01/05/2020
I keep seeing lots of posts regarding how to handle your creditors during the COVID-19 Pandemic. Some I agree with, some not so much. Every Business, from a multi- million pound turnover to a small local business will be looking at cash and how to survive the uncertainty. As a seasoned credit professional my advice to all business owners is talk to your creditors, whilst the impulse to cancel all your direct debits and hunker down for the duration seems like it might be the way forward, it may end, in not only ruining a good working business relationship but also with a debt that is escalating month by month. Try offering a partial payment or negotiate a payment plan, this way your debt will not be sat there waiting for you when business returns to normal, as lets face it, there is no such thing as a free ride and deferred payments still have to be paid back.
You may be able to cancel some non-essential services, however be aware that contacts for services will still be active and cancelling your direct debit/ non payment could breach that contract resulting in charges and or a suspension of services which you may still need. Only by having an open conversation with your creditors will you be able to make informed decisions on how to move forward.
