In times like these, financial relief options for businesses, such as payment holidays, are very attractive, but agents should be cautious when accepting them and should be aware that it does not exonerate them from paying the debt.
There are many issues that could arise if agents take payment holidays, because suppliers, just like the agent, cannot survive without an income, according to ceo of Agentivity (data and automations supplier to the industry), Riaan van Schoor.
“This is not a reality that works for either of them, and we should rather talk about how a supplier and agent can work together to survive,” says Riaan.
Suppliers who are helpful during this time, when there is no revenue benefit, will be in good stead with agents. “Those suppliers who step in now, have frank and open dialogues with agents about payments and what can be done in the interim, will be the ones remembered by agents,” he says.
Riaan says for technology-hosting or data companies there are ongoing costs to maintain services to agents. When it comes to deciding whose services to cut off, those who simply stopped paying would be the first affected.
“You also can’t have a situation where non-payment is mentioned at the last minute, or when things are overdue. Have a discussion with your suppliers as soon as you can and work out a plan that works for both parties.
“When business picks up again, you will want to work with suppliers with whom you struck up a great relationship during difficult times,” he says.
