* By Cleber Genero
The year had barely started, people were still making plans and companies were setting their goals. Suddenly, as if in a fright, the pandemic caused by the new coronavirus arrived and imposed social isolation, causing people to rethink their attitudes and companies to act quickly to survive this new reality.
In this new scenario, commerce and industry had to stop, employees were placed in isolation or working in a home office and the fear of not being able to continue the business and lack of cash, mainly due to default, scared many entrepreneurs. Within this turbulent scenario, the importance of having a simple and effective collection process was imminent, especially for SMEs.
Although delinquency has surprised us positively throughout the year, this does not mean that we should stop investing in tools that allow a more assertive collection. Data from Serasa Experian reveal that the total debt of MSEs (micro and small companies) in February this year was 5.8 million and, in August, that number dropped to 5.5 million. Much of this decline is attributed to the emergency aid proposed by the government. This scenario, however, may change from 2021, when government aid ends, becoming more challenging in terms of defaults and collection.
Although it may seem insensitive to talk about collection partners in such an adverse time, the debt recovery process is important for an SME's cash flow to remain balanced and it can survive. Failure to receive any amount has a major impact on your financial health, which can lead to the dismissal of employees and even the closing of the deal. Delinquency has a ripple effect, if my client does not pay, I will not be able to honor my commitments, I become a defaulter, my supplier will also not have the resources to pay its own suppliers, and so on.
The entrepreneur needs to keep in mind that credit management and collection must go together and, above all, respect the customer. It is not easy to balance these items. For a more assertive credit recovery, it is necessary to have integrated processes and perform efficient strategic actions. Performing joint actions such as strategic planning, continuous control of cash flow and debtors and a credit recovery plan can help in this endeavor.
But, you are not alone. With the democratization of information technology, small and medium-sized companies can also use solutions to assist in this collection process and increase their chances of debt recovery. The digitization of processes is already a reality and companies need to get used to this “new normal”. The world has changed, the way of consuming has changed, consumer behavior has changed and the way to recover debts from defaulting customers has also changed. Today it is possible to do this with less stress and more assertively.
Each client has a specific profile and the entrepreneur needs to understand this, absorb and treat each one in the most adherent way to the commercial relationship. SME structures are leaner, so optimizing the time and processes of the company, employees and partners directly impacts the financial health of the business.
* Cleber Genero is vice president of Small and Medium Enterprises and Digital Identity at Serasa Experian
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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