Credit control and debt recovery are two ends of the same continuum. The organisations that invest in credit control spend less on debt recovery. The organisations that neglect credit control spend more. The economics are straightforward: preventing a receivable from aging costs a fraction of recovering it once it has aged.

Here are eight interventions that separate high-performing credit functions from reactive ones.

1. Pre-shipment credit assessment

The most effective credit control intervention happens before the first invoice is issued. A structured credit assessment — reviewing the customer's financial statements, payment history with other suppliers, and commercial registry filings — identifies high-risk accounts before they become high-risk receivables. The assessment doesn't need to be elaborate: a 30-minute review of publicly available data can identify the warning signs that predict payment difficulty.

2. Terms that create payment discipline

Payment terms should be specific, unambiguous, and documented in the contract. "Net 30" means different things in different cultures and industries. The terms should specify: the exact payment deadline (calendar date, not "30 days from invoice"), the currency and payment method, the consequences of late payment (statutory interest, suspension of further deliveries), and the jurisdiction and governing law for disputes.

3. The day-one invoice

Issue invoices on the day of delivery or service completion. Every day between delivery and invoicing is a day the debtor can use to delay payment. The invoice should be sent to the specific person responsible for payment authorisation — not to a generic accounts payable email address. A phone call confirming receipt of the invoice on day one establishes that the creditor is monitoring the account.

4. The day-seven check-in

Seven days after invoice issuance, a brief phone call or email confirms that the invoice has been received, entered into the debtor's payment system, and scheduled for payment on the due date. This intervention catches processing errors, address mismatches, and "we never received the invoice" excuses before they become delay tactics.

5. The due-date reminder

Three to five days before the payment due date, a reminder confirms the upcoming payment. This is not a collection call — it is a service call. The tone is collaborative: "We're confirming that invoice #1234 for €45,000 is scheduled for payment on [date]. Please let us know if there are any issues we should be aware of." This intervention prevents the most common cause of late payment: the invoice simply falling off the debtor's payment schedule.

6. The day-one escalation

On the first day after the payment due date, the creditor's response should be immediate and structured. Not aggressive — structured. A phone call to the payment contact asking for the reason for non-payment and a specific commitment to a new payment date. The speed of the response communicates that the creditor monitors its receivables actively and that delay will not go unnoticed.

7. The 30-day formal notice

If payment has not been received within 30 days of the due date, a formal written notice should be issued. The notice should reference the specific invoices, the total amount outstanding including statutory interest, and a clear statement that the matter will be escalated to professional recovery if payment is not received within 14 days. The notice creates a documented record of the creditor's efforts to resolve the matter — which strengthens the creditor's position in any subsequent legal proceeding.

8. The 60-day professional trigger

If the receivable remains unpaid at 60 days past due, the matter should be referred to a professional recovery agency. This is not a failure of credit control — it is the final step in a structured credit control process. The 60-day trigger ensures that the receivable enters professional management while the recovery probability is still high (73% at 60 days versus 41% at 180+ days).

The organisations that implement all eight interventions systematically report aged receivables rates below 3% of total receivables. The organisations that implement them selectively or inconsistently report rates of 8-12%. The difference in working capital impact for a €50 million revenue business is €2.5-4.5 million.

If your credit control function needs strengthening, or if you have receivables that have already passed the 60-day threshold, the interventions above provide a framework. Brief our team for a credit management review and portfolio assessment.