6 Guidelines for Effective Credit Control for Subscription Services:
- Take payment up front if you can. Otherwise you could be providing the service for nothing if the customer cancels early.
- Take a deposit. This can be in addition to or as well as a “set up fee”.
- Try to obtain the client’s card or bank details so you can set up a regular means of payment, preferably by direct debit.
- Stipulate your credit terms, and stick to them. If your invoice says “Due on receipt” then chase immediately.
- Do not let arrears build up, as one month’s arrears can easily become three or four.
- Do not overlook a payment that a customer might have missed for one month.