Small and Medium Enterprises can shield themselves financially during COVID by being self-reliant and attentive with their customer collections.
Customers need to remain conscientious and aggressive with their customer collections while being prudent yet tactical with their credit decisions. Conducting their own due diligence while being vigilant with their collections and chargebacks are key. Gathering and understanding real time company data in today’s environment is crucial in making effective business decisions by asking customers the following questions:
- Does the customer have the ability to pay their bills timely?
- What’s their cash availability?
- Is the customer paying their suppliers on time?
- Are they requesting extended terms?
- Are chargebacks increasing?
- Are their on-line sales significant?
- Are their stores open?
Companies should take notice, refrain from being overly aggressive on the sales side and ask, how much can we afford to lose, not, how much can we make?