Stay away from zombie companies
The 2007 banking crisis caused the number of non-viable companies or zombie companies to rise from 6 to 9 percent in Belgium. At that time, our country already had an incredibly high number of zombie companies, companies that are not bankrupt but also not viable. The corona crisis has only made this situation worse. After all, anyone who does business with those companies risks to go down with them. You can prevent this by acting quickly and decisively in the events of non-payment.
Is there a significant difference between 2019 and the past year? In fact, the number of bankruptcies in 2020 should have been 108 percent higher than the year before. We can calculate this on the basis of the number of bankruptcies and the economic growth. So, this should have been more than double. Now bankruptcies are temporarily delayed because of governmental aid and respite measures, zombie companies are artificially kept alive. The number of companies in intensive care is alarmingly high. Once the corona measures end, this will be detrimental to our economy.
Financially ill companies are no longer a marginal phenomenon. It is difficult to predict how many companies will not make it to the end of 2021. We are completely in the dark. If you don’t want to bump into a mountain of unpaid invoices, you better take good precautions. You want to protect the future of your company and that’s only possible when your company is financially healthy. Unpaid invoices are one of the greatest dangers that can take over the edge to bankruptcy.
The financial noose of 2021
That’s why we repeat the golden rule: take immediate action when you are confronted with an unpaid invoice. Do deter any laxity because of well-intentioned, but overly compassionate sympathy. Now that the financial health of companies is more difficult to analyze due to the support measures, it is important to immediately insist for payment after your payment term. Sending a payment reminder in a friendly and positive tone will not put your reputations and customer relationship at risk.
So, take action in time! After all, once the financial revival starts, all your worries will not be resolved. The corona crisis could also have a very bitter aftertaste. For example, many gift vouchers that were purchased during the lockdown to support companies will be redeemed. This therefore does not generate new turnover. In addition, anyone who applied for a delay in payment of the NSSO in 2020 will have to pay double in 2021. Many other unpaid invoices will also have to be collected. Especially in 2021, many entrepreneurs will feel the financial noose. Since the NSSO has priority over other creditors and those creditors are likely to be numerous, the chance of a successful recovery is small. In short, there are few certainties. Therefore, make sure that your invoices do not remain unpaid. Be firm but also friendly.
Discuss debts in time and find a solutions together
Don’t wait to contact your customers with unpaid invoices. Our experience shows that those who seek contact in an understanding way are paid first. If your customer proposes a payment plan, take a goo look at the conditions and follow the payment terms carefully. But also dare to engage a third party in time to collect unpaid and uncontested B2B invoices for your company. Resolutely choose a debt collection expert who takes action with respect for your reputation and customer relationship.
In short, call on the experience and expertise of Go Solid. This way you can recover the full invoice amount of your undisputed invoices quickly and free of charge without the intervention of a court. Isn’t that great?
Need help with your unpaid bills? Contact us via b2b@go-solid.be or the toll-free number 0800 237 39. We will help you further with professional advice.