Business Customer not paid due to Coronavirus?
It is an unfortunate fact that many firms in the UK are faced with Business Customers not paying due to Coronavirus. As well as decreased sales, existing customers not paying is putting a major strain on small Businesses cash flow situation.
Whilst it is understandable that some business customers cannot pay, there is a minority seeking to profit from the confusion. Ensuring your Business gets paid on time is now probably more important than ever. It is imperative that your business stays afloat during these turbulent times. Making sure your Business customers pay their invoices on time is a must for any small business.
Many Small Business owners are already concerned as to what the next few months will bring. Business Customers not paying only exacerbates anxieties. With the economic turbulence caused by Covid-19, cash flow plays a greater role.
There are certain industries where Coronavirus has ground it to a sudden halt. These industries include all social focused sectors such as Pubs, restaurants and activity centres. The UK’s tourism industry has hit a brick wall also. Then there is everything from dental practices to nurseries that serve the public. There are a great deal of sectors that have been temporarily shut down by this pandemic. It is also important to remember that there are many sectors that have not.
We are receiving calls daily from worried Businesses that are not being paid. The excuse being used is the Coronavirus. As stated, we know this is entirely likely for most but there are the unscrupulous minority who are using Covid-19 as an excuse not to pay.
At Federal Management, we are committed to supporting Businesses that are owed money. So in these times of worry, we have put together a few pointers to help Business Owners.
Be mindful and understanding
If your customer is a Business that has been heavily affected by the Coronavirus, you are going to need to demonstrate understanding. We all are all in this together. Work with your Business Customer to offer support and if possible, negotiate a repayment plan. Otherwise, you may have to put their account into suspense pending the end of this pandemic.
Maintain standard credit control
As we know, not all Businesses have closed as a result of Covid-19. Continue your normal credit control procedures for those customers in industries not affected. Do not be afraid to give your customer a call if the date of payment has been missed. They are still your customer and now is the ideal time to keep communication channels open.
Still Manage risk effectively
Exercising full due diligence on any new customers is a must. They may have a fantastic credit record pre-Coronavirus but what about now. You should be taking extra measures to ensure your Business is protected in these difficult times.
Companies such as Companycheck, Experian and Creditsafe provide detailed information regarding a company’s credit score. Where you have any doubts, work on a pro forma invoice basis only. Better to be safe than sorry.
Outsource your Business Debt Recovery
We are in a pandemic and the last thing most Business owners want to do is chase unpaid invoices. Let the Experts help. We can review any unpaid invoices owed to your Business Free of Charge and do the chasing fro you.
Our Professional Debt Collection Agency is helping hundreds of Businesses like yours through these troubling times. We provide a free consultation and appraisal at outset to assess the situation.
Adopting the above good practices can help your Business through this storm. Business customers not paying due to Covid-19 is a problem many are facing. Storms never last forever but with some smart decision making, you can minimise the damage this storm can cause.
For further information on how we can help you, contact us today for a friendly chat.