THE CORONA INVOICE. A few points to consider in your collection process to limit unpaid invoices during covid-19.

clauses abusives

De Tijd (a Belgian economic newspaper) published that the corona bill has risen to over 20 billion EUR for the government. How can you make sure your unpaid invoices don’t pile up during Corona? We list six points that can make a difference in your collection process.

 

  1. Contact with debtors is essential

 

In fact, staying in touch with your debtors is always extremely important, but even more so in times of uncertainty.

So, make sure you always have direct contact details for your customers (phone number, mobile number, email address, delivery address, etc.). This way you have a better chance of joining them and they are less likely to disappear from the radar.

Moreover, your debtor probably has a lot of work to do too, and your unpaid bill won’t disappear to the bottom of the pile if you keep in touch.

You can find tips for a productive phone conversation with debtors in a previous article.

 

  1. Take the date of the invoice into account

 

When the invoice date is (much) earlier than the corona period, it is difficult for debtors to raise this as a valid reason for non-payment.

Of course, covid-19 will probably not have favoured the financial health of these debtors, but the origin of the problem is older and therefore more dangerous. These are the receivables and payables that you need to watch out for.

So, analyse the root the payment problem with the debtor and look at the possible proactive solutions with him. What guarantee can an amicable solution offer? Possibly discuss a possible public subsidy, as the ultimate goal of such grant is to be able to pay supplier invoices.

 

  1. Be open to a payment plan, but take the bull by the horns

 

The payment plan remains an attractive option, depending on the terms agreed.

Covid-19 has put many sectors in a very difficult position. Hence, don’t put all of your eggs in solutions that will only work for the long term. We don’t know what which debtors will weather this storm.

We always ask debtors to start payment plans within one month of the request and preferably even within the next three business days. Even small payments are useful, if only as an interruption of the prescription and as an acknowledgment of debt.

 

  1. Interaction: the debtor becomes supplier?

 

What if your debtor could also be your supplier and pay off the debt that way? Being inventive in your business process during this time can only be beneficial to all parties.

This type of solution will obviously not be possible for all companies and sectors, but it encourages creativity.

 

  1. Focus on direct payments

 

Where possible, direct payments are of course the safest solution.

Check the creditworthiness of debtors and dare to ask for immediate payment when the situation is doubtful.

For more information on corporate credit checks, click here. The new Company Code has also made some adjustments that affect the solvency of companies.

 

  1. Conditional general conditions?

 

The general conditions can become conditional if the debtor commits to an amicable solution.

For example, as from the receipt of a first partial payment, interest anticipated in the terms and conditions of the creditor may be frozen. In this way, the debtor is encouraged to start making payments.

We have often mentioned the importance of good general sales conditions (including some important provisions and other illegal conditions). The coronavirus will undoubtedly leave its mark on future clauses, especially in cases of force majeure. What are the cases of force majeure and what are the consequences?

 

 

There are signs that the second lockdown will have a lesser impact on our economy than the first. Average sales declines of 30% were recorded in March and April, compared to 17% in November.

This will undoubtedly have to do with a different government approach, but also with the learning process of companies. Entrepreneurs continue to reinvent themselves and do everything they can to survive.

 

However, bear in mind a possibly a difficult 2021. A De Tijd survey shows that Belgian companies do not expect an economic recovery in 2021. Turnover would remain 12% below the normal level.

 

And though we all have hope for a vaccine that works well, we will probably lose some 60,000 jobs anyway. The purchasing power of consumers can therefore also drop sharply, including a potential loss of 5% to 30% of variable pay.

 

Limiting your unpaid invoices will therefore be extremely important in the coming period.

 

Questions?  Contact us!

THE CORONA INVOICE. A few points to consider in your collection process to limit unpaid invoices during covid-19.

clauses abusives

De Tijd (a Belgian economic newspaper) published that the corona bill has risen to over 20 billion EUR for the government. How can you make sure your unpaid invoices don’t pile up during Corona? We list six points that can make a difference in your collection process.

 

  1. Contact with debtors is essential

 

In fact, staying in touch with your debtors is always extremely important, but even more so in times of uncertainty.

So, make sure you always have direct contact details for your customers (phone number, mobile number, email address, delivery address, etc.). This way you have a better chance of joining them and they are less likely to disappear from the radar.

Moreover, your debtor probably has a lot of work to do too, and your unpaid bill won’t disappear to the bottom of the pile if you keep in touch.

You can find tips for a productive phone conversation with debtors in a previous article.

 

  1. Take the date of the invoice into account

 

When the invoice date is (much) earlier than the corona period, it is difficult for debtors to raise this as a valid reason for non-payment.

Of course, covid-19 will probably not have favoured the financial health of these debtors, but the origin of the problem is older and therefore more dangerous. These are the receivables and payables that you need to watch out for.

So, analyse the root the payment problem with the debtor and look at the possible proactive solutions with him. What guarantee can an amicable solution offer? Possibly discuss a possible public subsidy, as the ultimate goal of such grant is to be able to pay supplier invoices.

 

  1. Be open to a payment plan, but take the bull by the horns

 

The payment plan remains an attractive option, depending on the terms agreed.

Covid-19 has put many sectors in a very difficult position. Hence, don’t put all of your eggs in solutions that will only work for the long term. We don’t know what which debtors will weather this storm.

We always ask debtors to start payment plans within one month of the request and preferably even within the next three business days. Even small payments are useful, if only as an interruption of the prescription and as an acknowledgment of debt.

 

  1. Interaction: the debtor becomes supplier?

 

What if your debtor could also be your supplier and pay off the debt that way? Being inventive in your business process during this time can only be beneficial to all parties.

This type of solution will obviously not be possible for all companies and sectors, but it encourages creativity.

 

  1. Focus on direct payments

 

Where possible, direct payments are of course the safest solution.

Check the creditworthiness of debtors and dare to ask for immediate payment when the situation is doubtful.

For more information on corporate credit checks, click here. The new Company Code has also made some adjustments that affect the solvency of companies.

 

  1. Conditional general conditions?

 

The general conditions can become conditional if the debtor commits to an amicable solution.

For example, as from the receipt of a first partial payment, interest anticipated in the terms and conditions of the creditor may be frozen. In this way, the debtor is encouraged to start making payments.

We have often mentioned the importance of good general sales conditions (including some important provisions and other illegal conditions). The coronavirus will undoubtedly leave its mark on future clauses, especially in cases of force majeure. What are the cases of force majeure and what are the consequences?

 

 

There are signs that the second lockdown will have a lesser impact on our economy than the first. Average sales declines of 30% were recorded in March and April, compared to 17% in November.

This will undoubtedly have to do with a different government approach, but also with the learning process of companies. Entrepreneurs continue to reinvent themselves and do everything they can to survive.

 

However, bear in mind a possibly a difficult 2021. A De Tijd survey shows that Belgian companies do not expect an economic recovery in 2021. Turnover would remain 12% below the normal level.

 

And though we all have hope for a vaccine that works well, we will probably lose some 60,000 jobs anyway. The purchasing power of consumers can therefore also drop sharply, including a potential loss of 5% to 30% of variable pay.

 

Limiting your unpaid invoices will therefore be extremely important in the coming period.

 

Questions?  Contact us!

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.