With COVID-19 vaccines projected to roll out sometime in 2021, we find ourselves approaching a turning point in our fight against coronavirus.
However, due to the unpredictability of the pandemic-ridden economy, many small business owners and practitioners can only focus on their immediate financial needs for the foreseeable weeks and months ahead.
Your bottom line does not have to suffer in the long-term. Kinum, Inc. explores why you should hire a collection agency post-pandemic and begin strategizing how you will collect your accounts receivable in an uncertain economic landscape.
Be Proactive Now & in the Future
The current state of the US economy does not paint a definitive picture of our country’s post-pandemic recovery.
Parts of the economy, like the service sector, are struggling significantly in comparison to the housing and consumer markets. With more states imposing shutdowns this winter, businesses in the suffering service sectors (and possibly others) will continue to grapple with financial challenges.
However, your accounts receivable does not have to be a financial burden, nor does it have to put your business or practice in jeopardy. Not if you take proactive measures now!
Consumers didn’t pay their invoices on time before the pandemic. With mounting financial hardships, more of your clients or patients may be delaying their payments ﹣ or not making them at all.
Collecting the money you are owed from your customers or patients ﹣ as soon as possible ﹣ is key to keeping your business or practice afloat as you manage your accounts payable turnover.
Don’t Let Your Accounts Payable Turnover Suffer
Your accounts payable (AP) turnover measures how much and how quickly you can pay off your suppliers and lenders.
Your AP turnover may look very different now compared to pre-pandemic. As your business or practice has had to adjust to the “new ways of doing things”, you may rely on more suppliers and debtors than ever before. Or the opposite: You could have minimized your debts to deal with the financial blows of the pandemic.
Not all debt is bad, especially if you have invested in new ways to safely operate, conduct business, and see more clients or patients at this time. But if you are not receiving payments for your services, it lowers your AP turnover and subsequently affects your practice or business’s ability to pay off recurring debt and expenses.
How a Collection Agency Can Help You Now & Post-Pandemic
When your customers or patients don’t pay back their debts, you ultimately foot the bill, disrupt your cash flow, and sink further into debt. If this scenario is already happening to your business or practice, or if you find yourself in this position after the pandemic, a debt collection agency can help you recover.
Contrary to popular belief, a collection agency does not take a harassing, “pit bull” approach to collecting accounts receivable for their clients. Rather, they act as a mediator between the client and debtor, collecting what is owed while preserving the relationship.
A post-pandemic future is not far away, and maintaining transparency and positive relations with your clients or patients is an essential ingredient to your success. A collection agency simply helps with the monetary and transactional side of that relationship, taking the burden off you and allowing you to focus on what matters most.
Understanding Why You Should Hire a Collection Agency Post-Pandemic
There’s no knowing when the post-pandemic future will arrive or how well your business and practice will recover. By being proactive now, you can mitigate your accounts receivable and accounts payable turnover and improve the likelihood of a successful and seamless recovery.
At Kinum, Inc, we’re here to answer all your questions and concerns when it comes to debt collection. We encourage you to learn more about collecting debt in a pandemic and reach out to us at 1-888-281-1750 if you need our services.