“With the to and fro of changing working practices, the credit control specialists warn that this essential process can be overlooked.
“Lockdown has become an excuse for people on payment plans to make further delays”
“While people need to be more flexible during furlough, there’s no reason to argue payments due before the pandemic, especially given the unprecedented amount of Government support available”.
“With reduced revenue, now is the time to keep an even keener eye on cashflows,” warns Wendy.
However, while many business being temporarily shut or working with skeleton staff, why does this pose a greater challenge?
Look to the Future
“Furlough has understandably put a huge amount of pressure on modern-day businesses, with construction and recruitment facing some of the biggest impacts.
“Now is the time to consider outsourcing,” says Wendy.
“We’ve seen that those businesses who can adapt to working from home are doing so, and they are putting more trust in their employees to get the job done”
Wendy Allen, PCS Credit Management
“It’s a similar principle with outsourcing. Even as a temporary measure, this can help to allay concerns about chasing payments by using a third party.”
“In the worst-case scenario, outsourcing should now be a tenable long-term alternative – particularly if COVID-19 causes companies to downsize.
“We provide a reliable solution for those looking for help during or beyond the pandemic,” says Wendy.
Founded in 2006, PCS has been helping companies take control of their cash flows, from simple admin support right through to court appearances, if needed.
“Our credit control teams are fully trained and available at a fraction of the cost of having your own team,” explains Wendy.
“There’s more than just the resource of hiring a new member of your finance team. You need to train them, provide cover for holidays and other leave, and start the process again if staff turnover is high.”
“Outsourcing is a cost-effective and immediate alternative, especially for those hit hardest by the ongoing situation.”
PCS’ outsourcing provision can be white labelled so its clients’ debtors don’t know this function has been outsourced. Where debt becomes difficult, this then leads to PCS chasing the debt – not the client.
Statistics show that up to 90 per cent of companies pay old debts immediately after hearing from a third party.
While we all want the best for our business, PCS Credit Management continues to service its clients throughout this ‘stop-gap’ situation.
“We’re seeing a lot of changes, particularly in recruitment and construction, which could lead to greater debt issues,” Wendy says.
“Our task now is to carry on servicing our clients, ensuring their cash flow maintains steady throughout COVID and beyond.”
For some companies, the pandemic could even spell a change of direction. This may seem daunting, but it could also be the best thing for a business.
“We are definitely undergoing a period of change where working from home, possible job losses and a refocus of what’s important are all challenges we’ll have to face,” concludes Wendy. “PCS’s job is to step in and make cash collection as easy as possible.”
For an accompanying read, please visit Are the Effects of Lockdown An Excuse for Late Payments?