Edmonton Fall 2020

What to Do When
Payments Stop: 5 Urgent
Steps
Collecting debt has always been one of the most
uncomfortable and delicate tasks in business.
In a time of crisis, it becomes infinitely more challenging.
Previously reliable customers no longer pay on
time—if at all. Even the best ones have stopped
taking your calls and their voicemail is uncharacteristically
full.
When they DO answer, it isn’t good. Apologies, but
they can’t pay for an indeterminate period because
of COVID-19.
It’s not just you. Virtually all business models, both
B2B and consumer-facing, healthcare providers
and landlords, are in a similarly precarious situation.
The customer in many cases has an impeccable
history, making this an entirely new kind of problem.
Good business is hard-won, cost of sales is
premium and customer relationships are precious.
Most importantly, your brand reputation is priceless.
But here you are. Even the best customers are
holding out, and you have growing obligations of
your own.
Here’s the kicker: the worst is yet to come.
The forced shutdown has only just begun to take its
toll on businesses and consumers. Many are sitting
on a shrinking cash stockpile, waiting for a turnaround
that isn’t coming soon enough. If they owe
you money, they are spending it on other
things—until it the last of it runs out.
And despite the rosy flourishes being painted by
some politicians, the crisis is worsening. The subsidies,
stimulus packages and deferrals must soon
end. Buying habits and patterns have been massively
disrupted, in a lot of cases permanently.
If your business is already struggling to collect
money owed to it, it doesn’t take a master economist
to envision what’s in store. And the real economists
concur it will be very bad, for longer than
many businesses can withstand.
So What to do?
There are 5 important steps every business owner
needs to take in order to minimize risk and be as
proactive as possible.
Assess the current situation. Take a look at your
accounts receivable and flag everything past due.
Contact all account-holders and make them aware
that for your business’ continuity you must be firm
about due dates. They should respect this need and
do the same. Alert past-due accounts that collection
action is imminent—give a specific date.
It’s painful and a source of tremendous stress.
6 Real Home Advice