Due to the tight connection between major economies of the world, economic problems spread quickly globally. If economic problems are large enough to bring down major countries’ gross domestic product (GDP), it results in a global recession.
The leading indicator of where we are going economically is the world’s financial markets, like our stock market. The market, if you have not noticed, is all over the place.
Two actions to take in credit immediately:
Collect all dollars that you have been carrying for the past 1-2 years of covid. You are not alone in this, almost every company has been holding this too long.
It is imperative that you place this debt with your outsourced collection agency now while customers have money to pay. Take settlements, let your agency negotiate, then move quickly. If you keep ignoring your aged accounts, you could find yourself out of business and unemployed.
Cut back on extending credit. We are seeing businesses extend credit every week to phantom companies. Fraud is higher than we have ever seen in our combined 40 years in the credit industry. This kind of information doesn’t hit the news and no charges are filed against such unlawful acts because of the embarrassment it will cause the large companies who are committing them.
2021 is rapidly coming to a close. As the year wraps up the Global Hawk Resources team would like to remind all finance professionals of our long list of offerings in the billing and debt recovery commercial space:
* Recovery of Disputed Over 60 days past due balances
* 1st party Collection Program to manage the entire AR portfolio from current to over 90 day past due terms
* Reclamation of unpaid goods
* Resolution of Double Payments resulting in valid refunds to your finance department
* Assistance with invoicing your customers from your billing software
* Legal Forwarding of Claims not resolved in adjustment that need suit filed
* Skip Tracing to Determine Proper Contacts to present past due items for payment
* Dunning Letter Writing Series
* Designing a Collection Program to push for 2021 year-end cash and/or beginning of 2022 cash collection targets
We wish you all Happy Holiday Season and New Year!!
GHR continually supports Socratic Inc. Our own CEO, Gene Castello sits on the board of this amazing non-profit organization. Socratic Inc is about giving back to less privileged high school individuals who are in need of support during their first year of college. Last Friday evening, at their annual fundraising event, Socratic Inc reached their fundraising goal.
More than 200 guests enjoyed a dinner coupled with a wonderful evening of networking, raffles and music that was hosted at Salvatore’s Restaurant at Riverwalk in Lawrence, Massachusetts. Proceeds collected at this amazing annual fundraising event go to the Steven and Maureen Kelly Scholarship Fund that Socratic Inc awards annually to kids in the Merrimack Valley in partnership with the Boys and Girls Club of Lawrence Massachusetts.
Boys and Girls Club Associate Director, Steve Kelly, who has 55 years of service at the Boys and Girls Club of Lawrence, was the honorary speaker.
Find out more about Socratic Inc here. Click here to donate.
Global Hawk Resources is happy to announce that our agency now accepts credit cards. This addition to our business services has enabled our agency to collect more successfully for our customers.
Infection rates dictate everything right now with economists watching real time data and projecting. The US economy dropped 40% with Covid. As of last week, we are back to only a 20% drop in the economy. That is a major shift, but we are still down roughly 20%.
Where are we heading and how fast?
Looking at purchase indicators from business on what businesses are buying and at what speed helps us with a 6 month predictor of where we are heading.
These numbers have been positive.
How people are feeling about spending is the largest indicator button here. This is called sentiment data. Sentiment data is showing through (Blomberg Nanos Consumer Index) that savings rates have spiked all over Western Europe, the US and Canada. It is important that we get a handle on sentiment spending because then we can foresee the flood of money coming out of savings and back into the economy all at once. This represents a very large volume of money in the world economy.
Employment and its lead time are additional factors. This time is defined as the time it takes to fill a position, from advertising for this position through the time of hire of a new individual. The numbers today are longer than they have ever been. This factors into sentiment spending as well as the point that folks do not spend money until they have secured a new job and feel confident with it.
The last indicator of where we are heading is the financial markets. We saw large shorting in the equity markets as we tumbled down. Now we are not seeing shorting of the markets. This is great news.
There is much optimism with the economy coming back and it is unclear as to exactly what the reasons are. Excess of liquidity, irrational exuberance and/ or quantitative easing (meaning how governments are controlling the monetary policy by lowering interest rates and/or dumping more money into the economy) it is hard to tell. The markets are trending upwards, and this is one of the major indicators of the return of a strong global economy.
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