In these unprecedented times, businesses everywhere are facing financial impact of the coronavirus pandemic.
With recession looming, companies cutting back on spending and a potential recession looms over us, pipelines and cash flows are being significantly affected.
With this in mind, why is it more important than ever for manufacturers to ensure that their clients resolve any outstanding debts before the global economy impacts them even further?
The Dilema of Debt
Jan Firth, Managing Director of Firths, specialists in debt resolution, understands the issues the manufacturing industry face and how they can be resolved.
“The problem is that the crashes we’ve experienced in the past have been more localised,” Jan explains.
“This pandemic is worldwide and everybody is affected. It is very difficult to understand what’s going to happen on the journey to the new normal.”
“Manufacturers often give clients a little too much time to pay up, sometimes resulting in them giving their clients an additional 2-3 months credit, which severely impacts their cash flow”
Jan Firth, Firths
It goes without saying that it’s essential for businesses to ensure they’re paid, but in today’s economic climate, there’s more pressure than ever to make sure payments are made in good time.
“This is vital to not only individual businesses, but to the economy as a whole,” warns Jan. “The faster people can resolve their debts, the less likely the world is going to fall apart.”
The Discomfort of Debt
Whilst chasing payments isn’t the most comfortable of interactions to have with customers, Jan believes that it’s not only necessary but needs to be addressed swiftly.
“A lot of people worry about upsetting their clients,” Jan explains. “This is understandable, but what’s the point in having a client that doesn’t pay?”
“As an independent business, we always prioritise the service and support that our team delivers to our clients,” Jan concludes. “I think that if everybody helps everybody else, then we will continue to get through this period of uncertainty.”
If you are owed money and don’t have the time or inclination to keep chasing payments, call Firths on 01706 941 400 or visit firthlaw.co.uk.
For an accompanying read, please visit Could Late Payments Destroy Your Business During a Crisis?
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