Will the Coronavirus bring us more bad news?
It’s daily news, the Coronavirus, or rather, what calamity does Corona bring us again? It is really serious now. Yesterday USA announced a European travel ban, which will definitely cause more problems. And the announcement that Italy is going to be quarantined is really bad news. Not just for the Italians, but for all of us, because when everyday life comes to a halt, hardly any flowers and plants are sold, as anyone can imagine. This therefore costs turnover and in the flower and plant trade it is the same as a lost turnover, which you will never get back. Decreasing demand will also lead to lower prices.
But that is not the worst. Almost everyone supplies on credit. And what now? There is no turnover made by the local traders and flower shops. So no money is made and their costs continue. As a result, the bills to his suppliers are paid at best later, but more likely, at this moment not at all. And when the Coronavirus is over and business restarts again, they all first need flowers and plants (on credit) to make money again to pay the bills. Are you going to finance that? You will partly have to, but make very good agreements and preferably in writing, and keep in mind that you also have to take a loss. Make sure to keep potential losses as low as possible, which will be the biggest effort.
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