Global Shut Downs Are Creating Problems For Those With International Clients
As technology and access to foreign markets expand, more and more people are looking to do business around the world. Current statistics show that about fifty-eight percent of all small businesses conduct business globally. This means that even small businesses are starting to compete with large businesses to gain more clients and find opportunities around the world
While having international clients is typically a benefit, the current pandemic and the associated lockdowns that have followed have created several risks for companies trading internationally.
Coronavirus has affected each country around the world in different ways, and how each country is dealing with the pandemic is affecting their respective economies differently. Global lockdowns are currently devastating companies that have international clients because it is affecting their ability to get paid and to conduct business as normal.
One of the main ways in which the pandemic has affected those with international clients is through shipping. Shipping has become the main concern for many countries because many ports of entry are closed. For instance, China has closed many of its ports for months and are not allowing any imports to help prevent the spread of coronavirus. In the United States, imports dropped 21.3 percent since last year due to the pandemic. This affects a company’s ability to do business, and both import and export the necessary items to keep their businesses operating at full capacity.
Another main way why global lockdowns are affecting companies with international clients is because of communication. It is very difficult for companies to communicate with international clients because many of them are working from home. When workers work from home, it can be extremely difficult to get in touch with the correct people and to get the information you need. In the United States, recent statistics show that about forty-three percent of workers work from home for part of the workweek. As businesses close down to help reduce the spread of the pandemic, more and more people all over the world are working from home. This is an incredibly efficient way to help prevent spreading the disease. However, it is not always the best way to do business, especially if you have international clients that you need to contact.
The credit market is also another main reason why those with international clients are having a hard time doing business. When the credit markets are low, clients typically have less money to spend. If these clients do not have the necessary capital, they are forced to withhold money and do less business. When international clients do less business, they are taking money directly from our economy and forcing businesses to find alternate means to secure additional revenue. This can have a significant impact on both small and large companies who need this money to continue operating and employing workers. Many companies who are unable to continue doing business with these large international clients will be forced to make changes unless they can collect their past invoices.
Because of the current pandemic, many international clients are late on payments to domestic companies. They are often using the reasons above to avoid making payments to ignore the attempts to get paid. Even in our nation, many financial institutions and other credit companies are unable to require people to pay back the money because of the unforeseen circumstances affecting the nation. This may seem beneficial for individuals, but it will have lasting and negative consequences on the global economy. It can be incredibly difficult for small and large companies to reach out to their international clients during this time to collect payments for both past and current business transactions. When companies are not paid regularly, this can have devastating effects for the entire company as a whole that will trickle down the line and affect other companies as well.
If your company is struggling to stay afloat during coronavirus, like most companies are, you may be looking for ways to collect your past dues from your international clients. While this time can be hard for any business or any client, companies must be paid for the work that they have previously completed or the work that they are in the process of doing. To help ensure that your business lasts and is efficient throughout this pandemic, you may need to invest in the help of a debt collection agency to help you see results.
One of the best things about hiring a debt collection agency is that many of them work on a no recovery, no fee basis. This helps ensure that businesses do not need to put any money upfront for help, but instead will only pay for the fees that are collected. This is a great benefit to companies during the pandemic. Since many companies around the world may be struggling and could face bankruptcy, it is essential that all businesses with international clients find ways to collect the money that is owed to them. Turning to debt collection agencies to collect the dues and debts that are owed to you will help ensure that you and your company thrive during the pandemic and are able to continue competing.