Dunning letters have always been a standard approach to collect outstanding receivables. Sending a formal written request for payment by mail is a touch point with your customer. But, as the famous line goes, “Past performance does not always dictate future results.”
In the Spring of 2020, during the beginning of the global lockdown, most businesses forced their workforce to WFH. Opening the daily mail became an arduous task in this new environment. All dunning letters are directed to a company’s physical bill to address on an outstanding invoice. Most dunning letters, during this time period, ended up in a giant heap of unread mail collecting dust.
As a global third party collection agency, Global Hawk Resources, also sends out dunning letters. In the past 30 days, we have seen an uptick in communication from dunning letters we sent out 120 to 180 days ago. The regular feedback is, the debtor has reopened their business and is going through unopened mail and stumbled upon our letter(s).
We are also seeing a follow up comment that business is starting to pick up and these debtors want to pay down or off the balance. This is a unique and radically different response to most dunning letters Global Hawk Resources has sent in the past. It is also a narrative to the impact of COVID-19 on cash flow and day to day operations of most businesses. A sign of the times and an anecdote we thought worth sharing.
Contact us for a free Demo today to begin your journey with the GHR team.
Closing the Gap Between Failure and Success