What are the most effective strategies for managing invoice payment delays and reducing credit control workload?

Members recommend a combination of automation, credit policy enforcement, and outsourcing to reduce the time spent on invoice chasing.

**Automation and systems:** - Set up auto-generated statements and auto-email reminders for customers on credit terms — this reduces manual follow-up significantly - Use an online red letter service as an escalation tool if customers don't respond to automated reminders

**Credit policy enforcement:** - Implement a **three-strike rule**: remove credit from customers who delay payment three times - Require all new customers to be on **proforma terms for the first 3 months** before granting credit - Use a **trade store or similar platform** for smaller customers who pay immediately at point of order, bypassing credit entirely

**Outsourcing:** - Members report outsourcing invoice chasing to their **external bookkeeper** has significantly reduced overdue amounts - **Offshore Virtual Assistants** are cited as a cost-effective option for handling routine admin, bookkeeping, and payment follow-up tasks

**Caveat:** Members noted that managing payment delays from larger retail chains is particularly challenging, especially where the risk of losing listings makes aggressive credit removal difficult. For these accounts, the combination of clear proforma terms upfront and automated reminders appears to be the safest approach.