How much cash do we have? How long can we last? What levers can we use to support our cash flow? How are our outstanding receivables? How can we secure our collections?
How many times have these questions been asked by management committees since the start of the lockdown?
Despite the collective measures taken by the public authorities to cushion this economic shock, COVID-19 will take its toll on companies that have already been weakened, and some healthy companies are already caught up in the turmoil, and may find themselves dragged towards bankruptcy against their will.
It is the responsibility of every company to protect itself from the increased risk of customer default, while at the same time taking steps to avoid aggravating the overall situation by squeezing inter-company credit.
In order to avoid the full force of bankruptcy in the worst case, and longer payment terms in the best case, companies need, more than ever, visibility and anticipation of their outstanding receivables.
Tuesday’s situation may be different from Monday’s, so monitoring outstanding receivables according to risk criteria: segment, internal score, external score… has become essential in order to adapt collection actions to difficulties.
In a tense climate, it’s even more inadvisable to follow up on a customer who has already paid, so it’s wise to keep your customer accounts up to date with payments.
At a time when you need to deploy maximum energy to contact customers, the internal collaboration of all the parties involved in the commercial relationship, albeit telecommuting, becomes essential if you are to move quickly and efficiently.
If you can afford it, you’ll certainly be inclined to show solidarity with your customers in their time of need. As with all benevolence, this cannot be done blindly and without a certain amount of rigor.
In keeping with its motto, Focus on the Essential, DIMO Software offers you a Quick Win program to take advantage of CashOnTime’s help in bringing in your cash as quickly as possible. Quick to set up and very easy to access, CashOnTime and its adapted implementation method will enable you, with little effort, to :
- Perfect visibility of your work-in-progress,
- Strategies tailored to your customers’ real-life situations,
- Automatic reminder e-mails or a task diary,
- Real-time monitoring of payment schedules and collections,
- An up-to-date cash flow forecast,
And anything else you might find useful in the current emergency.
Once you’re out of the crisis and (finally) able to work on optimization, CashOnTime’s wealth of functions will enable you to achieve your ambition.
Like all of you, we’re eagerly awaiting good news on the outcome of this health crisis, and we’re putting all our energy and professional skills into helping you, in our small way, to cushion the blow and prepare for recovery.
Contact us to discuss collection tools or cash management forecasts.
So that you can all look forward to a brighter, more promising future, please take care of yourself and your loved ones.
