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Thank you for reading the DAL Credit & Collection COVID-19 E-Message ~                                                                       Printer Friendly Version

 

DAL COVID-19 CREDIT MANAGERS' FORUM

DAL is here to support and strategize with you through the economic slowdown. Be sure to visit the continually updated, DAL Credit & Collection COVID-19 Resource Center for webinars, whitepapers and the latest in court closures and state-by-state mandates. While your specific situation is unique, we want to share some of the common challenges we are hearing from customers across industries and how we are helping them in response to their challenges.

 

What is happening out there with other credit & collection departments?

From some of our clients: “We are still collecting money. Nothing has changed.” “There is still money out there.” “We have stopped collections for 30 days.” “We are holding upon any new credit applications.” “We are talking with our third-party to offer settlements to avoid the courts.”

 

What do you do if your customer tells you they are closed due to COVID-19?

Ask questions. Is it a temporary or a permanent closure? Are they liquidating any assets? Are they paying their employees? Did they apply for the federal assistance to get them through this? You want to find out what their plan of action is to get through this. It is not unwarranted or being unreasonable to ask questions. They owe you money. You have a reasonable expectation to have details on their plan of action moving forward. You can remind them that without real information you still have to move forward on collecting the account.

 

Many credit departments have put a freeze on opening new accounts or increasing credit lines, should I do the same?

The question really is, how confident are you in what your credit department can handle and what is your company’s risk level? That is a decision every company must make for themselves and could be a strategic move given the times based on what is right for you and your updated business model.

 

What is happening in the legal community?

Depending on the state, most are still able to file pleadings and new lawsuits electronically. Service of process and post judgment activity, such as Writs of Execution and Receivership activities will be curtailed under the Orders of the individual County Judges. As a practical matter, face to face interaction has been severely limited, hampering the activities of Constables, Process Servers, and Receivers. Visit the DAL Credit & Collection COVID-19 Resource Center for the latest in court closures and state-by-state mandates.

 

Can I or should I still file suit?

Of course, there are other considerations, but the short answer is yes. This will at least get the process started and on record to be line for service to be made once the courts open up.

 

And what the heck is Force Majeure?

Force Majeure, as defined by Merriam Webster’s legal dictionary, is “an event or effect that cannot be reasonably anticipated or controlled.” It could also be a clause in your contract that allows for a contract to be cancelled or postponed due to impossibility performance. Check out this article to get a better understanding of Force Majeure.

 

How can I minimize write-offs?

 As Chris Kuehl, Managing Director, Armada Corporate Intelligence and NACM Economist, says,

“The Credit Manager will have to decide what the likely fate of their customers might be. If they are doomed, the only course is to get as much of what is owed as possible. If they think the situation will improve soon, they will be inclined to wait it out and keep the relationship intact.”

 

With that in mind, place those accounts sooner than later and get back to basics - check out the DAL Snapshot – Red Flag Warnings and these DAL Collection Tips.  Consider giving your third-party agency Pre-Authorized Settlement Parameters to have a chance for a rapid resolution and turn-around for cash flow.

 

These are tough times. Not only are businesses being affected but people too- financially, mentally, and emotionally. So, when you send or respond to an email or pick up the phone, don’t forget to be extra nice and/or supportive, you never know who needs a reason to smile.

 

Lastly, as an extension of your credit department, DAL can adapt with you. For a complimentary account review to assess your current needs and changing landscape, please contact your DAL Account Manager to discuss your options.

 

 Together we can help one another.

If you would like to share any thoughts or ideas to your fellow Credit & Financial Professionals,

please let us knowand we will share in the next DAL Credit & Collection E-Message

 

 

Don’t delay, Place your Claim with DAL today. 

 

DAL Credit & Collection COVID-19 Resource Center

Your source for COVID-19 credit & collection resources such as court closures, state-by-state mandates, webinars, customer resources, and more.

 

Article compliments of DAL, Inc. All Rights Reserved.

DAL, Inc. | 800-355-9999 | dal@dalcollects.com | www.dalcollects.com