20 March, 2020
With the UK supposedly not being far away from implementing a similar style of shutdown to what we are seeing in Italy in a further effort to slow the spread of coronavirus, now is the time to ensure that you receive payment of those outstanding invoices before it is too late.
Whilst we have seen the supermarkets and convenience stores thrive during this pandemic, it has unfortunately not been the same story for other businesses. Many restaurants, pubs, retailers and other Small businesses have put temporary closures in place to try and get through this period of uncertainty.
But for some businesses, despite the Government pledge to offer much needed support, there is a real concern that these closures unfortunately may not be temporary. Cash flow going forward is a real problem for both large and small businesses and the reality is, there is only going to be more disruption and more consequences in the very near future following the outbreak of COVID-19.
The Chief Executive of Next has said that the British high street is facing a crisis that is "unprecedented in living memory" and announced that sales slumped 30% within the three-day period to 17 March as the effect of the virus began to hit the global retailer.
What if my debtors fail to survive lockdown?
Once a Company enters into administration the hopes of recovery are unfortunately, drastically reduced. Therefore, it is growing increasingly important to ensure that you act now and are first in line to receive payment of any overdue invoices. This will generate a more positive cash flow within the business and help you meet your own financial obligations over the coming months, whilst also avoiding an unpaid debt becoming a 'bad debt'.
We understand that during this worrying period you may not have the resources nor the time to chase outstanding invoices and that is why it may be worthwhile instructing our expert Debt Recovery team to help. We will run your claim from start to finish, ensuring that the debtor is continuously pursued, with maximum amounts of pressure and therefore enhancing the likelihood of recovery.
For more information contact Sadie Butler in our Forbes Collect department via email or phone on 0333 207 9388. Alternatively send any question through to Forbes Solicitors via our online Contact Form.
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