business news 24 December 2020.
James Salmon, Operations Director.
This is our final blog of the year – see you all in 2021. Lets hope its better than 2020.
Here are CPA we want to share the business news stories we have seen that we think will affect our members and readers. Many of us are busy fighting to protect our businesses and therefore might have missed some of the news that could impact small businesses, their owners and those that sell on credit.
Brexit deal will boost UK economy
With a Brexit deal reportedly on the brink of being finalised, economists say an agreement will spur a surge of investment and lead to a bounceback for the economy. Sterling is expected to rise 6% if a deal is confirmed while fund managers are predicting a rally in equities, which have long been devalued by Brexit uncertainty.
Haldane: Bank must have ‘laser focus’ on inflation
The BoE’s chief economist Andy Haldane has said that the central bank must have a “laser focus” on keeping inflation expectations in check once the COVID-19 crisis eases. Mr Haldane said: “The last thing the world needs right now is a nasty inflation surprise,” echoing comments he made on November 28. The BoE said on December 17 it is prepared to let inflation overshoot its 2% target temporarily. Mr Haldane told warned any overshoot could not become entrenched otherwise bond yields would rise, pushing up the cost of repayments on Britain’s £2trn debt mountain and jeopardising any recovery. He also said he was much more confident about the economy in the second half of 2021 than in the first quarter of the year because of the prospects for rolling out COVID-19 vaccines.
Figures suggest furlough extension keeping redundancy rise low
New figures suggest that the extension of the furlough scheme until the end of April 2021 appears to have slowed the rate of redundancies across the UK. The Insolvency Service said 36,700 redundancies were proposed in November, the lowest monthly figure since lockdown restrictions were introduced in March. The November total is around a fifth of the peak, with 156,000 redundancies in June. December’s total however will likely include up to 25,000 job losses resulting from the collapse of Debenhams and Arcadia – if either of the stricken retailers are unbale to find buyers.
Union leaders warned of a ‘stampede’ away from self-employment
Just a third of self-employed and freelance workers want to continue working as they are as the pandemic wipes out their pay. An inquiry by independent experts, politicians, union and industry leaders warned of a “stampede” away from self-employment with half saying they had lost between 60% and 100% of their household income this year and two out of three were less likely or unsure if they wanted to continue to be self-employed. Prospect general secretary Mike Clancy, who commissioned the inquiry, said: “The news […] should be a massive wake-up call to the Government.” He added: “These workers have powered our economy in recent years and this flexible workforce were lauded by ministers as key to our prosperity, but the way they have been treated in this pandemic is disgraceful and will have consequences for our ability to recover in 2021 in beyond.”
Goldman Sachs to offer digital wealth management to US investors
Goldman Sachs has begun internal testing of a digital wealth management service for the masses, as it continues its push into the mainstream consumer market. Employees who sign on to the digital service, called Marcus Invest, will pay an annual management fee of 0.15%, according to reports.
Covid-19 general news
There were a record 39,237 new cases (total 2.15m) in the UK yesterday with 744 more deaths (total 69,051).
In response, Health minister Matt Hancock announced that more areas in England will be placed into the highest tier of coronavirus restrictions in a bid to curb the spread of a more transmissible variant of COVID-19.
Globally 693,002 new cases brought the total to 78.6 million with 1,731,192 deaths.
A study by British researchers said the new coronavirus variant found in the country is 56% more contagious. The study by the Centre for Mathematical Modelling of Infectious Diseases at the London School of Hygiene and Tropical Medicine found no evidence that the variant was more deadly than others.
France reopened its borders to UK traffic today. France overturned its travel ban for hauliers who have a negative Covid test, but the International Road Transport Union warned that testing stranded truck drivers is “going to be an absolute disaster”.
A vaccine developed by China’s Sinovac Biotech Ltd. was found to be more than 50% effective in a Brazilian clinical trial.
Markets.
Yesterday the FTSE 100 closed up 0.7%at 6,495 and the 250 Closed up 1.7% on positive Brexit news. Sterling is at 1.115 Euros and 1.36 US Dollars. Brent Crude is at $51.3 and Gold is at $1878.
After many twists and turns, the agreement on a post-Brexit trade deal appears like it might finally be announced within the few hours. UK Prime minister Boris Johnson and the European commission president, Ursula von der Leyen, are understood to have been in constant contact with each other over the last 72 hours as hopes for an agreement rise, with the UK reportedly making some last minute concessions on Fish!
The number of American workers making new claims for unemployment benefits fell last week, to 803,000 from 892,000 the week before. That is still far above the rate of 200,000-220,000 early in 2020, before the pandemic struck.
Alibaba
Alibaba is being investigated by regulators over monopolistic practices. China’s State Administration for Market Regulation (SAMR) made the announcement on Thursday. Regulators have previously warned Alibaba about forcing merchants to sign exclusive deals which prevent them from offering products on rival platforms.
City needs to put business creators at the centre of its model
Daniel Pinto, the founder and chief executive of Stanhope Capital Group, writes in the Telegraph that the City is taken for granted by both the Government and those within it who have failed over the last four years to “come up with a single new idea to preserve their own future.” Pinto goes on to recommend a three-pronged strategy to maintaining the City’s leadership: aggressively pursue global business and encourage dual listings; make the UK regulatory framework more flexible and thirdly, turn London into the capital of venture funding for fast-growing businesses. Additionally, tax breaks and simplified administrative procedures could be offered to lure entrepreneurs. Pinto concludes: “The City can be a vector for substantial economic growth and positive change but for this, it needs to undergo a kind of cultural revolution.”
Individuals sell off assets ahead of expected CGT hike
Experts say that buy to let properties and businesses are being sold off by individuals concerned about future hikes in capital gains tax. The Office for Tax Simplification recently recommended the Chancellor increase CGT rates in line with rates of income tax, as well as making inherited assets subject to both CGT and inheritance tax, City AM notes. CGT receipts have hit £10.1bn, up more than fourfold from £2.5bn ten years ago. Tim Holmes, managing director at Salisbury House Wealth, said: “It’s understandable that people are worried about CGT rates rising but if they rush, it could cost them much more than necessary in tax.” However, he adds that alternatives to selling assets, such as “rolling over” gains into “an EIS investment and making sure you buy an asset inside a pension wrapper are both quite simple steps that may work well for some.”
Creditors approve Anne Summers rent plan
A plan that would cut rents at 25 Ann Summers stores has been approved by creditors of the lingerie and adult toy retailer. Ann Summers said that 90% of votes had been cast in favour of its CVA, which switches the stores onto turnover-base rents. The firm had already agreed new rents with the landlords at 91 of its other branches, it confirmed earlier this week when announcing the plan. Following the CVA, Ann Summers has also secured up to £10m of new funding to help with a turnaround plan, and finance the return to growth that the board thinks it can achieve. No jobs will be lost, or stores closed as part of the CVA.
Don’t let Covid-19 bust your business!
It will if your cash flow dries up, either sooner or later.
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for sometime to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. Above all tactfully, because maintenance of goodwill is paramount.
To meet the needs of creditors in the current crisis, we have designed a “critical care” package especially tailored for the situation.
- The annual package costs start at very low rates
- A minimum performance warranty is provided
- Several complimentary services included
Clients instruct CPA on-line via their PC or phone, completely user-friendly. Your late paying customers are told to pay you direct (not to us).
A very recent report shows a 23% increase in the number of unpaid invoices since March 11th THIS YEAR – are you getting a build-up of late payers?
Right now, overdue accounts must be a concern and CPA has a great track record of encouraging slow-payers to pay their suppliers quickly.
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
Do you sell on credit?
With pressures on the cash flow it is essential that you stay on top of the credit limits you grant customers and watch carefully for any late payments.
Those customers will look for the easiest option to boost their cash-flow. Don’t let it be you.
You can’t just assume your customers can and will pay you eventually, no matter how big their name is.
It is essential to have credit management systems in place to monitor and check your customers credit worthiness.
It is also best practice to use a trusted third party like CPA to make sure you are paid on time by customers, no matter how good a name they have.
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 cash flow and they try to deal with it by delaying payment to their suppliers, increasing your exposure to them.
If you supply on credit, 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 your 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.
You might be hesitant about contacting a debt collection agency. What are they going to be like?
Can they help your particular type of business?
There is no need for concern. CPA are courteous, helpful and very probably have had direct experience of working with your type of business.
Debt collection agencies are not all alike.
Success lies in both recovering money and keeping customers happy. The Credit Protection Association was founded in 1914 and has helped tens of thousands of UK businesses to collect outstanding payments and reduce the risk of incurring bad debt. We believe that creditors deserve to be paid for the work or goods they have supplied but we fully understand the need to maintain
the best possible relationship with customers!
At The Credit Protection Association, we provide solutions, advice and back-up in all areas relating to the supply of services or goods on account. Client-members receive everything they need from a single source to reduce debtor days and write-offs.
The Credit Protection Association has helped has assisted tens of thousands of UK businesses with their credit control requirements, since the First World War.
We are polite, firm and efficient when it comes to recovering outstanding debt.
“We have used CPA for a number of years now. The website is easy to navigate around with lots of helpful reports. The staff are always at hand and very friendly. CPA has helped us reduce our debt over the years and keep track of potential issues with our customers.”
~ CPA client in Buckinghamshire
“The service from CPA has proved to be everything that you said it would be. We have already seen a huge benefit. We have had a number of overdue accounts paid promptly and directly to us. It is also a huge weight off our mind to know that once we have passed an overdue payment over to you, you take care of everything whilst keeping us informed.
~ Credit Controller client in Warrington
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Ready to speak to an advisor?
Call us today
0330 053 9263
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 extremely 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.
You put up with the PAIN – now claim the GAIN!
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.
Did you know that your business is entitled to a minimum of £40 for every commercial invoice paid late to you over the past 6 years?
How many of your invoices are paid late each month – 20, 50, 100 or more?
At £40 per invoice that’s claim of £57,600, £144,000, £288,000 plus interest. The more invoices the bigger the claim!
At £100 per invoice it’s £144,000, £360,000, £720,000 plus interest.
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
For over 20 years, CPA has calculated and recovered Late Payment Compensation on behalf of Clients!
Yes, CPA can help you boost your business cash-flow.
Don’t let your bankers control you, contact CPA today.
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Read our blog here on how to crack down on the late payment culture.
Read our blog here on how to give late payers the slap they need.
The “Why” of the late payment culture.
New PM should walk the walk and back small firms over late payments
Paying late is “crack cocaine” to big business.
Late payment culture risks “spiraling out of control”
visit our late payment compensation page
See our full blog and FAQ on late payment compensation
Do you realise you could be sitting on a fortune?
Late payments often result in a cash flow crunch and leave SMEs in need of a cash injection.
If you sold B2B on credit then there may be a hidden source of capital you can call on.
If you fancy an extra bit of extra cash in your business, rather than jumping through hoops with your bank, you could look to uncover the resources from an unexpected source within your own business.
Not many are aware but there could be a hidden fortune within your business, sitting there, just waiting to be uncovered and released.
We can help you uncover the pile of gold, you didn’t even know you were sitting on.
If you trade with other businesses and were often paid late then you could be entitled to significant compensation.
Under little known and under-utilised legislation your business could be due huge amounts in compensation that you didn’t even know about.
Let’s be clear – this is not a way to weaken any customer relationships you value. It is one that identifies who’s been paying late and then recover the potentially significant sums in compensation using Late Payment Legislation from businesses where the relationship has already ended.
You can pick and choose who you want us to follow up – but once we’ve agreed which companies you’d like to pursue compensation from it’s a fast process and there’s no financial outlay to you whatsoever. My team at CPA put its expertise to work to recover the compensation due and fight late payment culture.
That compensation could provide the cash boost your business needed.
But don’t delay, that compensation evaporates if not claimed within six years of the late payment.
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 recognise that most companies do not have the resources to spend time on the identification and calculation of Late Payment Compensation. Our service can produce an Analyses within just a few days with (usually) less than 30 mins of co-operation from our clients. We work directly with over 300 accounting packages but can also work with bespoke accounts packages. Indeed, speed is essential as the oldest invoices may fall foul of the 6-year time limit.
Once the Sales Ledger Analyses is made available to clients, all that is required is that management decide which commercially sensitive ex-customers to remove from the list and return it to us.
CPA then uses its years of collection experience to explain and recover the Late Payment Compensation Claims. Clients do not handle any part of the recovery process as our team will take all communications from the companies against who the claims has been made. Often, it’s simply a case of explaining the legislation, sometimes we have to go all the way and enforce the legislation through the courts.
The result is that we are realising clients’ claims worth tens and sometimes hundreds of thousands of pounds which, of course, is pure net profit. You may also be among the recipients of “hundreds of thousands of pounds” should you elect to take advantage of our services.
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 business owners who are looking to boost the returns from their business before they retire. We are helping businesses who have lost major clients after years of loyal service to get properly compensated for systematic late payment. We are helping companies that were looking to close down, who looked insolvent and finding that cash injection they need to avoid insolvency.
Those former clients who regularly paid you late can finally be made to pay.
Ready to speak to an advisor?
Call us today