Credit control will normally report to the Finance Director or Risk Management Committee.
[3] At this point depending on the size of the company a process such as this may be followed:- Extended credit could, despite all efforts made, become non-collectable.
In this case a professional Debt collection agency may be hired along with attendant legal, court and other fees.
This event is normally dreaded and most accountants are reluctant to consider that credit extended has now become non-collectable necessitating a debt write-off if the receivable has gone bust or a provision if only a lower amount can ultimately be collected.
Unwarranted debt may be a serious strain and could lead to cash flow issues and company failure.