Managing Cash Flow and COVID-19
Managing Cash Flow in the Context of Covid-19: How Efficient Credit Control and Debt Collection Can Help
Many businesses have been hit hard by the impact of the Covid-19 pandemic, and its associated restrictions. The government and financial sector have offered some help during this difficult time but that help is strictly time-limited. Even if assistance such as payment holidays are set to continue for a few more months in the context of the second England Lockdown, these will eventually end and repayments on various assistance loans will become due.
2021 is set to be an extremely challenging year for many businesses. In many cases, without a lasting improvement in their cashflow and trade receivables situation, businesses in the most affected industry sectors that have struggled to stay afloat during the pandemic will not be in a position to meet the necessary deadlines, and will be poorly placed to cope with the ongoing COVID-19 emergency.
In this climate, financing your working capital will place a greater emphasis than before on tightening your credit control and on a smooth and effective escalation to recovery of debt. This is where a debt collection agency can play an important economic role.
Throughout this period, many businesses have discovered that their debt recovery systems were not as effective as they had believed, especially when their accounts payable and accounts receivable teams are unable to work on site. Simple tasks like getting a copy of a sales invoice have become problematic for many when working remotely.
That’s why it is important for businesses to consider taking significant measures to simplify this core business process in the short term. This is true for businesses of all sizes, in fact, large organisations are finding they are struggling even more than the average SME when it comes to meeting payment obligations and keeping the cash rolling in.
By focusing on making improvements in these areas, cashflow can be protected, helping to prevent the danger of insolvencies. But where it isn’t possible to bring in the necessary improvements quickly enough, it is worth considering outsourcing the debt collection or credit control functions to a reputable debt recovery agency. After all, your survival as a business will also depend on your ability to have your invoices paid promptly during the next few months.
As a professional Debt Collection Agency, with a modern, forward-thinking approach to debt recovery, we have the expertise to effectively chase all outstanding payments, at whatever stage of the order to cash cycle the debt may occur. Our highly trained and experienced staff can obtain repayment of debt for any type of business of any size, while our professional approach will help to preserve your ongoing relationship with your customers.