The novel Coronavirus is a serious respiratory illness that unceremoniously ripped through the world’s population, killing an estimated 3.2 million people. This highly contagious disease emerged in December 2019. However, the virus only picked up traction in the United States during March 2020. There have been 32.4 million diagnosed cases and 577 thousand deaths in the U.S. alone. The disease is transmitted through respiratory droplets– so coughing, sneezing, or simply talking can easily transmit the illness to another person. For that reason, many businesses had to stop providing in-person services. Those who couldn’t were forced to temporarily shut down operations. Some of these businesses will never be able to recover from a full calendar year without income.
More than a year later we’re still seeing Covid-19 cases and witnessing the detrimental impact it had on businesses and the economy. SWR can help business owners recover some of the losses accrued in the past year, and help you land on your feet.
Effects on Business
The CDC recommended social distancing, proper hygiene practices, and wearing a mask to slow the infection rate. Different states enforced varying degrees of public safety protocols, many of which proved disastrous for businesses. Any business deemed non-essential was forced to close its doors. Some were able to transition their practice online, but others were left trying to stay afloat operating with reduced or no clientele. Even essential businesses were forced to operate under strict hours, increase expensive sanitization efforts, and reduce indoor capacity sizes.
Mass layoffs were also detrimental to many businesses. With so many “non-essential” workers being furloughed people were forced to become more frugal and stick to a strict budget. This means that people weren’t indulging in services or paying off old debt. Ultimately, this hurt many businesses to the point where they also had to begin laying off employees. Without sufficient staff, they could no longer provide their products or services.
2021 Projected Turnaround
Covid-19 vaccines are being distributed quickly, and people expect to return to normal life soon. According to Our World in Data, 8.04 million people across Texas are already fully vaccinated. Even more, have received their first dose. Now, businesses are starting to reopen and people are starting to find work again. As people begin to have a steady income they will be able to better support themselves and start paying down bad debts.
President Biden also signed an executive order on April 27, 2021, that will require federal contractors to pay their employees a minimum wage of $15 per hour. The new minimum wage is a significant increase over the current minimum pay which is $10.95, and a much better wage for people to live on. Now, more people will have the discretionary income they need to pay their bills and fuel the economy. This is especially true because with the minimum wage so much higher, employers will also have to raise wages for staff with higher levels of skill and education. The order will go into effect on March 30, 2022.
Debt Recovery Solutions
We pride ourselves on being a compassionate collection agency. Our collection efforts are always responsible and ethical. This empathetic approach is generally very effective, and we consistently recover high rates of debt. We will work with the debtor to create a payment plan, allow payments to be submitted on our easy-to-use online portal, and regularly follow up with reminders until the full amount is recovered. If our initial efforts aren’t successful we can utilize some other great debt recovery tools. We can use skiptracing technology to track them down or even pursue a legal judgment.
We also offer accounts receivable management services. Once you’ve collected all outstanding debt, and are back on track you don’t want to risk losing out on money again. SWR can help ensure that all payments are followed up on and submitted each month, so your balances stay current. We can customize an effective billing system specifically designed for your company and its customers.
SWR Debt Recovery
We are a full-service debt recovery agency. Our clients trust us because we consistently deliver on our promises. The recovery agents at Southwest Recovery Services are highly trained and great at their jobs. That’s why we can operate on a contingency basis. We are so confident that we can collect on outstanding debts that we never charge you to refer an account to collections or bombard you with upfront fees. You only pay once we get your money. If you have some customers that have fallen behind on payments in the past year get in contact. We can provide you with more information about our services and answer any questions.