County Court Judgments rose 27%
James Salmon, Operations Director, 19/02/19.
Figures show that county court judgments rose against companies rose 27% in 2018, hitting 93,534!
Those poor stressed and overworked lawyers!
County court judgments (CCJs) are a court order taken out against someone who owes money.
A rise in CCJs would indict a rise in late payments and more bad payers withholding payment of outstanding amounts.
However CCJs against unincorporated businesses fell 1% to 31,849.
Also, significantly, the average value of an adverse business county court judgments rose 25% to £3,737.
Those handy with a calculator or a spreadsheet will be able to confirm that the total value of business county court judgments rose to £468.6 million – an increase of 49% on the previous year.
Mick McAteer, deputy chairman of the Registry Trust, said: “The number of county court judgments issued in a year is an indicator of how the economy is performing. While the total of judgments against businesses was up significantly, this was counterbalanced by the fall in judgments against unincorporated organisations.”
A 1% fall in the one doesn’t really counterbalance the 37% rise in the other though does it!
Business owners will recognise the danger signs and want to act.
If you are owed money by another business, chase it now.
Do not procrastinate.
Your debtor likely owes money to plenty of other businesses. Do you think they are procrastinating?
Who will your debtor pay with their limited funds? The creditor who chases vigorously or the creditor who lets him keep his money and doesn’t make a fuss?
How can CPA help?
You provided the services or goods so you are entitled to payment.
And you are entitled to expect it on time.
We at the Credit Protection Association (CPA) recommend that you chase payment immediately it is due.
Why, you can even give a reminder just before the payment date to “help” your debtor remember to pay.
Don’t sit on your hands waiting – sorry – hoping for payment to come. Take action.
And if they don’t respond? Use a third party agency like CPA.
The Credit Protection Association has been helping small firms get paid since 1914 – that’s 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.
CPA helps our clients take out hundreds of CCJ’s a year. But to be honest that is only a fraction of the debts referred to us. Every day we send out thousands of letters and emails to late payers, chasing payment.
Although you’ve probably never seen one as you like to pay people on time.
Of those thousands of debts chased every day, only a small percentage need to get to the final stage of legal action.
We get our members debts resolved. We can get your debts resolved too.
And it’s all included as part of your membership.
By chasing early, you avoid the expenses of CCJs, by which time it may be too late.
CPA can help you avoid bad payers and we can encourage and speed up late payers.
We can get those late overdue invoices owed to you by your customers paid and into your bank account, giving you the cash flow to boost your business.
But we can go further. We can help you recover debts that you didn’t even know existed!
If you have supplied your goods and services to businesses on credit and were regularly paid late then you could be due significant sums in late payment compensation.
Our late payment compensation division is talking to small companies every day and unearthing claims in the hundreds of thousands of pounds from former business customers who paid them late. Large business customers who abused their power to inflict unfair and sometimes illegal payment practices.
Those former customers used your business, used late payment of your invoices to boost their own cashflow, regularly paying you late.
You probably just accepted it as a cost of doing business. Sure ,you had to pay staff to chase payments, sure, you had to pay collection costs, sure you had to spend time chasing yourself, reviewing it, stressing over it. But that was just a cost of doing business, right?
No, its not. You are entitled to be paid on time and if you are not, then under late payment legislation, you are entitled to compensation for those late payments.
That compensation can be claimed retrospectively too.
CPA have developed unique technological systems that can interact directly with over 300 different accounting packages to extract the data to calculate the compensation you are owed.
We then have then can use extensive experience to recover those claims from your former business customers.
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 restaurants, help us help you identify the risks.
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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