Jul 14, 2020
One of the major problems that we face right now is the impact of the Covid slowdown. Especially when it comes to credit and collections. Today, Wilson and Samantha Cole explore the effect of Covid on these two vital aspects of the staffing and recruiting industry.
The Effect of the Covid Slow Down on You, Credit and Collections
Wilson and Samantha Cole will be exploring the deeper implications of Covid’s effect on business in today’s Monday Morning Memo.
Former Credit Risks are a Much Larger Risk Now
You’re not the only one affected by the Covid slow down, your clients are too. Companies and businesses that you have been dealing with over the last few months are a much larger risk than they ever have been. This is especially true if they have been a problem account since last year of December or early January of this year. One recommendation that Wilson wants you to do is to pull new credit reports as it gives you insight on the risk of a company.
Back Door Hires Become a Much More Common Occurrence
Another big problem that occurs during the Covid slowdown is how common back door hires become. This is why you need to make sure you constantly keep track of your candidates. One moment a company contacts you that they’re going to wait until they onboard the candidate before paying you. All of a sudden, you’re going to find out six or seven months later that they’ve gone full circle and hired the candidate behind your back and cut you out of your fee.
The Legal Aspect of Business is the Wild West Right Now
Covid’s effects extend towards its effect on the legal side of things. As Wilson puts it, “it’s the wild wild west out there right now. Getting the service of process or hitting someone with a lawsuit right now has been insanely hard with Covid hampering the processes needed for it. These problems are different from state to state, which makes things even more difficult to deal with as some states have adapted new measures while others have not while court dates are simultaneously being postponed at rapid speed.
Main Takeaways
● Regardless of whether you believe it is the black plague of the 20th century or its the biggest hoax, no one can deny that it has affected business.
● If I had to make one recommendation for any of our staffing clients is pull new credit reports because companies that have been in wonderful shape might not be today.
● If you sue somebody and they are an educated debtor they’ll just say “ you can go ahead and sue me but you and I both know that it’s going to be six months before they can even get the courts up to start the process.
● Get connected. Don’t let your paperwork fall to the wayside in trying to get the deal done.