Debt Collection in Disruptive Conditions
In 2020, the global supply chain faced unprecedented disruptions, creating a ripple effect throughout businesses. The surge in online sales, fueled by shifting consumer behaviors during lockdowns, posed unforeseen challenges, impacting supply chains worldwide. Bison Credit Solutions understands the complexities brought about by these disruptions and provides strategic solutions to bolster your financial stability and proceed with debt collection in disruptive conditions.
The Unraveling of Global Supply Chains: A Recap
1. Congestion and Delays:
Increased online sales led to congested ports, particularly from Asia to North America. Prolonged wait times and escalated rates by container freight companies contributed to rising costs and inflation.
2. Suez Canal Blockage:
In March 2021, a massive barge obstructed the Suez Canal, causing a bottleneck of 369 container ships. This unexpected event further disrupted global shipments, compelling rerouting and exacerbating delays at ports worldwide.
3. Impact on Businesses:
Major automotive manufacturers like Ford halted production due to semiconductor shortages, and toy companies like Hasbro and Mattel increased prices. Supply shortages and cost hikes became pervasive across businesses of all sizes.
4. Local Businesses Struggle:
Even local businesses felt the impact, with microbreweries struggling to obtain bottles and cans at reasonable prices. Raw material scarcities and escalating costs squeezed profit margins for small businesses.
5. Labour Shortages:
The supply chain crisis extended beyond physical goods, manifesting as significant labour shortages. Recruiting challenges, talent retention issues, burnout, and rising wages emerged as prominent concerns affecting businesses in North America and beyond.
6. Natural Disasters Complicate Matters:
The Port of Vancouver, Canada’s largest port, faced a shutdown after a severe storm disrupted transportation infrastructure. Landslides and rail line washouts compounded existing supply chain challenges, adding an extra layer of complexity.
Responding to Receivable Challenges Amidst Supply Chain Turmoil
1. Prompt Action on Overdue Accounts:
Act swiftly on accounts slightly past their due date, particularly if you’re a small business vulnerable to payment delays. Being assertive in the early stages positions you ahead of other creditors and underscores the importance of your receivables.
2. Engage Collection Agencies Early:
If delays persist or warning signs emerge, involving Bison Credit Solutions is a strategic move. Don’t fall into the waiting game; initiate collection procedures no later than 60 days past due. Timely intervention is key, and false optimism can be detrimental.
3. Establish Clear Collection Policies:
If your business lacks defined policies on when and how to send accounts to collections, now is the time to establish them. Communicate confidently that it’s company policy to take action on a specified day if full payment is not received.
Trust Bison Credit Solutions for Your Debt Recovery Needs
In times of supply chain turmoil, making your business a top payment priority is imperative. Addressing these challenges not only helps weather the current storm but also fortifies your business for future uncertainties. Implementing robust policies and retraining customers contribute to lasting improvements, ensuring a stronger and more profitable business in the long run. Trust Bison Credit Solutions to navigate these complexities and enhance your financial stability.