Credit control

Essentials › Accounting › Credit control

Finance operationsUnited Kingdom

The problem it solves

A profitable business can still run out of cash if customers pay late. Chasing invoices is uncomfortable, so it often waits until there is a cash crunch, by which time debts are older, harder to collect and more likely to be written off.

What it covers

  • Checking invoices go out promptly with the right details
  • Payment terms and credit limits for new customers
  • Automated reminders backed by personal follow-up
  • Aged debtor reports and debtor days tracking
  • Escalation steps, including statutory interest and, if needed, formal recovery
  • Resolving disputes quickly with the right people

Who it is for

Businesses that sell to other businesses on credit, especially those with large customers, long payment cycles or a few big invoices.

Good to know in the UK

  • Under the Late Payment of Commercial Debts (Interest) Act 1998, businesses can usually charge statutory interest at 8% above the Bank of England base rate on late B2B invoices.
  • Fixed compensation of £40, £70 or £100 can be claimed per invoice, depending on its size. Many businesses use these rights as a last resort, to protect relationships.

Questions to ask a provider

  • Will you chase in our name and tone of voice?
  • When do you escalate, and when do you check with us first?
  • What reporting will we see each week?
  • Do you work inside our accounting software?

This is a plain-English summary for United Kingdom businesses. It is general information, not financial, tax or legal advice, and rules change: facts last checked 8 November 2026. Speak to a qualified adviser about your own situation.