risk of financial losses due to non-payment, and ensure that the financial health of the organisation remains stable.

Debt recovery

How We Can Help You

Recognising the distinct needs of our clients we take immense pride in providing a meticulously tailored and fully personalised solution through our credit control services. This approach ensures that your individual requirements and preferences are seamlessly aligned with, guaranteeing a bespoke and effective resolution.

Within this framework, you are presented with a versatile range of choices. Should you find yourself facing overdue invoice(s), our credit control services can be promptly engaged to proactively address the situation. Alternatively, during busy periods such as your fiscal year-end, our support can be strategically utilised to optimise your financial operations.

Furthermore, it’s important to emphasise the benefits of engaging with our credit control services at an early stage. By enlisting our assistance from the beginning, you set the stage for a seamless and gradual incorporation into our comprehensive collections process, should the situation require it. This proactive strategy not only showcases our dedication to your financial health but also ensures a fluid and efficient advancement in addressing any credit-related obstacles that may come your way.

Get in touch

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Featured Customer Reviews

Nottingham City Council

I have had the pleasure of working with Legal Recoveries and Collections (LRC) for several years across various industries. Throughout our partnership, LRC has consistently demonstrated a deep knowledge of the market and provided strategic insights that have been invaluable to our business. Their excellent communication and commitment to delivering on promises have always stood out. LRC’s proactive approach, engaging early and adapting as needed, ensures that we are always prepared and supported. Their partnership style not only delivers the best results for our business but also enhances the experience for our customers.

Credit Control Manager – Leading International Law firm

“LRC provide a professional and efficient service, delivering regular updates and effective solutions”

International Credit Insurance Client

We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.

North East Ambulance Service

As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.

The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.

London Metropolitan University

We have worked with Legal Recoveries and Collections for a number of years now and they have provided an outstanding service to us. We have worked closely with the team and have a good working relationship with both Rachel and Andrea. Their online portal is very user friendly. They have collected both pre-legal and post legal debts for us to a high standard and we would recommend their services to anyone considering using them going forward.

Utilita Energy Limited

We contacted LRC when we wanted to strengthen our collections processes and recover debt after we had exhausted our internal processes attempting to collect. From the off, LRC offered exceptional advice and support and helped us shape the way in which we approach collections. The team at LRC have a wealth of knowledge and experience which has enabled them to collect a significant amount of money on our behalf and through their professional approach have helped to change customer behaviour in many cases from infrequent to regular payers. LRC have tailored their collections activities to meet our needs and regularly make suggestions to make sure we spend our money wisely to ensure maximum return from their services . We are currently working with LRC to create a bespoke training package that they will deliver to staff across the business who manage and recover debt. I would not hesitate to recommend LRC for debt recovery.

Frequently Asked Questions

What is credit control and why is it important for my business?

Credit control is the set of processes and strategies used to manage and monitor credit extended to customers, ensuring that invoices are paid promptly. Effective credit control maintains healthy cash flow, reduces the risk of bad debts, and helps your business avoid financial difficulties due to late payments. By implementing proper credit control, you can improve your working capital, strengthen customer relationships through clear communication, and prevent costly recovery actions later on.

How does Legal Recoveries & Collections handle credit control?

LRC provides professional credit control services that include regular communication with your customers through reminder letters, emails, and telephone calls. We act on your behalf, gently chasing overdue payments while preserving your customer relationships. Our approach is tailored to your business needs and integrates with your existing credit policies and accounting software, ensuring a seamless and effective credit management process.

Can I charge late payment fees, and how are they calculated?

Yes, under the UK Late Payment of Commercial Debts (Interest) Act 1998, you can charge interest and fixed sums as late payment fees depending on the amount overdue. For example, debts up to £999.99 may incur a £40 fee, while debts over £10,000 can attract a £100 fee. LRC will advise you on the correct calculation and ensure compliance with all legal requirements when adding these charges.

What information do I need to provide to start using credit control services?

To get started, you will need to supply details of your customers’ accounts, including contact information, credit terms, invoices issued, and any payment history. The more comprehensive this information is, the more effective LRC can be in tailoring a credit control strategy that suits your business and improves recoveries.

How soon do you start chasing overdue payments?

Typically, chasing begins shortly after an invoice becomes overdue based on your agreed credit terms. LRC works with you to agree on the timing and frequency of reminders and escalations, ensuring a proactive but balanced approach that encourages prompt payment without straining customer relations.

What industries do you provide credit control services for?

LRC offers credit control support across a diverse range of sectors. Whether your business operates in healthcare, commercial services, food distribution, or another industry, our team has the expertise to understand sector-specific payment behaviours and tailor strategies that maximise collection success.

Can credit control services help improve my customer relationships?

Yes. By managing communication professionally and consistently, credit control services help reduce the stress of chasing payments and clarify expectations with your customers. Transparent processes and prompt responses to payment queries foster trust and can even strengthen long-term client partnerships.

How do you integrate with existing accounting software?

LRC is adaptable and can work alongside many popular accounting platforms such as Xero, QuickBooks, and Sage. This ensures that payment data is accurately tracked and updated, allowing real-time visibility of outstanding invoices and follow-up activity.

What happens if a customer refuses to pay after credit control efforts?

If a customer continues to withhold payment despite credit control attempts, LRC will advise on next steps, which may include escalating to pre-legal recovery or formal debt collection procedures. Our goal is to support your business in recovering funds through the most appropriate and cost-effective methods.

How do I get started with Legal Recoveries & Collections’ credit control services?

Simply contact LRC to discuss your business needs and current credit control challenges. Our team will work closely with you to understand your credit policies, review your debt portfolio, and put together a tailored strategy. We handle the groundwork so you can focus on running your business with improved cash flow and reduced risk.

Get in Touch with Us

If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342

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