Glossary

Credit control

Credit control is the discipline of deciding who you extend credit to, on what terms, and how you collect — the day-to-day work that keeps <a href="/glossary/debtor-days/">debtor days</a> low.

2 min read

Chase + limitLate-payment risk

Cash acceleratorNot admin

Definition

Credit control is the function that vets new customers, sets payment terms and credit limits, issues reminders, and escalates overdue accounts. Done well, it shortens the gap between invoicing and getting paid.

In plain terms

It is polite, systematic chasing. Most late payment is not malice — it is that no one asked firmly enough, soon enough. A reminder the day after due date recovers cash a quiet business never sees.

Why it matters for your company

Weak credit control is the single biggest avoidable cause of a working-capital squeeze. See how to build a credit control process, and if a slow ledger has already opened a hole, cover it with a flexible facility while you fix collections.