We still need to keep an eye on the ball. Collections are still important
The last 6 months, as we all know, have been trying indeed.With all of the continuing stressing over keeping our distance and the restrictions imposed on us, that sometimes feels like they change from week to week, it is a wonder we get anything done.
But wonderful we are and I think we deserve a pat on the back for showing the kind of resiliency, tenacity and creativity that has allowed Canadian businesses at least, to keep functioning while keeping our employees safe and working.
If only provincial and federal organs were allowed to do the same.
As we keep hearing, we are not out of the woods yet by a long shot, so my advice is: keep cleaning those hands and faces, have that mask handy, stay more than six feet away if you are indoors, and don’t lose your sense of humor. As the weather continues to cool and we spend more and more time inside you are going to need it.
Remember …” we’re all in this together “ to quote our politicians.
Many of you have been asking how best to deal with A/R during this period.
The answer, I believe, is Compassion and an equal share of Common sense.
Covid 19 should not be a carte blanche not to pay bills or for your customers to shirk their responsibilities to their creditors.
Therefore the old rule still applies-
If the account is 90 days past due and you have not received a satisfactory partial payment and a written commitment for the balance that includes a well-defined time line it is time to get help.
Don’t wait and don’t keep giving the debtor more rope because you may the one getting hanged when you have to write off that receivable.
If they are not paying you they are most likely not paying other creditors. You don’t want to be the last in line.
The other thing we are hearing is : are the courts open yet?
The answer is yes and no.
Some have resumed full operations.
The Landlord Tenant Board is finally up and running now.
Superior Court, Family Court and Criminal Court are still only hearing urgent matters.
But some good news – Claims can be filed and served – so suing someone is still an option.
Small Claims Court is even conducting Settlement Conferences under certain conditions and also processing requests for enforcement of judgments.
Unfortunately, the freeze on timelines to respond have not yet been lifted.
Even so, the clock is running on interest, so although debtors may feel they are benefitting from these delays they are only causing themselves more grief. In the long run it will cost them more in interest and costs.
Let me end with the salutation of the season:
Stay well. Stay Safe.
and I would add Stay Sane.