Covid-19 business news update 4 May 2020.
4 May 2020.
James Salmon, Operations Director.
During the Covid-19 outbreak we will continue to share (as we can) the business news stories we have seen that we think will affect our members and readers. The news stories you might have missed that might have an impact on SMEs and those that sell on credit.
Markets
Stocks in London closed out the week on Friday negatively after market sentiment was dealt a blow by Trump threatening China with tariffs, and a raft of weak manufacturing data which raised concerns over the state of the global economy.
With major indexes across the world closed for Labour Day, the UK FTSE 100 remained open and ended the day 138 points lower. Wall Street also remained open, with the S&P falling 2.8%
Fears were raised of a further escalation to the US-China trade war when President Trump was questioned over the origins of the global covid-19 pandemic, and speculation that it was linked to a Wuhan laboratory.
When asked about reports that he could cancel US debt obligations to China, the US President said he could act in “a little bit more of a forthright manner – I could do the same thing but even for more money, just putting on tariffs,” he said.
Oil Prices jumped on Friday, extending the previous session’s gains, buoyed by a lower-than-expected gain in U.S. crude inventories and the start of output cuts in a bid to offset a slump in fuel demand triggered by the covid-19 pandemic.
Gold Prices however fell on Friday, giving up early gains en route to its worst week in more than a month on growing optimism that global lockdown measures would soon be eased, leading to an economic bounce.
Manufacturing
UK Manufacturing Sector activity plunged at a record pace in April during lockdown, a closely followed measure of industrial output showed. Factories saw output slump to 32.6 in April, according to Purchasing Managers’ Index data. Below 50 means a contraction.
US Manufacturing Sector activity also slumped at an unprecedented rate in April due to economic shutdowns caused by covid-19.
US factories saw output slump to 36.1 in April, according to Purchasing Managers’ Index data. The fall represents the lowest reading in 11 years, driven by the steepest decline in manufacturing output on record.
Credit card debt
UK Consumer Credit Card Debt fell for the first time since records began in March, as the covid-19 lockdown froze spending. The annual growth rate of credit card lending fell to minus 0.3%, the first negative annual growth since the Bank of England started tracking the data. The annual growth rate of other loans and advances fell to 5.6%.
Vaccine funding
European Leaders are backing an initiative from Brussels to raise 7.5 billion euros to fund the hunt for a vaccine for Covid-19, AFP reports. The president of the European Commission, Ursula von der Leyen, outlined the fund-raising plan for the scientific fight-back against COVID-19 on Friday. Britain, Canada, France, Germany, Italy, Japan, Norway and Saudi Arabia are all joining the European Commission.
Easing the shutdown
Virus deaths continue to decline in Europe, increasing the friction between European governments who want to avoid a second wave of infections forcing them to shutdown their countries again and businesses who need the economy to reopen in order to stay solvent. Spain recorded its lowest one-day death toll from covid-19 since the middle of March. There were 164 fatalities on Sunday, taking the total to 25,264. France (135) and Italy (174) also recorded their lowest fatality numbers in weeks.
The first easing steps in Italy will take place on Monday and Prime Minister Giuseppe Conte is facing a growing revolt from opposition politicians and business being left out of the initial moves.
Here in the U.K. the government is due to set out plans for easing restrictions this week, with a gradual staggered approach expected. The Government will also start free-trade talks with the U.S. as Brexit talks with the EU crawl on.
Boris
Boris Johnson described how he nearly died in hospital from covid-19. Britain’s prime minister said that it was “50-50” at one point whether he should be put on a ventilator; contingency plans had been drawn up in the event of his death. He revealed that one of the names given to his newborn son is a tribute to two doctors who had saved him.
remdesivir
America’s Food and Drug Administration expedited approval of remdesivir, an antiviral drug made by Gilead Sciences, to treat covid-19. A study by the National Institutes of Health showed remdesivir could significantly reduce patients’ stay in hospital (but not mortality). It becomes the FDA’s first authorised therapy for the disease. Gilead is donating 1.5m vials, with millions more to come.
UK Government claims to have met 100,000 testing target
On Saturday the FT looked at the UK’s pledge to carry out 100,000 coronavirus tests a day by the end of April, noting that staff from Deloitte helped co-ordinate the effort.
Long lockdown will shrink economy by a fifth
Analysis by consultancy firm Capital Economics suggests Britain’s economy will shrink by a fifth during 2020 if a full lockdown has to remain in place for a year.
It calculates that each additional month of full quarantining would knock 1.5 percentage points off annual growth.
Ruth Gregory, senior UK economist at Capital Economics, said keeping restrictions in place until April 2021 would see the economy contract by 19.6%.
The report also forecasts that maintaining a full lockdown until the end of June will shrink the economy by 12% over 2020. Capital Economics notes that even with an immediate end to the restrictions, the economy would still shrink by 8.2% during 2020.
Record low for manufacturing
UK manufacturing collapsed in April, with the IHS Markit/CIPS Purchasing Managers’ Index recording a score of 32.6 from March’s 47.8 – the lowest level since the survey began 28 years ago.
On Saturday the Independent’s Ben Chapman says woes in the sector “point to a deep decline in the wider economy,” citing Howard Archer, chief economic advisor to the EY Item Club, who expects the UK economy to shrink by 13% in the latest quarter and 6.8% over 2020
Exports slip in Q1
The BDO export index for the UK has slipped from 106.2 to 91.6 quarter-on-quarter, marking the most significant hit to exports among Europe’s five largest economies.
The index for Italy, Spain, France, Germany and the UK dropped 11 points to 87.2.
Business return could prompt 2021 rebound
Yael Selfin, KPMG‘s chief economist, believes that if coronavirus is contained and a level of business activity resumes by September, the economy will contract by 5% this year and rebound by 7.5% in 2021. However, if activity does not resume until next summer, GDP could drop by 8% this year and halve next year.
BCC calls for public spending increase
The British Chambers of Commerce (BCC) has urged the Government to sustain high levels of public spending to help the private sector recover from the coronavirus crisis.
BCC president Baroness Ruby McGregor-Smith has written to the Prime Minister, saying now is “a time to be bold”, insisting that “an expansionary fiscal policy, including a commitment to transformative infrastructure investment, will be needed…to pay down the national debt in the longer-term”.
The BCC has outlined a three-phase plan to ease the coronavirus lockdown, calling the phases restart, rebuild and renew.
The first two involve a “a phased reopening of the economy” that would include a staggered opening of different parts of the private sector.
Free market think-tank the Institute of Economic Affairs questioned the BCC’s proposals, with economics fellow Julian Jessop saying the call for expansionary fisca l policy was “reckless, not bold” and “would risk another fiscal crisis”
How COVID-19 is escalating problem debt issues
The FT on Saturday looked at the financial pressures brought about by the COVID-19 pandemic, citing Begbies Traynor analysis showing that half a million British businesses are at risk of collapse.
Taskforce targets debt-laden companies
The Sunday Telegraph looked at a taskforce put together by industry lobby group CityUK that will look at ways to recapitalise companies that come out of the coronavirus pandemic laden with debt.
It says the formation of the group, which is under the watch of CityUK chairman Sir Adrian Montague, came after Lloyds chairman Norman Blackwell asked Bank of England governor Andrew Bailey to consider a situation where banks are unable to lend because customers’ debt-piles are too high.
Lord Blackwell comments: “The concern is that businesses which have a significant loss in revenue during the crisis may build up debt which they would struggle to repay”.
He added that to ensure such firms become viable again, there is a need for “some form of recapitalisation, replacing debt with equity or other equity-like capital that doesn’t burden the business with interest and debt repayments”.
The Sunday Telegraph said EY’s Omar Ali has called on his contacts across law, banking, accounting and fund management to volunteer to help the Recapitalisation Group.
A third of SMEs fear collapse in lockdown
Research from Hitachi Capital Business Finance suggests that almost one in three SMEs will struggle to survive between now and the end of June, while 31% are scaling back their businesses due to the coronavirus.
The poll saw 14% of SME bosses say they expect to see growth this year, down from 39% in a survey carried out before the lockdown
Business confidence at all-time low
A Deloitte survey of finance chiefs shows that business confidence has sunk to an all-time low due to the coronavirus pandemic.
The poll of more than 100 finance chiefs at some of the UK’s largest firms, including FTSE 350 companies, shows that nine in ten believe their business faces a high or very high level of uncertainty.
The quarterly poll, which was conducted after the lockdown was rolled out, saw just 16% of respondents say they are more optimistic about their company prospects than they were three months ago.
On average, the CFOs expect revenues at their businesses to be 22% lower than they had estimated before the COVID-19 outbreak, while 98% expect businesses to reduce their capital spending during 2020.
On the economic outlook, 53% foresee a downturn lasting until the end of 2020. On cost cutting, 76% said it is a strong priority, with 59% saying their firm had furloughed staff and 52% saying output had been reduced. Some 30% have sought to – or will seek to – utilise the Bank of England’s COVID-19 corporate financing facility.
Ian Stewart, chief economist at Deloitte, said: “CFOs expect the lockdown to ease in May and June and demand in their own sectors to start recovering later this year. But there is no expectation of a quick snap back in activity, with most CFOs assuming revenues will not return to pre-crisis levels for at least a year”.
Pandemic will see survival-of-the-fittest?
The Mail on Sunday considered the impact the COVID-19 outbreak may have on business and employment after advertising tycoon Sir Martin Sorrell warned that weak firms will be wiped out in a “Darwinian culling” that will see only the strongest firms make it to the other side of the pandemic.
This comes with EY research showing that company profit warnings hit a record 301 in Q1, with this close to the 313 recorded in the whole of 2019 and exceeding 2018’s 287.
EY’s UK head of restructuring Alan Hudson predicts a spike in insolvencies as the crisis has “exacerbated existing weaknesses”.
Howard Archer, chief economist at the EY Item Club, says some policymakers “have sounded cautious about whether the economy will bounce back quickly”, suggesting that consumer caution even once the lockdown has eased “could cause the recovery not to be very sharp”.
SMEs set to run out of cash in weeks
A survey by the Association of Practising Accountants suggests the majority of owner-managed businesses will run out of cash in 12 weeks, while 70% have lost at least half their revenue.
Rule rethink may be rushed out
The Government could push emergency legislation through Parliament as soon as this week to make insolvency rules fit for purpose amid the coronavirus crisis, reported the Sunday Telegraph.
This comes as analysis from Begbies Traynor shows that a record 509,000 businesses were in significant distress by the end of March.
Business Secretary Alok Sharma has pledged a three-month suspension of wrongful trading rules related to directors’ personal liability for debts incurred if firms keep trading while insolvent, and is also promising firms three months “breathing space” to allow them to restructure without creditors enforcing debts.
Firms call for expanded grants scheme
Hundreds of small firms in London have called for an extension to Government support amid the COVID-19 outbreak, saying many firms are at risk of collapse.
In a letter to Chancellor Rishi Sunak, the East End Trades Guild and Guardians of the Arches, a tenants’ association representing businesses based in railway arches, said that while they recognise the “unprecedented scale” of the Government support package and the “many competing demands on the state”, many of the small firms they represent will go out of business in the next few weeks without further action.
They warn that due to high London property prices, many small firms in the capital have a rateable value above the threshold for grants. The groups have proposed a London weighting for business support.
UK pledges extra funds for businesses that share office space
The Government has pledged £617m in grants to help small firms ineligible for existing coronavirus support as they do not pay business rates, adding to the £12.33bn pot for small business grants.
The Business, Energy and Industrial Strategy department said the fund is aimed at small businesses with ongoing fixed property-related costs who are not eligible for business rates relief.
Businesses must have fewer than 50 employees and be able to demonstrate that they have suffered a significant drop of income because of the coronavirus lockdown.
The maximum grant available is £25,000.
Treasury adds bounceback loans to arsenal
With small businesses now able to apply for bounceback loans of up to £50,000, Federation of Small Businesses chair Mike Cherry said the facility “offers real hope” amid the coronavirus crisis.
Business leaders call for furlough extension
Chancellor Rishi Sunak is facing calls to offer increased financial support to businesses as the threat of unemployment and company bankruptcies looms amid the coronavirus pandemic.
Business groups are urging Mr Sunak to extend the Government’s £40bn job-retention scheme in an effort to “give an essential lifeline” to the economy.
The Royal Society for the encouragement of Arts, Manufactures and Commerce has warned that pulling the furlough subsidy too early risked a surge in unemployment rates, while manufacturing trade body Made has detailed the need for a more flexible scheme allowing part-time working to be subsidised to boost factories.
Tej Parikh, chief economist at The Institute of Directors, says a “sharp” removal of the furlough scheme at the end of June could cause “significant problems” for some businesses, proposing instead a tapering off of the system.
“Getting the economy running again won’t be like flicking a switch”, he warned.
Writing in the Observer, Shadow Business Secretary Ed Miliband says the Government “must act urgently with a second wave of support” and “look again at the gaps in current schemes.”
In an open letter to Prime Minister Boris Johnson, the president of the British Chambers of Commerce, Ruby McGregor-Smith, said the Government must ensure schemes “continue to evolve to support a phased restart of the economy”.
Office staff face months of remote work
Ministers are exploring how Britain will come out of lockdown, with many office staff facing several more months of working remotely.
Plans being discussed would also see staggered start times and workforces being split up, working alternate weeks at home or in the office so as to limit the number of people at work and using transport.
On Saturday the Telegraph said EY consultants have reportedly been brought into work with the Business, Energy and Industrial Strategy department to provide detailed guidance for different types of workplaces. The business department will publish its recommendations next week.
City staff face new normal
The Sunday Times looked at the changes City firms may roll out as staff return to work, with Andrew Kail, head of financial services at PwC, saying offices could have occupancy rates of just 25% while desks could be moved to canteens to maintain social distancing.
Firms given back to work guidance
Businesses have been given draft guidance on how to make workplaces safer.
The guidance, prepared by EY, says only staff who cannot work from home should be asked go in; desk sharing should be stopped or reduced; one-way systems should be used to reduce contact; hand sanitisers and screens should be provided for staff; meeting rooms should only be used if necessary; and workplaces should be cleaned more frequently.
Meanwhile, Transport Secretary Grant Shapps says firms could be asked to stagger employees’ working hours when the coronavirus lockdown eases in a bid to prevent crowded commutes.
Cabinet Office minister Michael Gove also touched on the subject in the daily Downing Street briefing, saying consultations are under way with employers, trade unions and public health experts to ensure that people return to work in the “safest possible” environments.
Homeworking shift could see 20% of office space ditched
Businesses are expected to abandon up to a fifth of their office space as part of a permanent shift towards working from home post-coronavirus.
Andy Pyle, head of UK real estate at KPMG, said: “Ultimately, I would expect there will be a need for less office space and also different office space. My guess is that the fall would be somewhere between 10%-20%, on an individual company level on average.”
A string of major employers have said they are already preparing to cut costs by reducing their office estates, with Barclays, St. James’s Place and WPP all exploring changes to working practices.
Office model hangs in the balance after virus
The FT says CEOs may see property portfolios as a good starting point for cost cutting, with a PwC poll showing a quarter are considering cutting back on real estate.
HMRC flooded with WFH tax relief requests
HMRC is being “inundated” with claims from employees working from home during the coronavirus lockdown, with a number of people working remotely seeking tax relief on supplies like office desks, furniture, paper and printer ink.
The Saturday Times said the relief, which is available if a worker can show their purchases are “wholly, exclusively and necessarily” in the performance of their role, has rarely been used but the COVID-19 lockdown has “opened the floodgates to claims.”
Nimesh Shah, a partner at Blick Rothenberg, comments: “Because a large number of people have been forced to work from home during the lockdown, HMRC will be inundated with claims for home working expenses.”
HMRC said it has no precise figures on the number of P87 claims it had received, but says the volume has increased significantly
Treasury to look beyond lockdown
On Saturday Philip Aldrick in the Times considered the measures the Treasury may take as Britain unlocks.
He highlighted that much of the Government’s support package will remain in place for a year or more, with VAT and self-assessed tax payments deferred to 2021, a business rates holiday lasting for 12 months and grants for small business not time-sensitive.
Mr Aldrick said rebuilding will mean higher taxes to fix public finances, citing Blackrock portfolio manager Rupert Harrison who says higher taxes are justified because the pandemic has shown that the state was a “disaster insurer”.
Higher tax would be a form of payment for the service, he suggested.
7 in 10 would pay more tax to boost NHS pay
A poll by Redfield & Wilton Strategies saw 78% of respondents say NHS staff should get a pay rise because of their efforts against coronavirus, with 71% saying they would be willing to pay more tax to cover the cost.
House prices set for post-lockdown rebound
Nationwide has forecast that house prices could rebound after the coronavirus lockdown eases.
Data from Nationwide shows that UK house prices grew 3.7% year-on-year in April, the strongest rate of growth since February 2017, while month-on-month analysis shows a 0.7% increase, with the average UK home worth £222,915 in April compared to £219,583 in March.
The increase in April came despite the coronavirus-prompted lockdown as Nationwide’s data reflects mortgages approved in April but submitted earlier.
Robert Gardner, chief economist at Nationwide, warned that the medium-term outlook is “highly uncertain”, predicting a significant contraction in the short term, but suggested a raft of policies from the Government “should set the stage for a rebound once the shock passes”.
Stamp duty holiday call
The Sunday Express looked at calls for stamp duty rules to be relaxed to support the property sector in the wake of the COVID-19 pandemic.
The Royal Institute of Chartered Surveyors and the National Federation of Builders have called for a stamp duty holiday to come into effect once the lockdown ends, saying this would boost the market, particularly the buy-to-let sector.
Mary-Anne Bowring, group managing director at property firm Ringley, comments: “A stamp duty holiday would no doubt cause a rush of transactions and help breathe life into a housing market that has been put into deep freeze in an effort to battle coronavirus.”
Fraud warning
The Investment Association has advised savers and investors to be vigilant in a bid to “protect their hard-earned savings from ruthless financial criminals” after cases where fraudsters have attempted to use the coronavirus crisis to convince investors to withdraw money.
Blick Rothenberg warns that companies wanting to furlough staff had been sent emails purportedly from HMRC requesting bank account details. The firm’s Fiona Fernie notes: “Neither HMRC nor Government communicates by email or by text unless you have signed up to the relevant protocol with them.”
All change in store after lockdown ends
A Retail Economics poll suggests over a quarter of people will shop differently after the coronavirus lockdown, with PwC’s Lisa Hooker saying a significant minority could change their retail habits.
Breathing space for Intu
Shopping centre owner Intu has secured temporary relief from its lenders, agreeing waivers to avoid debt covenant breaches. The firm has been put under pressure having been paid just 40% of the quarterly rent due to be handed over at the end of March, with many tenants forced to close by the Government under the coronavirus lockdown.
Intu said it was in advanced discussions with tenants over a further 28% of rents, and is discussing repayment plans with others. The firm, which owns 17 shopping centres in the UK and Spain, has parachuted in former PwC and EY consultant David Hargrave as chief restructuring officer.
Airlines
Ryanair, an airline which before the pandemic was Europe’s largest low-cost carrier, announced plans to cut up to 15% of its workforce of 19,000 due to lower demand. The cuts are not as deep as at British Airways, a competitor which is planning to fire 30% of its workforce and which may abandon its second hub at London’s Gatwick airport.
KPMG to serve up support for restaurant
Azzurri Group, owner of Zizzi and Ask Italian, has drafted in KPMG to help it negotiate the coronavirus crisis.
The firm has already suspended payments to landlords and is using the furlough scheme to pay most of its staff. Boss Steve Holmes says KPMG would help the business make the “right decisions at the right time”. Meanwhile, Burger chain Byron is close to collapse, with KPMG set to contact potential buyers tomorrow.
PwC on board for ferry firm talks
The Department for Transport has called in specialist financial advisers from PwC to help negotiate a taxpayer rescue of Dubai-owned ferry operator P&O.
The firm has been drafted in as talks with owner DP World over a £150m bailout risk collapse.
P&O Ferries is targeting around £257m through cost cuts and state aid, with £40m in savings to come from changes to pension payments, while £55m would be saved through changes to working conditions and pay cuts.
DP World wants the balance of around £150m to come from the Exchequer, despite paying £270m to shareholders.
Dolan challenges lockdown
Businessman Simon Dolan, former owner of SJD Accountancy and founder of Dolan Accountancy, has launched a legal challenge to the coronavirus lockdown.
He argues that the restrictions are “draconian”, “paralysing the country” and causing “long term damage”, and has urged the Prime Minister to ease the lockdown so the economy can return to normal.
His lawyers are challenging the Government on: the legality of lockdown, whether it breaches human rights law, and if an exit strategy has been properly considered.
DON’T LET CORONAVIRUS 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).
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