Brexit uncertainty causing ‘significant damage’ to SMEs.
9th April 2019.
The Federation of Small Businesses (FSB) has called on the government to reach an agreement on Brexit negotiations, as the ongoing Brexit uncertainty continues to cause ‘significant damage’ to British businesses. FSB National Chairman Mike Cherry has said the “deepening political crisis” shows that politicians “have clearly stopped listening to the business community,” and he urged Parliament to “get on with delivering a pro-business deal that secures a transition period, guarantees as frictionless trade as possible and most importantly, avoids a disastrous no-deal Brexit.”
According to a recent report published by Goldman Sachs, the UK’s decision to withdraw from the European Union has cost the country an average of £600m per week since the referendum in June 2016, causing an estimated 2.5% reduction in economic growth and contributing to low consumer and investor confidence, as businesses feel the effects of continuing trade uncertainty. The British Chambers of Commerce meanwhile recently warned that investment in operations amongst UK companies is at an eight year low due to Brexit-related uncertainty, leading to stunted growth.
Uncertainty could see increase in late payments
Whilst all businesses in Britain stand to be affected by the impact of political uncertainty, small businesses in particular are at risk of harm as they are likely less able to absorb unexpected losses. Mr. Cherry notes that in the months since Brexit, “planning has stalled, investment is handcuffed and growth has flatlined” for SMEs.
In particular, analysts have warned companies to look out for a potential increase in late payments, as clients and customers hold back on pay to manage their own concerns regarding Brexit. The culture of late payments is damaging for companies: FSB statistics indicate that 50,000 businesses fail every year due to the practice, with a third of all payments to small businesses made late. A fifth of SMEs have experienced cash flow problems due to late payments, with the practice costing the overall economy an estimated £2.5bn annually.
Businesses advised to shore up credit management systems
Faced with likely changes to regulations and potential supply chain failures in addition to this possible upswing in late payments, small UK businesses looking to manage the impact of political uncertainty and Brexit itself should prepare by fortifying their credit management systems. Debt recovery processes must be as robust as possible to minimise the risks of business harm and insolvency, whilst supply chains should be thoroughly examined to identify any potential issues and how best to tackle them in the wake of Britain’s withdrawal from the EU.
Are Brexit concerns causing you cashflow difficulties?
Brexit might just be an excuse used by bad payers but it could also be seriously affecting the cashflow and business prospects of your customers.
You can’t just assume your customers can and will pay you.
Having CPA’s credit management systems in place to monitor and check your customers credit worthiness and to chase up those late payments to minimise their effects is vital.
See the section below – About CPA.
Are you being damaged by Brexit?
Has Brexit damaged your market irreparably?
Rather than shutting down, do you realise you may have a hidden source of capital within your business waiting to be activated?
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and underused legislation your business could be due huge amounts in compensation that you didn’t even know about.
That compensation could be the cash rescue your business needed or make your exit far sweeter.
How can CPA help?
CPA has developed a unique technology to dig into your accounting records and discover the cash injection you are due by means of compensation. The software does all the hard work. Our software interacts over the cloud with over 300 different software packages, working directly with your accounts package, just so long as it’s stored on a computer.
We do the work, you receive the cash.
If you have supplied goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
We are talking to companies and unearthing claims in the hundreds of thousands from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
CPA is passionate about late payment
The Credit Protection Association has been protecting smaller firms against poor payment practices for over 100 years.
We are passionate about breaking the late payment culture that holds back the UK economy and threatens many SMEs with cash flow difficulties being the single biggest killer of Britain’s small businesses.
If you were regularly paid late we can help. Those former customers used you to boost their own cashflow, regularly paying you late.
As a result you had extra costs, you had the distraction of having to chase payment, you had opportunity costs because your capital was tied up in their late invoices.
Under little used legislation, you are entitled to compensation for those late payments.
Now you can boost your own cash-flow.
CPA can help unearth the those hidden treasures.
We have the technology to reveal the compensation you are due and we have the extensive experience and expertise to then turn those claims into cash.
Yes, CPA can help you boost your business cashflow.
Don’t et your bankers control you, contact CPA today.
About CPA
The Credit Protection Association can help!
Formed in 1914, CPA has been providing credit management services to SMEs for over 100 years.
At the Credit Protection Association, we provide first class credit information that can help you avoid being over extended to customers who are at risk. Our monitoring service can flag up warning signs long before the end, giving you the chance to adjust and reduce your exposure. We provide recommended credit limits and credit scores on a traffic light system and can help you set appropriate credit policies for your customers.
We regularly publish lists of the latest insolvencies but by then it is too late. Our credit reports however predict approximately 96% of company insolvencies long before they arrive.
Companies in trouble usually have very bad bad cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply to big companies like office outlet or small ones, help us help you identify the risks.
Why use a third party collector?
As a third party collector, we can also get your payments prioritised over those who are not as hot on collections. When you customer receives a letter from the Credit Protection Association regarding their outstanding account, they are going to want to get that resolved as a priority. Our overdue account recovery service can get your unpaid invoices to the top of their “to do” list and get your invoice paid.
Over the years we have collected billions in overdue invoices for our customers.
Our debt recovery and credit management services give our members the financial freedom needed to grow and prosper, while our new Late Payment Compensation department could unlock hidden potential and offer the compensation needed to springboard your business to success.
Ready to speak to an advisor?
For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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