Sponsored by the Treasury Coalition, the Global Recovery Monitor has initiated a series of surveys that seek to determine how Covid-19 has impacted the treasury function. A diverse group of over 1750 corporate and financial industry respondents (80% from the USA) completed the questionnaire during the period of September 2 though 30, 2020. This was the 15th iteration of the survey since the pandemic began - the initial 8 surveys covered one week and this is the 3rd covering a 4-week cycle.

Because AR is a major working capital component, and because Credit often reports up through Treasury, the Global Recovery Monitor is a valuable resource for understanding the role of AR in the liquidity and working capital landscape. Here are seven important takeaways from the latest report for credit executives to know:

1. AR Remains Negative: Accounts Receivable has been the most negative factor in respect to Liquidity Outlook for almost every period, though at the end of September National Fiscal Policy occupied the lowest spot.
2. Pessimism Regarding GDP and Industry Revenue: The outlook is pessimistic for the next six months with financial normalcy projected to return in 11 months.
3. Revenue Continues to Be Depressed: Roughly 40% reported a negative revenue outlook through Q1-2021. The revenue outlook for Q2 and Q3 2021 shows improvement across both periods.
4. Access to Liquidity has Fallen: Access to adequate liquidity landed fourth out of the top seven issues. It was ranked higher in 11 of the previous 14 periods monitored.
5. Fraud Attacks Increasing: In April, 36% reported an increase in fraud attacks. That number has risen to a net of 46% during the September period. Moreover, cyber attacks/fraud remain the top concern (78%) of the survey respondents despite the economic effects of the pandemic.
6. Staffing Contraction Continues: While half of those responding reported a stable staffing situation, the remainder indicated a four to one contraction. This finding is consistent with those from Credit Today's recent benchmarking survey "2020 Staffing Challenges Part 2: Be Prepared to Do More with Less."
7. Remote Work Levels Remain Constant: Roughly equal numbers are reported to be continuing to work remotely as opposed to in the office. It is anticipated that come January 1, 2021, there will still be a large number of remote staffers.

From a credit manager perspective, these findings are informative and should be evaluated within the context of the circumstances facing your corporate enterprise. Specifically, here are some key issues to consider:

1. Upper Management is concerned about collecting outstanding receivables, even more so since access to other sources of liquidity appear to be constricted -- so make collections a priority if you haven't done so already
2. Economic growth appears to be stunted in the near term, and this is putting pressure on revenues, which for many continue to be depressed -- keep this in mind as you evaluate your customer's creditworthiness and their access to liquidity
3. Fraud is a really serious problem, which should not be entirely a surprise -- in desperate times the unscrupulous are quick to resort to desperate measures so if anything appears abnormal, step back and investigate
4. Remote work is not going away anytime soon along with staff levels remaining tight -- this is the new normal. Therefore, to increase productivity your only options are to work more hours or implement process improvements

When times are tough, you need to take the initiative as opposed to reacting to the issues that filter down through the daily routine. This survey provides a means for you to monitor the big picture in terms of liquidity, of which credit is an important part.

It is a simple matter to register to get the results of the Global Recovery Monitor. Furthermore, your Treasurer or CFO might appreciate getting these insights and participate in the survey, so do pass the link along.