As reported in The New York Times, unemployment claims in the United States have already surpassed $40 million in the wake of the COVID-19 pandemic. Prior to the pandemic, many Americans were unprepared to handle the financial repercussions of an impending economic crisis.
Even with the enactment of stimulus checks, student loan forgiveness, and other forms of protection, it’s expected that many Americans will plunge further into debt throughout the course of the pandemic.
Debt collection in a pandemic is an unprecedented issue that small businesses are navigating for the first time. Here at Kinum Inc., we’re offering efficient approaches that your business can take during this time.
Read on to learn more!
Stay Informed As a Business Owner
Every day, the pandemic and economic crisis are changing, and so are laws and policies surrounding debt collection.
As our country begins to reopen, most states have allowed small businesses to resume collections. Meanwhile, other state supreme courts have extended protection policies or temporarily stopped debt collections altogether.
How do you navigate through these changes effectively as a business owner and lessen the burden on your customers or patients who currently owe, or will owe, in the future?
Consult with financial advisors and lawyers to understand your rights as a business owner and the actions you can legally take to collect past due receivables at this time. Stay informed on what’s happening by reading local, state, and national news stories. Reach out to your state’s Department of Labor for more information about what is happening.
Talk to other companies and understand how they’re collecting past due receivables. By staying informed, you can brainstorm, plan, and prepare for implementing necessary changes in your own practice.
Communicate with Your Customers
Now is the time to connect with your customers and patients and remind them that you’re there to work with them and assist them through this unprecedented time. Many of your customers may be experiencing financial insecurities and anxiety, fearing possibilities like foreclosure or job loss. Also, keep the misconceptions of debt collection in mind.
Communicate with your clients to understand how they’re coping. Listen to their challenges and problems. This will help you understand their needs. Share about your own experiences and what your company is doing to better facilitate their needs.
Consider opening up the lines of communication beyond phone and email. You can connect with your customers in real-time by hosting virtual conference meetings. You can also update your website with information about your company’s in-office visits and payment policies.
Understanding Debt Collection in a Pandemic
Business owners may not have the time to effectively put these debt collection practices into place. If you already have an outstanding debt owed to you, you may even need to take firmer action to collect.
When it comes to business debt collection in a pandemic, a third party debt collection agency can help you navigate around the sensitive issue and ensure results. The Kinum Complete System is designed to recover debt faster with the consistent, gentle touch your company’s image needs.
For more information about how we can help, reach out to us today.