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.
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.
The chill in the air reminds us that another school year is beginning. Winter will soon arrive and a return to business activities is upon us. With this return to business activities, what are the top economic factors? Covid infections are at the top of our list as a threat to economic recovery. Unfortunately, this is the biggest risk to business flows. The rise in the Delta variant infections threatens economic growth across almost every industry.
Global Hawk Resources strongly recommends to stay informed of infection rates in destination countries and supplier countries as well. The most important factor in the United States is state level actives. Broad lockdowns are not expected to be the key strategy any longer, but rather a focus on vaccination rate in hopes of reducing infection levels.
The good news is the global economy is in fast recovery mode. The challenges lie in limited supplies and raw goods for manufacturing as we move forward into the winter months. Seaborn shipping will continue to struggle with overflows in shipping. Containers and vessels are still the main shortages in this area. There is enough capacity to align with current demands, however there remains a challenge to get back to pre-pandemic flow of goods. Inflations of the new Delta variant will be the main focus as they continue to rise. This of course is fueled by a limited amount of raw goods as we move into the autumn, pre-holiday retail season. Large players will use their clout to make sure orders are fulfilled while smaller players will need to be creative to make sure orders are met.
Unambiguously, this will result in higher prices for the end consumer. The United States consumer prices will shoot up, and Europe will follow suit. Another key factor to keep in mind is labor shortages. These shortages will continue to rise as unemployment numbers shrink, thus again hurting the smaller players. Labor now has better options on employment choice and will chose larger companies with more security and better benefits. A positive aspect during is the large amount of cash savings in many businesses due to low operating costs over the time period of the pandemic.
Businesses need to be aware that these factors are on the way. We need to stay ready. Meaning, we need to insure that cash flow is secure as it is the life blood of any business. One predicator is for sure, we don’t always know what is coming as we have seen over the past 2 years, however we can insure better success by perusing past due accounts and creating process that protect receivables.