In the coming months, payment holidays granted by the banks and the government will come to an end and bounce back loans will have to be repaid. Without an overall and lasting structural improvement in their bottom line (trade receivables and cashflow position), many companies will not be able to meet these deadlines, nor will they withstand the additional shock of the current COVID-19 relapse, especially if it drags on for much longer. Financing their working capital will inevitably require tighter credit control than ever before and prompt escalation to debt recovery. In this context, debt collection agencies have a real capacity to revive the economy.
Many companies have just realised that their systems were not as robust as they thought when their entire sales and purchase ledger teams are banned from office premises. Getting hold of a copy invoice has never been so problematic.
Concrete measures to simplify and dematerialise core business processes need to take place now. Large organisations or Government Department are often struggling more than SMEs to both pay on time and keep the cash coming in.
Businesses need to get their IT departments to primarily and promptly focus on these shortcoming. Hopefully, focussing on cashflow now may prevent a greater than planned the surge in Insolvencies.
Where such improvements cannot be rushed through, creditors need to urgently consider outsourcing credit control and/or debt collection activities to a professional. The survival of many businesses will depend on these businesses' ability to get paid promptly.
A Debt Collection Agency can offer to chase outstanding accounts at any stage of the order to cash cycle including chasing individuals and businesses alike on behalf of all players in the economy, in all sectors of activity, for businesses suppling any kind of goods or services whether these are large companies, SMEs, or individual traders.
