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The Shelf Life of a Receivable

We are entering a crucial stage of the year for corporate debt collections.  Some organizations are closing their year at the end of June and pushing for cash.  Collecting your over 90 aged receivables is vital as your organization is looking to meet year-end cash collection targets.

Global Hawk Resources is strictly measured on how much we collect and pass back to our customers minus cents on the dollar.  Your organization needs cash on hand to meet financial obligations and we are here to execute that process.  Creating an escalation workflow from both an internal and external standpoint cannot be overstated. Utilizing collection tools and analyzing weekly aging reports will highlight problem areas in your AR that need to be addressed and resolved.  It is a critical time of year to clean up your over 90 aged balances and we are here as a resource.

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

Securing your past due receivables is no longer optional – it’s critical.

What is a global recession?

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:

  1. 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.

  1. 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.

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

 

Looking Into The Crystal Ball of 2022

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!!

Team Global Hawk Resources

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

Socratic Inc. Presented the 5th Annual “Make A Difference Night” on Friday night, Dec. 3.

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

 

 

 

 

 

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

Where Is The Global Economy Going And How Fast?

Wherever Covid goes the economy follows.

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.

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

Fall Global Economic Outlook

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.

 

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success

 

The Shrinking Dollar

 

Summer is officially over, and days are starting to get shorter as we enter the final four months of 2021.  Collecting on your over 90 aged receivables is becoming more and more crucial as your organization is looking to meet year end cash collection goals.  Global Hawk Resources is here to help.  As a vendor, we are strictly measured on how much we collect and pass back to our customers minus cents on the dollar.

 

                                                              Critical Data to Help Collect Your Companies Delinquent Receivables

  Current Accounts: $1.00

  3-months Overdue: $.70

  6-months Overdue: $.50

  1-year Overdue: $.23

  2-years Overdue: $.10

** Survey Results provided by the Commercial Collection Agency Association (CCAA)

 

Past due receivables can severely impact the trajectory of a business. To fight this uphill battle a company must instate a strict policy when dealing with delinquencies. Creating an escalation process from both an internal and external standpoint cannot be overstated. Utilizing collection tools and analyzing weekly aging reports will highlight problem areas in your AR that need to be addressed and resolved. Businesses must draw a line in the sand when dealing with aged balances and be aware that as these debts age they will become harder and harder to collect.

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

 

Closing the Gap Between Failure and Success

DOES FORCE MAJEURE APPLY?

Force Majeure = “Superior Force”

 

Recent devastating world events have created substantial corporate disruption.  Past notable incidents severely impacting day to day business include September 11, 2001 which destabilized global markets; Hurricane Sandy in 2012 which inflicted nearly $70 billion in damages; and the 2010 volcano in Iceland which restricted travel in Europe and interrupted the supply chain.  These unpredictable events leave businesses in search of protection under contractual obligations with critical vendors.  As credit and collection professionals this could lead to nonpayment disputes with regards to this clause if applicable.

The COVID-19 world health crisis has frozen commerce and left many businesses with a significant decrease in cash flow.  Consequently the Force Majeure (Latin for Superior Force) clause is becoming more relevant.  As a credit and collections team you should review all signed agreements to confirm this clause is in fact cited in your organizations terms & conditions.

 

A common legal clause in many agreements that permits your customers to restrict responsibility when exposed to some unexpected and extraordinary circumstances.

 

 

Taking a deeper dive into this leads on to determine what is defined as circumstantial events to invoke the clause. Standalone pandemics and epidemics do not have to be classified as force majeure event, but the consequences of such episodes (ex. port closures or suspension of transportation) severely impact the market and invoke this defense.

 

“A force majeure clause sets forth limited circumstances where a party may either terminate or not perform certain contractual duties without liability due to the occurrence of an unforeseen event.  Whether this is a valid defense depends on the language of the clause-i.e. whether, or not, it specifically mentions a “pandemic” or “public health emergency”.  Whether or not Covid-19 falls into such a clause would depend on the specific wording of same.  You also have to look at any other specific requirements in the clause defining what is excused, the circumstances of same, notice requirements, etc.  It is really contract specific as to whether or not such a clause applies.  I’m sure there will be litigation over this in the future,” says  John H. Bernstein, Esq.

 

In the middle of the COVID-19 health crisis, Global Hawk Resources does foresee an uptick with your customers invoking force majeure as a valid term of dispute.  From a global perspective the Chinese government has issued an overwhelming amount of force majeure certificates since the pandemic began.  Most of these claims will not hold up in English law as the provisions need to be far more specific.  With this said we recommend reviewing your current contracts to determine if force majeure is cited in specific terms and to what length.

Founded in 2016, Global Hawk Resources  is the worldwide leader in commercial credit and collection services. The company offers a wide range of products and services designed to optimize your organization’s bottom line.

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

 

Closing the Gap Between Failure and Success

Global Hawk Resources Announces Partnership with Base a Nuvei Company

An Integrated Payment

Solution

 

 

Global Hawk Resources announces immediate availability of Base, enabling our firm to simply and securely accept Credit Card and ACH payment processing on behalf of our customers.

“We are always looking for process improvements.  Partnering with Base allows our staff to secure credit card payments without having to go back to our clients.  It cuts down on distortion and time to pay.  This will subsequently increase our recovery rate across the board.” said Nick Morash, Co-Founder at Global Hawk Resources.  “Global Hawk Resources’ commitment to deliver on our first-class debt recovery solution is highlighted with the addition of this payment option.  Streamlining this thru Base and migrating it with our collection software adds a new advantage in this ever-changing third-party collection agency landscape.”

Founded in 2016, Global Hawk Resources is the worldwide leader in commercial debt recovery. The company offers a wide range of products and services designed to optimize your organization’s bottom line by recovering on receivables on average 60 days past terms.

For more information on Base:

Website:  www.basecommerce.com

Contact us today to learn more to learn about Global Hawk Resources services and to request a free demo.

Closing the Gap Between Failure and Success