As we move towards February, we are already beginning to see concerning cash flow trends, with businesses struggling to pay their unpaid invoices.   

The effects on rising costs from the Autumn Budget are being felt by businesses and as we approach the Spring Budget, a key focus should be cash flow and getting paid on time to release the pressure.  

To build a strong foundation of cash flow, we have created 6 key best practices your business should follow to maintain and build a strong credit control function in 2026. 

1. Embed credit control into your business strategy

In 2026, in this current turbulent economic climate, it is key to embed credit control at the heart of your business strategy.  

A strong foundation comes from a clear policy which fits into your overall business strategy will allow for understanding of the important to the wider business.  

Here are some key steps that you can take to ensure that a strong credit control process is embedded in your business. 

Position credit control as a revenue protection function, not an admin risk 

• Effective credit control safeguards cash flow, supports sustainable growth, and reduces reliance on reactive recovery.  

Align credit terms with commercial objectives 

• Payment terms, credit limits and onboarding checks should support your growth strategy without exposing the business to unnecessary risk. 

Involve credit control early in the customer lifecycle 

• Strong foundations are built at onboarding – clear terms, expectations and communication prevent disputes and delays later. 

Ensure leadership buy-in and visibility 

• Credit control performs best when supported by senior management and reflected in company KPI’s, reporting and decision making. 

Integrate credit control across sales, finance and operations 

• Collaboration reduces friction, improves accountability and ensures payment responsibility is shared across the business. 

Plan for resilience, not just growth 

• Embedding credit control strategically helps businesses. 

2. Strengthen Credit Policies with Clear Consistent Processes

A strong credit policy provides the framework that underpins effective credit control. In 2026, businesses can no longer rely on informal arrangements or legacy processes that vary from customer to customer.  

Clear, well-documented credit policies ensure consistency, reduce risk, and support faster decision-making across the organisation. 

Credit policies should clearly define payment terms, credit limits, escalation timelines, and dispute management procedures.  

When expectations are set from the outset and applied consistently, customers are less likely to delay payment or challenge terms later in the relationship. 

Consistency is equally important internally. Sales, finance, and operations teams must all understand and follow the same processes, avoiding mixed messages that weaken a business’s position when chasing overdue invoices.  

Documented procedures also support training, handovers, and scalability as teams grow or change. 

Finally, credit policies should be living documents which are reviewed regularly to reflect changes in economic conditions, customer behaviour, and regulatory requirements.  

Businesses that maintain clear, consistent processes build a stronger foundation for cash flow, compliance, and long-term stability. 

3. Use data and automation to stay proactive, not reactive  

In 2026, effective credit control is driven by insight, not instinct. Businesses that rely solely on manual processes often find themselves reacting to overdue accounts rather than preventing issues before they arise.  

Using data and automation allows credit teams to identify risks early and act at the right time. 

Accurate, real-time data provides visibility over payment trends, customer behaviour, and emerging risk. By analysing this information, businesses can prioritise accounts, adjust credit limits, and intervene before arrears escalate.  

Automation further strengthens this approach by ensuring invoices, reminders, and follow-ups are issued consistently and on time. 

Automation also frees up credit control teams to focus on higher-value activity. Instead of chasing routine payments, teams can spend more time managing exceptions, resolving disputes, and maintaining strong customer relationships.  

When data and automation are used effectively, credit control becomes proactive, efficient, and far better equipped to support cash flow and long-term resilience. 

4. Prioritise Early Engagement and Relationship-Led Collections  

Early engagement is one of the most effective tools in modern credit control. In 2026, successful businesses understand that addressing potential payment issues early helps prevent escalation, protects cash flow, and preserves valuable customer relationships.  

Proactive communication before an invoice becomes overdue often leads to faster, smoother resolution. 

Relationship-led collections focus on collaboration rather than confrontation. By maintaining regular, professional contact and understanding a customer’s circumstances, credit teams can resolve issues such as disputes, cash flow pressures, or administrative delays before they impact payment. This approach encourages transparency and builds long-term trust. 

Consistency and tone are key. Clear, respectful communication reinforces expectations while protecting the commercial relationship.  

When businesses prioritise early engagement and a relationship-led approach, collections become more effective and better aligned with long-term business sustainability. 

5. Monitor Risk Continuously in a Changing Economic Landscape  

Economic conditions continue to shift rapidly, making one-off credit checks and static risk assessments no longer sufficient.  

In 2026, effective credit control requires continuous monitoring of customer risk to identify issues early and respond before they impact cash flow. 

Ongoing risk monitoring allows businesses to spot changes in payment behaviour, financial stability, or external market pressures that may affect a customer’s ability to pay.  

By regularly reviewing credit limits, terms, and exposure, businesses can adapt quickly and reduce the likelihood of bad debt. 

This proactive approach supports better decision-making and greater resilience. Businesses that monitor risk continuously are better equipped to protect their cash position, manage uncertainty, and maintain a strong financial foundation even in challenging economic conditions. 

6. Know when to escalate: Use 3rd party debt recovery strategically  

Even with strong credit policies and proactive collections, some debts will inevitably become difficult to recover.  

Knowing when and how to escalate is key to protecting cash flow without damaging customer relationships.  

Strategic use of third-party debt recovery can be a powerful tool when applied thoughtfully. 

Outsourcing overdue accounts to a professional debt recovery service allows businesses to focus on core operations while leveraging specialist expertise to recover debts efficiently.  

It is particularly effective for long-standing or complex cases where in-house efforts have been exhausted. 

However, timing and approach matter. Early or inappropriate escalation can harm customer relationships, so third-party involvement should be considered after internal communication, and structured follow-ups have been completed.  

Choosing a partner that is compliant, professional, and sensitive to relationships ensures that recovery is effective while preserving your business’s reputation. 

By using third-party debt recovery strategically, businesses can safeguard cash flow, reduce internal workload, and maintain strong customer relationships, all while reinforcing the importance of disciplined credit control. 

7. How Darcey Quigley & Co can help  

For over 18 years, Darcey Quigley & Co have been supporting businesses across every sector in getting unpaid invoices paid. The team of experts are trained to help you recover what’s rightfully yours.   

By following our best practices for credit control, your business can have a strong foundation for 2026 and beyond. 

If you’re ready to tackle ageing debt early and build a strong credit control foundation in your business, get in touch with one of our specialists today.  

For ongoing insights, tips and expert guidance to support your credit control and recovery strategy throughout 2026, follow Darcey Quigley & Co on Linkedin!