Opinions Have you got the Cash? March 26, 2021 Jaspreet Singh With most rating agencies downgrading risk rating for several countries meaning increased sovereign risk, there will be several corporates/companies who will run out of the business. The one’s who will survive will have to face the threat of credit & collection risk. During this crisis period, the most critical voice happens to be of the Finance guy and to ensure that Finance personnel has a firm voice, predictions need to be made based on strong analytical mind. You need to have ‘analyze the scenarios’ and not ‘paralyze the scenarios’ approach which would allow you to access capital, assess where you are heading, how much comfortable are your banks in restructuring your debt, how much you can invoice/bill in the next 45-60days, how much it is collectible and what is the probability to collect it (P100, P70 or P50). On the other side, you need to discuss with your vendors/suppliers about extending payable days, improving cost efficiencies by eyeing reduction in non-essential expenses. This exercise would allow you to come up with a ‘Liquidity Plan’ which will pave way for your survival during this Covid-19 period and I believe especially the credit & collection guys will have to play a critical role of re-thinking, planning and implementing tasks to ensure that the organisation remains cash positive. In the concluding part, I believe the current times would press upon the need for the corporates to ‘Reimagine the business model’ and the one’s who will focus on this would come out relaunching their businesses in an exceedingly secure way in the post Covid-19 period. As a Credit Leader, you will have to be a strategic planner alongside being a financial expert. Time has again proven that Cash is the King! 5C – Collect Cash from the Customer and Conserve it to survive during Covid-19 time.