News

Will COVID 19 Affect Your Receivables?

August 3, 2020

The overwhelming majority (88%) of credit professionals have seen an impact from the Covid 19 pandemic. That's the word from the National Association of Credit Management (NACM) from a study they conducted in early June 2020.

In the survey, more than two-thirds (68%) had their customers ask for an extension of payment terms.  The WPMA office has received calls from many members stating that good customers (companies that they have done business with for over 10 years, have contacted them asking for 90 or 120 day payment terms.)  These companies had typically paid in 10 days or less and many told their suppliers they would "try" to meet the payment terms if possible.

The problem on the horizon is that more than 60% of credit departments haven't requested new financials since March (when the pandemic began.)

With so many credit professionals relying on credit references to help with short term decision making, it would only make sense to re examine who you are shipping and how you are getting paid (if you are getting paid.)  

Remember, it is not a sale until you get paid for the item.  Everyone in your firm must be aware of what is happening.

Source:  CFO & Controller Alert July 13, 2020