Iconic events in the last few months have brought British people out into the sunlight, purchasing food, beverages and garden equipment to enjoy the good weather. Wimbledon, the World Cup and the Royal Wedding all inspired an uplift in the retail sector, with tennis and football fanatics viewing the games in the comfort of their own home and needing the facilities to accommodate friends and families.
This provided some temporary respite for retailers, with profits soaring while consumers enjoyed the hot summer nights.
Unfortunately, rainy days have replaced the Summer rays and retailers have returned to feeling the pinch. Insolvency procedures such as the Company Voluntary Arrangement (CVA) has become the popular accessory for every business owner circling the drain.
The CVA provides the business owner with reduced rent and the breathing space to pay off creditors. The restructuring procedure is not without risk, however, negatively impacting the credit ratings of their clients and posing a severe threat to any future business projects.
There are alternative options for firms in financial distress. Here at the Credit Protection Association, we provide our Members with a lifeline rather than a reduced life sentence.
Back in October 2017, our Member, a local bakery, approached us with a five-year-old debt. Despite the age of the debt, only 5 days after the 1st CPA letter was sent our Member received the full amount!
A similar occasion occurred last October with our Member, a paint store. The case involved two separate debtors, averaging over £280 altogether! The debt was already 5 months old and our Member wanted it resolved quickly. Their wish was granted when less than a month after the first and second CPA letter was sent to the debtor, the full amount was paid!
Also last year, we were approached by our Member, a garden machinery supplier. This time the amount was an impressive £3200 and our Members wanted it recovered as soon as possible. While the first CPA letter failed to make an impact with the debtor, less than 24 hours after the second letter was sent, the amount was paid in full!