20 April 2020

Focus on cash: credit control and debt recovery is important

In these difficult times the BPIF has decided to team up with Direct Route Debt Recovery and AccountAssyst to offer members the best advice on credit control and debt recovery.

Direct Route have been offering advice and zero cost commercial debt recovery to the BPMA for a number of years and their members have found their services invaluable.

They have some pertinent advice for companies facing severe reductions in business due to the Covid 19 virus, and areas to concentrate on particularly as you may be facing periods of inactivity in other areas.

Their message is simple: Cash is King - Focus on Cash. 

Don’t worry about profits, turnover, or any other measure that might have been important in the past, only cash matters now! 

Look for every opportunity to retain cash within the business;

• Maximise incoming cash 
• Reduce or defer outgoings. Analyse all your outgoings – what’s essential for the continued survival of the business, what isn’t? 
• Reduce, defer or cut entirely the latter, including your own remuneration. When cutting, be brutal, and early, but in a way that when you eventually look back, you won’t be kicking or criticising yourself.
• Barter if you can. Focus your resources where they bring the maximum benefit. Treat this crisis as one that will last at least 3 months. 

Getting your staff to concentrate on these areas now will put you in a far better position when things start to get back to normal.

Some companies are telling us that going straight to debt recovery is too hasty in the current climate, therefore Direct Route has created a simple 7 Day Reminder Service that all BPIF Members can have unlimited use of, for a one off fee of £1, with all proceeds going to the NHS to help combat Covid-19.

If you get payment within 7 days, no charge will be levied whatsoever. And if after 7 days, no payment is made, you can choose whether or not to use Direct Route’s full debt recovery services for FREE (including a zero cost service that levies the cost of recovery on your debtor, not on you).

If you want to take advantage of this service, specially negotiated for BPIF members, click on the following link https://www.directroute.co.uk/covid19support/ 

Alternatively email [email protected] or call on 01274 223 190 and you can discuss any debt(s)/issues with them and they will send you instructions on how to join.