Credit Collection “Emergency Plan”

INVENIUM supports your Business Continuity

In December 2019 the Wuhan Municipal Health Commission reported to the World Health Organization a cluster of cases of pneumonia in the Chinese province of Hubei.

On 9 January 2020, the Centers for Disease Control and Prevention affirmed that a new type of coronavirus (SARS-CoV-2) was identified as being the causal factor of a breathing desease known as Covid-19.

The Covid-19 pandemia is expected to have a huge impact on the economy, most likely bigger than the epidemics of the last century, considering that the World economy is today much larger (circa 2,5 times than 2000) and more interconnected.

It’s difficult now to forsee an esteem of the effects of Covid-19 on global economy. It is possible to imagine several scenarios based some studies after last epidemics.

Epidemic and, above all, containment measures adopted will reduce the Italian GDP at least between 9 and 27 billions, depending on the hypothesis adopted on the entity of losses in different sectors.

The economic effects will be clear only after the second trimester 2020, being partly visible after the first trimester.

These effects have been estimated between -1% and -3% of GDP – considering Quarter 1 and Quarter 2 of 2020– and they are the result of the probable variations of value-added on the different categories of sectors and the weight on the Italian GDP.

All sectors are experiencing repercussions very deep (between -10% and -40%), on the GDP equal to 11,7%.

One company out of ten in Italy is at risk of default.

A doubling as compared to the present levels according to the specialized rating company Cerved. The survey has been done on 25 thousand companies and simulate the impact of Coronavirus in each sector.

Here, a series of critical elements connected to the activity of internationalization:

In the best case scenario – the one in which the health crisis is over in 3- 6 months – the avarage probability of bankruptcy may raise of two points, passing by 4,9% to 6,8%, with a contraction of revenues from 6,1% to 4,2%.

Various are and must be the measures taken by the Government to support the turnover’s losses faced by the companies.

The first decree in the economic emergency, along with the measures for the so-called “red zone towns” already contains measures on the national level or, at least, directed to the regions directly hit by the diffusion of Covid-19.

The Italian Ministry of the Economy and Banca d’Italia, trying to support the banking system, are to prepare a moratorium on loans to SME and loans for buying a first house.

What about the commercial exchange? The situation of crisis – and also the psychological effects of pandemic and the fear of businessmen to adequately face the hurdles in the next months – is at the base of the increased number of requests to postpone the deadlines of payment or simply of the failure of payments.

In this situation of emergency even major corporations are facing problems.

Plans of business continuity are bumping into difficulties and prohibitions not forseeble.

Administrative and legal services, credit managers and, more in general, services of invoicing and monitoring are to be put to the test by this extraordinary situation.

Keeping an eye on payments, rinegotiating terms of payment, monitoring the takings and deadlines is something even more important and critical in this scenario.

Invenium, is ready to support the processes of management and debt collection, granting an immediate intervention:

  • Sustainable costs
  • Scalable processes
  • Producing liquidity
  • Protecting companies’ balance

To support the companies from the economic difficulties connected to the emergency of COVID-19, Invenium has decided to help its own clients but also small and medium companies in difficulties.

That is why Invenium realized an “emergency plan” to support the SME.
To all companies needing to manage or collect receivables in Europe or elsewhere, from mid-march 2020, Invenium will postpone its Entry Fee (collection managing fee) for a period of 30 days.

For further information, feel free to contact our experts and ask a free consultation