Credit control can be a difficult area for a business as every request for payment could potentially lead to an argument and/or poor customer relations. However businesses have to actively seek the money that they are owed otherwise they will fall into cash flow problems and eventually go out of business.
Good database analysis can help reduce the problems of dealing with bad debtors. For example, an aged debtor analysis will put customers in order of the age of debt outstanding, allowing a business to contact its longest standing debtors first. The database analyses the amounts outstanding and previous payment times for each debtor. Instead of sending threatening letters to all debtors (people who owe you money) and risking losing goodwill, this database function makes it possible to focus upon persistent late payers.