B2B debt recovery vs credit control - what’s right for your business?
Thursday 21st August 2025

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Cash flow challenge: I’m spending too much time chasing late invoices, or don’t have a system in place, and want to act smartly without harming client relationships.
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Perfect for: SMEs and business owners trying to balance proactive payment management with the right escalation process when payments go unpaid.
Novuna helps businesses handle either scenario effectively, whether you want to stop late payments before they start or recover what’s owed when they don’t. We help you get tailored in-house support or comparison across UK providers.
We simplify your options and find the right solution for your needs.
Understanding the difference
Credit control (the proactive approach)
- Sets up the rules before credit is given, such as invoice terms, credit limits, and invoicing accuracy.
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Uses reminders and structured processes to reduce late payments in the first place
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Protects relationships by managing expectations from the outset.
Debt recovery (reactive help when things go wrong)
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Kicks in once invoices are overdue, even after reminders and finance attempts.
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Uses professional negotiation or legal follow-up to recover cash.
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Can strain or repair client relationships, depending on how smoothly it is handled.
Tips for effective credit control
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Clarify your terms, such as payments due in 30 days, accepted methods, and penalties if needed.
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Tailor your process by automating reminders, monitoring trends like rising late payments, and keeping accurate records.
- Check credit before extending it, especially for new or large clients.
Knowing when to escalate to debt recovery
- If invoices remain unpaid despite reminders.
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If internal follow-up is not leading to resolution.
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If you lack time or resources to pursue an overdue account effectively.
Finding the right balance for your business
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Use credit control as a day-to-day system to prevent issues before they arise.
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When problems crop up, escalate gently but with the right tools.
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Funding tools such as invoice finance or short-term loans can help offset delays and reduce pressure while you sort things out.
How Novuna Business Cash Flow can help
- Whether you need to strengthen payment controls or recover unpaid invoices, we guide you to the best fit.
- Our solutions include finance, recovery services, and advisory, so you keep cash flowing and client goodwill intact.