As the growing impact of COVID-19 becomes clear, Saldutti Law Group is here to assist you with the unprecedented and wide-ranging challenges the COVID-19 outbreak poses to your business and your workforce. When faced with a debtor in financial distress, a creditor’s ability to protect its interests and enforce its rights swiftly and aggressively can be the difference between payment in full and a sizable loss.
Here are some key points to keep in mind:
- Only wine gets better with age. Letting your loans or accounts receivable age is not a strategy.
- Review, inspect and verify. Over the next 90 days there will be substantial risk with your accounts receivable and loan portfolios. Now is the time to review.
- Luck follows speed. It’s going to be critical during this time to act swiftly and to pivot and think outside the box. Old strategies will not survive. Deferments will not solve all problems.
- Evaluate your legal strategy. Once we get to the other side, there is going to be a generational debt problem. It will not be easy, but generally, the sin of commission is better than the sin of omission. Review your strategy now.
- Get a collection policy in place. In times of volatility, a solid collection strategy is critical for the financial health of your business.