Debt collection is what you do when credit control has already failed. Good credit control prevents bad debt before it happens, and it’s far cheaper than recovery.
Here’s a practical primer for Kenyan SMEs.
What credit control actually means
Credit control is the set of practices that decide who you extend credit to, on what terms, and how you ensure you get paid. It’s not about being suspicious of customers, it’s about being clear and organised so payment flows smoothly.
1. Know who you’re extending credit to
Before offering payment terms, do a basic credit check. For businesses, ask for references, check how long they’ve operated, and start with smaller credit limits for new customers. You don’t need a complex system, even a simple application form and a few reference calls help.
2. Set clear terms in writing
Agree payment terms before you deliver. State the due date, late payment consequences, and payment methods. Put it in writing, on the contract, the quote, or the invoice. Ambiguity is the friend of late payment.
3. Invoice promptly and accurately
Send invoices the moment work is complete. Make sure every invoice has the correct amount, dates, reference numbers, and payment instructions. Errors give customers an excuse to delay.
4. Follow a consistent chase routine
- A reminder a few days before the due date.
- A follow-up the day after it becomes overdue.
- A firmer demand at 30 days.
- Escalation at 45–60 days.
Consistency matters more than aggression. Customers learn to pay the suppliers who follow up reliably.
5. Review your aged receivables regularly
Look at who owes you and how old each balance is, at least monthly. Anything over 60 days needs a plan; anything over 90 days may need professional help.
6. Make paying easy
Offer bank transfer and M-Pesa paybill. The easier it is to pay, the faster you get paid.
The takeaway
Credit control isn’t a single task, it’s a habit. Decide who gets credit, set clear terms, invoice fast, chase consistently, and review often. Do this well and you’ll have far less to recover.
Need help recovering outstanding invoices? Request a Free Assessment, our team will respond within one business day, confidentially.