Credit Control Pack

Free Credit Control Template Pack

Hi, my name is Adam Stewart, Debt Collection Expert and owner of Debt Recoveries Australia.

I have been asked many times how to manage accounts receivables better and to provide some help and some templates for this. Credit control is an essential function if you want to offer credit to customers, maintain cash flow and reduce bad debt.

I have also been asked to provide some templates to improve the credit control process. So I came up with a Credit Control Pack for you which includes 3 templates.

These 3 templates, I believe, are the most essential in managing your receivables and reducing bad debt. There are two parts to credit control. The first part is controlling the amount of credit you extend to your customers and this is done with a credit application form and terms. The second part of good credit control is ensuring that outstanding invoices are paid on time and for this, you will need a well-written tax invoice and a good debt collection letter.

In this downloadable pack, I have included:

1. Credit Application and Terms Template
2. Tax Invoice Template
3. Letter of Demand Template

Here is a run-down on each of them:

1. Credit Application and Terms Template

Any business, large or small, is entitled to the exact same payment terms as the largest of businesses and are entitled to issue penalties for overdue invoices and ask for personal guarantees.

Your accounts receivable process actually begins when you sign up your customer, so having them fill out a credit application form is critical as it will give you valuable information in the event of a default in payment. Use the credit application form if you are extending any sort of credit terms to your customers.

I have also provided a paragraph for a Personal Guarantee. If your creditor is a company, here is where you can get the directors of that company to personally guarantee the liabilities of that company. If they are not willing to sign it, this is your first red flag. This template also includes some terms of trade, which you can add or delete, as it suits your business.

Pay particular attention to Point 8 of the Terms of Trading. This is where you can add penalties for late payment. These penalties should be made very clear, in bold, then repeated on your invoice.

2. Tax Invoice Template

A professional-looking invoice not only helps to legitimise your business; it helps you to get paid fast. A tax invoice is simply a statement of goods or services provided and a statement of the sum due for these.

The template provided meets the Australian Taxation Office requirements for the details that must appear on an invoice. Basically, your invoice should have on it the following:

  • Heading- the words “TAX INVOICE” should be in bold
  • Payer’s name and address-person paying the invoice
  • Payees’ name and address-that’s you
  • ABN or CAN
  • GST amount (business earning under $75,000.00 per year are exempt from charging gst)
  • Itemised list of goods and services
  • Issue date
  • Invoice number
  • Payment terms

Make sure you clearly state your payment terms, along with penalties for non-payment. We have provided some sample wording for this in the template.

3. Letter of Demand Template

This Letter of Demand template has been designed for use in your business’s day to day debt collection activities. It’s basically a Final Demand, so we are assuming you have already sent your own follow up letter/email.

Remember, this template can be used as an email template and we encourage you to use email, instead of snail mail. It’s cheaper, faster and more efficient. The demand outlines the penalties that may be incurred due to non-payment, including loss of credit rating and possible legal action.

Feel free to use our name in your letter as well as a prompt and to send a message to them that you mean business. This will hopefully prompt your debtor into paying.

Get all these templates at once through Debt Recoveries Australia. Visit this page today: https://debtrecoveries.com.au/credit-control-free-template-pack/

Outsourcing Credit Control

If all this fails or you prefer a professional to handle your accounts receivables, outsource immediately to us here at Debt Recoveries Australia.
Outsourcing credit control can often be much cheaper than hiring your own staff. You can see Debt Recoveries Australia as an extension of your business so sometimes when we contact your customers, they are completely unaware that you are even using our services. To your customers it appears that you have your own credit control department. Simple and easy. Call us today 1300 799 511.

 

You asked for it, so here they are. Get your Credit Control Pack here: https://debtrecoveries.com.au/credit-control-free-template-pack/

 

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