In a deteriorating economic climate, collecting what you are owed is of paramount importance and is an essential way to alleviate the cash flow problems that a downturn brings. Now, more than ever, cash really is king – but many companies are struggling to release cash that is predominantly tied up in receivables. The key is to have an effective credit control function in place, which focuses on swift and efficient collections while maintaining a keen eye on debtors - and having an effective debt recovery process ready to implement.
Certainly, no matter how comprehensive the pre-approval process is, and how sure you are of the stability of the customer, there will always be failed collections and bad debt.
A robust infrastructure and system is a pre-requisite, but the whole process will benefit from the personal touch. Developing good relationships with your customers can make a big difference - making it easier to pick up on payment issues more promptly and keeping your business at the top of the customer’s payee list.
Of course this takes significant resource and even the largest company may struggle to dedicate sufficient time and energy. And in doing so may take the focus away from their core business just when they need it most. The key is to work with a partner which treats your customers just as you would – providing first class service and maintaining the personal touch while providing highly effective products. And doing this no matter what the economic climate is will stand companies in good financial stead for more challenging times – such as those we find ourselves in currently.
If you want to find out how Coface can help you collect what you are owed call 0870 458 2246.