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Time to review credit control

Almost on a daily basis new measures are being introduced by the Government and other bodies to support business whilst the fight to slow the spread of COVID-19 continues. Calls are being made upon the First Minister Nicola Sturgeon to clarify how these measures will work in practice, but what is clear is the devastating impact this already has on business cash flows throughout the UK.

Until this support arrives in real hard cash, what can be done to ensure employees and suppliers are paid at the end of this month and months to come? This is the time to review credit control procedures and book debt.

You must:

  • Ensure your invoices are still reaching your customers; do they have different procedures in place during the outbreak?
  • Review your ledger and take action on all overdue invoices now and have robust measures in place to follow up
  • Utilise contractual late payment penalties or offer to waive them if payment is made now
  • Can’t pay a large invoice, consider payment arrangements to improve cash flow and reduce your level of exposure to potential bad debts

You may not be meeting your customers face to face at the moment but good communication remains key and is a positive way to build and maintain good relations; establish new sale leads; resolve problems and where possible support long standing customers through a time that is challenging for us all. 

Getting results on credit control or debt recovery right now requires skill and flexibility. Practices and policies of normal times for managing cash collection are not going to be enough in today’s hyper-challenging times. We are here to support you with a dedicated and experienced debt recovery team that focuses on practical and effective solutions that suit your business needs.

We can help, get in touch.

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