2022 has shifted by quickly as we approach the halfway point for the calendar year. For most, we have returned to ‘business as usual’ but this does not mean the same as it did in pre covid times.
We are all challenged by supply chain delays, raw material costs blowing out, demand for products outstripping supply, war, workforce shortages, limited logistics, high inflation, interest rate increases and the uncertainty this brings.
Insolvencies, collections activity and reports of late payment are all increasing as cashflow & working capital come under pressure. At the same time, turnover growth is still strong and demand for higher customer credit limits continues.
It has never been more important to ensure you have your credit controls in order, from ensuring you have credit application assessment process and strong terms and conditions of trade, to having a strategy in place to ensure you get paid if your customers come into difficulty. Like banks test mortgage applications, now is the time to stress test your credit controls and protection methods for what may lie ahead.
To get prepared, see our 5 tips on how to get paid here.