What is credit control?
Credit control is the work of deciding which customers can buy on credit, how much and on what terms, and then making sure they pay on time. It covers credit checks and limits before any sale, invoicing and reminders after it, and chasing overdue debts. The term is used mainly in the UK and Commonwealth countries.
Also calledcredit managementdebtor management
Compare the softwareBest accounts receivable automation software →All 12 accounts payable, receivable and payments vendors →
- Term used in
- UK and Commonwealth
- UK late payment interest
- 8% above base rate
- Category
- AP, AR and payments
How credit control works
Before trading, the credit controller checks a new customer's credit report, accounts and payment record, sets a credit limit and agrees payment terms. Orders that would take the customer over the limit, or arrive while invoices are overdue, are held for review. After invoicing, credit control runs the reminder sequence, calls customers, resolves disputes and agrees payment plans, escalating to a collection agency or court if needed. In the UK, a business paid late by another business can charge statutory interest at 8% above the Bank of England base rate and a fixed sum for recovery costs of £40, £70 or £100 depending on the size of the debt; if no date was agreed, payment is late 30 days after the invoice or delivery. Receivables software such as Kolleno, Monk and Centime adds credit limits, risk scores and collections worklists.
Common questions
What is the difference between credit control and collections?+
Collections is chasing invoices that are already overdue. Credit control is wider: it also sets credit limits and terms before trading, and decides when to stop supplying a customer who does not pay.
What does a credit controller do?+
Runs credit checks on new customers, sets and reviews limits, sends statements and reminders, calls customers about overdue invoices, resolves disputes and reports on overdue debt, usually from the aged debt report.
Can a UK business charge interest on late payments?+
Yes, on business-to-business debts. Unless the contract sets another rate, the supplier can charge statutory interest at 8% above the Bank of England base rate, plus a fixed sum of £40, £70 or £100 for recovery costs.
Software used for credit control
KollenoAI-prioritised collections, payments and reconciliation.Profile →
MonkAI-native receivables with automated collections and cash application.Profile →
CentimeAP, AR, forecasting and banking in one cash flow view.Profile →
StuutAI agents running collections, cash application and disputes end to end.Profile →
Paraglide AIAI agents handling invoice chasing and reconciliation.Profile →Part of Accountio’s accounting technology coverage · Glossary
