As the majority of the population in the US is now vaccinated and businesses have opened their doors widely in this new normal world, some adjustments are still needed to be done. One of the crucial issues right now for many businesses irrespective of their sizes is the cash flow and the debt. While the pandemic was a huge blow on the cash flow of the business, maintaining it has become difficult as the clients or the debtors are in no position to make the payments. And that is why companies like Nelson, Cooper & Ortiz LLC are sharing some new inputs with you.
What Problems Businesses are Facing Regarding Debt Collection?
Now, in the post-pandemic world, businesses are having a hard time getting back on track due to the irregular cash flow. The production is interrupted and the wages becoming difficult to get dispatched. So, if you are in a position like this, it is most likely that you are facing the following problems as per the opinion of reputed collection companies,
- The company that owes you money no longer exists or have filed for bankruptcy
- The company has stopped responding to your emails and calls regarding debt
- The debtor company is in a genuine dire situation to pay you right now.
So, in such cases, you need to consult a collection agency and move ahead with the following steps to optimize payments so that you can also regularize your cash flow and address the immediate issues that will need your attention. Take a look.
Analytics for Assessing Accounts Portfolio
Now that the worst is almost over, it is time that you start using analytics to assess your account receivable portfolios. The first step of this process will require you to find out which accounts owe you money. Start analyzing all the accounts you are dealing with and categorize them as per three stages. Good accounts should not face any problems paying you on time even during and after the pandemic. Fair accounts will be those who were partially affected by the pandemic and once they have recovered their position, they have started their payment. Poor accounts will be the ones from where there is no response. For handling these accounts, take help from the commercial collection agency.
Adjust Your Collection Process
Let’s face it, the pandemic has caused quite a setback for your business too. You have lost a lot of money, business opportunities and profit. There are many companies that had to lay off people due to the shortage of funds. You can be one of them. Now, having and running an entire department for managing account receivables is not really the best idea especially when you can use these resources for some other issues. So, you need to outsource the task to a third-party commercial collection agencyso that they can take care of the debts on behalf of you while you can concentrate on your immediate concerns.
Given the situation, you might see that the debtor company you are dealing with is an old trusted associate. And they are currently in a genuine situation where they are unable to pay the whole amount. Taking a legal step and forcing them to liquidate assets or filing bankruptcy cannot be a good idea right now. Rather, leverage the trust factor with them. And let the collection agency introduce some renegotiation terms for them. The settlement can help you get back your money in few instalments while you don’t have to ruin your business relation either.
So, now as you know how you can regularize the cash flow in your company in the new normal world and optimize the payments, what are you waiting for? Hire an agency for debt collection and start towards a better future.