Changes to Furlough announced – Covid-19 lock-down business news update 1 June 2020.
1 June 2020.
James Salmon, Operations Director.
The Government has announced changed to the furlough scheme as the Covid-19 lock-down continues and we are having to make do in a new normal.
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.
Covid-19 general news
From 1 July 2020, you’ll have the flexibility to bring previously furloughed employees back to work part-time – with the government continuing to pay 80% of wages for any of their normal hours they do not work up until the end of August. This flexibility comes a month earlier than previously announced to help people get back to work.
You can decide the hours and shift patterns that your employees will work on their return and you will be responsible for paying their wages in full while working. This means that employees can work as much or as little as your business needs, with no minimum time that you can furlough staff for.
In August employeres will become responsible for NICs and pension contributions, In September the furlough will drop to 70% up to £2187.50 and In October, 60% to a cap of £1875.
Horse racing will be allowed to take without spectators and sports like football, rugby, cricket, golf and snooker will follow soon, also without fans in attendance.
In a letter to the observer, 20 experts flagged concerns over the loosening of restrictions, arguing that Cummings had badly damaged the publics faith in the government. They urged them to go painstakingly slow and warned that track and trace was untested.
Trump announced he is terminating the US relationship with the World health organisation (WHO)
Markets.
Stocks in Europe traded lower on Friday as the markets were cautious ahead of Trumps Friday news conference on Hong Kong. The Euro Stoxx 50 was down 1.43% and the FTSe 100 was down 142 or 2.29% to 6076.
Oil fell below $35 over weak US demand and fears of a Covid-19 wave 2.
Eurozone Inflation dropped to a four-year low of just 0.1% in May, data has shown, as the coronavirus pandemic put the single-currency bloc perilously close to deflationary territory.
The economies of Italy and France both shrunk by 5.3% in the first quarter of the year compared with the previous three months.
US Personal Spending slumped 13.6% in April, according to the Census Bureau.The slump was deeper than market expectations for a 12.6% fall.
US GDP fell by 5%.
Employers to contribute to furlough scheme from August
Chancellor Rishi Sunak has announced that firms will have to begin contributing towards the Government’s furlough scheme from August.
From August firms will be asked to pay pension and national insurance contributions while the Government continues to pay 80% of salaries up to £2,500.
From September the Government will cover 70% of salaries up to £2,190, with companies asked to pay the remaining 10%.
For October, the final month of the initiative, employers will pay 20% of wages, with the Government covering 60%.
It was also announced that firms will be able to bring back employees part-time from 1 July, and will be responsible for paying them for the hours they work.
Mr Sunak also announced that self-employed workers would be able to claim a second grant worth up to £6,570, extending the Self-Employment Income Support Scheme.
Commenting on the announcements made in the daily Downing Street briefing, Mike Cherry, chairman of t he Federation of Small Businesses, said the Chancellor has “given thousands of small business owners the certainty they need to plan for the coming months.”
Edwin Morgan of the Institute of Directors said he was “delighted” the Treasury had taken on board calls to bring in part-time furloughing, while Adam Marshall, director general of the British Chambers of Commerce, said Mr Sunak had “listened to firms and struck a careful balance” which would enable them to bring employees back to work.
Economist expects Government to support workforce
Jill Treanor considers the aftermath of the coronavirus pandemic, citing Yael Selfin, chief UK economist of KPMG, who expects the Government to continue supporting the workforce, saying: “I assume there will be continued support, because people on furlough are not going to be absorbed back to the labour market before autumn next year – even if we have a vaccine by January.”
Some bosses using furlough rate for redundancy payouts
Employment lawyers have warned that furloughed staff who are laid off could see redundancy payouts reduced due to a loophole, with some seeing examples of employers basing payoffs on a worker’s furloughed rate of pay.
Under the Government’s Coronavirus Job Retention Scheme, staff unable to work are paid 80% of their wage and some bosses are calculating payouts for staff they are letting go of on this reduced rate.
Kate Palmer, an employment lawyer at Peninsula, said: “We have not had clear government guidance on whether redundancy pay can be based on one’s furlough pay.”
She added: “With the increase in redundancies being instigated at this time, no doubt this will be tested in tribunals over the coming months.”
Jodie Hill, an employment lawyer at Thrive Law, suggests employers may think they have a legal case for paying people less, saying: “On strict interpretation of the law, employers should calculate redundancy pay based on the average of the previous 12 weeks wages.”
EY poll: Coronavirus will drive new ways of working
A poll conducted by EY suggests the coronavirus crisis will prompt changes across the financial services sector and accelerate the adoption of technology. A survey of more than 200 financial services firms saw two thirds say they think the workplace will fundamentally change after the pandemic, while 30% expect moderate change.
Some 87% said that working from home during lock-down will prompt firms to adapt their technology faster than anticipated.
The report also saw 99% of respondents say their employees are working “productively and effectively”. Simon Turner, a financial services partner at EY, said: “Financial services is unlikely to return to the ‘old normal’, and new ways of working – incorporating a far greater degree of technology and flexible working – seem inevitable.”
How virtual worlds can help real-life recruitment
PwC ’s Jeremy Dalton says increased interest in virtual reality within recruitment is “to be expected” amid the coronavirus pandemic “as people seek ways to connect more deeply while maintaining social distancing”.
Directors miss out on handouts
Analysis from Blick Rothenberg suggests hundreds of thousands of directors of limited companies who pay themselves annually are likely to be left without any government support during the coronavirus crisis.
It calculates that one in 10 small business directors pay themselves only once a year through their own limited companies to minimise accounting fees, but details how those filing company tax returns at the end of the tax year are likely to miss out on the Government’s furlough scheme.
This is due to a technicality in the initiative which only recognises employees registered before March 19. Directors are considered as employees of their own companies for tax purposes, and so are also excluded from the Government’s self-employed income support scheme.
Nationwide: House prices set to fall 13.8%
Nationwide expects house prices to fall 13.8% this year as people delay home moves, with CEO Joe Garner saying first-time buyers and second-steppers would be deterred from purchasing in the midst of a recession.
However, he does expect prices to rebound, saying: “We do think it is inevitable that there is some kind of recession, but over the long term, property prices have always trended upwards.”
Mr Garner added that Nationwide was seeing huge demand from customers looking to remortgage their homes following the base rate cut from the Bank of England, with the building society also expecting a surge in the number of customers looking for equity release products and retirement interest-only mortgages.
Stimulus package set for July in bid to stave off recession
Chancellor Rishi Sunak is preparing to unveil an economic stimulus package in July, with investment in retraining schemes and infrastructure projects among plans being considered to mitigate against recession.
National debt set to hit £2trn
The cost of the coronavirus crisis is set to see Britain’s national debt reach £2trn for the first time, with projections from the Office for Budget Responsibility suggesting the milestone will be hit next month.
Hitting the £2trn mark – a decade after the £1trn point was first exceeded – would push national debt beyond 100% of national income for the first time since the end of the Second World War.
This forecast comes in the wake of a Bank of England warning that Britain faces the deepest recession for more than 300 years, while borrowing this year is predicted to reach £300bn.
Philip Booth, senior academic fellow at the Institute of Economic Affairs, said the likely scale of the national debt following the pandemic “will be staggering”, adding: “We cannot just deal with this by more austerity.”
Howard Archer, chief economic adviser at EY Item Club, said the level of debt was “extraordinary and very much a sign of the times we are living in”, but said the “huge” debt is “a price worth paying” to try and limit long-term damage to the economy.
PM warned over tax increases
The Prime Minister has been warned that reneging on election pledges that personal taxes will not rise would damage both the economy and public trust in his government.
This comes on the back of suggestions the Prime Minister and Chancellor Rishi Sunak could increase income tax, national insurance or VAT to help tackle debt brought about by the coronavirus.
Mr Johnson refused to rule out such measures when quizzed by the Liaison Committee of senior MPs. Answering questions from Mel Stride, chairman of the Treasury Select Committee, the PM was asked about the taxes and said: “You’re going to have to wait until Rishi Sunak brings forward his various proposals.”
He added that he would share Mr Stride’s instincts to “try and keep taxes as low as we conceivably can consistent with our desire to invest in our fantastic public services”, adding: “But I don’t want to anticipate now what we are going to do now on our economic package.”
John O’Connell, chief executive of the TaxPayers’ Alliance, commented: “The Government has a tough job on its hands in repairing the public finances, but increasing a 50-year high tax burden should not be a part of the plan”, while Owen Paterson, chairman of the Centre for Brexit Policy think-tank, said tax rises would harm Britain’s competitiveness as it completes Brexit.
Think-tank calls for tax cuts
A report by the Conservative Policy Forum (CPF), the party’s official grassroots think-tank, has urged Boris Johnson to cut business rates and introduce a stamp duty holiday to help revive the economy.
Some 74 CPF groups in more than 100 constituencies were asked to come up with policy proposals falling into five broad areas relating to the coronavirus response.
Around one-in-six groups suggested reducing business rates to help boost the economy when the current restrictions are lifted, with a similar proportion calling for an extension of the Government’s VAT deferral scheme, while 8% said the Government should introduce a stamp duty holiday.
The analysis has been sent to the PM as well as Alok Sharma, the Business Secretary, and Chancellor Rishi Sunak.
Building bosses seek delay to VAT reforms
Construction trade bodies are calling on the Chancellor to delay a change in VAT which they say threatens to the survival of firms hit by the coronavirus crisis, arguing changes would put pressure on cash-strapped firms.
The reform, which seeks to help reduce tax fraud, will mean VAT charges on certain construction services are paid directly to HMRC instead of the supplier as of October.
In a joint letter, more than a dozen trade bodies, including the Federation of Master Builders and Build UK, warn that many firms no longer have the financial resources or man power required to prepare for the changes, with many staff in finance and IT departments currently on furlough.
They also warn that the change could hit cash flow for businesses no longer receiving VAT payments, particularly smaller firms and those that have requested Government-backed rescue loans.
Brexit
In the Sunday Times, the European Union’s chief negotiator, Michel Barnier warned Britain it needs to be “more realistic” in its demands as trade talks continue this week. “We will not accept — never accept — anything that makes the single market more fragile”
Advisers warned over assistance claims
HMRC has ordered tax advisers to stop claiming for coronavirus assistance on behalf of their self-employed clients as they are triggering fraud alerts and slowing payments.
The Revenue said applications for the self-employed income support scheme are causing an issue as the disparity between the adviser’s name and their clients’ Government Gateway credentials mean they may be registered as scams.
The matter was revealed by Saffery Champness, which received correspondence from HMRC saying: “We have noticed some agents are using their clients’ Government Gateway credentials to make claims on their behalf. Please don’t do this.”
Saffery Champness’ Mike Hodges said: “It seems counter intuitive to insist that these agents, who spend their life interacting with HMRC, and filing applications and returns of all shapes and sizes on behalf of their clients, should be barred from doing so on this occasion, when the need for prompt and accurate delivery of information to allow taxpayers to receive payments to keep their businesses afloat is higher than ever.”
Coronavirus hits one-in-ten pensions
A survey of 2,251 people by Scottish Widows shows that one in ten people with a pension has stopped paying into it or reduced the amount they pay since the coronavirus pandemic.
While the proportion of men and women stopping contributions were the same, men were twice as likely to say they had begun contributing more to their pension since coronavirus, with 2% doing so compared to 1% of women. this has raised concerns over a widening of the pensions gap.
Lord O’Neill: Treasury could change BoE inflation mandate
Lord Jim O’Neill, a former commercial secretary to the Treasury, says Government officials are “probably” considering whether to change the Bank of England’s (BoE) inflation-targeting mandate on the back of the coronavirus crisis.
He has suggested the BoE should move away from its current target of keeping inflation at 2% and instead target a steadily rising trend of nominal GDP growth.
Lord O’Neill said: “I think the environment has come where this is what a lot of central banks should do…I think it is something that should be considered”. Noting that such a move “wouldn’t guarantee a V-shaped recovery but it would certainly increase the probability of one”, he suggested: “I do suspect there are some people around the Treasury that that are probably thinking about things like this.”
Lord O’Neill said the idea of moving to nominal GDP targeting would “scare” those in the Treasury and BoE who regard the current inflation-targeting regime as a proven success but believes “where really big things happen, a lot of conventional economists and an inflation targeting type framework aren’t really relevant for dealing with the challenge.”
Lord O’Neill: Sovereign wealth fund could level up UK without raising taxes
Lord Jim O’Neill, a former chief economist at Goldman Sachs and one-time Treasury Minister, has suggested the UK could create a £25bn sovereign wealth fund that would buy shares in key businesses outside London to aid the Government’s agenda to “level up” the country.
He says this would offer “an alternative to taxation as it produces higher returns for the British Government and reduces the burden on the taxpayer.”
FDI and levelling up
David Smith in the Sunday Times looks at foreign direct investment (FDI), with EY having published its 2020 UK Attractiveness Survey.
The report shows that the UK was successful in attracting FDI in 2019, both from the rest of Europe and the rest of the world but lost top spot for the first time since 1997.
Mr Smith also looks at Government efforts to level up UK regions, with Mark Gregory, EY’s chief economist, commenting that the UK “has struggled to spread the benefits of FDI beyond the larger urban centres”.
He adds: “There’s a similar and even more concerning trend in terms of digital tech investments, with 83% of FDI located in the major cities and a further 10% in large towns. Digital rebalancing is a prerequisite for successful levelling up in the UK.”
Matalan owner applies for state-backed loan while HMRC chases him over £84m tax bill
The Mail on Sunday reports that Matalan owner John Hargreaves has been criticised for appl
ying for a taxpayer-backed loan while being chased by HMRC over a large tax bill.
Matalan expects to access £25m under the Coronavirus Large Business Interruption Loan Scheme, warning that it has never “faced such difficult and unpredictable times” and has been “seriously impacted” by the coronavirus pandemic.
While Mr Hargreaves was successful in a court case over an £84m bill linked to a £237m share windfall he received in 2002, HMRC is appealing the case.
Labour MP Dame Margaret Hodge, a tax campaigner and former chair of the Public Accounts Committee, said: “No taxpayer would believe that the money they’ve worked hard to earn and that they dutifully pay in tax is being used to subsidise an individual or a company that deliberately arranges their financial affairs for no other purpose than to avoid tax.”
The Mail notes that Mr Hargreaves is suing PwC over claims it gave him bad advice before he relocated to Monaco and what he needed to do to avoid paying taxes.
HMRC swoops on suspect funds
HMRC froze 166 bank and building society accounts in the 2019/20 tax year, blocking access to £19.5m suspected to have been derived from crimes including tax fraud.
Risk of cyber-attacks as businesses reopen
A number of businesses could be at risk of cyber-attacks as companies across many sectors begin to reopen, a report from F-Secure and Blick Rothenberg warns. The study says hackers are expected to target firms with malware including fake continuity plans and shipping document scams, which can give hackers access to sensitive financial data.
Car spend set to fall
A look at the motor industry as showrooms prepare to open following the COVID-19 lockdown notes a KPMG forecast that total spending on cars could fall by half this year.
Food chains seek rent cuts
Fast-food chains Leon and Pret A Manger are demanding rent cuts from landlords, with the former hiring advisers from restructuring firm Quantuma and the latter calling in Alvarez & Marsal and property consultancy CWM as they look to bring down costs. Meanwhile, Pizza Express has hired Deloitte to look at options, including a CVA.
Pre-pack administration for Everest
Venture capitalist Jon Moulton is set to put his double-glazing firm Everest through a pre-pack administration that will result in about 200 job losses. He has lined up FRP Advisory to handle the process that will restructure Everest’s debts.
Restaurant insolvencies set to surge
UHY Hacker Young has warned that the fallout of the COVID-19 pandemic is likely to deliver a wave of insolvencies across the casual dining sector later this year.
It warned that restaurants will struggle in the face of “big upcoming bills”, warning that the cost of measures to ensure spaces are safe for customers – including upgrading payment systems to allow for contactless billing and ensuring social distancing – could mean a number of businesses are no longer financially viable.
UHY partner Peter Kubik said: “The restaurant sector has been put under huge pressure by this crisis and the lockdown. The sector really needs the Government to formulate proposals that will help the sector bounce back as quickly as possible.”
UHY Hacker Young analysis shows losses at the UK’s top 100 restaurant groups increased by 94% last year, to £151m from £78m in 2018.
KPMG advising on return of departures
Ministers have hired KPMG to establish airport safety measures as they set out rules that will see the return of air travel. The firm will assess whether measures such as face masks, temperature checks or coronavirus tests should be mandatory before travelling from UK airports. With details set to be announced on June 8, KPMG must finalise the plans and obtain approval from the Government’s Sage panel, Public Health England, transport officials and Downing Street.
Big Four face pandemic pressures
Michael O’Dwyer in the Telegraph considers the climate for the Big Four, saying that while experience of remote working meant a “smooth transition” under the lockdown, “returning to some semblance of normality is vital.”
Describing professional services firms as “one of the quiet juggernauts of the UK economy”, he highlights how Deloitte, EY, KPMG and PwC employ 75,000 people in the UK, generate £11.5bn in revenue and pay more than £1bn in tax – as well take on a number of graduates and school-leavers.
With this in mind, he says a slump in business in the wake of the coronavirus pandemic will affect the taxpayer and jobseekers. Mr O’Dwyer says teams dealing with corporate mergers and transactions are quiet, while consultants are “feeling the strain” and finding new projects could prove a challenge.
On opportunities that have arisen during the pandemic in regard to public contracts, PwC, KPMG and Deloitte have won work from the British Business Bank, while EY is reportedly working for the Department for Business, Energy and Industrial Strategy.
ICAEW chief executive Michael Izza comments: “I’m not sure that the public sector is the salvation of people with spare capacity”.
On other workflow, Mr O’Dwyer notes that divisions such as tax, compliance and audit have remained steady, but says a “steady stream of audits is not enough to keep the lights on”, citing Financial Reporting Council figures showing audit fees account for only a fifth of revenues across the sector’s four biggest players.
Brydon: Pandemic increases need for auditing reform
Writing in the Telegraph, Sir Donald Brydon says that the current environment is challenging for auditors, suggesting that many of the challenges reinforce conclusions of his review into the quality and effectiveness of audits.
He notes that recommendations set out in his report seek to deliver a “more trusted, more informative and useful audit”, arguing that an audit “should inform, not just reflect adherence to rules”.
Sir Donald says auditing needs to break free of incrementalism.
He also suggests auditors and users will benefit from recommendations which “create continuity between successive audit reports, provide greater transparency over differing estimations, call out inconsistencies, and reference external negative signals and how they have informed the audit”.
Sir Donald adds that he is encouraged the Government has said it remains committed to audit reform, offering that the COVID-19 pandemic “has only made clearer” the need for his recommendations to be implemented promptly.
UK’s richest 20% spend £23bn less during lockdown
Analysis by the New Policy Institute suggests that the richest 20% of Britons will have reduced their spending by around £23bn after three months of the coronavirus-prompted lockdown.
At the opposite end of the scale, those in the bottom fifth of income will have reduced their spending by just £3.5bn by the middle of June.
Across all income groups, the study suggests £57bn will have gone unspent during the quarter where much of the economy has been shut down.
Report co-author Dan Corry, chief executive of the New Philanthropy Capital think-tank, said: “While it is a matter of judgement exactly what to count, our estimate compiled using official statistics, suggests that the top fifth of households, numbering 5.5m, will have reduced their spending by some £23bn if the lockdown were to last for three months. Those in the second highest fifth of households will have reduced their spending by around £14bn over one quarter.”
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?
For help or advice on credit management, entirely without obligation.
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.
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 cash-flow.
Don’t let your bankers control you, contact CPA today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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 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?
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!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections