Debtors are using the COVID-19 economic disruption to their advantage and the consequence of this is that many good businesses are likely to collapse into administration or bankruptcy.

It’s a terrible situation and creditors are often at a loss what to do.

What are companies’ bank balances REALLY like?

First, it is true that many businesses will run out of money if the current situation continues.

Second, some of those businesses may struggle on with grants and loans although their future viability will be greatly impaired by this period of time.

Creditors and debt collectors will definitely face more challenges getting money owed out of these companies – this is beyond a doubt.

Most businesses have actually hoarded cash since the Great Recession

However, while it is true that many businesses are suffering cash flow problems, let’s step back and look at what’s really happening within the economy.

According to the Hampshire Trust Bank (in association with Coleman Parks), the average UK business has £855,000 in cash available to it (£409,000 in their current account and £446,000 in their savings account).

Here are the full results of their 2017 survey:

Savings account Current account Cash position
IT & communications £843,000 £760,000 £1,603,000
Accountancy £667,000 £369,000 £1,036,000
Financial services £555,000 £558,000 £1,113,000
Architecture £533,000 £363,000 £896,000
Manufacturing and engineering £444,000 £458,000 £902,000
Health and medical £421,000 £466,000 £887,000
Legal £317,000 £508,000 £825,000
Retail £289,000 £102,000 £391,000
Construction and building £264,000 £289,000 £553,000
Charities £155,000 £145,000 £300,000
AVERAGE £446,000 £409,000 £855,000

Creditors take the attitude of “never let a good crisis go to waste”

British businesses have a terrible reputation for paying on time.

This cynicism and lack of regard towards their suppliers’ financial health is likely to get worse as many take the easy route out by blaming the current economic upheaval for refusing to make payment.

When you’re working for some of your clients, there will be some debts which are genuinely unrecoverable.

However, you know that there are many overdue invoices which creditors could easily afford to pay but they’re using COVID-19 as a smokescreen. The difference is that you have the skills and the knowledge to extract that money unlike your clients.

Creating a positive message to send to business owners worried by lack of payment about your services

Many business owners will, unfortunately, believe it when a creditor with £100,000s in the bank tells them that there’s no money left to pay them.

And that’s because they don’t know what you know – they don’t know that the majority of companies keep as liquid as possible by allowing substantial balances to build up in their bank accounts.

You need to take that message to them as quickly as possible.

You need to tell these business owners that they don’t have to settle for these excuses and that you can go in fast to recover the monies owed without jeopardising an ongoing relationship with a client.

By unlocking the money owed to these firms, you might prevent them from going under or from saddling themselves with debt from the CBILS loan scheme for years just to survive.

Let us compose and deliver that message of hope

Britain’s most up to date B2B email database

Let us put together an email marketing campaign for your debt collection and credit control firm to send to the businesses hardest hit by late payers.

The database we use is fully GDPR compliant and contains the contact details of over 250,000 Managing Directors. You can choose which managing directors receive your message by line of business, geography, turnover, number of staff, and more.

One of Britain’s most prolific copy writers

Your email will be written by our MD – he’s one of the UK’s most experienced sales copy and content marketing writers.

Your email will grab recipients’ attention, show them the reality of how much companies have in the bank, and explain how your service will get the results they need right now.

Once you have signed off the copy, our designer will then build an email which is attractive, elegant, works on all devices, and is consistent with your branding.

Full reporting and telemarketing follow up calls

Your B2B email marketing campaign will be sent from our trusted servers meaning that your message will be seen by the maximum number of recipients.

Each campaign is tracked so that you or your sales team can follow up all opens and clickthroughs. It’s impressive just how many new leads you can generate by making the first call rather than waiting for the phone to ring.

Don’t have a sales team? Ask us about our B2B telemarketing follow-up service where we ring all opens and clickthroughs on your behalf to find out how much a respondent is owed and by which companies.

Marketing for debt collectors and credit controllers in the COVID-19 era

To discuss marketing strategies during the COVID-19 pandemic, please get in touch with More Than Words.

We’ll find out in as much detail as possible about the range of solutions you offer and how you can help British businesses survive the crisis and thrive in its aftermath.

For more information, call 0330 010 8300 or click here to email us.

Call 0330 010 3495

Marketing for debt collectors and credit controllers during COVID-19

For more information, please call us 0330 010 8300, click here to email us, or fill in the form below and we’ll get back in touch with you.