We are all too familiar with Covid-19 and what is going on in the World at the moment. Some businesses are already being affected, but I predict that the business impact will increase over the next few weeks.
Rather than bury your head in the sand, there are some simple things that you can put into place regarding credit.
- Identify your debtors and creditors, specifically those who can pay you and those that you need to pay. My advice is come Monday these are the first people that you call.
- Identify those that are unlikely to pay you and those that you are unlikely to pay if things get tight.
- In all cases communication is key, keep talking!
- Remember everyone is in the same boat here. Coming on hot and heavy won’t work; pretending it isn’t happening will achieve nothing. During the peak of the recession, I was working in credit and collections and what did work was communication and working with customers and suppliers.
- Identify and speak with everybody this week and put a plan in place.
- Agree regular follow up calls and make sure you follow up.
- Even if nothing changes keep the follow up calls going.
- Ensure you have a plan to maintain communications remotely in the event of building closures
- Remember Communication is key!