As we are all aware, the fall-out from COVID-19 is severely impacting businesses’ ability to trade. This, in turn, will affect liquidity and the ability of debtors to maintain payments. It is not business as usual, these are extraordinary times.
Even though the government has done a good job of managing the outcomes related to the lockdown, the reality is that the majority of logistics companies do not fall under the heading of essential services. We are seeing business in the logistics industry operating at 20% of their normal output.
From a logistics industry perspective, we are seeing companies moving their focus, servicing essential services suppliers that were not their primary focus in the past.
Most of these companies have implemented one or more of the following approaches to weather the storm:
[By George Marais, authorised representative, Prestige Credit Insurance Consultants]
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