COVID-19 And The Effect On Corporation Cash Flow
These are trying times for a majority of businesses. In addition to the humanitarian challenges, Covid-19 has ushered in significant economic market volatility and uncertainty.
If you are reading this you are on the front lines of protecting your company’s main asset – the receivable base. Upper management is looking to credit and collections for a crystal ball. As a whole we do not have a fool proof method of gathering these analytics, but we do have collection trends centered on identifying stages of securing payments or disputed collection matters.
A serious concern is that there will be a large spike in bankruptcies over the next 60 to 90 days. The government has basically frozen the US Economy in order to manage this health crisis. A majority of sectors have taken a big hit including the retail and hospitality industry and the automotive supply sector. The $2 trillion dollar stimulus and federal business loan package should help bridge the gap, but long term economic effects remain unknown.
We strongly suggest allowing Global Hawk Resources to assist in scrubbing your aged accounts. Getting in front of your customers to identify issues will give a clearer picture of your projected cash numbers and percentage of your customers that might file for protection. Also when the economy is reopened you can manage what will continue to be a chaotic time.
Call us anytime with inquires on how we can assist with these curves. Above all please keep you and your family’s health priority one.