Supporting customers during times of financial hardship
The Covid-19 pandemic, and subsequent recession, has had a dramatic impact on the financial wellbeing of many consumers and business.
The increased financial pressure and hardship some customers are facing increases the risk of debt accumulation and missed payments, leading to increased volumes for Collections teams.
Furthermore, as payment holidays and furlough periods expire, businesses will need to understand:
- who can afford to start paying their credit agreement again?
- who could afford to pay some of their credit agreement back?
- who requires an extension to their payment holiday?
- who is already close to delinquency and needs help?
Understanding the size of the problem and having the right tools and processes in place early will be key to protecting customers and businesses.
In this paper, we explore the strategies needed to prepare for, and mitigate, the impact of rising arrears on collections processes. We’ll navigate the causes of change, the challenges these are presenting and the benefits which could be recognised from implementing certain strategies.