Our World crashed and burned about one month ago. All our plans have been cancelled by the pandemic caused by the corona virus. Now we stay home or go to the office traveling through largely deserted roads in the middle of a recession that nobody sees as less drastic than the 2008 recession and some see as greater than the Great Recession of 1929.
The Legendary American baseball coach, Yogi Berra said once: ““It's tough to make predictions, especially about the future.” True. We really don’t know how bad it will be, but we all agree that it is bad already.
Companies will get out of the crisis with less cash in the bank, with debt, lower sales and all sort of supply chain issues. For some of them the demand will never be restored, or it will take a long time to reach to the pre-pandemic level.
Every dollar or Euro owned now and a few months from now will be a lot more valuable than it used to be. With mounting commercial debt, it will be as important to get your invoices paid, as it will be to generate new sales.
Now, let’s suppose that one month from today, the restrictions will gradually lift. People will go again to work, while shops, barber shops, car wash, etc., will start operating again. What do you expect is the level of debt to be collected,one month from now? Or 3 months from now?
Can you handle the increased debt volume with your current infrastructure and people?
Do you think your current collection process will stand, or would you change it? Or maybe add different steps and procedures for some of your customers?
One month in the future and everyone will hunt for cash. Would you rather win or lose this race for liquidity?
Few months ago, we helped one of our customers to double the volume of processed collection cases by implementing SplashCollect, our debt collection software based on Microsoft Dynamics CRM. We automated many of the tasks previously made manually and the time spent with some operations has decreased from 1 ½ hours to 5 or 10 minutes.
It is hard to switch fast to a different collection process. It is hard to handle 2-3 times the cases you had before the pandemic, it may be even impossible if you rely on mostly work being done with tools as MS Excel and Google Sheets.
Now would be a good time to invest in a professional debt collection software. The clock shows 5 minutes to 00:00 hour.