Don’t let faulty data lead to debt

Companies are failing to collect debts simply because email contacts are out of date due to the coronavirus pandemic.

As reported in Business Insider, a survey from Debt Register found that 61 per cent of firms questioned found that email data had declined in quality since the pandemic began and that this has contributed to issues with credit performance.

Factors such as furlough, staff turnover and redundancies have led to a lack of staff to take on tasks such as managing email data.

This issue can have serious repercussions on cashflow management, especially at time when businesses are trying to bounce back from the pandemic.

So, how can firms take control of their data?

There’s an app for that

Helpfully, software is available that identifies and verifies email contacts within a business. This should help to find the person at a firm who is responsible for paying bills so you can chase them. Have a search to find one that works for you.

Invest in people

Businesses are using already stretched teams to chase debts, which takes them away from their current work. It may be useful for a firm to consider the long-term gains of hiring extra people in a bid to improve the quality of data management. Such a move could benefit existing staff and ensure that past bills are collected, improving the cash flow situation all around.

Don’t ignore the problem

The pandemic affected so many areas of business, that the task of rebuilding back to normal can seem a daunting task. It is crucial that firms do not wish these problems away and instead act on solving the issue. The management of email data may seem like an issue that can be batted away, but it can have far-reaching consequences on cashflow, debt and ultimately the firm’s success, so act now.

Do you need advice on cashflow management? Contact our team today for help on this and related matters.