Some business owners value the cash flow boost that invoice finance provides but prefer to manage their own credit control to maintain direct relationships with their customers. This is where CHOCCs – Client Handles Own Credit Control – comes into play, offering the flexibility to access funds tied up in invoices while staying in control of your customer interactions.
In this blog, we’ll explain how CHOCCs works and explore whether it’s the right choice for your business.
What is CHOCCs
CHOCCs stands for Client Handles Own Credit Control, a type of invoice finance designed for businesses that want to keep control of their credit management.
Instead of relying on a third party to chase payments, CHOCCs let’s you:
- Decide how and when to chase overdue payments.
- Continue managing customer relationships directly.
- Keep control of your credit control process while benefitting from invoice finance.
How Does CHOCCs Work?
The process is straightforward:
- Raise Invoices: You invoice your customer as usual.
- Submit to the Finance Provider: Send a copy of the invoices to the funder.
- Receive Funds: You get a percentage of the invoice value – often within 24 hours.
- Chase Payment Yourself: You stay in charge of collecting payments from your customers.
Why Choose CHOCCs?
CHOCCs combines the best of both worlds: invoice finance and direct credit control. Here’s why it’s a smart choice for many businesses:
- Maintain Customer Relationships: You’re in control of all communications, which keeps things personal and professional. This can be especially useful if you work in industries where strong relationships drive repeat business.
- Faster Access to Cash: Waiting for customers to pay can cause cash flow headaches. With CHOCCs, you get access to funds tied up in unpaid invoices without handing over credit control.
- Flexibility: You decide how to handle overdue payments. Whether you prefer a softer approach or need to take a firmer stance, CHOCCs let you manage things your way.
- Transparent Costs: With a clear fee structure, you know exactly what you’re paying for the service. There are no hidden surprises.
Who is CHOCCs for?
CHOCCS is ideal for businesses that:
- Have a reliable credit control process in place.
- Want to maintain direct relationships with their customers.
- Operate in industries where customer trust and communication are essential.
Whether you’re a small business looking to improve cash flow, or a larger business wanting more flexibility, CHOCCs could be the right solution for you.
Who is CHOCCs for?
If you think CHOCCs might be the right fit for your business, get in touch with Apollo Business Finance. We’ll guide you through the process and help support your business cash flow.
