During this public health emergency, market participants are responding in various ways. One common trend is that companies are withholding payments to all of their suppliers. So, how can you try to defuse the situation?
First, ask your client if they have sought assistance from their bank. The government has allocated at least 300 billion euros to guarantee bank loans; this could provide them with some breathing room, allowing them to pay their bills on an installment plan if necessary.
What if his bank is uncooperative? Suggest that he contact the credit mediator in his department. Then, advise him not to hasten his downfall. In fact, if he fails to pay any of his suppliers, credit insurers and financial information agencies will downgrade his credit rating. As a result, once this health crisis is over, given their deteriorated creditworthiness, all of their suppliers will demand immediate payment of their invoices. So if your client fears bankruptcy today, halting all payments could actually push them over the edge once the crisis is over.
These two points should help you negotiate the best possible terms for paying your bills.
Check out our other tips regarding the public health emergency period in our dedicated section.