COVID-19 has thrown a wrench into the global economy, and businesses of all sizes have experienced the impact of the pandemic in one way or another. The pandemic has highlighted the importance of keeping on top of your cash flows and debt collection. Many companies seize to be going concerns because of issues on the cash flow front. So you need to strengthen your debt recovery efforts to ensure a healthy cash flow that will safeguard your business interests.
You can count on our Business Collection Services Department to undertake efforts to gauge the capacity of debtors to repay their debts and to find out their true financial wherewithal. Our top priority is to pursue the most effective strategies to achieve maximum debt recovery. It’s important to have a reliable way to separate truth from error especially when it comes to debtors who, in order to avoid their debt obligations, insist that they are undergoing trying financial circumstances stemming from the pandemic. It’s clear that some debtors are dishonest about their true financial situation, so you need to know effective debt collection measures to prevent lost debts.
Debt Collection Guidelines during Covid-19
Ensure lines of communication remain open
During the pandemic, you’ll need to be particularly vigilant about ensuring that invoices are paid in full and on time. Accomplishing this means, among other things, keeping the lines of communication open. There needs to be a two-way dialogue to ensure both sides understand their rights and duties. Other ways you can steer clear of possible payment problems is by requesting advance payment, lessening credit terms for receiving payment, reconsidering credit limits, sending regular account statements, and sending timely overdue invoice reminders.
Don’t delay going after overdue accounts
It’s important to keep in mind that the majority of debtors will welcome amicable, constructive efforts to work out payment terms with their creditors. But there are times when stronger measures will have to be employed to collect outstanding debts. It’s important that you not allow invoices to remain unpaid for too long before taking action. For instance, you could reach out to debtors and work out payment plans or agree to extended payment due dates.
If you have questions about a debtor’s capacity to repay, it’s important that you retain professional help as soon as possible in order to lessen the odds of costly litigation in the future. However, legal action will increase the chances of your recovering debt if the debtor enters insolvency.
While two-way communication is critical, it’s also important to know when to take action if payment is not received within a reasonable period of time. This is the only way to increase the odds of debts being paid so that your business remains cash-flow-positive. Our debt collection agency and lawyers are ready, willing, and able to assist you during this coronavirus pandemic. Our professional international collection services can help keep your business’ cash flow healthy by ensuring that your customers pay their bills on time.