What is credit control?

Credit control is the process by which a company manages the extension of credit to customers and ensures timely collection of payments. It involves assessing creditworthiness, setting credit limits, monitoring outstanding balances, and following up on overdue accounts. Effective credit control helps minimize bad debts and maintain healthy cash flow, which is essential for the financial stability of any business. Credit controllers often work closely with sales and finance teams to balance customer relationships with risk management.