Construction Industry Will Not Be Defined by Carillion Collapse: CPA Success Stories
25 October 2018.
When construction giant, Carillion, collapsed back in January it took the sector’s confidence with it. Small contractors were left in severe financial distress as contracts were lost and invoices were left unpaid. The added worry brought upon by Brexit, cold weather and skills shortages, have only heightened business anxiety.
The Credit Protection Association has played its part in seeing these cracks sealed. Our debt recovery services have recovered old and new debt; chased unpaid invoices and even taken the debtor through litigation when necessary.
Below are some of our most successful stories:-
In October 2018, we were approached by our Member, a building material store. Three of their debtors were refusing to pay the balance on their account and they came to us for assistance. The first debtor, a manufacturing company, put up a fight and ignored the first two letters. Our persistence paid off, however, and within 5 days of the third CPA letter, our Member reported a full repayment. The subsequent debtors that remained were far more complaisant and both paid less than a week after the first letter. We recovered a little under £1800 for our Member, giving the business owners a boost and hopefully the sector as a whole.
While the involvement of a third party like CPA can scare many debtors into paying their invoices, there are others who put up a fight. CPA has heard every excuse, from “I’ve never heard of that company or that debt” to”I’m currently travelling around Chile without internet”. Whatever the reason or excuse, we do not hesitate to investigate. We will fight to the tooth to get our Members paid, and our litigation team gladly enters the ring on their behalf.
Here are a few examples of some successful litigation cases, where we have fought and won:-
In April 2018 we received a case from our Member, a construction equipment supplier. The debt value was £3200 which was overdue by nearly 7 months! The case was processed and promptly sent to our solicitors. An LBA (Letter Before Action) was issued to the debtor and was ignored. A claim was issued. This did the trick and the debtor quickly paid the full debt amount, along with court fees and costs, Late Payment Compensation, interest, membership contribution and CPA’s remuneration. In total, our Member received £4300!
Also in April 2018, we received a case from our Member, a building material supplier. The debt value was £5700 which was overdue by nearly 4 months! The case was processed and sent to our solicitors. An LBA (Letter Before Action) was issued to the debtor and was ignored. A claim was issued. Before the matter was escalated further, the debtor paid full debt amount, court fees and costs, CPA’s remuneration and interest. This all totalled to £7100, which sent to our Member!
The construction sector has had a tough year, but this does not mean it cannot find its way back. The financial distress that was caused by Carillion’s collapse was not a death sentence. Strengthening cash flow and creditworthiness can help secure the sector’s survival, even when Brexit and other obstacles are thrown its way.
The Credit Protection Association utilises debt recovery, credit monitoring and even litigation services to recover debt and establish financial strength. Our Members originate from a range of business sectors, from construction to retail. The business landscape may look bleak right now, but by utilising CPA’s debt recovery services as well as our credit information, the next Carillion can be avoided.
Whether the case goes through our collections team or litigation, at CPA we live by our motto of Prompting Punctual Payment. We get our members paid!
It just goes to show, it never hurts to try. Whether you are retailers or manufacturers, you deserve to be paid for your services!
Do not hesitate to get in contact with us for help and advice.
Please pass the matter to us as soon as possible as the quicker we act, the more likely we are to be successful!
Do you have debts owed to you by your customers? Do you have old outstanding invoices that need chasing? Are you unsure of your debtors’ identity?
We at CPA are pretty good at resolving these issues so why not take a chance? Go ahead and contact us at the Credit Protection Association and we shall see if we can help.
Give us a call on 0330 053 9263 or get in contact.