Credit Control KPI Checklist

Why measure credit control

Credit control improves when you watch the right numbers and act on them. Too few measures and you fly blind; too many and the signal drowns in noise. This checklist sets a small, focused set of KPIs that genuinely reflect whether your collections process is working — fast enough payment, a healthy aged profile, and effort landing where it counts. The goal is a dashboard that prompts action, not a report that gathers dust. Adapt the targets to your trade and terms.

The KPI checklist

• Days sales outstanding (DSO) — average days to collect; lower and stable is healthier.
• Aged debt ratio — share of the ledger past 60 and 90 days.
• Collection effectiveness — proportion of due receivables actually collected in the period.
• Overdue ratio — overdue receivables as a percentage of total receivables.
• Promise-kept rate — how often agreed payment promises are honoured.
• Bad debt ratio — write-offs as a share of revenue.
• Average days overdue — how far past due the overdue book sits.
• Referral and recovery — value referred and the recovery rate achieved.

How to use it

Calculate this set on the same schedule each month and put the trend, not just the latest figure, in front of whoever owns collections — a single month means little, but direction over a quarter means a lot. Tie each KPI to an action: rising DSO or a growing 90+ ratio should trigger a tighter cadence and earlier escalation, not just a note in the report. Track the value you refer and the recovery you achieve so escalation is judged on results; when the numbers say a debt is stuck, refer it. Pair this with your cash flow health checklist for the bigger picture, and use the free calculators to do the maths.

Keep it lean

A KPI dashboard earns its keep only if people read it, so resist the urge to measure everything. A handful of metrics, reviewed consistently and tied to decisions, beats a sprawling report nobody opens. Set rough target ranges so a glance tells you whether a number is healthy, and review the set itself once a year — drop any KPI that never changes a decision. Measurement is a means to action, not an end in itself.