Covid-19 lock-down business news update 22 June 2020.
22 June 2020.
James Salmon, Operations Director.
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
The UK Government is planning on relaxing its quarantine rules for travellers arriving from some countries in early July. The government is hoping to make an announcement on 29 June that it has secured “travel corridors” with a number of countries. Discussions are currently still continuing between UK officials and their counterparts in EU countries including Portugal. The announcement is set for the day when the government had previously said the current quarantine rules would first be reviewed.
The World Health Organisation reported a record daily increase in the number of covid-19 cases. Over 183,000 new infections were recorded, most of them in the USA or Latin America. Brazil’s coronavirus death count breached 50,000 this weekend. In Brasília, the capital, demonstrators marching against President Jair Bolsonaro had to be kept apart from a pro-Bolsonaro rally
The government is set to outline the next steps on easing its lock-down measures this week, widely expected to include a relaxation of the 2-meter distancing rules and more guidance on masks and perspex screens in shops.
Infection rates in Germany rose with outbreaks in meat facilities and refugee centers, cases in Spain are increasing as its government plans to end its state of emergency and French President Emmanuel Macron’s popularity has sunk further below that of his prime minister.
Markets.
The FTSE100 ended last week positively as investors seemed to shake off concerns of a second wave of virus cases, whilst rising oil prices and a rebound in UK retail sales helped to improve sentiment. Oil prices pushed above $42 per barrel as OPEC promised to cut supplies.
UK retail sales rebounded in May with a 12% month-on-month change, against analyst expectations of 6%.
UK recovery slowest in Europe
Analysts predict the UK will achieve a slow U-shaped recovery rather than the rapid V-shaped rebound as economists cast doubt on upbeat forecasts from the Bank of England and government officials. Ethan Harris at Bank of America reckons the UK will suffer the “worst of both worlds” with the weakest 2020 economic performance in Europe and one of the highest COVID-19 death rates. Elsewhere, Fabrice Montagné, UK economist at Barclays, warned the rebound has “remained in a low gear” despite “signs of pent-up demand”. However, the reopening of shops and schools should provide a “second wind”, he added.
Lord Darling says infrastructure investment will boost recovery
Former Labour chancellor Alistair Darling has said Britain should invest in small “shovel-ready” infrastructure projects to help the economy to recover from the coronavirus pandemic. In a foreword to a report by the Policy Exchange think-tank, Lord Darling said that projects worth less than £500m should be devolved to local authorities. “Wherever possible, central government should hand funds and control to regional and local powers,” he said. “If the government is in favour of levelling up the economy, ministers must recognise that this cannot be done from the top down.” He added: “Increasing taxes will not be the answer, even as the budget deficit and government debt rises.”
Small firms need help with reopening, says FSB
The Federation of Small Businesses has written to Chancellor Rishi Sunak calling for financial help for small firms with reopening as the coronavirus lockdown gradually lifts. Chairman Mike Cherry says: “The majority will face additional costs as they adjust. The government should step in with back to work vouchers so firms doing the right thing can recover this expenditure.” The group also warns that current social distancing rules make it impossible for 400,000 of Britain’s small businesses to reopen. Writing in the Telegraph, Mr Cherry explains how, with the right support, “small businesses can lead us out of this crisis.”
Small businesses raid savings to stay afloat
A survey by Redwood Bank has found nearly half of small businesses have had to raid their savings to stay afloat during the coronavirus pandemic. It estimates as much as £22.4bn has been withdrawn from corporate deposit savings accounts to pay bills. Gary Wilkinson, chief executive and co-founder of Redwood, said: “With no or little income, many are desperately trying to stay afloat and have had to tap into their savings to pay costs and keep going.”
Sunak set to follow VAT stimulus with autumn tax rises
With reports that Rishi Sunak is considering a cut to VAT to boost the economy as it lumbers out of its slump, retailers are warning that the move could result in extra cash-handling that could increase the spread of coronavirus. Bosses at Primark have reportedly said a VAT cut in Germany saw staff at its stores there handle more cash because prices were no longer in round numbers. The effectiveness of a VAT cut in shifting consumer behaviour has also been questioned with some analysts dubious that a reduction would lift consumer confidence, which has moved little despite retailers already discounting heavily. Meanwhile, former chancellor Alistair Darling has backed the idea of a VAT cut, adding that the coronavirus crisis will result in an “even more profound shock” to the UK than the 2008 financial crisis. Finally, the FT reports that a cut in the VAT rate will come with deferred tax rises and cuts to public spending in the Autumn Budget.
Treasury officials along with HMRC have been told to prepare to cut VAT for a fixed period to help the economy rebound from the coronavirus pandemic. The Chancellor, Rishi Sunak, also discussed slashing business rates in private briefings last week, the Sunday Times reports. The cut to VAT would include zero rating more products as well as a cut to the headline rate. Other proposals being worked up include extending a scheme under which businesses can defer VAT for three months, cutting employer’s national insurance to encourage bosses to hold on to staff and introducing an employer’s national insurance holiday for new staff to encourage recruitment. Former chancellor Sajid Javid says in an interview with the same paper that VAT should be cut from 20% to 17% for a year, arguing that it would “turbocharge growth”.
Business Secretary announces new takeover laws
Alok Sharma, the Business Secretary, writes in the Mail on Sunday on how the law will be changed to allow the government to intervene more easily in takeovers of UK companies if the acquisition is deemed to impact the UK’s ability to combat public health emergencies. Mr Sharma writes: “In recent years, the UK has made big leaps in three emerging areas critical to our national security: artificial intelligence, cryptographic authentication technology and advanced materials.” A new law to lower the threshold for intervention on turnover and share of supply for these three areas will give government the oversight it needs, he adds. “These measures will address national security risks in the short-term, before I set out further plans in the forthcoming National Security and Investment Bill.”
Government plans retraining “revolution” to help workers find alternative careers
Downing Street is working with the Treasury and the Department for Work and Pensions on plans for a retraining “revolution” amid fears millions more could be made unemployed this autumn as the government’s Job Retention Scheme for furloughed workers comes to an end. Proposals under consideration include helping those who are made redundant to retrain to work in other areas or industries and providing workers with an education allowance to carry out that training. Minsters are also considering a wage subsidy that could tempt firms to take on more apprentices. Separately, Labour MP John McDonnell and Green MP Caroline Lucas have urged the Chancellor to introduce a four-day working week as a way to overhaul the economy in the wake of the coronavirus pandemic.
Closing tax gap would help fill Covid hole
The Daily Express talks to tax experts who say the government should crack down on multinationals avoiding tax in the UK through profit-shifting, which Paul Monaghan, of tax transparency group Fair Tax Mark, says costs the Treasury £7bn a year. Atul Shah, an adviser to the Global Tax Justice Network and professor of finance and accounting at City University in London, argues that HMRC needs to access better talent to take on the corporates which “hire the best lawyers and accountants to get around every rule.” Professor Shah forecasts a tax gap of £100bn, which would have a huge impact on filling the black hole left by COVID-19. He said: “The problem is, it’s so difficult to calculate these things. So usually they’re very big underestimates.”
Debt worth more than the economy
The UK borrowed a record £55.2bn in May, nine times more than in May 2019. May’s borrowing took total Government debt to £1.95trn – or 100.9% of GDP, with national debt now worth more than the economy for the first time since 1963. While Government expenditure included funding for support measures rolled out amid the coronavirus crisis, income from tax, National Insurance and VAT fell, with HMRC data showing tax payments were down £16.2bn – or 43% – on the same period last year. The Office for National Statistics estimates that borrowing for the 2020/21 financial year will hit £298bn, while the EY Item Club has predicted borrowing of £320bn and warned “it could well exceed this level”. ICAEW public sector director Alison Ring noted that the Treasury had spent more cash in April and May than in the previous three financial years combined. Chancellor Rishi Sunak said May’ s figures “confirm that coronavirus is having a severe impact on our public finances.” Alex Tuckett of PwC comments: “In the near term, there are signs the economy is recovering as the country re-opens, and this should boost tax receipts,” but noted that the data for May “remind us that Chancellor Rishi Sunak faces a difficult backdrop to any summer fiscal event.”
Retail sales bounce back
British retail sales rebounded last month, with a stronger than forecast increase as the country gradually relaxed its coronavirus lockdown. The Office for National Statistics said that sales were up 12% last month, compared to April, which saw an 18% fall in sales. Despite the upturn, sales in May were still 13.1% down on the same month a year ago. Sales at non-food stores increased by 24% in May, but were still 42% down on a year earlier, with clothes stores the hardest-hit category, down by more than 60%. Online sales represented a third of all spending, a new record. In the three months to May, overall sales fell by 12.8% compared with the previous quarter .
BAME lobby want end to inequality in access to finance
The Ubele Initiative, a social enterprise that promotes the interests of BAME communities in Britain, has written to Rishi Sunak, other government ministers and the chief executives of Britain’s largest lenders to demand action to improve credit provision and other support for black, Asian and minority ethnic entrepreneurs. The group called for banks to capture data on the ethnicity of their business customers and to compare it with those that are accessing lending. It also warned that BAME businesses may need additional support “due to historic and systemic disadvantage”. Stephen Pegge, managing director of commercial finance at UK Finance, the industry body, said: “It is clear that there is still more work to do to improve diversity and inclusion. UK Finance is committed to continuing to work with our members to address inequality in the industry.” Meanwhile, a survey by Business in the Community has found that 1.5% of senior managers, director s and officials are black – barely higher than the 1.4% of five years ago.
Funding applications from female entrepreneurs halve
Figures obtained by the Telegraph show the number of applications from women to Virgin StartUp, which provides funding for entrepreneurs, has halved since the start of the coronavirus lockdown, while for men applications were down just 17.5%. Dame Jayne-Anne Gadhia, the former boss of Virgin Money, told the paper that there should be a tax incentive for “relevant City firms” to set up funds especially for female innovation as the “old boys network is alive and kicking”. “Most of the money available for investment is managed by men and they tend to invest with ‘people like them’,” she said. “I suspect lockdown has simply exacerbated these behaviours.”
UK leads Europe on financial services investment
A study by EY has found that the UK was Europe’s most attractive location for financial services investment last year, attracting 99 projects compared with Germany, which came second with 43. The US contributed a third of the investment in the UK. London receiving the bulk of UK-focusses investment with 67 projects in all – Paris recorded 29. Omar Ali, UK Financial Services Managing Partner at EY, said: “The UK has again performed strongly on financial services FDI and, crucially, should remain in a good position to continue attracting investment this year, despite the challenges posed by COVID-19 and a weaker economy. Financial Services remains one of the most important sectors supporting and driving economic growth in the UK.”
At least 50 MPs oppose changes to Sunday Trading laws
The Daily Telegraph reports that at least 50 Conservative MPs have written to Boris Johnson stating that they will vote against the Prime Minister’s plans to relax Sunday Trading laws. The proposals aim to provide a boost to retailers as the COVID-19 lockdown continues to ease. However, the MPs argue that relaxing the laws would “harm local shops and high streets by displacing trade to large out of town retail parks and supermarkets”.
Insurers vs small businesses: a high-stakes battle over lockdowns
The FT reports on how insurers around the world are facing claims they have reneged on business interruption policies following the coronavirus pandemic, with small business in the UK minded to stop buying such cover.
Tokyo seeks to lure financial groups from crisis-hit Hong Kong
Japan is considering a range of measures to persuade asset managers, traders and bankers to move from Hong Kong to Tokyo, including visa waivers, tax advice and free office space.
UK launches export support for agri, food and drink industry
The Department for International Trade and Department for Environment, Food and Rural Affairs has announced a series of support measures to help businesses in the agriculture, food and drink industry to recover from the coronavirus-induced economic downturn. Immediate support will be available to those wishing to expand overseas with measures including specialist webinars and virtual buyer trials.
FRC mulls plans to require reporting on ethnicity
The Financial Reporting Council will discuss with government ministers its plans to introduce new reporting requirements around ethnicity after the regulator’s CEO Sir Jon Thompson described efforts by large companies to hit diversity targets as “poor”. The Sunday Telegraph reports that any new measures will be introduced as part of the FRC’s Corporate Governance Code. Changes being considered include new requirements to disclose the ethnic balance of those in senior management roles, in line with recommendations made in the government-backed Parker Review. David Styles, director of corporate governance at the FRC, said: “We are carrying out an in-depth analysis of the new code. We are specifically going to focus on diversity. We expect to see high-quality reporting on all aspects of diversity. If this does not happen, then we are going to have to look at what we do in the future in terms of getting ¬better- quality reporting.”
Corporate Britain under pressure to make real change
The Observer reports on how recent protests over racial inequality are impacting corporates around the world, many of whom are acknowledging for the first time how they may have benefited from past injustices, such as the slave trade. Following the Black Lives Matter protests, the UK’s Confederation of British Industry and the Institute of Directors have urged all British firms to look to their pasts. “This time feels different,” says Mary Agbesanwa of PwC. “Companies have realised that it’s not good enough to just not talk about race.” Suki Sandhu, boss of the consultancy INvolve, says companies are under pressure from staff to act: “In the past, companies might have wanted to do something about race but haven’t known how and there hasn’t been that catalyst. Now there has.” Mr Sandhu, Ms Agbesanwa and Kanya King, founder of the Mobo music awards, all agree companie s should be required to publish workforce diversity data. “We need to see the data in their annual reports so we can hold them accountable,” says King. “That’s a chance to shine a light on inequality. When we had gender pay gap reporting, that was pretty astonishing.”
Business leaders make diversity pledge
PwC chairman Kevin Ellis, Bill Michael and Melanie Richards – chairman and deputy chairwoman of KPMG UK respectively, Simon Roberts, the chief executive of Sainsbury’s and ITV boss Carolyn McCall are among the signatories to a letter pledging action to remedy systemic racism in their businesses. They write: “For years, diverse voices have pleaded for action on ethnic-minority inclusion in business. The sad truth is that organisations have not been ready to have a challenging and frank conversation about systemic racism within the four walls of their own offices. This cycle of inaction and disengagement must end. As business leaders, we need to talk about white privilege. We need to talk about racism. We need to talk about the role we have played in maintaining this system for so long. Finally, we need to talk about how we will change. By signing this letter, we pledge to set targets for diverse candidate slates for every vacan cy in our companies. Now is the time to act.”
Go Outdoors on brink of collapse
Restructuring experts from Deloitte have been lined up by Go Outdoors as the retailer teeters on the brink of collapse. JD Sports bought Go Outdoors in 2016 for £112m. The chain employs 2,400 staff across its 67 stores.
Business lobby calls for cut to National Insurance bill
The Federation of Small Businesses (FSB), the Institute of Directors (IoD) and the British Chambers of Commerce have all called on the Treasury to make cuts to National Insurance bills in the mini-Budget next month. Jon Geldart, director general of the IoD, said: “While the Government may want to hold off pulling some economic levers until later in the year, directors have to make hiring and investment plans in advance. The Treasury should act now to ease the cost of employment and help firms keep people on board.” Mike Cherry, FSB’s national chairman, said: “Protecting jobs has to be a top priority.”
HSBC sued for £1.3bn over film scheme
HSBC is facing a legal claim after the bank’s private banking arm promoted a Disney film financing scheme which has seen investors billed for as much as ten times their investment from HMRC. Law firm Edwin Coe, which is representing 371 of the 750 affected, has filed a £1.3bn claim.
RBS helped fraudsters cheat the taxman
Royal Bank of Scotland may have to pay out millions after the High Court found the bank guilty of offering fraudsters “dishonest assistance” in cheating the Revenue of £45m in VAT in a carbon tax scam in 2009. RBS is being pursued by Grant Thornton, acting for the Revenue.
The Mail on Sunday, Page: 124
Pressure on auditors and boards must be maintained
The Sunday Times’ Oliver Shah says with the audit sector under more regulatory pressure than it has faced for years two of the biggest critics of the audit market have stepped down from their oversight roles. Simon Dingemans has left the Financial Reporting Council and Andrew Tyrie has announced his departure from the Competition & Markets Authority in September. Shah says recent failures at NMC Health and Wirecard “underline the importance of keeping up the pressure on auditors and boards.” He adds: “Whoever takes up the baton from Dingemans and Tyrie must think about the problem in the round and make sure bosses, as well as auditors, are held to account.”
Specialist lenders call for parity with big banks
Non-bank lenders are to meet Treasury officials this week as they lobby for access to ultra-cheap funding from the Bank of England and the same loan guarantees provided to big banks. Stephen Haddrill, director general of the Finance & Leasing Association (FLA), warned: “Non-banks are stretched between providing forbearance, satisfying the people they get their funding from, and trying to satisfy demand for new lending.” He goes on to say that some non-bank lenders are “not far off” the point of not being able to offer new lending. Specialist consumer lenders also want access to cheap Bank of England funding. Consumer Credit Trade Association chief executive Greg Stevens said: “Specialist lenders like my members are at a huge disadvantage, they cannot access the near-free Government funding facilities available to the banks. As a result, they have significantly higher costs of capital, which pushes up borrowing costs for customer s.”
Barclays tightens rules on buy-to-let mortgages
Barclays is to slim down its mortgage offering later this month by halting lending to private landlords looking to buy properties with more than one unit and to limited-liability partnerships. The bank will also stop giving mortgages to buy-to-let landlords who buy property through their own limited company, a method which became attractive for gaining relief on mortgage interest – a tax treatment that is being phased out for individual landlords. Experts say lenders are moving to cut their exposure to the economic fallout from the coronavirus pandemic.
Executives back rates rethink
A survey carried out by BDO shows that 84% of executives believe that the business rates system should be overhauled, with the levy replaced by an online sales tax. The Times’ Callum Jones notes that the tax on commercial property, which pulls in £30bn a year, weighs heavier on town centre entities than those operating online or out of town. He also says the coronavirus crisis has intensified calls for a rethink of the tax, with physical stores hit by the lockdown which saw online shopping soar, boosting digital retailers. The Government has granted a year-long rates holiday so as to help businesses amid the pandemic but there are calls for a wider, more permanent reform of the system. Paul Falvey, tax partner at BDO, comments: “There is widespread consensus that digital companies should pay more tax, but the key will be how,” adding that the poll shows business leaders “deem it logical for digital companies to pay tax based on their online sales to help the economy to recover.”
PwC helping rugby through trying times
Premiership Rugby (PRL) has hired PwC to manage the post-lockdown restart to the season and will work with the firm until the first match on August 14. PRL has drafted in PwC having decided that it does not have the internal resources or expertise to manage an exercise of such scale and complexity. The Guardian says it is understood PwC has a broad remit with a particular focus on legal issues, risk management and COVID-19 testing procedures.
Hilco makes £1m on Oasis and Warehouse sale
Restructuring firm Hilco made a profit of nearly £1m from its brief ownership of Oasis and Warehouse, having snapped the brands up in April before selling them to Boohoo this week. A report from administrators at Deloitte shows that the firm had received a higher offer than Hilco was prepared to pay but this had conditions including a trading strategy that made it a riskier option.
The Times, Page: 51
Wirecard woes
Several papers reflect on issues at Wirecard, with an accounting black hole having been uncovered at the payments firm. Auditor EY this week delayed publication of Wirecard’s financial accounts for the fourth time after finding that €1.9bn was missing from the balance sheet. KPMG was last year hired to conduct an independent audit of Wirecard’s finances in response to allegations of accounting inaccuracies but was unable able to obtain enough information to fully address the claims. Wirecard CEO Markus Braun, who is also the group’s largest shareholder, yesterday resigned.
Travelodge landlords back CVA
Travelodge landlords have approved the hotel chain’s CVA, agreeing to vote for the deal, which includes temporary rent cuts, after Travelodge gave them the option to break leases on the majority of the 564 hotels it operates in the next five months. Shareholders have agreed not to take money out of Travelodge before it returns to paying full rents in 2021.
FCA extends payment holiday
The Financial Conduct Authority (FCA) has told banks and credit providers to extend payment holidays until October as people continue to feel the financial impact of the COVID-19 pandemic. While a policy that allows those whose income has been hit by the lockdown was expected to be wound up at the end of July, the watchdog has proposed an extension of the support window. The FCA says lenders will be expected to continue offering repayment breaks, as well as offering support to those yet to request it. While the extension covers credit cards, store cards, personal loans and overdrafts, the FCA is yet to update separate guidance on motor finance, payday loans, rent-to-own, pawn-broking or buy now pay later. Figures show 4.2m people have taken advantage of the repayment breaks to date.
Tax in testing times
With research showing that the lockdown has driven a surge in divorce enquiries, with a 42% increase compared to last year, BDO’s Vanessa Lee looks at the financial implications of a separation, saying that while tax issues may not seem a priority, “they’re an extremely important factor”.
Smuggling fears over Irish border
The Government has been warned that delays to an IT system could see a post-Brexit “smugglers’ charter” on the Irish border. While HMRC is updating computer systems that will monitor goods crossing the border between Northern Ireland and the Republic once Britain leaves the EU, Simon Sutcliffe, customs and excise partner at Blick Rothenberg, says the Government is not ready to deliver the digital customs regime. He said that while smuggling between the north and the south has always existed, “now we have a situation where the days of a porous border return with a renewed intensity.” The I cites an HMRC insider who says the new customs declaration service “is not only delayed, it is also does not talk to other systems in HMRC.” The tax office source adds that there is “no way” HMRC is ready to implement a digital customs system that will prevent goods from getting across the border.
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
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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