Let's start with what Credit Control is NOT, Credit Control is not the 'heavies', they're not instructed debt collection agencies with the power to re-possess business assets or able to lodge CCJ's
The primary role of Credit Control is managing and coordinating the existing debts to creditors and also deciding whether to allow credit or time-to-pay arrangements to a debtor. Ultimately Credit Control is the function of managing all money borrowed to a business and ensuring the collection of monies owed to a business. This is also known as Accounts Payable and Accounts Receivable.
Healthy to do so, the person in charge of Credit Control often reports to a company accountant. Credit Control will handle the collection of finances and invoice settlements, the resolution of account queries, as well as raising sales invoices and issuing credit notes.
What Credit Control definately IS, is the responsibility to manage debt recovery. If a client has paid an invoice late, missed payments or simply not settled the invoice at all, the result could involve stopping the supply of goods and services, levying interest and then ultimately, as last resorts, undertaking legal action through instructing third party debt officers. If a businesses has gone bankrupt, it will be Credit Control that will deal with and negotiate the recovery of funds due.
It is therefore crucial that a person in charge of Credit Control builds a good relationship and maintains very close links with all clients, an extremely proficient and organised communicator, to ensure a smooth and professional running of accounts and cashflow, and encourage timely recovery of payments from invoices due.